butler login
is going to be an interactive prompt to allow you to log in via your browser. This is not something that is going to work on your CI runner which is running completely headless. See the instructions here: https://itch.io/docs/butler/login.html
Can you confirm that whatever is written in .config/itch/butler_creds
is a valid API key for the account/project being pushed?
Running the same script locally may help you identify where the issue is located.