Dnf doesn't pick up credentials stored in dnf.conf

[ashuk2000]

So I have a yml file where repo info is configured.

`
version: '2'
mpp-vars:
distro_name: rhivos
distro_copr_tree: epel
distro_version: 9
distro_baseurl: https://qartifactory.com/ER4
distro_baseurl_repo: $distro_baseurl/RHIVOS/$arch/os/
distro_repos:

• id: rhivos
  baseurl: $distro_baseurl/RHIVOS/$arch/os/
  priority: 10
• id: automotive
  baseurl: https://mirror.stream.centos.org/SIGs/9-stream/automotive/$arch/packages-main/
  distro_devel_repos: []
  distro_debug_repos:
• id: rhivos-debug
  baseurl: $distro_baseurl/RHIVOS/$arch/debug/
  priority: 10
  distro_module_id: platform:el9
  osname: rhel
  uefi_vendor: redhat
  linux_firmware_rpm: linux-firmware
  release_rpm: redhat-release
  `

This repo needs a username and password to be accessed which I have provided in /etc/dnf/dnf.conf

[qartifactory]
baseurl=https://qartifactory.com/ER4/RHIVOS/aarch64/os
name=rhivos
username=dummy-username
password=dummy-password

but when I build the image dnf gives error saying can't download the metadata,

if I embed the credentials in the url itself and put that in the yaml file it works fine. But I don't want to hardcode credentials in the yml

What am I doing wrong