diff --git a/.codegen/_openapi_sha b/.codegen/_openapi_sha
index 9a95107e8..562b72fcc 100644
--- a/.codegen/_openapi_sha
+++ b/.codegen/_openapi_sha
@@ -1 +1 @@
-c72c58f97b950fcb924a90ef164bcb10cfcd5ece
\ No newline at end of file
+99f644e72261ef5ecf8d74db20f4b7a1e09723cc
\ No newline at end of file
diff --git a/.codegen/service.go.tmpl b/.codegen/service.go.tmpl
index 2f4987b13..33833dfa1 100644
--- a/.codegen/service.go.tmpl
+++ b/.codegen/service.go.tmpl
@@ -179,7 +179,7 @@ func new{{.PascalName}}() *cobra.Command {
 	{{- $wait := and .Wait (and (not .IsCrudRead) (not (eq .SnakeName "get_run"))) -}}
 	{{- $hasRequiredArgs :=  and (not $hasIdPrompt) $hasPosArgs -}}
 	{{- $hasSingleRequiredRequestBodyFieldWithPrompt := and (and $hasIdPrompt $request) (eq 1 (len $request.RequiredRequestBodyFields))  -}}
-	{{- $onlyPathArgsRequiredAsPositionalArguments := and $request (eq (len .RequiredPositionalArguments) (len $request.RequiredPathFields)) -}}
+	{{- $onlyPathArgsRequiredAsPositionalArguments := and .Request (eq (len .RequiredPositionalArguments) (len .Request.RequiredPathFields)) -}}
 	{{- $hasDifferentArgsWithJsonFlag := and (not $onlyPathArgsRequiredAsPositionalArguments) (and $canUseJson (or $request.HasRequiredRequestBodyFields )) -}}
 	{{- $hasCustomArgHandler := or $hasRequiredArgs $hasDifferentArgsWithJsonFlag -}}
 
@@ -218,12 +218,12 @@ func new{{.PascalName}}() *cobra.Command {
 	cmd.Args = func(cmd *cobra.Command, args []string) error {
 		{{- if $hasDifferentArgsWithJsonFlag }}
 		if cmd.Flags().Changed("json") {
-			err := root.ExactArgs({{len $request.RequiredPathFields}})(cmd, args)
+			err := root.ExactArgs({{len .Request.RequiredPathFields}})(cmd, args)
 			if err != nil {
-			{{- if eq 0 (len $request.RequiredPathFields) }}
+			{{- if eq 0 (len .Request.RequiredPathFields) }}
 				return fmt.Errorf("when --json flag is specified, no positional arguments are required. Provide{{- range $index, $field := $request.RequiredFields}}{{if $index}},{{end}} '{{$field.Name}}'{{end}} in your JSON input")
 			{{- else }}
-				return fmt.Errorf("when --json flag is specified, provide only{{- range $index, $field := $request.RequiredPathFields}}{{if $index}},{{end}} {{$field.ConstantName}}{{end}} as positional arguments. Provide{{- range $index, $field := $request.RequiredRequestBodyFields}}{{if $index}},{{end}} '{{$field.Name}}'{{end}} in your JSON input")
+				return fmt.Errorf("when --json flag is specified, provide only{{- range $index, $field := .Request.RequiredPathFields}}{{if $index}},{{end}} {{$field.ConstantName}}{{end}} as positional arguments. Provide{{- range $index, $field := $request.RequiredRequestBodyFields}}{{if $index}},{{end}} '{{$field.Name}}'{{end}} in your JSON input")
 			{{- end }}
 			}
 			return nil
diff --git a/.github/PULL_REQUEST_TEMPLATE.md b/.github/PULL_REQUEST_TEMPLATE.md
index 5be087016..2f8597999 100644
--- a/.github/PULL_REQUEST_TEMPLATE.md
+++ b/.github/PULL_REQUEST_TEMPLATE.md
@@ -1,6 +1,10 @@
 ## Changes
-<!-- Summary of your changes that are easy to understand -->
+<!-- Brief summary of your changes that is easy to understand -->
+
+## Why
+<!-- Why are these changes needed? Provide the context that the reviewer might be missing. 
+For example, were there any decisions behind the change that are not reflected in the code itself? -->
 
 ## Tests
-<!-- How is this tested? -->
+<!-- How have you tested the changes? -->
 
diff --git a/.github/workflows/push.yml b/.github/workflows/push.yml
index c41afc18c..cbae43f2f 100644
--- a/.github/workflows/push.yml
+++ b/.github/workflows/push.yml
@@ -53,7 +53,7 @@ jobs:
           go-version-file: go.mod
 
       - name: Setup Python
-        uses: actions/setup-python@0b93645e9fea7318ecaed2b359559ac225c90a2b # v5.3.0
+        uses: actions/setup-python@42375524e23c412d93fb67b49958b491fce71c38 # v5.4.0
         with:
           python-version: '3.9'
 
@@ -95,7 +95,7 @@ jobs:
           # Exit with status code 1 if there are differences (i.e. unformatted files)
           git diff --exit-code
       - name: golangci-lint
-        uses: golangci/golangci-lint-action@ec5d18412c0aeab7936cb16880d708ba2a64e1ae # v6.2.0
+        uses: golangci/golangci-lint-action@2226d7cb06a077cd73e56eedd38eecad18e5d837 # v6.5.0
         with:
           version: v1.63.4
           args: --timeout=15m
diff --git a/.github/workflows/release-snapshot.yml b/.github/workflows/release-snapshot.yml
index 8b4684eab..e37de8920 100644
--- a/.github/workflows/release-snapshot.yml
+++ b/.github/workflows/release-snapshot.yml
@@ -54,21 +54,21 @@ jobs:
           args: release --snapshot --skip docker
 
       - name: Upload macOS binaries
-        uses: actions/upload-artifact@65c4c4a1ddee5b72f698fdd19549f0f0fb45cf08 # v4.6.0
+        uses: actions/upload-artifact@4cec3d8aa04e39d1a68397de0c4cd6fb9dce8ec1 # v4.6.1
         with:
           name: cli_darwin_snapshot
           path: |
             dist/*_darwin_*/
 
       - name: Upload Linux binaries
-        uses: actions/upload-artifact@65c4c4a1ddee5b72f698fdd19549f0f0fb45cf08 # v4.6.0
+        uses: actions/upload-artifact@4cec3d8aa04e39d1a68397de0c4cd6fb9dce8ec1 # v4.6.1
         with:
           name: cli_linux_snapshot
           path: |
             dist/*_linux_*/
 
       - name: Upload Windows binaries
-        uses: actions/upload-artifact@65c4c4a1ddee5b72f698fdd19549f0f0fb45cf08 # v4.6.0
+        uses: actions/upload-artifact@4cec3d8aa04e39d1a68397de0c4cd6fb9dce8ec1 # v4.6.1
         with:
           name: cli_windows_snapshot
           path: |
diff --git a/.github/workflows/release.yml b/.github/workflows/release.yml
index fe5b4170b..81810c606 100644
--- a/.github/workflows/release.yml
+++ b/.github/workflows/release.yml
@@ -46,7 +46,7 @@ jobs:
       # QEMU is required to build cross platform docker images using buildx.
       # It allows virtualization of the CPU architecture at the application level.
       - name: Set up QEMU dependency
-        uses: docker/setup-qemu-action@53851d14592bedcffcf25ea515637cff71ef929a # v3.3.0
+        uses: docker/setup-qemu-action@29109295f81e9208d7d86ff1c6c12d2833863392 # v3.6.0
 
       - name: Run GoReleaser
         id: releaser
diff --git a/.gitignore b/.gitignore
index 35aef1764..2f6d0ad8e 100644
--- a/.gitignore
+++ b/.gitignore
@@ -25,6 +25,7 @@ coverage-acceptance.txt
 __pycache__
 *.pyc
 
+.idea
 .vscode/launch.json
 .vscode/tasks.json
 
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 23c696ab7..fad9ce620 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,29 @@
 # Version changelog
 
+## [Release] Release v0.242.0
+
+Notable changes:
+Starting this version CLI does not load bundle auth information when CLI command is executed inside the bundle directory with explicitly provided via `-p` flag profile.
+For more details see the related GitHub issue https://github.com/databricks/cli/issues/1358
+
+CLI:
+ * Do not load host from bundle for CLI commands when profile flag is used ([#2335](https://github.com/databricks/cli/pull/2335)).
+ * Fixed accessing required path parameters in CLI generation when --json flag ([#2373](https://github.com/databricks/cli/pull/2373)).
+
+Bundles:
+ * Provide instructions for testing in the default-python template ([#2355](https://github.com/databricks/cli/pull/2355)).
+ * Remove `run_as` from the built-in templates ([#2044](https://github.com/databricks/cli/pull/2044)).
+ * Change warning about incomplete permissions section into a recommendation ([#2043](https://github.com/databricks/cli/pull/2043)).
+ * Refine `mode: production` diagnostic output ([#2236](https://github.com/databricks/cli/pull/2236)).
+ * Support serverless mode in default-python template (explicit prompt) ([#2377](https://github.com/databricks/cli/pull/2377)).
+ * Set default data_security_mode to "SINGLE_USER" in bundle templates ([#2372](https://github.com/databricks/cli/pull/2372)).
+ * Fixed spark version check for clusters defined in the same bundle ([#2374](https://github.com/databricks/cli/pull/2374)).
+
+API Changes:
+ * Added `databricks genie get-message-query-result-by-attachment` command.
+
+OpenAPI commit 99f644e72261ef5ecf8d74db20f4b7a1e09723cc (2025-02-11)
+
 ## [Release] Release v0.241.2
 
 This is a bugfix release to address an issue where jobs with tasks with a
diff --git a/acceptance/acceptance_test.go b/acceptance/acceptance_test.go
index c0fa960b6..afdc42abc 100644
--- a/acceptance/acceptance_test.go
+++ b/acceptance/acceptance_test.go
@@ -217,8 +217,12 @@ func runTest(t *testing.T, dir, coverDir string, repls testdiff.ReplacementsCont
 	}
 
 	cloudEnv := os.Getenv("CLOUD_ENV")
-	if config.LocalOnly && cloudEnv != "" {
-		t.Skipf("Disabled via LocalOnly setting in %s (CLOUD_ENV=%s)", configPath, cloudEnv)
+	if !isTruePtr(config.Local) && cloudEnv == "" {
+		t.Skipf("Disabled via Local setting in %s (CLOUD_ENV=%s)", configPath, cloudEnv)
+	}
+
+	if !isTruePtr(config.Cloud) && cloudEnv != "" {
+		t.Skipf("Disabled via Cloud setting in %s (CLOUD_ENV=%s)", configPath, cloudEnv)
 	}
 
 	var tmpDir string
@@ -263,9 +267,9 @@ func runTest(t *testing.T, dir, coverDir string, repls testdiff.ReplacementsCont
 
 		databricksLocalHost := os.Getenv("DATABRICKS_DEFAULT_HOST")
 
-		if len(config.Server) > 0 || config.RecordRequests {
+		if len(config.Server) > 0 || isTruePtr(config.RecordRequests) {
 			server = testserver.New(t)
-			if config.RecordRequests {
+			if isTruePtr(config.RecordRequests) {
 				requestsPath := filepath.Join(tmpDir, "out.requests.txt")
 				server.RecordRequestsCallback = func(request *testserver.Request) {
 					req := getLoggedRequest(request, config.IncludeRequestHeaders)
@@ -386,6 +390,9 @@ func runTest(t *testing.T, dir, coverDir string, repls testdiff.ReplacementsCont
 		if _, ok := Ignored[relPath]; ok {
 			continue
 		}
+		if config.CompiledIgnoreObject.MatchesPath(relPath) {
+			continue
+		}
 		unexpected = append(unexpected, relPath)
 		if strings.HasPrefix(relPath, "out") {
 			// We have a new file starting with "out"
@@ -703,3 +710,7 @@ func filterHeaders(h http.Header, includedHeaders []string) http.Header {
 	}
 	return headers
 }
+
+func isTruePtr(value *bool) bool {
+	return value != nil && *value
+}
diff --git a/acceptance/auth/bundle_and_profile/output.txt b/acceptance/auth/bundle_and_profile/output.txt
index 8d2584622..f32d5ba22 100644
--- a/acceptance/auth/bundle_and_profile/output.txt
+++ b/acceptance/auth/bundle_and_profile/output.txt
@@ -11,9 +11,9 @@
 >>> errcode [CLI] current-user me -t dev -p DEFAULT
 "[USERNAME]"
 
-=== Inside the bundle, profile flag not matching bundle host. Badness: should use profile from flag instead and not fail
+=== Inside the bundle, profile flag not matching bundle host. Should use profile from the flag and not the bundle.
 >>> errcode [CLI] current-user me -p profile_name
-Error: cannot resolve bundle auth configuration: config host mismatch: profile uses host https://non-existing-subdomain.databricks.com, but CLI configured to use [DATABRICKS_TARGET]
+Error: Get "https://non-existing-subdomain.databricks.com/api/2.0/preview/scim/v2/Me": (redacted)
 
 Exit code: 1
 
@@ -23,6 +23,65 @@ Error: cannot resolve bundle auth configuration: config host mismatch: profile u
 
 Exit code: 1
 
+=== Bundle commands load bundle configuration when no flags, validation OK
+>>> errcode [CLI] bundle validate
+Name: test-auth
+Target: dev
+Workspace:
+  Host: [DATABRICKS_TARGET]
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/test-auth/dev
+
+Validation OK!
+
+=== Bundle commands load bundle configuration with -t flag, validation OK
+>>> errcode [CLI] bundle validate -t dev
+Name: test-auth
+Target: dev
+Workspace:
+  Host: [DATABRICKS_TARGET]
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/test-auth/dev
+
+Validation OK!
+
+=== Bundle commands load bundle configuration with -p flag, validation not OK (profile host don't match bundle host)
+>>> errcode [CLI] bundle validate -p profile_name
+Error: cannot resolve bundle auth configuration: config host mismatch: profile uses host https://non-existing-subdomain.databricks.com, but CLI configured to use [DATABRICKS_TARGET]
+
+Name: test-auth
+Target: dev
+Workspace:
+  Host: [DATABRICKS_TARGET]
+
+Found 1 error
+
+Exit code: 1
+
+=== Bundle commands load bundle configuration with -t and -p flag, validation OK (profile host match bundle host)
+>>> errcode [CLI] bundle validate -t dev -p DEFAULT
+Name: test-auth
+Target: dev
+Workspace:
+  Host: [DATABRICKS_TARGET]
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/test-auth/dev
+
+Validation OK!
+
+=== Bundle commands load bundle configuration with -t and -p flag, validation not OK (profile host don't match bundle host)
+>>> errcode [CLI] bundle validate -t prod -p DEFAULT
+Error: cannot resolve bundle auth configuration: config host mismatch: profile uses host [DATABRICKS_TARGET], but CLI configured to use https://bar.com
+
+Name: test-auth
+Target: prod
+Workspace:
+  Host: https://bar.com
+
+Found 1 error
+
+Exit code: 1
+
 === Outside the bundle, no flags
 >>> errcode [CLI] current-user me
 "[USERNAME]"
diff --git a/acceptance/auth/bundle_and_profile/script b/acceptance/auth/bundle_and_profile/script
index b37f5e01d..c078d5316 100644
--- a/acceptance/auth/bundle_and_profile/script
+++ b/acceptance/auth/bundle_and_profile/script
@@ -15,12 +15,27 @@ trace errcode $CLI current-user me -t dev | jq .userName
 title "Inside the bundle, target and matching profile"
 trace errcode $CLI current-user me -t dev -p DEFAULT | jq .userName
 
-title "Inside the bundle, profile flag not matching bundle host. Badness: should use profile from flag instead and not fail"
+title "Inside the bundle, profile flag not matching bundle host. Should use profile from the flag and not the bundle."
 trace errcode $CLI current-user me -p profile_name | jq .userName
 
 title "Inside the bundle, target and not matching profile"
 trace errcode $CLI current-user me -t dev -p profile_name
 
+title "Bundle commands load bundle configuration when no flags, validation OK"
+trace errcode $CLI bundle validate
+
+title "Bundle commands load bundle configuration with -t flag, validation OK"
+trace errcode $CLI bundle validate -t dev
+
+title "Bundle commands load bundle configuration with -p flag, validation not OK (profile host don't match bundle host)"
+trace errcode $CLI bundle validate -p profile_name
+
+title "Bundle commands load bundle configuration with -t and -p flag, validation OK (profile host match bundle host)"
+trace errcode $CLI bundle validate -t dev -p DEFAULT
+
+title "Bundle commands load bundle configuration with -t and -p flag, validation not OK (profile host don't match bundle host)"
+trace errcode $CLI bundle validate -t prod -p DEFAULT
+
 cd ..
 export DATABRICKS_HOST=$host
 title "Outside the bundle, no flags"
diff --git a/acceptance/auth/bundle_and_profile/test.toml b/acceptance/auth/bundle_and_profile/test.toml
index 1a611ed95..697281ee5 100644
--- a/acceptance/auth/bundle_and_profile/test.toml
+++ b/acceptance/auth/bundle_and_profile/test.toml
@@ -1,5 +1,3 @@
-Badness = "When -p flag is used inside the bundle folder for any CLI commands, CLI use bundle host anyway instead of profile one"
-
 # Some of the clouds have DATABRICKS_HOST variable setup without https:// prefix
 # In the result, output is replaced with DATABRICKS_URL variable instead of DATABRICKS_HOST
 # This is a workaround to replace DATABRICKS_URL with DATABRICKS_HOST
@@ -10,3 +8,7 @@ New='DATABRICKS_TARGET'
 [[Repls]]
 Old='DATABRICKS_URL'
 New='DATABRICKS_TARGET'
+
+[[Repls]]
+Old='Get "https://non-existing-subdomain.databricks.com/api/2.0/preview/scim/v2/Me": .*'
+New='Get "https://non-existing-subdomain.databricks.com/api/2.0/preview/scim/v2/Me": (redacted)'
diff --git a/acceptance/auth/credentials/test.toml b/acceptance/auth/credentials/test.toml
index 89438f43a..dc775ea62 100644
--- a/acceptance/auth/credentials/test.toml
+++ b/acceptance/auth/credentials/test.toml
@@ -1,5 +1,3 @@
-LocalOnly = true
-
 RecordRequests = true
 IncludeRequestHeaders = ["Authorization", "User-Agent"]
 
