unable to authenticate with digitalocean when using terraform

I was previously able to use terraform 0.11 with digitalocean. I have since updated the terraform version to 0.13.5 and updated the digitalocean provider. However, after this change, I am not able to provision any resource as I am getting a 401 error from digitalocean. I have even tried using a new authentication token but that produced the same result.

Error: Error creating droplet: POST https://api.digitalocean.com/v2/droplets: 401 Unable to authenticate you

versions.tf

terraform {
  required_providers {
    digitalocean = {
      source  = "digitalocean/digitalocean"
      version = "1.22.2"
    }
  }
  required_version = ">= 0.13"
}

I have modified the TF_LOG value but that has not provided any additional details to help debug the issue. Any ideas on how to troubleshoot this further?

I have even tried removing the token from the terraform.tfvars file which forces the token to be requested when terraform apply is invoked. However, the result was the same i.e. unauthorized response.

The token is valid as I am able to use it with curl but not with terraform 0.13.5 and digitalocean provider 2.2.0.