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Some additional context: the current behavior (explicitly setting TF_WORKSPACE="") breaks tag-selected workspaces using Terraform Cloud such as this:

terraform {
  cloud {
    organization = "MyOrg"

    workspaces {
      tags = [
        "owner:my-team",
        "project:my-project",
      ]
    }
  }
}

Normally you'd use terraform workspace select to select the workspace, but terraform workspace cannot be used until terraform init has been run. In order for terraform init to run you need to either specify TF_WORKSPACE=my-workspace or you need to populate .terraform/environment.

The bug here is if TF_WORKSPACE is defined regardless of value terraform init skips any checking of .terraform/environment, including if the value of the env var is "".

By removing the TF_WORKSPACE env var instead of setting it to an empty string allows the automation pattern of using .terraform/environment to function as intended.

See the official HashiCorp help article Selecting a workspace when running Terraform in automation

@kmoe I fixed the tests can you help re-trigger the builds, thanks!

@kmoe looks like all checks have passed, how do we get this merged and released?

Any chance to get a release out with this change? Thanks!