diff --git a/acceptance/bin/diff.py b/acceptance/bin/diff.py
index 0a91d57ce..c1b59655a 100755
--- a/acceptance/bin/diff.py
+++ b/acceptance/bin/diff.py
@@ -43,8 +43,8 @@ def main():
         elif f not in set1:
             print(f"Only in {d2}: {f}")
         else:
-            a = [replaceAll(patterns, x) for x in p1.read_text().splitlines(True)]
-            b = [replaceAll(patterns, x) for x in p2.read_text().splitlines(True)]
+            a = replaceAll(patterns, p1.read_text()).splitlines(True)
+            b = replaceAll(patterns, p2.read_text()).splitlines(True)
             if a != b:
                 p1_str = p1.as_posix()
                 p2_str = p2.as_posix()
diff --git a/acceptance/bin/find.py b/acceptance/bin/find.py
new file mode 100755
index 000000000..d122404b2
--- /dev/null
+++ b/acceptance/bin/find.py
@@ -0,0 +1,36 @@
+#!/usr/bin/env python3
+"""
+Usage: find.py <regex>
+Finds all files within current directory matching regex. The output is sorted and slashes are always forward.
+
+If --expect N is provided, the number of matches must be N or error is printed.
+"""
+
+import sys
+import os
+import re
+import argparse
+
+
+parser = argparse.ArgumentParser()
+parser.add_argument("regex")
+parser.add_argument("--expect", type=int)
+args = parser.parse_args()
+
+regex = re.compile(args.regex)
+result = []
+
+for root, dirs, files in os.walk("."):
+    for filename in files:
+        path = os.path.join(root, filename).lstrip("./\\").replace("\\", "/")
+        if regex.search(path):
+            result.append(path)
+
+result.sort()
+for item in result:
+    print(item)
+sys.stdout.flush()
+
+if args.expect is not None:
+    if args.expect != len(result):
+        sys.exit(f"Expected {args.expect}, got {len(result)}")
diff --git a/acceptance/bundle/apps/app_yaml/app/app.py b/acceptance/bundle/apps/app_yaml/app/app.py
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/bundle/apps/app_yaml/app/app.yml b/acceptance/bundle/apps/app_yaml/app/app.yml
new file mode 100644
index 000000000..61471358d
--- /dev/null
+++ b/acceptance/bundle/apps/app_yaml/app/app.yml
@@ -0,0 +1,3 @@
+command:
+  - python
+  - app.py
diff --git a/acceptance/bundle/apps/app_yaml/databricks.yml b/acceptance/bundle/apps/app_yaml/databricks.yml
new file mode 100644
index 000000000..0064e6c6b
--- /dev/null
+++ b/acceptance/bundle/apps/app_yaml/databricks.yml
@@ -0,0 +1,8 @@
+bundle:
+  name: apps_yaml
+
+resources:
+  apps:
+    myapp:
+      name: myapp
+      source_code_path: ./app
diff --git a/acceptance/bundle/apps/app_yaml/out.app.yml.txt b/acceptance/bundle/apps/app_yaml/out.app.yml.txt
new file mode 100644
index 000000000..eccd4eb13
--- /dev/null
+++ b/acceptance/bundle/apps/app_yaml/out.app.yml.txt
@@ -0,0 +1,5 @@
+{
+  "method": "POST",
+  "path": "/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/apps_yaml/default/files/app/app.yml",
+  "raw_body": "command:\n  - python\n  - app.py\n"
+}
diff --git a/acceptance/bundle/apps/app_yaml/output.txt b/acceptance/bundle/apps/app_yaml/output.txt
new file mode 100644
index 000000000..2a946e5ee
--- /dev/null
+++ b/acceptance/bundle/apps/app_yaml/output.txt
@@ -0,0 +1,15 @@
+
+>>> [CLI] bundle validate
+Name: apps_yaml
+Target: default
+Workspace:
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/apps_yaml/default
+
+Validation OK!
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/apps_yaml/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
diff --git a/acceptance/bundle/apps/app_yaml/script b/acceptance/bundle/apps/app_yaml/script
new file mode 100644
index 000000000..8cb34c62d
--- /dev/null
+++ b/acceptance/bundle/apps/app_yaml/script
@@ -0,0 +1,4 @@
+trace $CLI bundle validate
+trace $CLI bundle deploy
+jq 'select(.path == "/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/apps_yaml/default/files/app/app.yml")' out.requests.txt | sed 's/\\r//g'  > out.app.yml.txt
+rm out.requests.txt
diff --git a/acceptance/bundle/apps/config_section/app/app.py b/acceptance/bundle/apps/config_section/app/app.py
new file mode 100644
index 000000000..f1a18139c
--- /dev/null
+++ b/acceptance/bundle/apps/config_section/app/app.py
@@ -0,0 +1 @@
+print("Hello world!")
diff --git a/acceptance/bundle/apps/config_section/databricks.yml b/acceptance/bundle/apps/config_section/databricks.yml
new file mode 100644
index 000000000..25ab2f261
--- /dev/null
+++ b/acceptance/bundle/apps/config_section/databricks.yml
@@ -0,0 +1,12 @@
+bundle:
+  name: apps_config_section
+
+resources:
+  apps:
+    myapp:
+      name: myapp
+      source_code_path: ./app
+      config:
+        command:
+          - python
+          - app.py
diff --git a/acceptance/bundle/apps/config_section/out.app.yml.txt b/acceptance/bundle/apps/config_section/out.app.yml.txt
new file mode 100644
index 000000000..a3e69351b
--- /dev/null
+++ b/acceptance/bundle/apps/config_section/out.app.yml.txt
@@ -0,0 +1,5 @@
+{
+  "method": "POST",
+  "path": "/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/apps_config_section/default/files/app/app.yml",
+  "raw_body": "command:\n  - python\n  - app.py\n"
+}
diff --git a/acceptance/bundle/apps/config_section/output.txt b/acceptance/bundle/apps/config_section/output.txt
new file mode 100644
index 000000000..800945278
--- /dev/null
+++ b/acceptance/bundle/apps/config_section/output.txt
@@ -0,0 +1,23 @@
+
+>>> [CLI] bundle validate
+Warning: App config section detected
+
+remove 'config' from app resource 'myapp' section and use app.yml file in the root of this app instead
+
+Name: apps_config_section
+Target: default
+Workspace:
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/apps_config_section/default
+
+Found 1 warning
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/apps_config_section/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+Warning: App config section detected
+
+remove 'config' from app resource 'myapp' section and use app.yml file in the root of this app instead
+
diff --git a/acceptance/bundle/apps/config_section/script b/acceptance/bundle/apps/config_section/script
new file mode 100644
index 000000000..5769918be
--- /dev/null
+++ b/acceptance/bundle/apps/config_section/script
@@ -0,0 +1,4 @@
+trace $CLI bundle validate
+trace $CLI bundle deploy
+jq 'select(.path == "/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/apps_config_section/default/files/app/app.yml")' out.requests.txt  > out.app.yml.txt
+rm out.requests.txt
diff --git a/acceptance/bundle/apps/test.toml b/acceptance/bundle/apps/test.toml
new file mode 100644
index 000000000..6999f2089
--- /dev/null
+++ b/acceptance/bundle/apps/test.toml
@@ -0,0 +1,26 @@
+Cloud = false
+RecordRequests = true
+
+Ignore = [
+    '.databricks',
+]
+
+[[Server]]
+Pattern = "POST /api/2.0/apps"
+
+[[Server]]
+Pattern = "GET /api/2.0/apps/myapp"
+Response.Body = '''
+{
+  "name": "myapp",
+  "description": "",
+  "compute_status": {
+    "state": "ACTIVE",
+    "message": "App compute is active."
+  },
+  "app_status": {
+    "state": "RUNNING",
+    "message": "Application is running."
+  }
+}
+'''
diff --git a/acceptance/bundle/artifacts/same_name_libraries/databricks.yml b/acceptance/bundle/artifacts/same_name_libraries/databricks.yml
new file mode 100644
index 000000000..d58674a64
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/databricks.yml
@@ -0,0 +1,54 @@
+bundle:
+  name: same_name_libraries
+
+variables:
+  cluster:
+    default:
+      spark_version: 15.4.x-scala2.12
+      node_type_id: i3.xlarge
+      data_security_mode: SINGLE_USER
+      num_workers: 0
+      spark_conf:
+          spark.master: "local[*, 4]"
+          spark.databricks.cluster.profile: singleNode
+      custom_tags:
+        ResourceClass: SingleNode
+
+artifacts:
+  whl1:
+    type: whl
+    path: ./whl1
+  whl2:
+    type: whl
+    path: ./whl2
+
+resources:
+  jobs:
+    test:
+      name: "test"
+      tasks:
+        - task_key: task1
+          new_cluster: ${var.cluster}
+          python_wheel_task:
+            entry_point: main
+            package_name: my_default_python
+          libraries:
+            - whl: ./whl1/dist/*.whl
+            - pypi:
+                package: test_package
+        - task_key: task2
+          new_cluster: ${var.cluster}
+          python_wheel_task:
+            entry_point: main
+            package_name: my_default_python
+          libraries:
+            - whl: ./whl2/dist/*.whl
+            - maven:
+                coordinates: org.apache.spark:spark-sql_2.12:3.1.1
+        - task_key: task3
+          new_cluster: ${var.cluster}
+          python_wheel_task:
+            entry_point: main
+            package_name: my_default_python
+          libraries:
+            - whl: ./whl1/dist/*.whl
diff --git a/acceptance/bundle/artifacts/same_name_libraries/output.txt b/acceptance/bundle/artifacts/same_name_libraries/output.txt
new file mode 100644
index 000000000..ee6c9d566
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/output.txt
@@ -0,0 +1,14 @@
+
+>>> errcode [CLI] bundle deploy
+Building whl1...
+Building whl2...
+Error: Duplicate local library names: my_default_python-0.0.1-py3-none-any.whl
+  at resources.jobs.test.tasks[0].libraries[0].whl
+     resources.jobs.test.tasks[1].libraries[0].whl
+  in databricks.yml:36:15
+     databricks.yml:45:15
+
+Local library names must be unique but found libraries with the same name: whl1/dist/my_default_python-0.0.1-py3-none-any.whl, whl2/dist/my_default_python-0.0.1-py3-none-any.whl
+
+
+Exit code: 1
diff --git a/acceptance/bundle/artifacts/same_name_libraries/script b/acceptance/bundle/artifacts/same_name_libraries/script
new file mode 100644
index 000000000..6c899df07
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/script
@@ -0,0 +1,2 @@
+trace errcode $CLI bundle deploy
+rm -rf whl1 whl2
diff --git a/acceptance/bundle/artifacts/same_name_libraries/test.toml b/acceptance/bundle/artifacts/same_name_libraries/test.toml
new file mode 100644
index 000000000..a17f2659f
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/test.toml
@@ -0,0 +1,5 @@
+RecordRequests = false
+
+[[Repls]]
+Old = '\\'
+New = '/'
diff --git a/acceptance/bundle/artifacts/same_name_libraries/whl1/setup.py b/acceptance/bundle/artifacts/same_name_libraries/whl1/setup.py
new file mode 100644
index 000000000..ddd81295e
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/whl1/setup.py
@@ -0,0 +1,28 @@
+from setuptools import setup, find_packages
+
+import sys
+
+sys.path.append("./src")
+
+import my_default_python
+
+setup(
+    name="my_default_python",
+    version=my_default_python.__version__,
+    url="https://databricks.com",
+    author="[USERNAME]",
+    description="wheel file based on my_default_python/src",
+    packages=find_packages(where="./src"),
+    package_dir={"": "src"},
+    entry_points={
+        "packages": [
+            "main=my_default_python.main:main",
+        ],
+    },
+    install_requires=[
+        # Dependencies in case the output wheel file is used as a library dependency.
+        # For defining dependencies, when this package is used in Databricks, see:
+        # https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
+        "setuptools"
+    ],
+)
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/src/my_default_python/__init__.py b/acceptance/bundle/artifacts/same_name_libraries/whl1/src/my_default_python/__init__.py
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/src/my_default_python/__init__.py
rename to acceptance/bundle/artifacts/same_name_libraries/whl1/src/my_default_python/__init__.py
diff --git a/acceptance/bundle/artifacts/same_name_libraries/whl1/src/my_default_python/main.py b/acceptance/bundle/artifacts/same_name_libraries/whl1/src/my_default_python/main.py
new file mode 100644
index 000000000..11b15b1a4
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/whl1/src/my_default_python/main.py
@@ -0,0 +1 @@
+print("hello")
diff --git a/acceptance/bundle/artifacts/same_name_libraries/whl2/setup.py b/acceptance/bundle/artifacts/same_name_libraries/whl2/setup.py
new file mode 100644
index 000000000..ddd81295e
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/whl2/setup.py
@@ -0,0 +1,28 @@
+from setuptools import setup, find_packages
+
+import sys
+
+sys.path.append("./src")
+
+import my_default_python
+
+setup(
+    name="my_default_python",
+    version=my_default_python.__version__,
+    url="https://databricks.com",
+    author="[USERNAME]",
+    description="wheel file based on my_default_python/src",
+    packages=find_packages(where="./src"),
+    package_dir={"": "src"},
+    entry_points={
+        "packages": [
+            "main=my_default_python.main:main",
+        ],
+    },
+    install_requires=[
+        # Dependencies in case the output wheel file is used as a library dependency.
+        # For defining dependencies, when this package is used in Databricks, see:
+        # https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
+        "setuptools"
+    ],
+)
diff --git a/acceptance/bundle/artifacts/same_name_libraries/whl2/src/my_default_python/__init__.py b/acceptance/bundle/artifacts/same_name_libraries/whl2/src/my_default_python/__init__.py
new file mode 100644
index 000000000..f102a9cad
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/whl2/src/my_default_python/__init__.py
@@ -0,0 +1 @@
+__version__ = "0.0.1"
diff --git a/acceptance/bundle/artifacts/same_name_libraries/whl2/src/my_default_python/main.py b/acceptance/bundle/artifacts/same_name_libraries/whl2/src/my_default_python/main.py
new file mode 100644
index 000000000..11b15b1a4
--- /dev/null
+++ b/acceptance/bundle/artifacts/same_name_libraries/whl2/src/my_default_python/main.py
@@ -0,0 +1 @@
+print("hello")
diff --git a/acceptance/bundle/artifacts/script.prepare b/acceptance/bundle/artifacts/script.prepare
new file mode 100644
index 000000000..673b20af9
--- /dev/null
+++ b/acceptance/bundle/artifacts/script.prepare
@@ -0,0 +1,9 @@
+export PYTHONDONTWRITEBYTECODE=1
+
+uv venv -q --python 3.12 .venv
+if [[ "$OSTYPE" == "msys" || "$OSTYPE" == "cygwin" || "$OSTYPE" == "win32" ]]; then
+    source .venv/Scripts/activate
+else
+    source .venv/bin/activate
+fi
+uv pip install -q setuptools
diff --git a/acceptance/bundle/artifacts/test.toml b/acceptance/bundle/artifacts/test.toml
new file mode 100644
index 000000000..42432706e
--- /dev/null
+++ b/acceptance/bundle/artifacts/test.toml
@@ -0,0 +1,18 @@
+Cloud = false
+RecordRequests = true
+Ignore = [
+    '.venv',
+    'dist',
+    'build',
+    '*egg-info',
+    '.databricks',
+]
+
+[[Server]]
+Pattern = "GET /api/2.1/clusters/get"
+Response.Body = '''
+{
+  "cluster_id": "0717-132531-5opeqon1",
+  "spark_version": "13.3.x-scala2.12"
+}
+'''
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/databricks.yml b/acceptance/bundle/artifacts/unique_name_libraries/databricks.yml
new file mode 100644
index 000000000..dd13c1918
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/databricks.yml
@@ -0,0 +1,56 @@
+bundle:
+  name: unique_name_libraries
+
+variables:
+  cluster:
+    default:
+      spark_version: 15.4.x-scala2.12
+      node_type_id: i3.xlarge
+      data_security_mode: SINGLE_USER
+      num_workers: 0
+      spark_conf:
+          spark.master: "local[*, 4]"
+          spark.databricks.cluster.profile: singleNode
+      custom_tags:
+        ResourceClass: SingleNode
+
+artifacts:
+  whl1:
+    type: whl
+    path: ./whl1
+  whl2:
+    type: whl
+    path: ./whl2
+
+resources:
+  jobs:
+    test:
+      name: "test"
+      tasks:
+        - task_key: task1
+          new_cluster: ${var.cluster}
+          python_wheel_task:
+            entry_point: main
+            package_name: my_package
+          libraries:
+            - whl: ./whl1/dist/*.whl
+            - whl: cowsay
+            - pypi:
+                package: test_package
+        - task_key: task2
+          new_cluster: ${var.cluster}
+          python_wheel_task:
+            entry_point: main
+            package_name: my_other_package
+          libraries:
+            - whl: ./whl2/dist/*.whl
+            - whl: cowsay
+            - maven:
+                coordinates: org.apache.spark:spark-sql_2.12:3.1.1
+        - task_key: task3
+          new_cluster: ${var.cluster}
+          python_wheel_task:
+            entry_point: main
+            package_name: my_default_python
+          libraries:
+            - whl: ./whl1/dist/*.whl
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/output.txt b/acceptance/bundle/artifacts/unique_name_libraries/output.txt
new file mode 100644
index 000000000..634574bf5
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/output.txt
@@ -0,0 +1,10 @@
+
+>>> errcode [CLI] bundle deploy
+Building whl1...
+Building whl2...
+Uploading [package name]...
+Uploading [package name]...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/unique_name_libraries/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/script b/acceptance/bundle/artifacts/unique_name_libraries/script
new file mode 100644
index 000000000..6c899df07
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/script
@@ -0,0 +1,2 @@
+trace errcode $CLI bundle deploy
+rm -rf whl1 whl2
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/test.toml b/acceptance/bundle/artifacts/unique_name_libraries/test.toml
new file mode 100644
index 000000000..7956c1909
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/test.toml
@@ -0,0 +1,6 @@
+RecordRequests = false
+
+# The order in which files are uploaded can be different, so we just replace the name
+[[Repls]]
+Old="Uploading (my_package|my_other_package)-0.0.1-py3-none-any.whl"
+New="Uploading [package name]"
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/whl1/setup.py b/acceptance/bundle/artifacts/unique_name_libraries/whl1/setup.py
new file mode 100644
index 000000000..ca85def32
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/whl1/setup.py
@@ -0,0 +1,28 @@
+from setuptools import setup, find_packages
+
+import sys
+
+sys.path.append("./src")
+
+import my_package
+
+setup(
+    name="my_package",
+    version=my_package.__version__,
+    url="https://databricks.com",
+    author="[USERNAME]",
+    description="wheel file based on my_package/src",
+    packages=find_packages(where="./src"),
+    package_dir={"": "src"},
+    entry_points={
+        "packages": [
+            "main=my_package.main:main",
+        ],
+    },
+    install_requires=[
+        # Dependencies in case the output wheel file is used as a library dependency.
+        # For defining dependencies, when this package is used in Databricks, see:
+        # https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
+        "setuptools"
+    ],
+)
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/whl1/src/my_package/__init__.py b/acceptance/bundle/artifacts/unique_name_libraries/whl1/src/my_package/__init__.py
new file mode 100644
index 000000000..f102a9cad
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/whl1/src/my_package/__init__.py
@@ -0,0 +1 @@
+__version__ = "0.0.1"
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/whl1/src/my_package/main.py b/acceptance/bundle/artifacts/unique_name_libraries/whl1/src/my_package/main.py
new file mode 100644
index 000000000..11b15b1a4
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/whl1/src/my_package/main.py
@@ -0,0 +1 @@
+print("hello")
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/whl2/setup.py b/acceptance/bundle/artifacts/unique_name_libraries/whl2/setup.py
new file mode 100644
index 000000000..5e5b34788
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/whl2/setup.py
@@ -0,0 +1,28 @@
+from setuptools import setup, find_packages
+
+import sys
+
+sys.path.append("./src")
+
+import my_other_package
+
+setup(
+    name="my_other_package",
+    version=my_other_package.__version__,
+    url="https://databricks.com",
+    author="[USERNAME]",
+    description="wheel file based on my_other_package/src",
+    packages=find_packages(where="./src"),
+    package_dir={"": "src"},
+    entry_points={
+        "packages": [
+            "main=my_other_package.main:main",
+        ],
+    },
+    install_requires=[
+        # Dependencies in case the output wheel file is used as a library dependency.
+        # For defining dependencies, when this package is used in Databricks, see:
+        # https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
+        "setuptools"
+    ],
+)
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/whl2/src/my_other_package/__init__.py b/acceptance/bundle/artifacts/unique_name_libraries/whl2/src/my_other_package/__init__.py
new file mode 100644
index 000000000..f102a9cad
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/whl2/src/my_other_package/__init__.py
@@ -0,0 +1 @@
+__version__ = "0.0.1"
diff --git a/acceptance/bundle/artifacts/unique_name_libraries/whl2/src/my_other_package/main.py b/acceptance/bundle/artifacts/unique_name_libraries/whl2/src/my_other_package/main.py
new file mode 100644
index 000000000..11b15b1a4
--- /dev/null
+++ b/acceptance/bundle/artifacts/unique_name_libraries/whl2/src/my_other_package/main.py
@@ -0,0 +1 @@
+print("hello")
diff --git a/bundle/tests/python_wheel/python_wheel_dbfs_lib/bundle.yml b/acceptance/bundle/artifacts/whl_dbfs/databricks.yml
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_dbfs_lib/bundle.yml
rename to acceptance/bundle/artifacts/whl_dbfs/databricks.yml
diff --git a/acceptance/bundle/artifacts/whl_dbfs/output.txt b/acceptance/bundle/artifacts/whl_dbfs/output.txt
new file mode 100644
index 000000000..f0615c558
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_dbfs/output.txt
@@ -0,0 +1,32 @@
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+
+=== Expecting to find no wheels
+>>> errcode find.py --expect 0 whl
+
+=== Expecting 1 wheel in libraries section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body.tasks out.requests.txt
+[
+  {
+    "existing_cluster_id": "0717-132531-5opeqon1",
+    "libraries": [
+      {
+        "whl": "dbfs:/path/to/dist/mywheel.whl"
+      }
+    ],
+    "python_wheel_task": {
+      "entry_point": "run",
+      "package_name": "my_test_code"
+    },
+    "task_key": "TestTask"
+  }
+]
+
+=== Expecting no wheels to be uploaded
+>>> errcode sh -c jq .path < out.requests.txt | grep import | grep whl
+
+Exit code: 1
diff --git a/acceptance/bundle/artifacts/whl_dbfs/script b/acceptance/bundle/artifacts/whl_dbfs/script
new file mode 100644
index 000000000..d3b12cb8e
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_dbfs/script
@@ -0,0 +1,12 @@
+trace $CLI bundle deploy
+
+title "Expecting to find no wheels"
+trace errcode find.py --expect 0 whl
+
+title "Expecting 1 wheel in libraries section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body.tasks' out.requests.txt
+
+title "Expecting no wheels to be uploaded"
+trace errcode sh -c 'jq .path < out.requests.txt | grep import | grep whl'
+
+rm out.requests.txt
diff --git a/bundle/tests/python_wheel/environment_key/.gitignore b/acceptance/bundle/artifacts/whl_explicit/.gitignore
similarity index 100%
rename from bundle/tests/python_wheel/environment_key/.gitignore
rename to acceptance/bundle/artifacts/whl_explicit/.gitignore
diff --git a/bundle/tests/python_wheel/python_wheel/bundle.yml b/acceptance/bundle/artifacts/whl_explicit/databricks.yml
similarity index 77%
rename from bundle/tests/python_wheel/python_wheel/bundle.yml
rename to acceptance/bundle/artifacts/whl_explicit/databricks.yml
index 017fe1c43..45106c0b0 100644
--- a/bundle/tests/python_wheel/python_wheel/bundle.yml
+++ b/acceptance/bundle/artifacts/whl_explicit/databricks.yml
@@ -5,7 +5,8 @@ artifacts:
     my_test_code:
       type: whl
       path: "./my_test_code"
-      build: "python3 setup.py bdist_wheel"
+      # using 'python' there because 'python3' does not exist in virtualenv on windows
+      build: python setup.py bdist_wheel
 
