How to execute sqlcmd in Powershell with different domain user credentials

Question

I have a SQL script which I need to execute with credentials that I retrieve from registry.

To store them in the registry

$secureCredential = Get-Credential -Message "Enter service account credential as DOMAIN\Username format."
$credentialName = Read-Host "Enter a name for this credential"
$securePasswordString = $secureCredential.Password | ConvertFrom-SecureString
$userNameString = $secureCredential.Username
New-Item -Path HKLM:\Software\$OrgName\Credentials\$credentialName
New-ItemProperty -Path HKLM:\Software\$OrgName\Credentials\$credentialName -PropertyType String -Name UserName -Value $userNameString
New-ItemProperty -Path HKLM:\Software\$OrgName\Credentials\$credentialName -PropertyType String -Name Password -Value $securePasswordString

To Retrieve

$secureCredUserName = Get-ItemProperty -Path HKLM:\Software\MyCompany\Credentials\TfsBuildAgent -Name UserName
$secureCredPassword = Get-ItemProperty -Path HKLM:\Software\MyCompany\Credentials\TfsBuildAgent -Name Password
$dbCreatorUserName = $secureCredUserName.UserName
$dbCreatorPassword = ConvertTo-SecureString -String $secureCredPassword.Password

Due to DB permission the script has to be executed with these credentials. So I retrieve them from the registry:

$secureCredUserName = Get-ItemProperty -Path HKLM:\Software\MyCompany\Credentials\TfsBuildAgent -Name UserName
$secureCredPassword = Get-ItemProperty -Path HKLM:\Software\MyCompany\Credentials\TfsBuildAgent -Name Password
$dbCreatorUserName = $secureCredUserName.UserName
$dbCreatorPassword = ConvertTo-SecureString -String $secureCredPassword.Password
$credential = New-Object -TypeName System.Management.Automation.PSCredential -ArgumentList $using:dbCreatorUserName, $using:dbCreatorPassword

Then attempt to execute sqlcmd using Invoke-Command so that I can provide the domain credentials:

Invoke-Command -ComputerName $env:ComputerName -EnableNetworkAccess -Credential $credential -Authentication Default {sqlcmd.exe -b -S 'db-systest' -i C:\Database\Database_Package.sql -E -v }

But get Error:

Microsoft ODBC Driver 11 for SQL Server : Login failed for user 'NT AUTHORITY\ANONYMOUS LOGON'..

I have tried both -Authentication Default and -Authentication Negotiate, the server does not support Kerberos and CredSSP is prohibited by domain policy.