Getting bash: $: command not found

i think you need to add a trailing slash for directories
/home/xxxxx/Games/

user01@wsl01:~/test$ tree
.
├── 02
│   └── file.02
└── Games
    └── file.01

user01@wsl01:~/test$ rclone ls . --exclude=Games
        0 Games/file.01
        0 02/file.02

user01@wsl01:~/test$ rclone ls . --exclude=Games/
        0 02/file.02

user01@wsl01:~/test$ rclone ls . --exclude=/Games/
        0 02/file.02