 resources:
   jobs:
diff --git a/bundle/tests/python_wheel/environment_key/my_test_code/setup.py b/acceptance/bundle/artifacts/whl_explicit/my_test_code/setup.py
similarity index 100%
rename from bundle/tests/python_wheel/environment_key/my_test_code/setup.py
rename to acceptance/bundle/artifacts/whl_explicit/my_test_code/setup.py
diff --git a/bundle/tests/python_wheel/environment_key/my_test_code/src/__init__.py b/acceptance/bundle/artifacts/whl_explicit/my_test_code/src/__init__.py
similarity index 100%
rename from bundle/tests/python_wheel/environment_key/my_test_code/src/__init__.py
rename to acceptance/bundle/artifacts/whl_explicit/my_test_code/src/__init__.py
diff --git a/bundle/tests/python_wheel/environment_key/my_test_code/src/__main__.py b/acceptance/bundle/artifacts/whl_explicit/my_test_code/src/__main__.py
similarity index 100%
rename from bundle/tests/python_wheel/environment_key/my_test_code/src/__main__.py
rename to acceptance/bundle/artifacts/whl_explicit/my_test_code/src/__main__.py
diff --git a/acceptance/bundle/artifacts/whl_explicit/output.txt b/acceptance/bundle/artifacts/whl_explicit/output.txt
new file mode 100644
index 000000000..1018501db
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_explicit/output.txt
@@ -0,0 +1,34 @@
+
+>>> [CLI] bundle deploy
+Building my_test_code...
+Uploading my_test_code-0.0.1-py3-none-any.whl...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+
+>>> find.py --expect 1 whl
+my_test_code/dist/my_test_code-0.0.1-py3-none-any.whl
+
+=== Expecting 1 wheel in libraries section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body.tasks out.requests.txt
+[
+  {
+    "existing_cluster_id": "0717-132531-5opeqon1",
+    "libraries": [
+      {
+        "whl": "/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+      }
+    ],
+    "python_wheel_task": {
+      "entry_point": "run",
+      "package_name": "my_test_code"
+    },
+    "task_key": "TestTask"
+  }
+]
+
+=== Expecting 1 wheel to be uploaded
+>>> jq .path
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files/my_test_code/dist/my_test_code-0.0.1-py3-none-any.whl"
diff --git a/acceptance/bundle/artifacts/whl_explicit/script b/acceptance/bundle/artifacts/whl_explicit/script
new file mode 100644
index 000000000..bb7e26ae1
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_explicit/script
@@ -0,0 +1,11 @@
+trace $CLI bundle deploy
+
+trace find.py --expect 1 whl
+
+title "Expecting 1 wheel in libraries section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body.tasks' out.requests.txt
+
+title "Expecting 1 wheel to be uploaded"
+trace jq .path < out.requests.txt | grep import | grep whl | sort
+
+rm out.requests.txt
diff --git a/bundle/tests/python_wheel/python_wheel/.gitignore b/acceptance/bundle/artifacts/whl_implicit/.gitignore
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel/.gitignore
rename to acceptance/bundle/artifacts/whl_implicit/.gitignore
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact/bundle.yml b/acceptance/bundle/artifacts/whl_implicit/databricks.yml
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact/bundle.yml
rename to acceptance/bundle/artifacts/whl_implicit/databricks.yml
diff --git a/bundle/tests/python_wheel/python_wheel/my_test_code/src/__init__.py b/acceptance/bundle/artifacts/whl_implicit/my_test_code/__init__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel/my_test_code/src/__init__.py
rename to acceptance/bundle/artifacts/whl_implicit/my_test_code/__init__.py
diff --git a/bundle/tests/python_wheel/python_wheel/my_test_code/src/__main__.py b/acceptance/bundle/artifacts/whl_implicit/my_test_code/__main__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel/my_test_code/src/__main__.py
rename to acceptance/bundle/artifacts/whl_implicit/my_test_code/__main__.py
diff --git a/acceptance/bundle/artifacts/whl_implicit/output.txt b/acceptance/bundle/artifacts/whl_implicit/output.txt
new file mode 100644
index 000000000..69ff56c42
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_implicit/output.txt
@@ -0,0 +1,34 @@
+
+>>> [CLI] bundle deploy
+Building python_artifact...
+Uploading my_test_code-0.0.1-py3-none-any.whl...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+
+>>> find.py --expect 1 whl
+dist/my_test_code-0.0.1-py3-none-any.whl
+
+=== Expecting 1 wheels in libraries section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body.tasks out.requests.txt
+[
+  {
+    "existing_cluster_id": "0717-aaaaa-bbbbbb",
+    "libraries": [
+      {
+        "whl": "/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+      }
+    ],
+    "python_wheel_task": {
+      "entry_point": "run",
+      "package_name": "my_test_code"
+    },
+    "task_key": "TestTask"
+  }
+]
+
+=== Expecting 1 wheels to be uploaded
+>>> jq .path
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files/dist/my_test_code-0.0.1-py3-none-any.whl"
diff --git a/acceptance/bundle/artifacts/whl_implicit/script b/acceptance/bundle/artifacts/whl_implicit/script
new file mode 100644
index 000000000..78c4d75e0
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_implicit/script
@@ -0,0 +1,11 @@
+trace $CLI bundle deploy
+
+trace find.py --expect 1 whl
+
+title "Expecting 1 wheels in libraries section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body.tasks' out.requests.txt
+
+title "Expecting 1 wheels to be uploaded"
+trace jq .path < out.requests.txt | grep import | grep whl | sort
+
+rm out.requests.txt
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact/setup.py b/acceptance/bundle/artifacts/whl_implicit/setup.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact/setup.py
rename to acceptance/bundle/artifacts/whl_implicit/setup.py
diff --git a/bundle/tests/python_wheel/python_wheel_multiple/.gitignore b/acceptance/bundle/artifacts/whl_implicit_custom_path/.gitignore
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_multiple/.gitignore
rename to acceptance/bundle/artifacts/whl_implicit_custom_path/.gitignore
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_no_setup/bundle.yml b/acceptance/bundle/artifacts/whl_implicit_custom_path/databricks.yml
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_no_setup/bundle.yml
rename to acceptance/bundle/artifacts/whl_implicit_custom_path/databricks.yml
diff --git a/acceptance/bundle/artifacts/whl_implicit_custom_path/output.txt b/acceptance/bundle/artifacts/whl_implicit_custom_path/output.txt
new file mode 100644
index 000000000..0658dce3a
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_implicit_custom_path/output.txt
@@ -0,0 +1,46 @@
+
+>>> [CLI] bundle deploy
+Uploading my_test_code-0.0.1-py3-none-any.whl...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/python-wheel-local/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+
+>>> find.py --expect 1 whl
+package/my_test_code-0.0.1-py3-none-any.whl
+
+=== Expecting 1 wheel in libraries section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body out.requests.txt
+{
+  "deployment": {
+    "kind": "BUNDLE",
+    "metadata_file_path": "/Workspace/Users/[USERNAME]/.bundle/python-wheel-local/default/state/metadata.json"
+  },
+  "edit_mode": "UI_LOCKED",
+  "format": "MULTI_TASK",
+  "max_concurrent_runs": 1,
+  "name": "[default] My Wheel Job",
+  "queue": {
+    "enabled": true
+  },
+  "tasks": [
+    {
+      "existing_cluster_id": "0717-aaaaa-bbbbbb",
+      "libraries": [
+        {
+          "whl": "/Workspace/foo/bar/.internal/my_test_code-0.0.1-py3-none-any.whl"
+        }
+      ],
+      "python_wheel_task": {
+        "entry_point": "run",
+        "package_name": "my_test_code"
+      },
+      "task_key": "TestTask"
+    }
+  ]
+}
+
+=== Expecting 1 wheel to be uploaded
+>>> jq .path
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel-local/default/files/package/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/foo/bar/.internal/my_test_code-0.0.1-py3-none-any.whl"
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_no_setup/package/my_test_code-0.0.1-py3-none-any.whl b/acceptance/bundle/artifacts/whl_implicit_custom_path/package/my_test_code-0.0.1-py3-none-any.whl
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_no_setup/package/my_test_code-0.0.1-py3-none-any.whl
rename to acceptance/bundle/artifacts/whl_implicit_custom_path/package/my_test_code-0.0.1-py3-none-any.whl
diff --git a/acceptance/bundle/artifacts/whl_implicit_custom_path/script b/acceptance/bundle/artifacts/whl_implicit_custom_path/script
new file mode 100644
index 000000000..d4c2438db
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_implicit_custom_path/script
@@ -0,0 +1,11 @@
+trace $CLI bundle deploy
+
+trace find.py --expect 1 whl
+
+title "Expecting 1 wheel in libraries section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body' out.requests.txt
+
+title "Expecting 1 wheel to be uploaded"
+trace jq .path < out.requests.txt | grep import | grep whl | sort
+
+rm out.requests.txt
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact/.gitignore b/acceptance/bundle/artifacts/whl_implicit_notebook/.gitignore
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact/.gitignore
rename to acceptance/bundle/artifacts/whl_implicit_notebook/.gitignore
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_notebook/bundle.yml b/acceptance/bundle/artifacts/whl_implicit_notebook/databricks.yml
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_notebook/bundle.yml
rename to acceptance/bundle/artifacts/whl_implicit_notebook/databricks.yml
diff --git a/bundle/tests/python_wheel/python_wheel_multiple/my_test_code/src/__init__.py b/acceptance/bundle/artifacts/whl_implicit_notebook/my_test_code/__init__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_multiple/my_test_code/src/__init__.py
rename to acceptance/bundle/artifacts/whl_implicit_notebook/my_test_code/__init__.py
diff --git a/bundle/tests/python_wheel/python_wheel_multiple/my_test_code/src/__main__.py b/acceptance/bundle/artifacts/whl_implicit_notebook/my_test_code/__main__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_multiple/my_test_code/src/__main__.py
rename to acceptance/bundle/artifacts/whl_implicit_notebook/my_test_code/__main__.py
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_notebook/notebook.py b/acceptance/bundle/artifacts/whl_implicit_notebook/notebook.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_notebook/notebook.py
rename to acceptance/bundle/artifacts/whl_implicit_notebook/notebook.py
diff --git a/acceptance/bundle/artifacts/whl_implicit_notebook/output.txt b/acceptance/bundle/artifacts/whl_implicit_notebook/output.txt
new file mode 100644
index 000000000..9c7296b9a
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_implicit_notebook/output.txt
@@ -0,0 +1,33 @@
+
+>>> [CLI] bundle deploy
+Building python_artifact...
+Uploading my_test_code-0.0.1-py3-none-any.whl...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/python-wheel-notebook/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+
+>>> find.py --expect 1 whl
+dist/my_test_code-0.0.1-py3-none-any.whl
+
+=== Expecting 1 wheel in libraries section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body.tasks out.requests.txt
+[
+  {
+    "existing_cluster_id": "0717-aaaaa-bbbbbb",
+    "libraries": [
+      {
+        "whl": "/Workspace/Users/[USERNAME]/.bundle/python-wheel-notebook/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+      }
+    ],
+    "notebook_task": {
+      "notebook_path": "/notebook.py"
+    },
+    "task_key": "TestTask"
+  }
+]
+
+=== Expecting 1 wheel to be uploaded
+>>> jq .path
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel-notebook/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel-notebook/default/files/dist/my_test_code-0.0.1-py3-none-any.whl"
diff --git a/acceptance/bundle/artifacts/whl_implicit_notebook/script b/acceptance/bundle/artifacts/whl_implicit_notebook/script
new file mode 100644
index 000000000..bb7e26ae1
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_implicit_notebook/script
@@ -0,0 +1,11 @@
+trace $CLI bundle deploy
+
+trace find.py --expect 1 whl
+
+title "Expecting 1 wheel in libraries section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body.tasks' out.requests.txt
+
+title "Expecting 1 wheel to be uploaded"
+trace jq .path < out.requests.txt | grep import | grep whl | sort
+
+rm out.requests.txt
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_notebook/setup.py b/acceptance/bundle/artifacts/whl_implicit_notebook/setup.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_notebook/setup.py
rename to acceptance/bundle/artifacts/whl_implicit_notebook/setup.py
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_no_setup/.gitignore b/acceptance/bundle/artifacts/whl_multiple/.gitignore
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_no_setup/.gitignore
rename to acceptance/bundle/artifacts/whl_multiple/.gitignore
diff --git a/bundle/tests/python_wheel/python_wheel_multiple/bundle.yml b/acceptance/bundle/artifacts/whl_multiple/databricks.yml
similarity index 85%
rename from bundle/tests/python_wheel/python_wheel_multiple/bundle.yml
rename to acceptance/bundle/artifacts/whl_multiple/databricks.yml
index 770110416..2bfd85abd 100644
--- a/bundle/tests/python_wheel/python_wheel_multiple/bundle.yml
+++ b/acceptance/bundle/artifacts/whl_multiple/databricks.yml
@@ -5,11 +5,11 @@ artifacts:
     my_test_code:
       type: whl
       path: "./my_test_code"
-      build: "python3 setup.py bdist_wheel"
+      build: "python setup.py bdist_wheel"
     my_test_code_2:
       type: whl
       path: "./my_test_code"
-      build: "python3 setup2.py bdist_wheel"
+      build: "python setup2.py bdist_wheel"
 
 resources:
   jobs:
diff --git a/bundle/tests/python_wheel/python_wheel/my_test_code/setup.py b/acceptance/bundle/artifacts/whl_multiple/my_test_code/setup.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel/my_test_code/setup.py
rename to acceptance/bundle/artifacts/whl_multiple/my_test_code/setup.py
diff --git a/bundle/tests/python_wheel/python_wheel_multiple/my_test_code/setup2.py b/acceptance/bundle/artifacts/whl_multiple/my_test_code/setup2.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_multiple/my_test_code/setup2.py
rename to acceptance/bundle/artifacts/whl_multiple/my_test_code/setup2.py
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact/my_test_code/__init__.py b/acceptance/bundle/artifacts/whl_multiple/my_test_code/src/__init__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact/my_test_code/__init__.py
rename to acceptance/bundle/artifacts/whl_multiple/my_test_code/src/__init__.py
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact/my_test_code/__main__.py b/acceptance/bundle/artifacts/whl_multiple/my_test_code/src/__main__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact/my_test_code/__main__.py
rename to acceptance/bundle/artifacts/whl_multiple/my_test_code/src/__main__.py
diff --git a/acceptance/bundle/artifacts/whl_multiple/output.txt b/acceptance/bundle/artifacts/whl_multiple/output.txt
new file mode 100644
index 000000000..9335b9cc5
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_multiple/output.txt
@@ -0,0 +1,42 @@
+
+>>> [CLI] bundle deploy
+Building my_test_code...
+Building my_test_code_2...
+Deploying resources...
+Deployment complete!
+Updating deployment state...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files...
+Uploading my_test_code-0.0.1-py3-none-any.whl...
+Uploading my_test_code_2-0.0.1-py3-none-any.whl...
+
+>>> find.py --expect 2 whl
+my_test_code/dist/my_test_code-0.0.1-py3-none-any.whl
+my_test_code/dist/my_test_code_2-0.0.1-py3-none-any.whl
+
+=== Expecting 2 wheels in libraries section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body.tasks out.requests.txt
+[
+  {
+    "existing_cluster_id": "0717-132531-5opeqon1",
+    "libraries": [
+      {
+        "whl": "/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+      },
+      {
+        "whl": "/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code_2-0.0.1-py3-none-any.whl"
+      }
+    ],
+    "python_wheel_task": {
+      "entry_point": "run",
+      "package_name": "my_test_code"
+    },
+    "task_key": "TestTask"
+  }
+]
+
+=== Expecting 2 wheels to be uploaded
+>>> jq .path
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code_2-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files/my_test_code/dist/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files/my_test_code/dist/my_test_code_2-0.0.1-py3-none-any.whl"
diff --git a/acceptance/bundle/artifacts/whl_multiple/script b/acceptance/bundle/artifacts/whl_multiple/script
new file mode 100644
index 000000000..a475e9f73
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_multiple/script
@@ -0,0 +1,11 @@
+trace $CLI bundle deploy 2>&1 | sort  # sorting because 'Uploading ...whl...' messages change order
+
+trace find.py --expect 2 whl
+
+title "Expecting 2 wheels in libraries section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body.tasks' out.requests.txt
+
+title "Expecting 2 wheels to be uploaded"
+trace jq .path < out.requests.txt | grep import | grep whl | sort
+
+rm -fr out.requests.txt
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_notebook/.gitignore b/acceptance/bundle/artifacts/whl_prebuilt_multiple/.gitignore
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_notebook/.gitignore
rename to acceptance/bundle/artifacts/whl_prebuilt_multiple/.gitignore
diff --git a/bundle/tests/python_wheel/python_wheel_no_build/bundle.yml b/acceptance/bundle/artifacts/whl_prebuilt_multiple/databricks.yml
similarity index 84%
rename from bundle/tests/python_wheel/python_wheel_no_build/bundle.yml
rename to acceptance/bundle/artifacts/whl_prebuilt_multiple/databricks.yml
index e10e3993d..4ad0c6afa 100644
--- a/bundle/tests/python_wheel/python_wheel_no_build/bundle.yml
+++ b/acceptance/bundle/artifacts/whl_prebuilt_multiple/databricks.yml
@@ -13,4 +13,4 @@ resources:
             entry_point: "run"
           libraries:
           - whl: ./dist/*.whl
-          - whl: ./dist/lib/my_test_code-0.0.1-py3-none-any.whl
+          - whl: ./dist/lib/other_test_code-0.0.1-py3-none-any.whl
diff --git a/bundle/tests/python_wheel/python_wheel_no_build/dist/lib/my_test_code-0.0.1-py3-none-any.whl b/acceptance/bundle/artifacts/whl_prebuilt_multiple/dist/lib/other_test_code-0.0.1-py3-none-any.whl
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_build/dist/lib/my_test_code-0.0.1-py3-none-any.whl
rename to acceptance/bundle/artifacts/whl_prebuilt_multiple/dist/lib/other_test_code-0.0.1-py3-none-any.whl
diff --git a/bundle/tests/python_wheel/python_wheel_no_build/dist/my_test_code-0.0.1-py3-none-any.whl b/acceptance/bundle/artifacts/whl_prebuilt_multiple/dist/my_test_code-0.0.1-py3-none-any.whl
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_build/dist/my_test_code-0.0.1-py3-none-any.whl
rename to acceptance/bundle/artifacts/whl_prebuilt_multiple/dist/my_test_code-0.0.1-py3-none-any.whl
diff --git a/acceptance/bundle/artifacts/whl_prebuilt_multiple/output.txt b/acceptance/bundle/artifacts/whl_prebuilt_multiple/output.txt
new file mode 100644
index 000000000..c9cd82fb8
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_prebuilt_multiple/output.txt
@@ -0,0 +1,45 @@
+
+>>> find.py --expect 2 whl
+dist/lib/other_test_code-0.0.1-py3-none-any.whl
+dist/my_test_code-0.0.1-py3-none-any.whl
+
+>>> [CLI] bundle deploy
+Deploying resources...
+Deployment complete!
+Updating deployment state...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files...
+Uploading my_test_code-0.0.1-py3-none-any.whl...
+Uploading other_test_code-0.0.1-py3-none-any.whl...
+
+=== Expecting to find 2 wheels, same as initially provided
+>>> find.py --expect 2 whl
+dist/lib/other_test_code-0.0.1-py3-none-any.whl
+dist/my_test_code-0.0.1-py3-none-any.whl
+
+=== Expecting 2 wheels in libraries section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body.tasks out.requests.txt
+[
+  {
+    "existing_cluster_id": "0717-132531-5opeqon1",
+    "libraries": [
+      {
+        "whl": "/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+      },
+      {
+        "whl": "/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/other_test_code-0.0.1-py3-none-any.whl"
+      }
+    ],
+    "python_wheel_task": {
+      "entry_point": "run",
+      "package_name": "my_test_code"
+    },
+    "task_key": "TestTask"
+  }
+]
+
+=== Expecting 2 wheels to be uploaded
+>>> jq .path
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/artifacts/.internal/other_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files/dist/lib/other_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/python-wheel/default/files/dist/my_test_code-0.0.1-py3-none-any.whl"
diff --git a/acceptance/bundle/artifacts/whl_prebuilt_multiple/script b/acceptance/bundle/artifacts/whl_prebuilt_multiple/script
new file mode 100644
index 000000000..5265151e2
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_prebuilt_multiple/script
@@ -0,0 +1,14 @@
+trace find.py --expect 2 whl
+
+trace $CLI bundle deploy 2>&1 | sort  # sorting because 'Uploading ...whl...' messages change order
+
+title "Expecting to find 2 wheels, same as initially provided"
+trace find.py --expect 2 whl
+
+title "Expecting 2 wheels in libraries section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body.tasks' out.requests.txt
+
+title "Expecting 2 wheels to be uploaded"
+trace jq .path < out.requests.txt | grep import | grep whl | sort
+
+rm out.requests.txt
diff --git a/bundle/tests/python_wheel/python_wheel_no_build/.gitignore b/acceptance/bundle/artifacts/whl_via_environment_key/.gitignore
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_build/.gitignore
rename to acceptance/bundle/artifacts/whl_via_environment_key/.gitignore
diff --git a/bundle/tests/python_wheel/environment_key/databricks.yml b/acceptance/bundle/artifacts/whl_via_environment_key/databricks.yml
similarity index 92%
rename from bundle/tests/python_wheel/environment_key/databricks.yml
rename to acceptance/bundle/artifacts/whl_via_environment_key/databricks.yml
index 198f8c0d2..4ca3f9113 100644
--- a/bundle/tests/python_wheel/environment_key/databricks.yml
+++ b/acceptance/bundle/artifacts/whl_via_environment_key/databricks.yml
@@ -5,7 +5,7 @@ artifacts:
     my_test_code:
       type: whl
       path: "./my_test_code"
-      build: "python3 setup.py bdist_wheel"
+      build: python setup.py bdist_wheel
 
