The test command invokes an automation locally. A mock event payload that corresponds to the event defined in the on decorator is passed in to your automation’s entrypoint as an argument.

blocks test <relative-path-to-filename>

If your automation expects environment variables that are defined in the dashboard, in addition to non-configurable runtime injected variables that the repo or other modules expect, your automation will not have access to these during a test invocation and will expectedly fail. Consequently, the test command is mainly useful for smoke testing your Python implementation.