Usagedata.cab could not found or does not contain any telemetry Data

SCCM

ServiceConnectionTool.exe -connect -usagedatasrc usagedata.cab -updatepackdest E:\Updates

You get error message Usagedata.cab could not found or does not contain any telemetry Data while using ServiceConnectionTool

usagedata.cab could not found or does not contain any telemetry cab files.

The problem is that ServiceConnectionTool does not accept the usagedata.cab file directly.
ServiceConnectionTool requires the directory containing usagedata.cab. Therefore, you should not use E:\UsagedataDirectory\usagedata.cab. Instead, use the directory path: E:\UsagedataDirectory

ServiceConnectionTool.exe -connect -usagedatasrc E:\UsagedataDirectory -updatepackdest E:\UpdatesPackage