 resources:
   jobs:
diff --git a/bundle/tests/python_wheel/python_wheel_multiple/my_test_code/setup.py b/acceptance/bundle/artifacts/whl_via_environment_key/my_test_code/setup.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_multiple/my_test_code/setup.py
rename to acceptance/bundle/artifacts/whl_via_environment_key/my_test_code/setup.py
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_notebook/my_test_code/__init__.py b/acceptance/bundle/artifacts/whl_via_environment_key/my_test_code/src/__init__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_notebook/my_test_code/__init__.py
rename to acceptance/bundle/artifacts/whl_via_environment_key/my_test_code/src/__init__.py
diff --git a/bundle/tests/python_wheel/python_wheel_no_artifact_notebook/my_test_code/__main__.py b/acceptance/bundle/artifacts/whl_via_environment_key/my_test_code/src/__main__.py
similarity index 100%
rename from bundle/tests/python_wheel/python_wheel_no_artifact_notebook/my_test_code/__main__.py
rename to acceptance/bundle/artifacts/whl_via_environment_key/my_test_code/src/__main__.py
diff --git a/acceptance/bundle/artifacts/whl_via_environment_key/output.txt b/acceptance/bundle/artifacts/whl_via_environment_key/output.txt
new file mode 100644
index 000000000..8b6b781aa
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_via_environment_key/output.txt
@@ -0,0 +1,54 @@
+
+>>> [CLI] bundle deploy
+Building my_test_code...
+Uploading my_test_code-0.0.1-py3-none-any.whl...
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/environment_key/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
+
+>>> find.py --expect 1 whl
+my_test_code/dist/my_test_code-0.0.1-py3-none-any.whl
+
+=== Expecting 1 wheel in environments section in /jobs/create
+>>> jq -s .[] | select(.path=="/api/2.1/jobs/create") | .body out.requests.txt
+{
+  "deployment": {
+    "kind": "BUNDLE",
+    "metadata_file_path": "/Workspace/Users/[USERNAME]/.bundle/environment_key/default/state/metadata.json"
+  },
+  "edit_mode": "UI_LOCKED",
+  "environments": [
+    {
+      "environment_key": "test_env",
+      "spec": {
+        "client": "1",
+        "dependencies": [
+          "/Workspace/Users/[USERNAME]/.bundle/environment_key/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+        ]
+      }
+    }
+  ],
+  "format": "MULTI_TASK",
+  "max_concurrent_runs": 1,
+  "name": "My Wheel Job",
+  "queue": {
+    "enabled": true
+  },
+  "tasks": [
+    {
+      "environment_key": "test_env",
+      "existing_cluster_id": "0717-132531-5opeqon1",
+      "python_wheel_task": {
+        "entry_point": "run",
+        "package_name": "my_test_code"
+      },
+      "task_key": "TestTask"
+    }
+  ]
+}
+
+=== Expecting 1 wheel to be uploaded
+>>> jq .path
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/environment_key/default/artifacts/.internal/my_test_code-0.0.1-py3-none-any.whl"
+"/api/2.0/workspace-files/import-file/Workspace/Users/[USERNAME]/.bundle/environment_key/default/files/my_test_code/dist/my_test_code-0.0.1-py3-none-any.whl"
diff --git a/acceptance/bundle/artifacts/whl_via_environment_key/script b/acceptance/bundle/artifacts/whl_via_environment_key/script
new file mode 100644
index 000000000..1914aeb8c
--- /dev/null
+++ b/acceptance/bundle/artifacts/whl_via_environment_key/script
@@ -0,0 +1,11 @@
+trace $CLI bundle deploy
+
+trace find.py --expect 1 whl
+
+title "Expecting 1 wheel in environments section in /jobs/create"
+trace jq -s '.[] | select(.path=="/api/2.1/jobs/create") | .body' out.requests.txt
+
+title "Expecting 1 wheel to be uploaded"
+trace jq .path < out.requests.txt | grep import | grep whl | sort
+
+rm out.requests.txt
diff --git a/acceptance/bundle/debug/out.stderr.parallel.txt b/acceptance/bundle/debug/out.stderr.parallel.txt
deleted file mode 100644
index 13c81c511..000000000
--- a/acceptance/bundle/debug/out.stderr.parallel.txt
+++ /dev/null
@@ -1,15 +0,0 @@
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=fast_validate(readonly)
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=fast_validate(readonly) mutator (read-only)=parallel
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=fast_validate(readonly) mutator (read-only)=parallel mutator (read-only)=validate:SingleNodeCluster
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=fast_validate(readonly) mutator (read-only)=parallel mutator (read-only)=validate:artifact_paths
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=fast_validate(readonly) mutator (read-only)=parallel mutator (read-only)=validate:job_cluster_key_defined
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=fast_validate(readonly) mutator (read-only)=parallel mutator (read-only)=validate:job_task_cluster_spec
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:files_to_sync
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:folder_permissions
-10:07:59 Debug: ApplyReadOnly pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:validate_sync_patterns
-10:07:59 Debug: Path /Workspace/Users/[USERNAME]/.bundle/debug/default/files has type directory (ID: 0) pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:files_to_sync
-10:07:59 Debug: non-retriable error: Workspace path not found pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:files_to_sync sdk=true
-< HTTP/0.0 000 OK pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:files_to_sync sdk=true
-< } pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:files_to_sync sdk=true
-< } pid=12345 mutator=validate mutator (read-only)=parallel mutator (read-only)=validate:files_to_sync sdk=true
diff --git a/acceptance/bundle/debug/out.stderr.txt b/acceptance/bundle/debug/out.stderr.txt
index e5867e008..b9ac5c4d9 100644
--- a/acceptance/bundle/debug/out.stderr.txt
+++ b/acceptance/bundle/debug/out.stderr.txt
@@ -1,93 +1,101 @@
 10:07:59 Info: start pid=12345 version=[DEV_VERSION] args="[CLI], bundle, validate, --debug"
 10:07:59 Debug: Found bundle root at [TMPDIR] (file [TMPDIR]/databricks.yml) pid=12345
-10:07:59 Debug: Apply pid=12345 mutator=load
-10:07:59 Info: Phase: load pid=12345 mutator=load
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=EntryPoint
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=scripts.preinit
-10:07:59 Debug: No script defined for preinit, skipping pid=12345 mutator=load mutator=seq mutator=scripts.preinit
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=ProcessRootIncludes
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=ProcessRootIncludes mutator=seq
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=VerifyCliVersion
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=EnvironmentsToTargets
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=ComputeIdToClusterId
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=InitializeVariables
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=DefineDefaultTarget(default)
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=PythonMutator(load)
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=validate:unique_resource_keys
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=SelectDefaultTarget
-10:07:59 Debug: Apply pid=12345 mutator=load mutator=seq mutator=SelectDefaultTarget mutator=SelectTarget(default)
+10:07:59 Info: Phase: load pid=12345
+10:07:59 Debug: Apply pid=12345 mutator=EntryPoint
+10:07:59 Debug: Apply pid=12345 mutator=scripts.preinit
+10:07:59 Debug: No script defined for preinit, skipping pid=12345 mutator=scripts.preinit
+10:07:59 Debug: Apply pid=12345 mutator=ProcessRootIncludes
+10:07:59 Debug: Apply pid=12345 mutator=VerifyCliVersion
+10:07:59 Debug: Apply pid=12345 mutator=EnvironmentsToTargets
+10:07:59 Debug: Apply pid=12345 mutator=ComputeIdToClusterId
+10:07:59 Debug: Apply pid=12345 mutator=InitializeVariables
+10:07:59 Debug: Apply pid=12345 mutator=DefineDefaultTarget(default)
+10:07:59 Debug: Apply pid=12345 mutator=PythonMutator(load)
+10:07:59 Debug: Apply pid=12345 mutator=validate:unique_resource_keys
+10:07:59 Debug: Apply pid=12345 mutator=SelectDefaultTarget
+10:07:59 Debug: Apply pid=12345 mutator=SelectDefaultTarget mutator=SelectTarget(default)
 10:07:59 Debug: Apply pid=12345 mutator=<func>
-10:07:59 Debug: Apply pid=12345 mutator=initialize
-10:07:59 Info: Phase: initialize pid=12345 mutator=initialize
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=validate:AllResourcesHaveValues
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=RewriteSyncPaths
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=SyncDefaultPath
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=SyncInferRoot
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=PopulateCurrentUser
+10:07:59 Info: Phase: initialize pid=12345
+10:07:59 Debug: Apply pid=12345 mutator=validate:AllResourcesHaveValues
+10:07:59 Debug: Apply pid=12345 mutator=validate:interpolation_in_auth_config
+10:07:59 Debug: Apply pid=12345 mutator=RewriteSyncPaths
+10:07:59 Debug: Apply pid=12345 mutator=SyncDefaultPath
+10:07:59 Debug: Apply pid=12345 mutator=SyncInferRoot
+10:07:59 Debug: Apply pid=12345 mutator=PopulateCurrentUser
 10:07:59 Debug: GET /api/2.0/preview/scim/v2/Me
 < HTTP/1.1 200 OK
 < {
 <   "id": "[USERID]",
 <   "userName": "[USERNAME]"
-< } pid=12345 mutator=initialize mutator=seq mutator=PopulateCurrentUser sdk=true
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=LoadGitDetails
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ApplySourceLinkedDeploymentPreset
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=DefineDefaultWorkspaceRoot
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ExpandWorkspaceRoot
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=DefaultWorkspacePaths
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=PrependWorkspacePrefix
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=RewriteWorkspacePrefix
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=SetVariables
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=PythonMutator(init)
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=PythonMutator(load_resources)
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=PythonMutator(apply_mutators)
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ResolveVariableReferences
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ResolveResourceReferences
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ResolveVariableReferences
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=MergeJobClusters
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=MergeJobParameters
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=MergeJobTasks
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=MergePipelineClusters
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=MergeApps
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=CaptureSchemaDependency
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=CheckPermissions
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=SetRunAs
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=OverrideCompute
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ConfigureDashboardDefaults
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ConfigureVolumeDefaults
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ProcessTargetMode
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ApplyPresets
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=DefaultQueueing
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ExpandPipelineGlobPaths
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ConfigureWSFS
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=TranslatePaths
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=PythonWrapperWarning
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=apps.Validate
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ValidateSharedRootPermissions
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=ApplyBundlePermissions
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=FilterCurrentUserFromPermissions
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=metadata.AnnotateJobs
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=metadata.AnnotatePipelines
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=terraform.Initialize
-10:07:59 Debug: Using Terraform from DATABRICKS_TF_EXEC_PATH at [TERRAFORM] pid=12345 mutator=initialize mutator=seq mutator=terraform.Initialize
-10:07:59 Debug: Using Terraform CLI config from DATABRICKS_TF_CLI_CONFIG_FILE at [DATABRICKS_TF_CLI_CONFIG_FILE] pid=12345 mutator=initialize mutator=seq mutator=terraform.Initialize
-10:07:59 Debug: Environment variables for Terraform: ...redacted... pid=12345 mutator=initialize mutator=seq mutator=terraform.Initialize
-10:07:59 Debug: Apply pid=12345 mutator=initialize mutator=seq mutator=scripts.postinit
-10:07:59 Debug: No script defined for postinit, skipping pid=12345 mutator=initialize mutator=seq mutator=scripts.postinit
-10:07:59 Debug: Apply pid=12345 mutator=validate
+< } pid=12345 mutator=PopulateCurrentUser sdk=true
+10:07:59 Debug: Apply pid=12345 mutator=LoadGitDetails
+10:07:59 Debug: Apply pid=12345 mutator=ApplySourceLinkedDeploymentPreset
+10:07:59 Debug: Apply pid=12345 mutator=DefineDefaultWorkspaceRoot
+10:07:59 Debug: Apply pid=12345 mutator=ExpandWorkspaceRoot
+10:07:59 Debug: Apply pid=12345 mutator=DefaultWorkspacePaths
+10:07:59 Debug: Apply pid=12345 mutator=PrependWorkspacePrefix
+10:07:59 Debug: Apply pid=12345 mutator=RewriteWorkspacePrefix
+10:07:59 Debug: Apply pid=12345 mutator=SetVariables
+10:07:59 Debug: Apply pid=12345 mutator=PythonMutator(init)
+10:07:59 Debug: Apply pid=12345 mutator=PythonMutator(load_resources)
+10:07:59 Debug: Apply pid=12345 mutator=PythonMutator(apply_mutators)
+10:07:59 Debug: Apply pid=12345 mutator=ResolveVariableReferences
+10:07:59 Debug: Apply pid=12345 mutator=ResolveResourceReferences
+10:07:59 Debug: Apply pid=12345 mutator=ResolveVariableReferences
+10:07:59 Debug: Apply pid=12345 mutator=MergeJobClusters
+10:07:59 Debug: Apply pid=12345 mutator=MergeJobParameters
+10:07:59 Debug: Apply pid=12345 mutator=MergeJobTasks
+10:07:59 Debug: Apply pid=12345 mutator=MergePipelineClusters
+10:07:59 Debug: Apply pid=12345 mutator=MergeApps
+10:07:59 Debug: Apply pid=12345 mutator=CaptureSchemaDependency
+10:07:59 Debug: Apply pid=12345 mutator=CheckPermissions
+10:07:59 Debug: Apply pid=12345 mutator=SetRunAs
+10:07:59 Debug: Apply pid=12345 mutator=OverrideCompute
+10:07:59 Debug: Apply pid=12345 mutator=ConfigureDashboardDefaults
+10:07:59 Debug: Apply pid=12345 mutator=ConfigureVolumeDefaults
+10:07:59 Debug: Apply pid=12345 mutator=ProcessTargetMode
+10:07:59 Debug: Apply pid=12345 mutator=ApplyPresets
+10:07:59 Debug: Apply pid=12345 mutator=DefaultQueueing
+10:07:59 Debug: Apply pid=12345 mutator=ExpandPipelineGlobPaths
+10:07:59 Debug: Apply pid=12345 mutator=ConfigureWSFS
+10:07:59 Debug: Apply pid=12345 mutator=TranslatePaths
+10:07:59 Debug: Apply pid=12345 mutator=PythonWrapperWarning
+10:07:59 Debug: Apply pid=12345 mutator=apps.Validate
+10:07:59 Debug: Apply pid=12345 mutator=ValidateSharedRootPermissions
+10:07:59 Debug: Apply pid=12345 mutator=ApplyBundlePermissions
+10:07:59 Debug: Apply pid=12345 mutator=FilterCurrentUserFromPermissions
+10:07:59 Debug: Apply pid=12345 mutator=metadata.AnnotateJobs
+10:07:59 Debug: Apply pid=12345 mutator=metadata.AnnotatePipelines
+10:07:59 Debug: Apply pid=12345 mutator=terraform.Initialize
+10:07:59 Debug: Using Terraform from DATABRICKS_TF_EXEC_PATH at [TERRAFORM] pid=12345 mutator=terraform.Initialize
+10:07:59 Debug: Using Terraform CLI config from DATABRICKS_TF_CLI_CONFIG_FILE at [DATABRICKS_TF_CLI_CONFIG_FILE] pid=12345 mutator=terraform.Initialize
+10:07:59 Debug: Environment variables for Terraform: ...redacted... pid=12345 mutator=terraform.Initialize
+10:07:59 Debug: Apply pid=12345 mutator=scripts.postinit
+10:07:59 Debug: No script defined for postinit, skipping pid=12345 mutator=scripts.postinit
+10:07:59 Debug: ApplyParallel pid=12345 mutator=fast_validate(readonly)
+10:07:59 Debug: ApplyParallel pid=12345 mutator=validate:files_to_sync
+10:07:59 Debug: ApplyParallel pid=12345 mutator=validate:folder_permissions
+10:07:59 Debug: ApplyParallel pid=12345 mutator=validate:validate_sync_patterns
+10:07:59 Debug: ApplyParallel pid=12345 mutator=fast_validate(readonly) mutator=validate:job_cluster_key_defined
+10:07:59 Debug: ApplyParallel pid=12345 mutator=fast_validate(readonly) mutator=validate:job_task_cluster_spec
+10:07:59 Debug: ApplyParallel pid=12345 mutator=fast_validate(readonly) mutator=validate:SingleNodeCluster
+10:07:59 Debug: ApplyParallel pid=12345 mutator=fast_validate(readonly) mutator=validate:artifact_paths
 10:07:59 Debug: GET /api/2.0/workspace/get-status?path=/Workspace/Users/[USERNAME]/.bundle/debug/default/files
 < HTTP/1.1 404 Not Found
 < {
 <   "message": "Workspace path not found"
+< } pid=12345 mutator=validate:files_to_sync sdk=true
+10:07:59 Debug: non-retriable error: Workspace path not found pid=12345 mutator=validate:files_to_sync sdk=true
 10:07:59 Debug: POST /api/2.0/workspace/mkdirs
 > {
 >   "path": "/Workspace/Users/[USERNAME]/.bundle/debug/default/files"
 > }
+< HTTP/1.1 200 OK pid=12345 mutator=validate:files_to_sync sdk=true
 10:07:59 Debug: GET /api/2.0/workspace/get-status?path=/Workspace/Users/[USERNAME]/.bundle/debug/default/files
 < HTTP/1.1 200 OK
 < {
 <   "object_type": "DIRECTORY",
 <   "path": "/Workspace/Users/[USERNAME]/.bundle/debug/default/files"
+< } pid=12345 mutator=validate:files_to_sync sdk=true
+10:07:59 Debug: Path /Workspace/Users/[USERNAME]/.bundle/debug/default/files has type directory (ID: 0) pid=12345 mutator=validate:files_to_sync
 10:07:59 Info: completed execution pid=12345 exit_code=0
diff --git a/acceptance/bundle/debug/script b/acceptance/bundle/debug/script
index 005a1a341..913f07e41 100644
--- a/acceptance/bundle/debug/script
+++ b/acceptance/bundle/debug/script
@@ -1,4 +1 @@
-$CLI bundle validate --debug 2> full.stderr.txt
-grep -vw parallel full.stderr.txt > out.stderr.txt
-grep -w parallel full.stderr.txt | sed 's/[0-9]/0/g' | sort_lines.py > out.stderr.parallel.txt
-rm full.stderr.txt
+$CLI bundle validate --debug 2> out.stderr.txt
diff --git a/acceptance/bundle/debug/test.toml b/acceptance/bundle/debug/test.toml
index bb0fcb395..79d1b9ee6 100644
--- a/acceptance/bundle/debug/test.toml
+++ b/acceptance/bundle/debug/test.toml
@@ -1,4 +1,4 @@
-LocalOnly = true
+Cloud = false
 
