Getting ORA-01507 when setting AES256 encryption for controlfile restore in rman

I am trying to restore/duplicate PRODDB1 from HOSTPROD01 to PRCOPY on HOSTTEST01.

The backup was taken with wallet and password encryption with AES256 algorithm.

The steps I have performed are:

Create empty PRCOPY instance on HOSTTEST01

sqlplus / as sysdba

SQL> startup nomount

In RMAN, set the decryption then restore the controlfile:

rman target / nocatalog

RMAN> set encryption algorithm 'AES256';

RMAN> set encryption algorithm 'AES256';

executing command: SET encryption

using target database control file instead of recovery catalog

RMAN> set decryption identified by 'PleaseHelp';

executing command: SET decryption

RMAN>

RMAN> restore controlfile from '/backup_path/PRODDB01_CF_aaaa_1_1_bbbb';