Problem

Terraform variables defined in terraform.vars files behave differently between Classic and Dynamic template formats:

• Classic format: Shows updated/overridden values from terraform.vars
• Dynamic format: Stuck on default values, ignoring overrides set in Template Settings

Example

Template defines:

variable "availability_zone_names" {
  description = "List of AWS availability zones"
  type        = list(string)
  default     = ["us-west-1b", "us-west-1d", "uk-west-2a"]
}

data "coder_parameter" "availability_zone" {
  name         = "availability_zone"
  display_name = "Availability Zone"
  description  = "Select which availability zone to deploy in"
  type         = "string"
  mutable      = true

  dynamic "option" {
    for_each = toset(var.availability_zone_names)
    content {
      name  = option.value
      value = option.value
    }
  }
}

When overriding via:

export TF_VAR_availability_zone_names='["us-west-1b","us-west-1d", "uk-west-2a", "uk-west-2a"]'
# or terraform.vars file
coder templates push -y --org=coder --var teams=""

Expected: Both Classic and Dynamic should show the same overridden values
Actual: Classic shows overridden values, Dynamic shows defaults

Additional Context

Dynamic parameters does not take in the TemplateVariables set in the settings page. It should.