 [[Repls]]
 # The keys are unsorted and also vary per OS
diff --git a/acceptance/bundle/generate/git_job/test.toml b/acceptance/bundle/generate/git_job/test.toml
index 28b473245..fce46071a 100644
--- a/acceptance/bundle/generate/git_job/test.toml
+++ b/acceptance/bundle/generate/git_job/test.toml
@@ -1,4 +1,4 @@
-LocalOnly = true  # This test needs to run against stubbed Databricks API
+Cloud = false  # This test needs to run against stubbed Databricks API
 
 [[Server]]
 Pattern = "GET /api/2.1/jobs/get"
diff --git a/acceptance/bundle/help/test.toml b/acceptance/bundle/help/test.toml
new file mode 100644
index 000000000..18b1a8841
--- /dev/null
+++ b/acceptance/bundle/help/test.toml
@@ -0,0 +1 @@
+Cloud = false
diff --git a/acceptance/bundle/includes/include_outside_root/a.yml b/acceptance/bundle/includes/include_outside_root/a.yml
new file mode 100644
index 000000000..b4addb99b
--- /dev/null
+++ b/acceptance/bundle/includes/include_outside_root/a.yml
@@ -0,0 +1,4 @@
+include:
+  - b.yml
+  - c.yml
+
diff --git a/acceptance/bundle/includes/include_outside_root/databricks.yml b/acceptance/bundle/includes/include_outside_root/databricks.yml
new file mode 100644
index 000000000..6addb7d2f
--- /dev/null
+++ b/acceptance/bundle/includes/include_outside_root/databricks.yml
@@ -0,0 +1,5 @@
+bundle:
+  name: include_outside_root
+
+include:
+ - a.yml
diff --git a/acceptance/bundle/includes/include_outside_root/output.txt b/acceptance/bundle/includes/include_outside_root/output.txt
new file mode 100644
index 000000000..f4f49f3ac
--- /dev/null
+++ b/acceptance/bundle/includes/include_outside_root/output.txt
@@ -0,0 +1,14 @@
+Warning: Include section is defined outside root file
+  at include
+  in a.yml:2:3
+
+An include section is defined in a file that is not databricks.yml.
+Only includes defined in databricks.yml are applied.
+
+Name: include_outside_root
+Target: default
+Workspace:
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/include_outside_root/default
+
+Found 1 warning
diff --git a/acceptance/bundle/includes/include_outside_root/script b/acceptance/bundle/includes/include_outside_root/script
new file mode 100644
index 000000000..72555b332
--- /dev/null
+++ b/acceptance/bundle/includes/include_outside_root/script
@@ -0,0 +1 @@
+$CLI bundle validate
diff --git a/acceptance/bundle/libraries/maven/.gitignore b/acceptance/bundle/libraries/maven/.gitignore
new file mode 100644
index 000000000..15bcc6dd0
--- /dev/null
+++ b/acceptance/bundle/libraries/maven/.gitignore
@@ -0,0 +1 @@
+.databricks
diff --git a/acceptance/bundle/libraries/maven/databricks.yml b/acceptance/bundle/libraries/maven/databricks.yml
new file mode 100644
index 000000000..785142626
--- /dev/null
+++ b/acceptance/bundle/libraries/maven/databricks.yml
@@ -0,0 +1,27 @@
+bundle:
+  name: maven
+
+
+resources:
+  jobs:
+    testjob:
+      name: test-job
+      tasks:
+        - task_key: dbt
+          spark_jar_task:
+            main_class_name: com.databricks.example.Main
+
+          libraries:
+          - maven:
+              coordinates: org.jsoup:jsoup:1.7.2
+
+          new_cluster:
+            spark_version: 15.4.x-scala2.12
+            node_type_id: i3.xlarge
+            data_security_mode: SINGLE_USER
+            num_workers: 0
+            spark_conf:
+                spark.master: "local[*, 4]"
+                spark.databricks.cluster.profile: singleNode
+            custom_tags:
+              ResourceClass: SingleNode
diff --git a/acceptance/bundle/libraries/maven/out.job.libraries.txt b/acceptance/bundle/libraries/maven/out.job.libraries.txt
new file mode 100644
index 000000000..2b4a0d5f5
--- /dev/null
+++ b/acceptance/bundle/libraries/maven/out.job.libraries.txt
@@ -0,0 +1,7 @@
+[
+  {
+    "maven": {
+      "coordinates": "org.jsoup:jsoup:1.7.2"
+    }
+  }
+]
diff --git a/acceptance/bundle/libraries/maven/output.txt b/acceptance/bundle/libraries/maven/output.txt
new file mode 100644
index 000000000..fd72d8d14
--- /dev/null
+++ b/acceptance/bundle/libraries/maven/output.txt
@@ -0,0 +1,15 @@
+
+>>> [CLI] bundle validate -o json
+[
+  {
+    "maven": {
+      "coordinates": "org.jsoup:jsoup:1.7.2"
+    }
+  }
+]
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/maven/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
diff --git a/acceptance/bundle/libraries/maven/script b/acceptance/bundle/libraries/maven/script
new file mode 100644
index 000000000..06d1b6409
--- /dev/null
+++ b/acceptance/bundle/libraries/maven/script
@@ -0,0 +1,4 @@
+trace $CLI bundle validate -o json | jq '.resources.jobs.testjob.tasks[0].libraries'
+trace $CLI bundle deploy
+cat out.requests.txt | jq 'select(.path == "/api/2.1/jobs/create")' | jq '.body.tasks[0].libraries'  > out.job.libraries.txt
+rm out.requests.txt
diff --git a/acceptance/bundle/libraries/maven/test.toml b/acceptance/bundle/libraries/maven/test.toml
new file mode 100644
index 000000000..62ba36982
--- /dev/null
+++ b/acceptance/bundle/libraries/maven/test.toml
@@ -0,0 +1,5 @@
+# We run this test only locally for now because we need to figure out how to do
+# bundle destroy on script.cleanup first.
+Cloud = false
+
+RecordRequests = true
diff --git a/acceptance/bundle/libraries/pypi/.gitignore b/acceptance/bundle/libraries/pypi/.gitignore
new file mode 100644
index 000000000..15bcc6dd0
--- /dev/null
+++ b/acceptance/bundle/libraries/pypi/.gitignore
@@ -0,0 +1 @@
+.databricks
diff --git a/acceptance/bundle/libraries/pypi/databricks.yml b/acceptance/bundle/libraries/pypi/databricks.yml
new file mode 100644
index 000000000..67f3da254
--- /dev/null
+++ b/acceptance/bundle/libraries/pypi/databricks.yml
@@ -0,0 +1,32 @@
+bundle:
+  name: pypi
+
+
+resources:
+  jobs:
+    testjob:
+      name: test-job
+      tasks:
+        - task_key: dbt
+          dbt_task:
+            project_directory: ./
+            profiles_directory: dbt_profiles/
+            commands:
+            - 'dbt deps --target=${bundle.target}'
+            - 'dbt seed --target=${bundle.target} --vars "{ dev_schema: ${workspace.current_user.short_name} }"'
+            - 'dbt run --target=${bundle.target} --vars "{ dev_schema: ${workspace.current_user.short_name} }"'
+
+          libraries:
+          - pypi:
+              package: dbt-databricks>=1.8.0,<2.0.0
+
+          new_cluster:
+            spark_version: 15.4.x-scala2.12
+            node_type_id: i3.xlarge
+            data_security_mode: SINGLE_USER
+            num_workers: 0
+            spark_conf:
+                spark.master: "local[*, 4]"
+                spark.databricks.cluster.profile: singleNode
+            custom_tags:
+              ResourceClass: SingleNode
diff --git a/acceptance/bundle/libraries/pypi/out.job.libraries.txt b/acceptance/bundle/libraries/pypi/out.job.libraries.txt
new file mode 100644
index 000000000..ddc7d84a5
--- /dev/null
+++ b/acceptance/bundle/libraries/pypi/out.job.libraries.txt
@@ -0,0 +1,7 @@
+[
+  {
+    "pypi": {
+      "package": "dbt-databricks>=1.8.0,<2.0.0"
+    }
+  }
+]
diff --git a/acceptance/bundle/libraries/pypi/output.txt b/acceptance/bundle/libraries/pypi/output.txt
new file mode 100644
index 000000000..002677d64
--- /dev/null
+++ b/acceptance/bundle/libraries/pypi/output.txt
@@ -0,0 +1,15 @@
+
+>>> [CLI] bundle validate -o json
+[
+  {
+    "pypi": {
+      "package": "dbt-databricks>=1.8.0,<2.0.0"
+    }
+  }
+]
+
+>>> [CLI] bundle deploy
+Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/pypi/default/files...
+Deploying resources...
+Updating deployment state...
+Deployment complete!
diff --git a/acceptance/bundle/libraries/pypi/script b/acceptance/bundle/libraries/pypi/script
new file mode 100644
index 000000000..06d1b6409
--- /dev/null
+++ b/acceptance/bundle/libraries/pypi/script
@@ -0,0 +1,4 @@
+trace $CLI bundle validate -o json | jq '.resources.jobs.testjob.tasks[0].libraries'
+trace $CLI bundle deploy
+cat out.requests.txt | jq 'select(.path == "/api/2.1/jobs/create")' | jq '.body.tasks[0].libraries'  > out.job.libraries.txt
+rm out.requests.txt
diff --git a/acceptance/bundle/libraries/pypi/test.toml b/acceptance/bundle/libraries/pypi/test.toml
new file mode 100644
index 000000000..62ba36982
--- /dev/null
+++ b/acceptance/bundle/libraries/pypi/test.toml
@@ -0,0 +1,5 @@
+# We run this test only locally for now because we need to figure out how to do
+# bundle destroy on script.cleanup first.
+Cloud = false
+
+RecordRequests = true
diff --git a/acceptance/bundle/templates-machinery/helpers-error/test.toml b/acceptance/bundle/templates-machinery/helpers-error/test.toml
index 77f4ed94b..3839635db 100644
--- a/acceptance/bundle/templates-machinery/helpers-error/test.toml
+++ b/acceptance/bundle/templates-machinery/helpers-error/test.toml
@@ -1,5 +1,4 @@
 Badness = '''(minor) error message is not great: executing "" at <user_name>: error calling user_name:'''
-LocalOnly = true
 
 [[Server]]
 Pattern = "GET /api/2.0/preview/scim/v2/Me"
diff --git a/acceptance/bundle/templates-machinery/helpers/test.toml b/acceptance/bundle/templates-machinery/helpers/test.toml
deleted file mode 100644
index b76e712fb..000000000
--- a/acceptance/bundle/templates-machinery/helpers/test.toml
+++ /dev/null
@@ -1 +0,0 @@
-LocalOnly = true
diff --git a/acceptance/bundle/templates-machinery/test.toml b/acceptance/bundle/templates-machinery/test.toml
index 9083ecd1b..18b1a8841 100644
--- a/acceptance/bundle/templates-machinery/test.toml
+++ b/acceptance/bundle/templates-machinery/test.toml
@@ -1,2 +1 @@
-# Testing template machinery, by default there is no need to check against cloud.
-LocalOnly = true
+Cloud = false
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/out.gitignore b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/out.gitignore
index de811f118..231162918 100644
--- a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/out.gitignore
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/out.gitignore
@@ -1,2 +1,15 @@
+# DABs
+.databricks/
+build/
+dist/
+__pycache__/
+*.egg-info
+.venv/
+scratch/**
+!scratch/README.md
 
