Exception setting item level permission through PowerShell

Hello Everyone,

I am facing issue when setting item level permissions on an item in document library using PnP PowerShell script - "Exception calling "ExecuteQuery" with "0" argument(s): "The underlying connection was closed: An unexpected error occurred on a receive."

Scenario - Document Library > Enabled with Document Set Content Type > Item level permissions are to be set on the Document Set item

Library - 2600 items are available

As per SPO limits, 50,000 is item level permissions hard limit & 5,000 is recommended. But, here in this scenario i have only 2600 items.

This issue is happening very frequently - Sometimes it runs without any issues in first go and sometimes at 3rd time, 5th time etc. And when i have executed the same logic using a simple MS Flow action and it is successful in fraction of seconds. Issue is observed only from PS script execution.

Any idea on this issue - Did anyone come across this?

Thanks & Regards,

Bhanu