Workspace name isn't detected for Terraform Cloud in subfolders

[mprokopov]

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Overview of the Issue

Workspace name isn't detected for Terraform Cloud in subfolders.

It works only for the root of the repository.

Reproduction Steps

1. Setup Terraform Cloud account and sync the state of the module in arbitrary subfolder

Example: example1/terraform.tf

terraform {
  required_version = ">=1.2"

  cloud {
    organization = "example-org"
    workspaces {
      name = "example"
    }
  }
  required_providers {
    cloudflare = {
      source  = "cloudflare/cloudflare"
      version = "~> 3"
    }
  }
}

2. Push the module example1 to the GitHub repository

3. Atlantis will use default workspace and doesn't detect name example name for the workspace from the example1/terraform.tf.

running "/usr/local/bin/terraform workspace new default" in "/home/atlantis/.atlantis/repos/xxxxxx/atlantis-example/9/default/example1": exit status 1: default workspace not supported
You can create a new workspace with the "workspace new" command.

Logs

2023-03-20 17:38:21 | {"level":"debug","ts":"2023-03-20T16:38:21.101Z","caller":"events/project_finder.go:106","msg":"no Terraform Cloud workspace explicitly configured in Terraform codes. Use default workspace (\"default\")","json":{"repo":"xxxx/atlantis-example","pull":"9"}}

Additional Context

Related to the implementation #2432, it works only for the root of the repository, but not for the subfolders.

Here is a line with the issue

atlantis/server/events/project_command_builder.go

Line 398 in 1674663

pWorkspace, err := p.ProjectFinder.DetermineWorkspaceFromHCL(ctx.Log, repoDir)

repoDir is always the same for all projects.

[sudermanjr]

Stated workaround in the linked PR does work - setting the workspace name explicitly in the atlantis.yaml file.