-.databricks
+# dbt
+target/
+dbt_packages/
+dbt_modules/
+logs/
diff --git a/acceptance/bundle/templates/default-python/input.json b/acceptance/bundle/templates/default-python/classic/input.json
similarity index 66%
rename from acceptance/bundle/templates/default-python/input.json
rename to acceptance/bundle/templates/default-python/classic/input.json
index 3e1d79c68..2c4416c00 100644
--- a/acceptance/bundle/templates/default-python/input.json
+++ b/acceptance/bundle/templates/default-python/classic/input.json
@@ -2,5 +2,6 @@
     "project_name": "my_default_python",
     "include_notebook": "yes",
     "include_dlt": "yes",
-    "include_python": "yes"
+    "include_python": "yes",
+    "serverless": "no"
 }
diff --git a/acceptance/bundle/templates/default-python/classic/out.compare-vs-serverless.diff b/acceptance/bundle/templates/default-python/classic/out.compare-vs-serverless.diff
new file mode 100644
index 000000000..6890badf0
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/classic/out.compare-vs-serverless.diff
@@ -0,0 +1,54 @@
+--- [TESTROOT]/bundle/templates/default-python/classic/../serverless/output/my_default_python/resources/my_default_python.job.yml
++++ output/my_default_python/resources/my_default_python.job.yml
+@@ -17,4 +17,5 @@
+       tasks:
+         - task_key: notebook_task
++          job_cluster_key: job_cluster
+           notebook_task:
+             notebook_path: ../src/notebook.ipynb
+@@ -29,17 +30,21 @@
+           depends_on:
+             - task_key: refresh_pipeline
+-          environment_key: default
++          job_cluster_key: job_cluster
+           python_wheel_task:
+             package_name: my_default_python
+             entry_point: main
++          libraries:
++            # By default we just include the .whl file generated for the my_default_python package.
++            # See https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
++            # for more information on how to add other libraries.
++            - whl: ../dist/*.whl
+ 
+-      # A list of task execution environment specifications that can be referenced by tasks of this job.
+-      environments:
+-        - environment_key: default
+-
+-          # Full documentation of this spec can be found at:
+-          # https://docs.databricks.com/api/workspace/jobs/create#environments-spec
+-          spec:
+-            client: "1"
+-            dependencies:
+-              - ../dist/*.whl
++      job_clusters:
++        - job_cluster_key: job_cluster
++          new_cluster:
++            spark_version: 15.4.x-scala2.12
++            node_type_id: i3.xlarge
++            data_security_mode: SINGLE_USER
++            autoscale:
++                min_workers: 1
++                max_workers: 4
+--- [TESTROOT]/bundle/templates/default-python/classic/../serverless/output/my_default_python/resources/my_default_python.pipeline.yml
++++ output/my_default_python/resources/my_default_python.pipeline.yml
+@@ -4,8 +4,7 @@
+     my_default_python_pipeline:
+       name: my_default_python_pipeline
+-      ## Catalog is required for serverless compute
+-      catalog: main
++      ## Specify the 'catalog' field to configure this pipeline to make use of Unity Catalog:
++      # catalog: catalog_name
+       target: my_default_python_${bundle.target}
+-      serverless: true
+       libraries:
+         - notebook:
diff --git a/acceptance/bundle/templates/default-python/output.txt b/acceptance/bundle/templates/default-python/classic/output.txt
similarity index 100%
rename from acceptance/bundle/templates/default-python/output.txt
rename to acceptance/bundle/templates/default-python/classic/output.txt
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/.vscode/__builtins__.pyi b/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/__builtins__.pyi
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/.vscode/__builtins__.pyi
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/__builtins__.pyi
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/.vscode/extensions.json b/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/extensions.json
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/.vscode/extensions.json
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/extensions.json
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/.vscode/settings.json b/acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/settings.json
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/.vscode/settings.json
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/.vscode/settings.json
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/README.md b/acceptance/bundle/templates/default-python/classic/output/my_default_python/README.md
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/README.md
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/README.md
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/databricks.yml b/acceptance/bundle/templates/default-python/classic/output/my_default_python/databricks.yml
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/databricks.yml
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/databricks.yml
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/fixtures/.gitkeep b/acceptance/bundle/templates/default-python/classic/output/my_default_python/fixtures/.gitkeep
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/fixtures/.gitkeep
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/fixtures/.gitkeep
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/out.gitignore b/acceptance/bundle/templates/default-python/classic/output/my_default_python/out.gitignore
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/out.gitignore
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/out.gitignore
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/pytest.ini b/acceptance/bundle/templates/default-python/classic/output/my_default_python/pytest.ini
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/pytest.ini
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/pytest.ini
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/requirements-dev.txt b/acceptance/bundle/templates/default-python/classic/output/my_default_python/requirements-dev.txt
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/requirements-dev.txt
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/requirements-dev.txt
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.job.yml b/acceptance/bundle/templates/default-python/classic/output/my_default_python/resources/my_default_python.job.yml
similarity index 97%
rename from acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.job.yml
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/resources/my_default_python.job.yml
index d9e31691a..7c11e143f 100644
--- a/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.job.yml
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/resources/my_default_python.job.yml
@@ -44,6 +44,7 @@ resources:
           new_cluster:
             spark_version: 15.4.x-scala2.12
             node_type_id: i3.xlarge
+            data_security_mode: SINGLE_USER
             autoscale:
                 min_workers: 1
                 max_workers: 4
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/resources/my_default_python.pipeline.yml b/acceptance/bundle/templates/default-python/classic/output/my_default_python/resources/my_default_python.pipeline.yml
new file mode 100644
index 000000000..4176f765d
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/resources/my_default_python.pipeline.yml
@@ -0,0 +1,14 @@
+# The main pipeline for my_default_python
+resources:
+  pipelines:
+    my_default_python_pipeline:
+      name: my_default_python_pipeline
+      ## Specify the 'catalog' field to configure this pipeline to make use of Unity Catalog:
+      # catalog: catalog_name
+      target: my_default_python_${bundle.target}
+      libraries:
+        - notebook:
+            path: ../src/dlt_pipeline.ipynb
+
+      configuration:
+        bundle.sourcePath: ${workspace.file_path}/src
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/scratch/README.md b/acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/README.md
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/scratch/README.md
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/README.md
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/scratch/exploration.ipynb b/acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/exploration.ipynb
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/scratch/exploration.ipynb
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/scratch/exploration.ipynb
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/setup.py b/acceptance/bundle/templates/default-python/classic/output/my_default_python/setup.py
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/setup.py
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/setup.py
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/src/dlt_pipeline.ipynb b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/dlt_pipeline.ipynb
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/src/dlt_pipeline.ipynb
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/src/dlt_pipeline.ipynb
diff --git a/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/__init__.py b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/__init__.py
new file mode 100644
index 000000000..f102a9cad
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/__init__.py
@@ -0,0 +1 @@
+__version__ = "0.0.1"
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/src/my_default_python/main.py b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/main.py
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/src/my_default_python/main.py
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/src/my_default_python/main.py
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/src/notebook.ipynb b/acceptance/bundle/templates/default-python/classic/output/my_default_python/src/notebook.ipynb
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/src/notebook.ipynb
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/src/notebook.ipynb
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/tests/main_test.py b/acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/main_test.py
similarity index 100%
rename from acceptance/bundle/templates/default-python/output/my_default_python/tests/main_test.py
rename to acceptance/bundle/templates/default-python/classic/output/my_default_python/tests/main_test.py
diff --git a/acceptance/bundle/templates/default-python/classic/script b/acceptance/bundle/templates/default-python/classic/script
new file mode 100644
index 000000000..7e5524065
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/classic/script
@@ -0,0 +1,13 @@
+trace $CLI bundle init default-python --config-file ./input.json --output-dir output
+
+cd output/my_default_python
+trace $CLI bundle validate -t dev
+trace $CLI bundle validate -t prod
+
+# Do not affect this repository's git behaviour #2318
+mv .gitignore out.gitignore
+
+cd ../../
+
+# Calculate the difference from the serverless template
+diff.py $TESTDIR/../serverless/output output/ > out.compare-vs-serverless.diff
diff --git a/acceptance/bundle/templates/default-python/serverless-customcatalog/output.txt b/acceptance/bundle/templates/default-python/serverless-customcatalog/output.txt
new file mode 100644
index 000000000..30726013b
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless-customcatalog/output.txt
@@ -0,0 +1,22 @@
+
+>>> [CLI] bundle init default-python --config-file [TESTROOT]/bundle/templates/default-python/serverless-customcatalog/../serverless/input.json --output-dir output
+
+Welcome to the default Python template for Databricks Asset Bundles!
+Workspace to use (auto-detected, edit in 'my_default_python/databricks.yml'): [DATABRICKS_URL]
+
+✨ Your new project has been created in the 'my_default_python' directory!
+
+Please refer to the README.md file for "getting started" instructions.
+See also the documentation at https://docs.databricks.com/dev-tools/bundles/index.html.
+
+>>> diff.py [TESTROOT]/bundle/templates/default-python/serverless-customcatalog/../serverless/output output/
+--- [TESTROOT]/bundle/templates/default-python/serverless-customcatalog/../serverless/output/my_default_python/resources/my_default_python.pipeline.yml
++++ output/my_default_python/resources/my_default_python.pipeline.yml
+@@ -4,6 +4,5 @@
+     my_default_python_pipeline:
+       name: my_default_python_pipeline
+-      ## Catalog is required for serverless compute
+-      catalog: main
++      catalog: customcatalog
+       target: my_default_python_${bundle.target}
+       serverless: true
diff --git a/acceptance/bundle/templates/default-python/serverless-customcatalog/script b/acceptance/bundle/templates/default-python/serverless-customcatalog/script
new file mode 100644
index 000000000..2d1597c81
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless-customcatalog/script
@@ -0,0 +1,4 @@
+trace $CLI bundle init default-python --config-file $TESTDIR/../serverless/input.json --output-dir output
+mv output/my_default_python/.gitignore output/my_default_python/out.gitignore
+trace diff.py $TESTDIR/../serverless/output output/
+rm -fr output
diff --git a/acceptance/bundle/templates/default-python/serverless-customcatalog/test.toml b/acceptance/bundle/templates/default-python/serverless-customcatalog/test.toml
new file mode 100644
index 000000000..4029057be
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless-customcatalog/test.toml
@@ -0,0 +1,8 @@
+[[Server]]
+Pattern = "GET /api/2.1/unity-catalog/current-metastore-assignment"
+Response.Body = '{"default_catalog_name": "customcatalog"}'
+
+[[Repls]]
+# windows fix
+Old = '\\'
+New = '/'
diff --git a/acceptance/bundle/templates/default-python/serverless/input.json b/acceptance/bundle/templates/default-python/serverless/input.json
new file mode 100644
index 000000000..b1ae9a2ba
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/input.json
@@ -0,0 +1,7 @@
+{
+    "project_name": "my_default_python",
+    "include_notebook": "yes",
+    "include_dlt": "yes",
+    "include_python": "yes",
+    "serverless": "yes"
+}
diff --git a/acceptance/bundle/templates/default-python/serverless/output.txt b/acceptance/bundle/templates/default-python/serverless/output.txt
new file mode 100644
index 000000000..930e756de
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output.txt
@@ -0,0 +1,30 @@
+
+>>> [CLI] bundle init default-python --config-file ./input.json --output-dir output
+
+Welcome to the default Python template for Databricks Asset Bundles!
+Workspace to use (auto-detected, edit in 'my_default_python/databricks.yml'): [DATABRICKS_URL]
+
+✨ Your new project has been created in the 'my_default_python' directory!
+
+Please refer to the README.md file for "getting started" instructions.
+See also the documentation at https://docs.databricks.com/dev-tools/bundles/index.html.
+
+>>> [CLI] bundle validate -t dev
+Name: my_default_python
+Target: dev
+Workspace:
+  Host: [DATABRICKS_URL]
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/my_default_python/dev
+
+Validation OK!
+
+>>> [CLI] bundle validate -t prod
+Name: my_default_python
+Target: prod
+Workspace:
+  Host: [DATABRICKS_URL]
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/my_default_python/prod
+
+Validation OK!
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/__builtins__.pyi b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/__builtins__.pyi
new file mode 100644
index 000000000..0edd5181b
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/__builtins__.pyi
@@ -0,0 +1,3 @@
+# Typings for Pylance in Visual Studio Code
+# see https://github.com/microsoft/pyright/blob/main/docs/builtins.md
+from databricks.sdk.runtime import *
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/extensions.json b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/extensions.json
new file mode 100644
index 000000000..5d15eba36
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/extensions.json
@@ -0,0 +1,7 @@
+{
+    "recommendations": [
+        "databricks.databricks",
+        "ms-python.vscode-pylance",
+        "redhat.vscode-yaml"
+    ]
+}
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/settings.json b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/settings.json
new file mode 100644
index 000000000..8ee87c30d
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/.vscode/settings.json
@@ -0,0 +1,16 @@
+{
+    "python.analysis.stubPath": ".vscode",
+    "jupyter.interactiveWindow.cellMarker.codeRegex": "^# COMMAND ----------|^# Databricks notebook source|^(#\\s*%%|#\\s*\\<codecell\\>|#\\s*In\\[\\d*?\\]|#\\s*In\\[ \\])",
+    "jupyter.interactiveWindow.cellMarker.default": "# COMMAND ----------",
+    "python.testing.pytestArgs": [
+        "."
+    ],
+    "python.testing.unittestEnabled": false,
+    "python.testing.pytestEnabled": true,
+    "python.analysis.extraPaths": ["src"],
+    "files.exclude": {
+        "**/*.egg-info": true,
+        "**/__pycache__": true,
+        ".pytest_cache": true,
+    },
+}
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/README.md b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/README.md
new file mode 100644
index 000000000..10f570bf4
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/README.md
@@ -0,0 +1,49 @@
+# my_default_python
+
+The 'my_default_python' project was generated by using the default-python template.
+
+## Getting started
+
+1. Install the Databricks CLI from https://docs.databricks.com/dev-tools/cli/databricks-cli.html
+
+2. Authenticate to your Databricks workspace, if you have not done so already:
+    ```
+    $ databricks configure
+    ```
+
+3. To deploy a development copy of this project, type:
+    ```
+    $ databricks bundle deploy --target dev
+    ```
+    (Note that "dev" is the default target, so the `--target` parameter
+    is optional here.)
+
+    This deploys everything that's defined for this project.
+    For example, the default template would deploy a job called
+    `[dev yourname] my_default_python_job` to your workspace.
+    You can find that job by opening your workpace and clicking on **Workflows**.
+
+4. Similarly, to deploy a production copy, type:
+   ```
+   $ databricks bundle deploy --target prod
+   ```
+
+   Note that the default job from the template has a schedule that runs every day
+   (defined in resources/my_default_python.job.yml). The schedule
+   is paused when deploying in development mode (see
+   https://docs.databricks.com/dev-tools/bundles/deployment-modes.html).
+
+5. To run a job or pipeline, use the "run" command:
+   ```
+   $ databricks bundle run
+   ```
+6. Optionally, install the Databricks extension for Visual Studio code for local development from
+   https://docs.databricks.com/dev-tools/vscode-ext.html. It can configure your
+   virtual environment and setup Databricks Connect for running unit tests locally.
+   When not using these tools, consult your development environment's documentation
+   and/or the documentation for Databricks Connect for manually setting up your environment
+   (https://docs.databricks.com/en/dev-tools/databricks-connect/python/index.html).
+
+7. For documentation on the Databricks asset bundles format used
+   for this project, and for CI/CD configuration, see
+   https://docs.databricks.com/dev-tools/bundles/index.html.
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/databricks.yml b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/databricks.yml
new file mode 100644
index 000000000..6080a368f
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/databricks.yml
@@ -0,0 +1,29 @@
+# This is a Databricks asset bundle definition for my_default_python.
+# See https://docs.databricks.com/dev-tools/bundles/index.html for documentation.
+bundle:
+  name: my_default_python
+  uuid: [UUID]
+
+include:
+  - resources/*.yml
+
+targets:
+  dev:
+    # The default target uses 'mode: development' to create a development copy.
+    # - Deployed resources get prefixed with '[dev my_user_name]'
+    # - Any job schedules and triggers are paused by default.
+    # See also https://docs.databricks.com/dev-tools/bundles/deployment-modes.html.
+    mode: development
+    default: true
+    workspace:
+      host: [DATABRICKS_URL]
+
+  prod:
+    mode: production
+    workspace:
+      host: [DATABRICKS_URL]
+      # We explicitly deploy to /Workspace/Users/[USERNAME] to make sure we only have a single copy.
+      root_path: /Workspace/Users/[USERNAME]/.bundle/${bundle.name}/${bundle.target}
+    permissions:
+      - user_name: [USERNAME]
+        level: CAN_MANAGE
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/fixtures/.gitkeep b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/fixtures/.gitkeep
new file mode 100644
index 000000000..fa25d2745
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/fixtures/.gitkeep
@@ -0,0 +1,22 @@
+# Fixtures
+
+This folder is reserved for fixtures, such as CSV files.
+
+Below is an example of how to load fixtures as a data frame:
+
+```
+import pandas as pd
+import os
+
+def get_absolute_path(*relative_parts):
+    if 'dbutils' in globals():
+        base_dir = os.path.dirname(dbutils.notebook.entry_point.getDbutils().notebook().getContext().notebookPath().get()) # type: ignore
+        path = os.path.normpath(os.path.join(base_dir, *relative_parts))
+        return path if path.startswith("/Workspace") else "/Workspace" + path
+    else:
+        return os.path.join(*relative_parts)
+
+csv_file = get_absolute_path("..", "fixtures", "mycsv.csv")
+df = pd.read_csv(csv_file)
+display(df)
+```
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/out.gitignore b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/out.gitignore
new file mode 100644
index 000000000..0dab7f499
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/out.gitignore
@@ -0,0 +1,8 @@
+.databricks/
+build/
+dist/
+__pycache__/
+*.egg-info
+.venv/
+scratch/**
+!scratch/README.md
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/pytest.ini b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/pytest.ini
new file mode 100644
index 000000000..80432c220
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/pytest.ini
@@ -0,0 +1,3 @@
+[pytest]
+testpaths = tests
+pythonpath = src
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/requirements-dev.txt b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/requirements-dev.txt
new file mode 100644
index 000000000..0ffbf6aed
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/requirements-dev.txt
@@ -0,0 +1,29 @@
+## requirements-dev.txt: dependencies for local development.
+##
+## For defining dependencies used by jobs in Databricks Workflows, see
+## https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
+
+## Add code completion support for DLT
+databricks-dlt
+
+## pytest is the default package used for testing
+pytest
+
+## Dependencies for building wheel files
+setuptools
+wheel
+
+## databricks-connect can be used to run parts of this project locally.
+## See https://docs.databricks.com/dev-tools/databricks-connect.html.
+##
+## databricks-connect is automatically installed if you're using Databricks
+## extension for Visual Studio Code
+## (https://docs.databricks.com/dev-tools/vscode-ext/dev-tasks/databricks-connect.html).
+##
+## To manually install databricks-connect, either follow the instructions
+## at https://docs.databricks.com/dev-tools/databricks-connect.html
+## to install the package system-wide. Or uncomment the line below to install a
+## version of db-connect that corresponds to the Databricks Runtime version used
+## for this project.
+#
+# databricks-connect>=15.4,<15.5
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/resources/my_default_python.job.yml b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/resources/my_default_python.job.yml
new file mode 100644
index 000000000..cc5aeb71c
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/resources/my_default_python.job.yml
@@ -0,0 +1,45 @@
+# The main job for my_default_python.
+resources:
+  jobs:
+    my_default_python_job:
+      name: my_default_python_job
+
+      trigger:
+        # Run this job every day, exactly one day from the last run; see https://docs.databricks.com/api/workspace/jobs/create#trigger
+        periodic:
+          interval: 1
+          unit: DAYS
+
+      email_notifications:
+        on_failure:
+          - [USERNAME]
+
+      tasks:
+        - task_key: notebook_task
+          notebook_task:
+            notebook_path: ../src/notebook.ipynb
+        
+        - task_key: refresh_pipeline
+          depends_on:
+            - task_key: notebook_task
+          pipeline_task:
+            pipeline_id: ${resources.pipelines.my_default_python_pipeline.id}
+        
+        - task_key: main_task
+          depends_on:
+            - task_key: refresh_pipeline
+          environment_key: default
+          python_wheel_task:
+            package_name: my_default_python
+            entry_point: main
+
+      # A list of task execution environment specifications that can be referenced by tasks of this job.
+      environments:
+        - environment_key: default
+
+          # Full documentation of this spec can be found at:
+          # https://docs.databricks.com/api/workspace/jobs/create#environments-spec
+          spec:
+            client: "1"
+            dependencies:
+              - ../dist/*.whl
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.pipeline.yml b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/resources/my_default_python.pipeline.yml
similarity index 82%
rename from acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.pipeline.yml
rename to acceptance/bundle/templates/default-python/serverless/output/my_default_python/resources/my_default_python.pipeline.yml
index f9e083f4f..6dac62ded 100644
--- a/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.pipeline.yml
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/resources/my_default_python.pipeline.yml
@@ -3,8 +3,10 @@ resources:
   pipelines:
     my_default_python_pipeline:
       name: my_default_python_pipeline
+      ## Catalog is required for serverless compute
       catalog: main
       target: my_default_python_${bundle.target}
+      serverless: true
       libraries:
         - notebook:
             path: ../src/dlt_pipeline.ipynb
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/README.md b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/README.md
new file mode 100644
index 000000000..e6cfb81b4
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/README.md
@@ -0,0 +1,4 @@
+# scratch
+
+This folder is reserved for personal, exploratory notebooks.
+By default these are not committed to Git, as 'scratch' is listed in .gitignore.
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/exploration.ipynb b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/exploration.ipynb
new file mode 100644
index 000000000..a12773d4e
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/scratch/exploration.ipynb
@@ -0,0 +1,61 @@
+{
+ "cells": [
+  {
+   "cell_type": "code",
+   "execution_count": 2,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "%load_ext autoreload\n",
+    "%autoreload 2"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {
+    "application/vnd.databricks.v1+cell": {
+     "cellMetadata": {
+      "byteLimit": 2048000,
+      "rowLimit": 10000
+     },
+     "inputWidgets": {},
+     "nuid": "[UUID]",
+     "showTitle": false,
+     "title": ""
+    }
+   },
+   "outputs": [],
+   "source": [
+    "import sys\n",
+    "\n",
+    "sys.path.append(\"../src\")\n",
+    "from my_default_python import main\n",
+    "\n",
+    "main.get_taxis(spark).show(10)"
+   ]
+  }
+ ],
+ "metadata": {
+  "application/vnd.databricks.v1+notebook": {
+   "dashboards": [],
+   "language": "python",
+   "notebookMetadata": {
+    "pythonIndentUnit": 2
+   },
+   "notebookName": "ipynb-notebook",
+   "widgets": {}
+  },
+  "kernelspec": {
+   "display_name": "Python 3",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "name": "python",
+   "version": "3.11.4"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 0
+}
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/setup.py b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/setup.py
new file mode 100644
index 000000000..548f1035e
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/setup.py
@@ -0,0 +1,41 @@
+"""
+setup.py configuration script describing how to build and package this project.
+
+This file is primarily used by the setuptools library and typically should not
+be executed directly. See README.md for how to deploy, test, and run
+the my_default_python project.
+"""
+
+from setuptools import setup, find_packages
+
+import sys
+
+sys.path.append("./src")
+
+import datetime
+import my_default_python
+
+local_version = datetime.datetime.utcnow().strftime("%Y%m%d.%H%M%S")
+
+setup(
+    name="my_default_python",
+    # We use timestamp as Local version identifier (https://peps.python.org/pep-0440/#local-version-identifiers.)
+    # to ensure that changes to wheel package are picked up when used on all-purpose clusters
+    version=my_default_python.__version__ + "+" + local_version,
+    url="https://databricks.com",
+    author="[USERNAME]",
+    description="wheel file based on my_default_python/src",
+    packages=find_packages(where="./src"),
+    package_dir={"": "src"},
+    entry_points={
+        "packages": [
+            "main=my_default_python.main:main",
+        ],
+    },
+    install_requires=[
+        # Dependencies in case the output wheel file is used as a library dependency.
+        # For defining dependencies, when this package is used in Databricks, see:
+        # https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
+        "setuptools"
+    ],
+)
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/dlt_pipeline.ipynb b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/dlt_pipeline.ipynb
new file mode 100644
index 000000000..8a02183e7
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/dlt_pipeline.ipynb
@@ -0,0 +1,90 @@
+{
+ "cells": [
+  {
+   "cell_type": "markdown",
+   "metadata": {
+    "application/vnd.databricks.v1+cell": {
+     "cellMetadata": {},
+     "inputWidgets": {},
+     "nuid": "[UUID]",
+     "showTitle": false,
+     "title": ""
+    }
+   },
+   "source": [
+    "# DLT pipeline\n",
+    "\n",
+    "This Delta Live Tables (DLT) definition is executed using a pipeline defined in resources/my_default_python.pipeline.yml."
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 0,
+   "metadata": {
+    "application/vnd.databricks.v1+cell": {
+     "cellMetadata": {},
+     "inputWidgets": {},
+     "nuid": "[UUID]",
+     "showTitle": false,
+     "title": ""
+    }
+   },
+   "outputs": [],
+   "source": [
+    "# Import DLT and src/my_default_python\n",
+    "import dlt\n",
+    "import sys\n",
+    "\n",
+    "sys.path.append(spark.conf.get(\"bundle.sourcePath\", \".\"))\n",
+    "from pyspark.sql.functions import expr\n",
+    "from my_default_python import main"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 0,
+   "metadata": {
+    "application/vnd.databricks.v1+cell": {
+     "cellMetadata": {},
+     "inputWidgets": {},
+     "nuid": "[UUID]",
+     "showTitle": false,
+     "title": ""
+    }
+   },
+   "outputs": [],
+   "source": [
+    "@dlt.view\n",
+    "def taxi_raw():\n",
+    "    return main.get_taxis(spark)\n",
+    "\n",
+    "\n",
+    "@dlt.table\n",
+    "def filtered_taxis():\n",
+    "    return dlt.read(\"taxi_raw\").filter(expr(\"fare_amount < 30\"))"
+   ]
+  }
+ ],
+ "metadata": {
+  "application/vnd.databricks.v1+notebook": {
+   "dashboards": [],
+   "language": "python",
+   "notebookMetadata": {
+    "pythonIndentUnit": 2
+   },
+   "notebookName": "dlt_pipeline",
+   "widgets": {}
+  },
+  "kernelspec": {
+   "display_name": "Python 3",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "name": "python",
+   "version": "3.11.4"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 0
+}
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/__init__.py b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/__init__.py
new file mode 100644
index 000000000..f102a9cad
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/__init__.py
@@ -0,0 +1 @@
+__version__ = "0.0.1"
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/main.py b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/main.py
new file mode 100644
index 000000000..5ae344c7e
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/my_default_python/main.py
@@ -0,0 +1,25 @@
+from pyspark.sql import SparkSession, DataFrame
+
+
+def get_taxis(spark: SparkSession) -> DataFrame:
+    return spark.read.table("samples.nyctaxi.trips")
+
+
+# Create a new Databricks Connect session. If this fails,
+# check that you have configured Databricks Connect correctly.
+# See https://docs.databricks.com/dev-tools/databricks-connect.html.
+def get_spark() -> SparkSession:
+    try:
+        from databricks.connect import DatabricksSession
+
+        return DatabricksSession.builder.getOrCreate()
+    except ImportError:
+        return SparkSession.builder.getOrCreate()
+
+
+def main():
+    get_taxis(get_spark()).show(5)
+
+
+if __name__ == "__main__":
+    main()
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/notebook.ipynb b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/notebook.ipynb
new file mode 100644
index 000000000..472ccb219
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/src/notebook.ipynb
@@ -0,0 +1,75 @@
+{
+ "cells": [
+  {
+   "cell_type": "markdown",
+   "metadata": {
+    "application/vnd.databricks.v1+cell": {
+     "cellMetadata": {},
+     "inputWidgets": {},
+     "nuid": "[UUID]",
+     "showTitle": false,
+     "title": ""
+    }
+   },
+   "source": [
+    "# Default notebook\n",
+    "\n",
+    "This default notebook is executed using Databricks Workflows as defined in resources/my_default_python.job.yml."
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 2,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "%load_ext autoreload\n",
+    "%autoreload 2"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": 0,
+   "metadata": {
+    "application/vnd.databricks.v1+cell": {
+     "cellMetadata": {
+      "byteLimit": 2048000,
+      "rowLimit": 10000
+     },
+     "inputWidgets": {},
+     "nuid": "[UUID]",
+     "showTitle": false,
+     "title": ""
+    }
+   },
+   "outputs": [],
+   "source": [
+    "from my_default_python import main\n",
+    "\n",
+    "main.get_taxis(spark).show(10)"
+   ]
+  }
+ ],
+ "metadata": {
+  "application/vnd.databricks.v1+notebook": {
+   "dashboards": [],
+   "language": "python",
+   "notebookMetadata": {
+    "pythonIndentUnit": 2
+   },
+   "notebookName": "notebook",
+   "widgets": {}
+  },
+  "kernelspec": {
+   "display_name": "Python 3",
+   "language": "python",
+   "name": "python3"
+  },
+  "language_info": {
+   "name": "python",
+   "version": "3.11.4"
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 0
+}
diff --git a/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/main_test.py b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/main_test.py
new file mode 100644
index 000000000..dc449154a
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/serverless/output/my_default_python/tests/main_test.py
@@ -0,0 +1,6 @@
+from my_default_python.main import get_taxis, get_spark
+
+
+def test_main():
+    taxis = get_taxis(get_spark())
+    assert taxis.count() > 5
diff --git a/acceptance/bundle/templates/default-python/script b/acceptance/bundle/templates/default-python/serverless/script
similarity index 100%
rename from acceptance/bundle/templates/default-python/script
rename to acceptance/bundle/templates/default-python/serverless/script
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/out.gitignore b/acceptance/bundle/templates/default-sql/output/my_default_sql/out.gitignore
index de811f118..0dab7f499 100644
--- a/acceptance/bundle/templates/default-sql/output/my_default_sql/out.gitignore
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/out.gitignore
@@ -1,2 +1,8 @@
-
-.databricks
+.databricks/
+build/
+dist/
+__pycache__/
+*.egg-info
+.venv/
+scratch/**
+!scratch/README.md
diff --git a/acceptance/bundle/templates/experimental-jobs-as-code/output.txt b/acceptance/bundle/templates/experimental-jobs-as-code/output.txt
index 984dad604..2099dd498 100644
--- a/acceptance/bundle/templates/experimental-jobs-as-code/output.txt
+++ b/acceptance/bundle/templates/experimental-jobs-as-code/output.txt
@@ -34,6 +34,7 @@ Warning: Ignoring Databricks CLI version constraint for development build. Requi
               "max_workers": 4,
               "min_workers": 1
             },
+            "data_security_mode": "SINGLE_USER",
             "node_type_id": "i3.xlarge",
             "spark_version": "15.4.x-scala2.12"
           }
diff --git a/acceptance/bundle/templates/experimental-jobs-as-code/output/my_jobs_as_code/resources/my_jobs_as_code_job.py b/acceptance/bundle/templates/experimental-jobs-as-code/output/my_jobs_as_code/resources/my_jobs_as_code_job.py
index e8406fd7b..be7254b80 100644
--- a/acceptance/bundle/templates/experimental-jobs-as-code/output/my_jobs_as_code/resources/my_jobs_as_code_job.py
+++ b/acceptance/bundle/templates/experimental-jobs-as-code/output/my_jobs_as_code/resources/my_jobs_as_code_job.py
@@ -56,6 +56,7 @@ my_jobs_as_code_job = Job.from_dict(
                 "new_cluster": {
                     "spark_version": "15.4.x-scala2.12",
                     "node_type_id": "i3.xlarge",
+                    "data_security_mode": "SINGLE_USER",
                     "autoscale": {
                         "min_workers": 1,
                         "max_workers": 4,
diff --git a/acceptance/bundle/templates/test.toml b/acceptance/bundle/templates/test.toml
index 90539263d..d0d289b5c 100644
--- a/acceptance/bundle/templates/test.toml
+++ b/acceptance/bundle/templates/test.toml
@@ -1,2 +1,2 @@
 # At the moment, there are many differences across different envs w.r.t to catalog use, node type and so on.
-LocalOnly = true
+Cloud = false
diff --git a/acceptance/bundle/test.toml b/acceptance/bundle/test.toml
new file mode 100644
index 000000000..0e8c8a384
--- /dev/null
+++ b/acceptance/bundle/test.toml
@@ -0,0 +1,2 @@
+Local = true
+Cloud = true
diff --git a/acceptance/bundle/trampoline/warning_message/databricks.yml b/acceptance/bundle/trampoline/warning_message/databricks.yml
new file mode 100644
index 000000000..c6125f5f0
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message/databricks.yml
@@ -0,0 +1,37 @@
+bundle:
+  name: trampoline_warning_message
+
+targets:
+  dev:
+    mode: development
+    default: true
+
+  prod:
+    resources:
+      clusters:
+        interactive_cluster:
+          spark_version: 14.2.x-cpu-ml-scala2.12
+
+
+resources:
+  clusters:
+    interactive_cluster:
+      cluster_name: jobs-as-code-all-purpose-cluster
+      spark_version: 12.2.x-cpu-ml-scala2.12
+      node_type_id: r5d.8xlarge
+      autotermination_minutes: 30
+      autoscale:
+        min_workers: 1
+        max_workers: 1
+      driver_node_type_id: r5d.8xlarge
+  jobs:
+    whl:
+      name: "wheel-job"
+      tasks:
+        - task_key: test_task
+          python_wheel_task:
+            package_name: my_package
+            entry_point: my_module.my_function
+          existing_cluster_id: ${resources.clusters.interactive_cluster.id}
+          libraries:
+            - whl: ./dist/*.whl
diff --git a/acceptance/bundle/trampoline/warning_message/output.txt b/acceptance/bundle/trampoline/warning_message/output.txt
new file mode 100644
index 000000000..2f7d69e1f
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message/output.txt
@@ -0,0 +1,22 @@
+
+>>> errcode [CLI] bundle validate -t dev
+Error: Python wheel tasks require compute with DBR 13.3+ to include local libraries. Please change your cluster configuration or use the experimental 'python_wheel_wrapper' setting. See https://docs.databricks.com/dev-tools/bundles/python-wheel.html for more information.
+
+Name: trampoline_warning_message
+Target: dev
+Workspace:
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/trampoline_warning_message/dev
+
+Found 1 error
+
+Exit code: 1
+
+>>> errcode [CLI] bundle validate -t prod
+Name: trampoline_warning_message
+Target: prod
+Workspace:
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/trampoline_warning_message/prod
+
+Validation OK!
diff --git a/acceptance/bundle/trampoline/warning_message/script b/acceptance/bundle/trampoline/warning_message/script
new file mode 100644
index 000000000..ffc151840
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message/script
@@ -0,0 +1,2 @@
+trace errcode $CLI bundle validate -t dev
+trace errcode $CLI bundle validate -t prod
diff --git a/acceptance/bundle/trampoline/warning_message_with_new_spark/databricks.yml b/acceptance/bundle/trampoline/warning_message_with_new_spark/databricks.yml
new file mode 100644
index 000000000..fa1a05dfb
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_new_spark/databricks.yml
@@ -0,0 +1,20 @@
+bundle:
+  name: trampoline_warning_message_with_new_spark
+
+targets:
+  dev:
+    mode: development
+    default: true
+
+resources:
+  jobs:
+    whl:
+      name: "wheel-job"
+      tasks:
+        - task_key: test_task
+          python_wheel_task:
+            package_name: my_package
+            entry_point: my_module.my_function
+          existing_cluster_id: "some-test-cluster-id"
+          libraries:
+            - whl: ./dist/*.whl
diff --git a/acceptance/bundle/trampoline/warning_message_with_new_spark/output.txt b/acceptance/bundle/trampoline/warning_message_with_new_spark/output.txt
new file mode 100644
index 000000000..e311ab9fd
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_new_spark/output.txt
@@ -0,0 +1,9 @@
+
+>>> errcode [CLI] bundle validate
+Name: trampoline_warning_message_with_new_spark
+Target: dev
+Workspace:
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/trampoline_warning_message_with_new_spark/dev
+
+Validation OK!
diff --git a/acceptance/bundle/trampoline/warning_message_with_new_spark/script b/acceptance/bundle/trampoline/warning_message_with_new_spark/script
new file mode 100644
index 000000000..9ecda517f
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_new_spark/script
@@ -0,0 +1 @@
+trace errcode $CLI bundle validate
diff --git a/acceptance/bundle/trampoline/warning_message_with_new_spark/test.toml b/acceptance/bundle/trampoline/warning_message_with_new_spark/test.toml
new file mode 100644
index 000000000..4e52dbb5e
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_new_spark/test.toml
@@ -0,0 +1,16 @@
+# Since we use existing cluster id value which is not available in cloud envs, we need to stub the request
+# and run this test only locally
+Cloud = false
+
+[[Server]]
+Pattern = "GET /api/2.1/clusters/get"
+Response.Body = '''
+{
+    "cluster_id": "some-cluster-id",
+    "state": "RUNNING",
+    "spark_version": "13.3.x-scala2.12",
+    "node_type_id": "Standard_DS3_v2",
+    "driver_node_type_id": "Standard_DS3_v2",
+    "cluster_name": "some-cluster-name",
+    "spark_context_id": 12345
+}'''
diff --git a/acceptance/bundle/trampoline/warning_message_with_old_spark/databricks.yml b/acceptance/bundle/trampoline/warning_message_with_old_spark/databricks.yml
new file mode 100644
index 000000000..864c0f3fe
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_old_spark/databricks.yml
@@ -0,0 +1,20 @@
+bundle:
+  name: trampoline_warning_message_with_old_spark
+
+targets:
+  dev:
+    mode: development
+    default: true
+
+resources:
+  jobs:
+    whl:
+      name: "wheel-job"
+      tasks:
+        - task_key: test_task
+          python_wheel_task:
+            package_name: my_package
+            entry_point: my_module.my_function
+          existing_cluster_id: "some-test-cluster-id"
+          libraries:
+            - whl: ./dist/*.whl
diff --git a/acceptance/bundle/trampoline/warning_message_with_old_spark/output.txt b/acceptance/bundle/trampoline/warning_message_with_old_spark/output.txt
new file mode 100644
index 000000000..551cd17bc
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_old_spark/output.txt
@@ -0,0 +1,13 @@
+
+>>> errcode [CLI] bundle validate
+Error: Python wheel tasks require compute with DBR 13.3+ to include local libraries. Please change your cluster configuration or use the experimental 'python_wheel_wrapper' setting. See https://docs.databricks.com/dev-tools/bundles/python-wheel.html for more information.
+
+Name: trampoline_warning_message_with_old_spark
+Target: dev
+Workspace:
+  User: [USERNAME]
+  Path: /Workspace/Users/[USERNAME]/.bundle/trampoline_warning_message_with_old_spark/dev
+
+Found 1 error
+
+Exit code: 1
diff --git a/acceptance/bundle/trampoline/warning_message_with_old_spark/script b/acceptance/bundle/trampoline/warning_message_with_old_spark/script
new file mode 100644
index 000000000..9ecda517f
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_old_spark/script
@@ -0,0 +1 @@
+trace errcode $CLI bundle validate
diff --git a/acceptance/bundle/trampoline/warning_message_with_old_spark/test.toml b/acceptance/bundle/trampoline/warning_message_with_old_spark/test.toml
new file mode 100644
index 000000000..09021bfc0
--- /dev/null
+++ b/acceptance/bundle/trampoline/warning_message_with_old_spark/test.toml
@@ -0,0 +1,16 @@
+# Since we use existing cluster id value which is not available in cloud envs, we need to stub the request
+# and run this test only locally
+Cloud = false
+
+[[Server]]
+Pattern = "GET /api/2.1/clusters/get"
+Response.Body = '''
+{
+    "cluster_id": "some-cluster-id",
+    "state": "RUNNING",
+    "spark_version": "7.3.x-scala2.12",
+    "node_type_id": "Standard_DS3_v2",
+    "driver_node_type_id": "Standard_DS3_v2",
+    "cluster_name": "some-cluster-name",
+    "spark_context_id": 12345
+}'''
diff --git a/acceptance/bundle/variables/host/output.txt b/acceptance/bundle/variables/host/output.txt
index df0a4527a..eef4a08bf 100644
--- a/acceptance/bundle/variables/host/output.txt
+++ b/acceptance/bundle/variables/host/output.txt
@@ -1,5 +1,12 @@
 
