Problem

atmos terraform generate varfile only works on directories inside components/terraform. It does not work with JIT vendoring.

The same behavior affects generate backend as well.

Root Cause (Suspected)

These commands are likely not using the component path function, which would allow them to work with JIT-vendored components.

Proposed Solution

Perform a complete audit of the generate varfile and generate backend commands to ensure they properly support:

• JIT vendored components
• Components outside of components/terraform
• Correct use of the component path function

Context

Reported in Slack by Zack. The component has workdir set correctly but the generate commands still fail to find it.