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I think you should add following env variables for running etcdctl:

env ETCDCTL_ENDPOINTS='<https://127.0.0.1:2379>' ETCDCTL_CACERT='/var/lib/rancher/rke2/server/tls/etcd/server-ca.crt' ETCDCTL_CERT='/var/lib/rancher/rke2/server/tls/etcd/server-client.crt' ETCDCTL_KEY='/var/lib/rancher/rke2/server/tls/etcd/server-client.key'