 >>> errcode [CLI] bundle validate -o json
+Warning: Variable interpolation is not supported for fields that configure authentication
+  at workspace.host
+  in databricks.yml:10:9
+
+Interpolation is not supported for the field workspace.host. Please set
+the DATABRICKS_HOST environment variable if you wish to configure this field at runtime.
+
 Error: failed during request visitor: parse "https://${var.host}": invalid character "{" in host name
 
 {
@@ -27,6 +34,13 @@ Error: failed during request visitor: parse "https://${var.host}": invalid chara
 Exit code: 1
 
 >>> errcode [CLI] bundle validate
+Warning: Variable interpolation is not supported for fields that configure authentication
+  at workspace.host
+  in databricks.yml:10:9
+
+Interpolation is not supported for the field workspace.host. Please set
+the DATABRICKS_HOST environment variable if you wish to configure this field at runtime.
+
 Error: failed during request visitor: parse "https://${var.host}": invalid character "{" in host name
 
 Name: host
@@ -34,6 +48,6 @@ Target: default
 Workspace:
   Host: ${var.host}
 
-Found 1 error
+Found 1 error and 1 warning
 
 Exit code: 1
diff --git a/acceptance/bundle/variables/test.toml b/acceptance/bundle/variables/test.toml
index 32398e828..8ed716ad0 100644
--- a/acceptance/bundle/variables/test.toml
+++ b/acceptance/bundle/variables/test.toml
@@ -1,3 +1,3 @@
 # The tests here intend to test variable interpolation via "bundle validate".
 # Even though "bundle validate" does a few API calls, that's not the focus there.
-LocalOnly = true
+Cloud = false
diff --git a/acceptance/cmd/workspace/apps/input.json b/acceptance/cmd/workspace/apps/input.json
new file mode 100644
index 000000000..76f3e589c
--- /dev/null
+++ b/acceptance/cmd/workspace/apps/input.json
@@ -0,0 +1,14 @@
+{
+    "description": "My app description.",
+    "resources": [
+        {
+            "name": "api-key",
+            "description": "API key for external service.",
+            "secret": {
+                "scope": "my-scope",
+                "key": "my-key",
+                "permission": "READ"
+            }
+        }
+    ]
+}
diff --git a/acceptance/cmd/workspace/apps/out.requests.txt b/acceptance/cmd/workspace/apps/out.requests.txt
new file mode 100644
index 000000000..04891dc74
--- /dev/null
+++ b/acceptance/cmd/workspace/apps/out.requests.txt
@@ -0,0 +1,19 @@
+{
+  "method": "PATCH",
+  "path": "/api/2.0/apps/test-name",
+  "body": {
+    "description": "My app description.",
+    "name": "",
+    "resources": [
+      {
+        "description": "API key for external service.",
+        "name": "api-key",
+        "secret": {
+          "key": "my-key",
+          "permission": "READ",
+          "scope": "my-scope"
+        }
+      }
+    ]
+  }
+}
diff --git a/acceptance/cmd/workspace/apps/output.txt b/acceptance/cmd/workspace/apps/output.txt
new file mode 100644
index 000000000..4d9f80f44
--- /dev/null
+++ b/acceptance/cmd/workspace/apps/output.txt
@@ -0,0 +1,49 @@
+
+=== Apps update with correct input
+>>> [CLI] apps update test-name --json @input.json
+{
+  "app_status": {
+    "message":"Application is running.",
+    "state":"DEPLOYING"
+  },
+  "compute_status": {
+    "message":"App compute is active.",
+    "state":"ERROR"
+  },
+  "description":"My app description.",
+  "id":"12345",
+  "name":"test-name",
+  "resources": [
+    {
+      "description":"API key for external service.",
+      "name":"api-key",
+      "secret": {
+        "key":"my-key",
+        "permission":"READ",
+        "scope":"my-scope"
+      }
+    }
+  ],
+  "url":"test-name-123.cloud.databricksapps.com"
+}
+
+=== Apps update with missing parameter
+>>> [CLI] apps update --json @input.json
+Error: accepts 1 arg(s), received 0
+
+Usage:
+  databricks apps update NAME [flags]
+
+Flags:
+      --description string   The description of the app.
+  -h, --help                 help for update
+      --json JSON            either inline JSON string or @path/to/file.json with request body (default JSON (0 bytes))
+
+Global Flags:
+      --debug            enable debug logging
+  -o, --output type      output type: text or json (default text)
+  -p, --profile string   ~/.databrickscfg profile
+  -t, --target string    bundle target to use (if applicable)
+
+
+Exit code: 1
diff --git a/acceptance/cmd/workspace/apps/script b/acceptance/cmd/workspace/apps/script
new file mode 100644
index 000000000..221ffc4c0
--- /dev/null
+++ b/acceptance/cmd/workspace/apps/script
@@ -0,0 +1,5 @@
+title "Apps update with correct input"
+trace $CLI apps update test-name --json @input.json
+
+title "Apps update with missing parameter"
+trace $CLI apps update --json @input.json
diff --git a/acceptance/cmd/workspace/apps/test.toml b/acceptance/cmd/workspace/apps/test.toml
new file mode 100644
index 000000000..972ae1c50
--- /dev/null
+++ b/acceptance/cmd/workspace/apps/test.toml
@@ -0,0 +1,30 @@
+RecordRequests = true
+
+[[Server]]
+Pattern = "PATCH /api/2.0/apps/test-name"
+Response.Body = '''
+{
+  "name": "test-name",
+  "description": "My app description.",
+  "compute_status": {
+    "state": "ERROR",
+    "message": "App compute is active."
+  },
+  "app_status": {
+    "state": "DEPLOYING",
+    "message": "Application is running."
+  },
+  "url": "test-name-123.cloud.databricksapps.com",
+  "resources": [
+    {
+      "name": "api-key",
+      "description": "API key for external service.",
+      "secret": {
+        "scope": "my-scope",
+        "key": "my-key",
+        "permission": "READ"
+      }
+    }
+  ],
+  "id": "12345"
+}'''
diff --git a/acceptance/config_test.go b/acceptance/config_test.go
index ec0d1baee..cc5257c65 100644
--- a/acceptance/config_test.go
+++ b/acceptance/config_test.go
@@ -11,6 +11,7 @@ import (
 	"github.com/BurntSushi/toml"
 	"github.com/databricks/cli/libs/testdiff"
 	"github.com/databricks/cli/libs/testserver"
+	ignore "github.com/sabhiram/go-gitignore"
 	"github.com/stretchr/testify/require"
 )
 
