The problem happens when the connectionName is different than the parameter $connections name. In my case the parameter $connections name was "azureblob_1", but the connectionName was "azureblob-1". The workflow definition itself refers to the parameter $connections name (azureblob_1), so I changed the parameter $connection to use that instead of connectionName. I added a test file with a new test for this scenario as well.
The problem happens when the connectionName is different than the parameter $connections name. In my case the parameter $connections name was "azureblob_1", but the connectionName was "azureblob-1". The workflow definition itself refers to the parameter $connections name (azureblob_1), so I changed the parameter $connection to use that instead of connectionName. I added a test file with a new test for this scenario as well.