Setting a variable in ADF for Snowflake connector

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I am trying to create a pipeline where I have added 3 variables at Pipeline creation level and now am trying to create 'Set Variable' activity. I am using the variable (null_rep_text) created at pipeline level and giving it a value ''. However, when I preview my source query in copy activity (where I am using this variable), I get an error message : "Session variable '$NULL_REP_TEXT' does not exist Activity ID: 8e03c54b-a694-4997-87ac-88aa1772a438" . Any pointers to what might have gone wrong?

I am using Snowflake connector while trying to achieve the above.

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