Creating username & password using script in mysql fails with ERROR 1045 (28000): Access denied

Below is my running mysql instance:

sudo systemctl status mysqld
● mysqld.service - MySQL 8.0 database server
   Loaded: loaded (/usr/lib/systemd/system/mysqld.service; disabled; vendor preset: disabled)
   Active: active (running) since Thu 2022-09-22 16:49:09 UTC; 9s ago
  Process: 229030 ExecStartPost=/usr/libexec/mysql-check-upgrade (code=exited, status=0/SUCCESS)
  Process: 228946 ExecStartPre=/usr/libexec/mysql-prepare-db-dir mysqld.service (code=exited, status=0/SUCCESS)
  Process: 228921 ExecStartPre=/usr/libexec/mysql-check-socket (code=exited, status=0/SUCCESS)
 Main PID: 228984 (mysqld)
   Status: "Server is operational"
    Tasks: 39 (limit: 24879)
   Memory: 390.6M
   CGroup: /system.slice/mysqld.service
           └─228984 /usr/libexec/mysqld --basedir=/usr

Sep 22 16:49:08 SGGS systemd[1]: Starting MySQL 8.0 database server...
Sep 22 16:49:09 SGGS systemd[1]: Started MySQL 8.0 database server.

Below are mysql packages that are installed.

$ yum list installed | grep mysql
mysql.x86_64                                8.0.26-1.module_el8.4.0+915+de215114     @appstream
mysql-common.x86_64                         8.0.26-1.module_el8.4.0+915+de215114     @appstream
mysql-errmsg.x86_64                         8.0.26-1.module_el8.4.0+915+de215114     @appstream
mysql-server.x86_64                         8.0.26-1.module_el8.4.0+915+de215114     @appstream

Below are the configuration files:

$ cat /etc/my.cnf
#
# This group is read both both by the client and the server
# use it for options that affect everything
#
[client-server]

#
# include all files from the config directory
#
!includedir /etc/my.cnf.d

and

$ ls -ltr /etc/my.cnf.d
total 12
-rw-r--r--. 1 root root 295 Dec 17  2020 client.cnf
-rw-r--r--. 1 root root 565 Sep  1  2021 mysql-default-authentication-plugin.cnf
-rw-r--r--. 1 root root 612 Sep  1  2021 mysql-server.cnf

$ cat /etc/my.cnf.d/*
#
# These two groups are read by the client library
# Use it for options that affect all clients, but not the server
#


[client]

# This group is not read by mysql client library,
# If you use the same .cnf file for MySQL and MariaDB,
# use it for MariaDB-only client options
[client-mariadb]

#
# MySQL 8.0.4 introduced 'caching_sha2_password' as its default authentication plugin.
# It is faster and provides better security then the previous default authentication plugin.
#
# Until now (09/2018), it does not work with some other software (eg. MariaDB client, MariaDB connectors,  ...)
#
# This configuration file changes MySQL default server configuration, so it behaves the same way as in MySQL 5.7.
#
# To change the behaviour back to the upstream default, comment out the following lines:

[mysqld]
default_authentication_plugin=mysql_native_password
#
# This group are read by MySQL server.
# Use it for options that only the server (but not clients) should see
#
# For advice on how to change settings please see
# http://dev.mysql.com/doc/refman/en/server-configuration-defaults.html

# Settings user and group are ignored when systemd is used.
# If you need to run mysqld under a different user or group,
# customize your systemd unit file for mysqld according to the
# instructions in http://fedoraproject.org/wiki/Systemd

[mysqld]
datadir=/var/lib/mysql
socket=/var/lib/mysql/mysql.sock
log-error=/var/log/mysql/mysqld.log
pid-file=/run/mysqld/mysqld.pid

Right after setup I wrote and ran the below script to create user and Database:

$ cat mysql.create

PASSWDDB="NGPASS@12"
MAINDB="NGSGGS_DB"

mysql -P 3306 -e "CREATE DATABASE ${MAINDB} /*\!40100 DEFAULT CHARACTER SET utf8 */;"
mysql -P 3306 -e "CREATE USER ${MAINDB}@localhost IDENTIFIED BY '${PASSWDDB}';"
mysql -P 3306 -e "GRANT ALL PRIVILEGES ON ${MAINDB}.* TO '${MAINDB}'@'localhost';"
mysql -P 3306 -e "FLUSH PRIVILEGES;"

However, running the script got me the below error:

$ ./mysql.create
ERROR 1045 (28000): Access denied for user 'root'@'localhost' (using password: NO)
ERROR 1045 (28000): Access denied for user 'root'@'localhost' (using password: NO)
ERROR 1045 (28000): Access denied for user 'root'@'localhost' (using password: NO)
ERROR 1045 (28000): Access denied for user 'root'@'localhost' (using password: NO)

Note: This is a plain fresh installation and I have not made any significant changes to the database.

These are the only logging after the first start:

 $ vi /var/log/mysql/mysqld.log
2022-09-23T05:13:05.359946Z 0 [System] [MY-010116] [Server] /usr/libexec/mysqld (mysqld 8.0.26) starting as process 243792
2022-09-23T05:13:05.370217Z 1 [System] [MY-013576] [InnoDB] InnoDB initialization has started.
2022-09-23T05:13:05.561488Z 1 [System] [MY-013577] [InnoDB] InnoDB initialization has ended.
2022-09-23T05:13:05.748196Z 0 [Warning] [MY-013746] [Server] A deprecated TLS version TLSv1 is enabled for channel mysql_main
2022-09-23T05:13:05.748300Z 0 [Warning] [MY-013746] [Server] A deprecated TLS version TLSv1.1 is enabled for channel mysql_main
2022-09-23T05:13:05.749569Z 0 [Warning] [MY-010068] [Server] CA certificate ca.pem is self signed.
2022-09-23T05:13:05.749714Z 0 [System] [MY-013602] [Server] Channel mysql_main configured to support TLS. Encrypted connections are now supported for this channel.
2022-09-23T05:13:05.766115Z 0 [System] [MY-011323] [Server] X Plugin ready for connections. Bind-address: '::' port: 33060, socket: /var/lib/mysql/mysqlx.sock
2022-09-23T05:13:05.766181Z 0 [System] [MY-010931] [Server] /usr/libexec/mysqld: ready for connections. Version: '8.0.26'  socket: '/var/lib/mysql/mysql.sock'  port: 3306  Source distribution.

Tried the below as well and I get the same error:

 $ sudo mysql -u root -p'p@sSw0rd'  -e  "CREATE DATABASE ${MAINDB} /*\!40100 DEFAULT CHARACTER SET utf8 */;"
mysql: [Warning] Using a password on the command line interface can be insecure.
ERROR 1045 (28000): Access denied for user 'root'@'localhost' (using password: YES)

I also tried resetting the password but same error:

$ mysql_secure_installation

Securing the MySQL server deployment.

Enter password for user root:
Error: Access denied for user 'root'@'localhost' (using password: YES)

Can you please suggest?