Command line login with the CONNECT parameter doesn't work for any of the features that uses command line.
Example:
"C:\Program Files\Quest Software\Toad for Oracle\Toad.exe" CONNECT=<user>/<password>@ORCL
Please try the -c option, change "CONNECT=" to "-c " (with a space after it, no equal sign).
Example:
"C:\Program Files\Quest Software\Toad for Oracle\Toad.exe" -c <user>/<password>@ORCL
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