bash script stuck in single line - sql-server

Question

I have below command for bash script:
#!/bin/sh
sqlserver=("localhost" "testserver")
db="master"
user="sa"
pass="test#12345"
for item in "${sqlserver[#]}"
do
sqlcmd -S "$item" -d $db -U $user -P $pass -I -h-1 -Q "set nocount on;SELECT name as username FROM SYSUSERS WHERE NAME LIKE '%test%'" >> "$item".txt
while IFS= read -r line; do
if [ -n "$line" ]
then
#echo "Text read from file: $line"
sqlcmd -S "$item" -d $db -U $user -P $pass -I -b -h-1 -Q "set nocount on;drop user $line"
fi
done < "$item".txt
done
script is stuck at sqlcmd -S $item -d $DATABASE -U $USERNAME -P $PASSWORD -I -b -h-1 -Q "set nocount on;drop user $line". and this is going to in loop , it's goes infinity. how to get out from this if command.
I got the error as below:
Msg 15151, Level 16, State 1, Server 66752ccaf826, Line 1
Cannot drop the user 'test2', because it does not exist or you do not have permission.
Msg 15151, Level 16, State 1, Server 66752ccaf826, Line 1
Cannot drop the user 'test2', because it does not exist or you do not have permission.
Msg 15151, Level 16, State 1, Server 66752ccaf826, Line 1
Cannot drop the user 'test2', because it does not exist or you do not have permission.
Msg 15151, Level 16, State 1, Server 66752ccaf826, Line 1
Cannot drop the user 'test2', because it does not exist or you do not have permission.
Issue: How to break or exit loop once end of file? and after complete file it will go with 2nd sql server with continue for loop.
For create User:
CREATE USER test1 WITHOUT LOGIN;
CREATE USER test2 WITHOUT LOGIN;
Update1:
If I use echo "Text read from file: $line" then if condition running properly but when I use sqlcmd -S "$item" -d $db -U $user -P $pass -I -b -h-1 -Q "set nocount on;drop user $line" then it goes to infinite loop.

Answer 1

Assuming you want the while loop to end with the end-of-file of "$item.txt", then you need to change
if [[ ! -z $line ]]
to (for bash)
if [[ -z $line ]] ; then break ; fi
or (for sh)
if [ -z $line ] ; then break ; fi
and remove the other "fi".
As for the command
sqlcmd -S $item -d $DATABASE -U $USERNAME -P $PASSWORD -I -b -h-1 -Q "set nocount on;drop user $line"
you need to resolve the issue reported, from the shell command line, before attempting to do that within the script.