Microsoft.azcollection is a certified collection and uses the httpx module for connections.  This module does not support ipv6 addresses being used in no_proxy.  It may not support ipv6 at all, but in this specific case, some ipv6 addresses are being specified in the no_proxy which causes the module to error out.  error.png and proxy_screenshot.png on the linked case show the issue. 

This could be fixed by either fixing httpx or changing azcollection, but fixing httpx would potentially fix other projects that use it.