'Error: Failed to read module directory' after upgrading to terraform 1.2.7

[pickgr]

Terraform Version

$ terraform version
Terraform v1.2.7
on darwin_amd64

Terraform Configuration Files

module "vpc_endpoints_nocreate" {
  source  = "terraform-aws-modules/vpc/aws//modules/vpc-endpoints"
  version = "3.7.0"

  create = false
}

Debug Output

2022-08-10T11:55:40.986-1000 [TRACE] modsdir: writing modules manifest to .terraform/modules/modules.json
╷
│ Error: Failed to read module directory
│
│ Module directory .terraform/modules/platform.vpc_endpoints_nocreate/modules/vpc-endpoints does not exist or cannot be read.

Expected Behavior

No errors during init.

Actual Behavior

Init failed with error show above.

Steps to Reproduce

1. terraform init -upgrade

Additional Context

References

I believe this may be related to #31573

Also see the public submodule in the registry at https://registry.terraform.io/modules/terraform-aws-modules/vpc/aws/latest/submodules/vpc-endpoints

Note how there are two backslashes for the path for the source specified in the example.

Unfortunately, I don't have time to dig into it further right now.

[pickgr]

FYI @radeksimko

[sblask]

Not the same error, but I believe the same problem:

Error: Unsupported argument

  on .terraform/modules/network/aws-network/vpc.tf line 8, in module "subnet_addrs":
   8:   base_cidr_block = var.base_cidr_block

An argument named "base_cidr_block" is not expected here.

Error: Unsupported argument

  on .terraform/modules/network/aws-network/vpc.tf line 9, in module "subnet_addrs":
   9:   networks = [

An argument named "networks" is not expected here.
Error: Unsupported argument

  on .terraform/modules/network/aws-network/vpc.tf line 8, in module "subnet_addrs":
   8:   base_cidr_block = var.base_cidr_block

An argument named "base_cidr_block" is not expected here.

Error: Unsupported argument

  on .terraform/modules/network/aws-network/vpc.tf line 9, in module "subnet_addrs":
   9:   networks = [

An argument named "networks" is not expected here.

When using https://registry.terraform.io/modules/hashicorp/subnets/cidr/latest

In terraform init it looks fine:

Downloading registry.terraform.io/hashicorp/subnets/cidr 1.0.0 for network.subnet_addrs...
- network.subnet_addrs in .terraform/modules/network.subnet_addrs

But .terraform/modules/network.subnet_addrs is empty...

[jensenbox]

Solved with: 😅

    terraform {
        required_version = "> 1.0, < 1.2.7"
    }

Totally tongue in cheek but yea, I really had to do this - everything I ran was breaking.

╷
│ Error: Failed to read module directory
│ 
│ Module directory .terraform/modules/atlantis.alb_http_sg/modules/http-80 does not exist or cannot be read.
╵

That said, what was really interesting was that I downgrade, ran once and upgraded again and everything worked. This tells me it is exclusive to the downloader portion of the code.

[radeksimko]

I haven't done any debugging but I don't see how this could be related to #31573 as that PR touched provider address validation, not module source. I will let someone from the Core team to chime in.

[mesaugat]

Problem with v1.2.7 and I reverted back to v1.2.6 which works fine. terraform init seems to work but terraform plan has a bunch of "Unsupported argument" errors.

I am using the terraform-aws-modules/s3-bucket/aws module.

│ Error: Unsupported argument
│
│   on ../main.tf line 9, in module "s3_bucket":
│    9:   bucket = var.name
│
│ An argument named "bucket" is not expected here.
╵
╷
│ Error: Unsupported argument
│
│   on ../main.tf line 10, in module "s3_bucket":
│   10:   acl    = "private"
│
│ An argument named "acl" is not expected here.
╵
╷
│ Error: Unsupported argument
│
│   on ../main.tf line 12, in module "s3_bucket":
│   12:   attach_policy = var.policy == {} ? false : true
│
│ An argument named "attach_policy" is not expected here.
╵
╷
│ Error: Unsupported argument
│
│   on ../main.tf line 13, in module "s3_bucket":
│   13:   policy        = var.policy
│
│ An argument named "policy" is not expected here.
╵
╷
│ Error: Unsupported argument
│
│   on ../main.tf line 15, in module "s3_bucket":
│   15:   tags = merge(
│
│ An argument named "tags" is not expected here.
╵
╷
│ Error: Unsupported argument
│
│   on ../main.tf line 23, in module "s3_bucket":
│   23:   versioning = {
│
│ An argument named "versioning" is not expected here.
╵
╷
│ Error: Unsupported argument
│
│   on ../main.tf line 27, in module "s3_bucket":
│   27:   server_side_encryption_configuration = {
│
│ An argument named "server_side_encryption_configuration" is not expected here.
╵
╷
│ Error: Unsupported argument
│
│   on ../main.tf line 34, in module "s3_bucket":
│   34:   lifecycle_rule = var.enable_std_lifecycle == true ? [{
│
│ An argument named "lifecycle_rule" is not expected here.

[pascalmtts]

Terraform is totally useless with 1.2.7. Everything breaks

[AlexEndris]

We experienced the same thing with the terraform-aws-modules/lambda/aws module as @mesaugat. This doesn't occur with version 1.2.6.

[SuchismitaGoswami]

We are also experiencing the same problem with this module - terraform-aws-modules/ec2-instance (terraform-version=1.2.7)

[thomaskvnze]

We have similar issue. We use a module from the registry. Unfortunately, the module is downloaded, but the submodules used by that module are not, leading to half the module code not being there.