I tried following but no success :
Thanks ! This article https://powerautomate.microsoft.com/en-us/blog/environment-variables-in-custom-connectors/ in the last section also talks about limitation on environment variables in custom connector.
Thus environment variable can only be used in hosturl , baspath and connection parameters . Also while saving/updating only updated environment variable values gets reflected in it otherwise it uses old values only.
I do not think it is possible, but I can't find information on this limitation.
Documentation on policy do not clarify if it supports environment variables or not (or this limitation is omitted). And because referring to variables that does not exist produces an error, but correctly referring to an existing variable do not produce an error, it may imply that variables can be used. Only when running tests you realize that whatever property the policy affects is blank.
The question about variables in the documentation has been raised before, but was pointed to this forum not sure if this has been answered in here, but the documentation has not changed as far as I can see:
https://github.com/MicrosoftDocs/BusinessApplicationPlatform-Connectors-public/issues/489
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