Please use pre-formatted text when you post code or log fragments. Otherwise it is not possible to see whether leading spaces are present in the lines or not.
If you do the formatting correctly (two leading spaces in front of -auth=onverra then this will be used correctly and the authentication works without issues.
Please use the exact formatting:
[env:esp32dev]
platform = espressif32
board = esp32dev
framework = arduino
upload_port = BaseEsp32.local
monitor_speed = 115200
upload_flags =
–port=3232
–auth=onverra
lib_deps =
jandrassy/TelnetStream@^1.3.0
Also make sure, that the initial sketch (which you uploaded via serial / usb) is using the exact same password (“onverra”).