@@ -18,14 +19,17 @@ const configFilename = "test.toml"
 
 type TestConfig struct {
 	// Place to describe what's wrong with this test. Does not affect how the test is run.
-	Badness string
+	Badness *string
 
 	// Which OSes the test is enabled on. Each string is compared against runtime.GOOS.
 	// If absent, default to true.
 	GOOS map[string]bool
 
-	// If true, do not run this test against cloud environment
-	LocalOnly bool
+	// If true, run this test when running locally with a testserver
+	Local *bool
+
+	// If true, run this test when running with cloud env configured
+	Cloud *bool
 
 	// List of additional replacements to apply on this test.
 	// Old is a regexp, New is a replacement expression.
@@ -44,10 +48,15 @@ type TestConfig struct {
 
 	// Record the requests made to the server and write them as output to
 	// out.requests.txt
-	RecordRequests bool
+	RecordRequests *bool
 
 	// List of request headers to include when recording requests.
 	IncludeRequestHeaders []string
+
+	// List of gitignore patterns to ignore when checking output files
+	Ignore []string
+
+	CompiledIgnoreObject *ignore.GitIgnore
 }
 
 type ServerStub struct {
@@ -102,12 +111,14 @@ func LoadConfig(t *testing.T, dir string) (TestConfig, string) {
 
 	for _, cfgName := range configs[1:] {
 		cfg := DoLoadConfig(t, cfgName)
-		err := mergo.Merge(&result, cfg, mergo.WithOverride, mergo.WithAppendSlice)
+		err := mergo.Merge(&result, cfg, mergo.WithOverride, mergo.WithoutDereference, mergo.WithAppendSlice)
 		if err != nil {
 			t.Fatalf("Error during config merge: %s: %s", cfgName, err)
 		}
 	}
 
+	result.CompiledIgnoreObject = ignore.CompileIgnoreLines(result.Ignore...)
+
 	return result, strings.Join(configs, ", ")
 }
 
diff --git a/acceptance/panic/output.txt b/acceptance/panic/output.txt
new file mode 100644
index 000000000..9dca41c23
--- /dev/null
+++ b/acceptance/panic/output.txt
@@ -0,0 +1,15 @@
+
+>>> [CLI] selftest panic
+The Databricks CLI unexpectedly had a fatal error.
+Please report this issue to Databricks in the form of a GitHub issue at:
+https://github.com/databricks/cli
+
+CLI Version: [DEV_VERSION]
+
+Panic Payload: the databricks selftest panic command always panics
+
+Stack Trace:
+goroutine 1 [running]:
+runtime/debug.Stack()
+
+Exit code: 1
diff --git a/acceptance/panic/script b/acceptance/panic/script
new file mode 100644
index 000000000..a02466923
--- /dev/null
+++ b/acceptance/panic/script
@@ -0,0 +1,5 @@
+# We filter anything after runtime/debug.Stack() in the output because the stack
+# trace itself is hard to perform replacements on, since it can depend upon the
+# exact setup of where the modules are installed in your Go setup, memory addresses
+# at runtime etc.
+trace $CLI selftest panic 2>&1 | sed '/runtime\/debug\.Stack()/q'
diff --git a/acceptance/panic/test.toml b/acceptance/panic/test.toml
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/selftest/basic/script b/acceptance/selftest/basic/script
index bccf30e71..a3ec98402 100644
--- a/acceptance/selftest/basic/script
+++ b/acceptance/selftest/basic/script
@@ -27,3 +27,7 @@ echo 123456
 
 printf "\n=== Testing --version"
 trace $CLI --version
+
+touch ignored_file.txt
+mkdir ignored_dir
+touch ignored_dir/hello.txt
diff --git a/acceptance/selftest/basic/test.toml b/acceptance/selftest/basic/test.toml
index 762e28ceb..3ca3d9255 100644
--- a/acceptance/selftest/basic/test.toml
+++ b/acceptance/selftest/basic/test.toml
@@ -1,5 +1,8 @@
 # Badness = "Brief description of what's wrong with the test output, if anything"
 
+Ignore = ['ignore*']
+
+
 #[GOOS]
 # Disable on Windows
 #windows = false
diff --git a/acceptance/selftest/server/test.toml b/acceptance/selftest/server/test.toml
index 43ad1e85b..8fc7b3cac 100644
--- a/acceptance/selftest/server/test.toml
+++ b/acceptance/selftest/server/test.toml
@@ -1,4 +1,3 @@
-LocalOnly = true
 RecordRequests = true
 
 [[Server]]
diff --git a/acceptance/selftest/test.toml b/acceptance/selftest/test.toml
deleted file mode 100644
index b76e712fb..000000000
--- a/acceptance/selftest/test.toml
+++ /dev/null
@@ -1 +0,0 @@
-LocalOnly = true
diff --git a/acceptance/server_test.go b/acceptance/server_test.go
index 4fc3108d2..402e3ca5f 100644
--- a/acceptance/server_test.go
+++ b/acceptance/server_test.go
@@ -20,6 +20,12 @@ var testUser = iam.User{
 	UserName: "tester@databricks.com",
 }
 
+var testMetastore = catalog.MetastoreAssignment{
+	DefaultCatalogName: "hive_metastore",
+	MetastoreId:        "120efa64-9b68-46ba-be38-f319458430d2",
+	WorkspaceId:        470123456789500,
+}
+
 func AddHandlers(server *testserver.Server) {
 	server.Handle("GET", "/api/2.0/policies/clusters/list", func(req testserver.Request) any {
 		return compute.ListPoliciesResponse{
@@ -106,9 +112,7 @@ func AddHandlers(server *testserver.Server) {
 	})
 
 	server.Handle("GET", "/api/2.1/unity-catalog/current-metastore-assignment", func(req testserver.Request) any {
-		return catalog.MetastoreAssignment{
-			DefaultCatalogName: "main",
-		}
+		return testMetastore
 	})
 
 	server.Handle("GET", "/api/2.0/permissions/directories/{objectId}", func(req testserver.Request) any {
diff --git a/acceptance/terraform/test.toml b/acceptance/terraform/test.toml
index a6849e30f..9fbd70943 100644
--- a/acceptance/terraform/test.toml
+++ b/acceptance/terraform/test.toml
@@ -1,3 +1,6 @@
+Local = true
+Cloud = true
+
 [[Repls]]
 Old = 'Read complete after [^\s]+'
 New = 'Read complete after (redacted)'
diff --git a/acceptance/test.toml b/acceptance/test.toml
new file mode 100644
index 000000000..0a009f397
--- /dev/null
+++ b/acceptance/test.toml
@@ -0,0 +1,3 @@
+# Default settings that apply to all tests unless overriden by test.toml files in inner directories.
+Local = true
+Cloud = false
diff --git a/acceptance/workspace/jobs/create-error/test.toml b/acceptance/workspace/jobs/create-error/test.toml
index b45bf77e5..a7b86accb 100644
--- a/acceptance/workspace/jobs/create-error/test.toml
+++ b/acceptance/workspace/jobs/create-error/test.toml
@@ -1,4 +1,3 @@
-LocalOnly = true  # request recording currently does not work with cloud environment
 RecordRequests = true
 
 [[Server]]
diff --git a/acceptance/workspace/jobs/create/test.toml b/acceptance/workspace/jobs/create/test.toml
index 1fd9b3cec..f08bc0e63 100644
--- a/acceptance/workspace/jobs/create/test.toml
+++ b/acceptance/workspace/jobs/create/test.toml
@@ -1,4 +1,3 @@
-LocalOnly = true  # request recording currently does not work with cloud environment
 RecordRequests = true
 IncludeRequestHeaders = ["Authorization", "User-Agent"]
 
diff --git a/bundle/apps/upload_config_test.go b/bundle/apps/upload_config_test.go
index a1a6b3afb..1087508f2 100644
--- a/bundle/apps/upload_config_test.go
+++ b/bundle/apps/upload_config_test.go
@@ -70,6 +70,6 @@ env:
 
 	bundletest.SetLocation(b, ".", []dyn.Location{{File: filepath.Join(root, "databricks.yml")}})
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(mutator.TranslatePaths(), &u))
+	diags := bundle.ApplySeq(context.Background(), b, mutator.TranslatePaths(), &u)
 	require.NoError(t, diags.Error())
 }
diff --git a/bundle/apps/validate.go b/bundle/apps/validate.go
index fc50aeafc..7a4fe7126 100644
--- a/bundle/apps/validate.go
+++ b/bundle/apps/validate.go
@@ -3,8 +3,6 @@ package apps
 import (
 	"context"
 	"fmt"
-	"path"
-	"strings"
 
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/libs/diag"
@@ -14,7 +12,6 @@ type validate struct{}
 
 func (v *validate) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	var diags diag.Diagnostics
-	possibleConfigFiles := []string{"app.yml", "app.yaml"}
 	usedSourceCodePaths := make(map[string]string)
 
 	for key, app := range b.Config.Resources.Apps {
@@ -28,16 +25,12 @@ func (v *validate) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics
 		}
 		usedSourceCodePaths[app.SourceCodePath] = key
 
-		for _, configFile := range possibleConfigFiles {
-			appPath := strings.TrimPrefix(app.SourceCodePath, b.Config.Workspace.FilePath)
-			cf := path.Join(appPath, configFile)
-			if _, err := b.SyncRoot.Stat(cf); err == nil {
-				diags = append(diags, diag.Diagnostic{
-					Severity: diag.Error,
-					Summary:  configFile + " detected",
-					Detail:   fmt.Sprintf("remove %s and use 'config' property for app resource '%s' instead", cf, app.Name),
-				})
-			}
+		if app.Config != nil {
+			diags = append(diags, diag.Diagnostic{
+				Severity: diag.Warning,
+				Summary:  "App config section detected",
+				Detail:   fmt.Sprintf("remove 'config' from app resource '%s' section and use app.yml file in the root of this app instead", key),
+			})
 		}
 	}
 
diff --git a/bundle/apps/validate_test.go b/bundle/apps/validate_test.go
index 6c3a88191..d218f96ca 100644
--- a/bundle/apps/validate_test.go
+++ b/bundle/apps/validate_test.go
@@ -17,46 +17,6 @@ import (
 	"github.com/stretchr/testify/require"
 )
 
-func TestAppsValidate(t *testing.T) {
-	tmpDir := t.TempDir()
-	testutil.Touch(t, tmpDir, "app1", "app.yml")
-	testutil.Touch(t, tmpDir, "app2", "app.py")
-
-	b := &bundle.Bundle{
-		BundleRootPath: tmpDir,
-		SyncRootPath:   tmpDir,
-		SyncRoot:       vfs.MustNew(tmpDir),
-		Config: config.Root{
-			Workspace: config.Workspace{
-				FilePath: "/foo/bar/",
-			},
-			Resources: config.Resources{
-				Apps: map[string]*resources.App{
-					"app1": {
-						App: &apps.App{
-							Name: "app1",
-						},
-						SourceCodePath: "./app1",
-					},
-					"app2": {
-						App: &apps.App{
-							Name: "app2",
-						},
-						SourceCodePath: "./app2",
-					},
-				},
-			},
-		},
-	}
-
-	bundletest.SetLocation(b, ".", []dyn.Location{{File: filepath.Join(tmpDir, "databricks.yml")}})
-
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(mutator.TranslatePaths(), Validate()))
-	require.Len(t, diags, 1)
-	require.Equal(t, "app.yml detected", diags[0].Summary)
-	require.Contains(t, diags[0].Detail, "app.yml and use 'config' property for app resource")
-}
-
 func TestAppsValidateSameSourcePath(t *testing.T) {
 	tmpDir := t.TempDir()
 	testutil.Touch(t, tmpDir, "app1", "app.py")
@@ -90,7 +50,7 @@ func TestAppsValidateSameSourcePath(t *testing.T) {
 
 	bundletest.SetLocation(b, ".", []dyn.Location{{File: filepath.Join(tmpDir, "databricks.yml")}})
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(mutator.TranslatePaths(), Validate()))
+	diags := bundle.ApplySeq(context.Background(), b, mutator.TranslatePaths(), Validate())
 	require.Len(t, diags, 1)
 	require.Equal(t, "Duplicate app source code path", diags[0].Summary)
 	require.Contains(t, diags[0].Detail, "has the same source code path as app resource")
diff --git a/bundle/artifacts/all.go b/bundle/artifacts/all.go
index 768ccdfe3..b78e7c100 100644
--- a/bundle/artifacts/all.go
+++ b/bundle/artifacts/all.go
@@ -38,5 +38,5 @@ func (m *all) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 		}
 	}
 
-	return bundle.Apply(ctx, b, bundle.Seq(out...))
+	return bundle.ApplySeq(ctx, b, out...)
 }
diff --git a/bundle/artifacts/autodetect.go b/bundle/artifacts/autodetect.go
deleted file mode 100644
index c8d235616..000000000
--- a/bundle/artifacts/autodetect.go
+++ /dev/null
@@ -1,32 +0,0 @@
-package artifacts
-
-import (
-	"context"
-
-	"github.com/databricks/cli/bundle"
-	"github.com/databricks/cli/bundle/artifacts/whl"
-	"github.com/databricks/cli/libs/diag"
-	"github.com/databricks/cli/libs/log"
-)
-
-func DetectPackages() bundle.Mutator {
-	return &autodetect{}
-}
-
-type autodetect struct{}
-
-func (m *autodetect) Name() string {
-	return "artifacts.DetectPackages"
-}
-
-func (m *autodetect) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
-	// If artifacts section explicitly defined, do not try to auto detect packages
-	if b.Config.Artifacts != nil {
-		log.Debugf(ctx, "artifacts block is defined, skipping auto-detecting")
-		return nil
-	}
-
-	return bundle.Apply(ctx, b, bundle.Seq(
-		whl.DetectPackage(),
-	))
-}
diff --git a/bundle/artifacts/build.go b/bundle/artifacts/build.go
index 0446135b6..94880bc2c 100644
--- a/bundle/artifacts/build.go
+++ b/bundle/artifacts/build.go
@@ -53,5 +53,5 @@ func (m *build) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	// if we do it before, any files that are generated by build command will
 	// not be included into artifact.Files and thus will not be uploaded.
 	mutators = append(mutators, &expandGlobs{name: m.name})
-	return bundle.Apply(ctx, b, bundle.Seq(mutators...))
+	return bundle.ApplySeq(ctx, b, mutators...)
 }
diff --git a/bundle/artifacts/expand_globs_test.go b/bundle/artifacts/expand_globs_test.go
index 264c52c50..7bf886330 100644
--- a/bundle/artifacts/expand_globs_test.go
+++ b/bundle/artifacts/expand_globs_test.go
@@ -39,11 +39,11 @@ func TestExpandGlobs_Nominal(t *testing.T) {
 	bundletest.SetLocation(b, "artifacts", []dyn.Location{{File: filepath.Join(tmpDir, "databricks.yml")}})
 
 	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, bundle.Seq(
+	diags := bundle.ApplySeq(ctx, b,
 		// Run prepare first to make paths absolute.
 		&prepare{"test"},
 		&expandGlobs{"test"},
-	))
+	)
 	require.NoError(t, diags.Error())
 
 	// Assert that the expanded paths are correct.
@@ -80,11 +80,11 @@ func TestExpandGlobs_InvalidPattern(t *testing.T) {
 	bundletest.SetLocation(b, "artifacts", []dyn.Location{{File: filepath.Join(tmpDir, "databricks.yml")}})
 
 	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, bundle.Seq(
+	diags := bundle.ApplySeq(ctx, b,
 		// Run prepare first to make paths absolute.
 		&prepare{"test"},
 		&expandGlobs{"test"},
-	))
+	)
 
 	assert.Len(t, diags, 4)
 	assert.Equal(t, filepath.Clean("a[.txt")+": syntax error in pattern", diags[0].Summary)
@@ -128,11 +128,11 @@ func TestExpandGlobs_NoMatches(t *testing.T) {
 	bundletest.SetLocation(b, "artifacts", []dyn.Location{{File: filepath.Join(tmpDir, "databricks.yml")}})
 
 	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, bundle.Seq(
+	diags := bundle.ApplySeq(ctx, b,
 		// Run prepare first to make paths absolute.
 		&prepare{"test"},
 		&expandGlobs{"test"},
-	))
+	)
 
 	assert.Len(t, diags, 2)
 	assert.Equal(t, "c*.txt: no matching files", diags[0].Summary)
diff --git a/bundle/artifacts/whl/autodetect.go b/bundle/artifacts/whl/autodetect.go
index 202ea12bc..9eead83b7 100644
--- a/bundle/artifacts/whl/autodetect.go
+++ b/bundle/artifacts/whl/autodetect.go
@@ -2,11 +2,8 @@ package whl
 
 import (
 	"context"
-	"fmt"
 	"os"
 	"path/filepath"
-	"regexp"
-	"time"
 
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/config"
@@ -26,11 +23,17 @@ func (m *detectPkg) Name() string {
 }
 
 func (m *detectPkg) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	if b.Config.Artifacts != nil {
+		log.Debugf(ctx, "artifacts block is defined, skipping auto-detecting")
+		return nil
+	}
+
 	tasks := libraries.FindTasksWithLocalLibraries(b)
 	if len(tasks) == 0 {
 		log.Infof(ctx, "No local tasks in databricks.yml config, skipping auto detect")
 		return nil
 	}
+
 	log.Infof(ctx, "Detecting Python wheel project...")
 
 	// checking if there is setup.py in the bundle root
@@ -42,39 +45,18 @@ func (m *detectPkg) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostic
 	}
 
 	log.Infof(ctx, "Found Python wheel project at %s", b.BundleRootPath)
-	module := extractModuleName(setupPy)
-
-	if b.Config.Artifacts == nil {
-		b.Config.Artifacts = make(map[string]*config.Artifact)
-	}
 
 	pkgPath, err := filepath.Abs(b.BundleRootPath)
 	if err != nil {
 		return diag.FromErr(err)
 	}
-	b.Config.Artifacts[module] = &config.Artifact{
+
+	b.Config.Artifacts = make(map[string]*config.Artifact)
+	b.Config.Artifacts["python_artifact"] = &config.Artifact{
 		Path: pkgPath,
 		Type: config.ArtifactPythonWheel,
+		// BuildCommand will be set by bundle/artifacts/whl/infer.go to "python3 setup.py bdist_wheel"
 	}
 
 	return nil
 }
-
-func extractModuleName(setupPy string) string {
-	bytes, err := os.ReadFile(setupPy)
-	if err != nil {
-		return randomName()
-	}
-
-	content := string(bytes)
-	r := regexp.MustCompile(`name=['"](.*)['"]`)
-	matches := r.FindStringSubmatch(content)
-	if len(matches) == 0 {
-		return randomName()
-	}
-	return matches[1]
-}
-
-func randomName() string {
-	return fmt.Sprintf("artifact%d", time.Now().Unix())
-}
diff --git a/bundle/artifacts/whl/autodetect_test.go b/bundle/artifacts/whl/autodetect_test.go
deleted file mode 100644
index b53289b2a..000000000
--- a/bundle/artifacts/whl/autodetect_test.go
+++ /dev/null
@@ -1,22 +0,0 @@
-package whl
-
-import (
-	"testing"
-
-	"github.com/stretchr/testify/assert"
-)
-
-func TestExtractModuleName(t *testing.T) {
-	moduleName := extractModuleName("./testdata/setup.py")
-	assert.Equal(t, "my_test_code", moduleName)
-}
-
-func TestExtractModuleNameMinimal(t *testing.T) {
-	moduleName := extractModuleName("./testdata/setup_minimal.py")
-	assert.Equal(t, "my_test_code", moduleName)
-}
-
-func TestExtractModuleNameIncorrect(t *testing.T) {
-	moduleName := extractModuleName("./testdata/setup_incorrect.py")
-	assert.Contains(t, moduleName, "artifact")
-}
diff --git a/bundle/bundle_read_only.go b/bundle/bundle_read_only.go
deleted file mode 100644
index 4bdd94e59..000000000
--- a/bundle/bundle_read_only.go
+++ /dev/null
@@ -1,49 +0,0 @@
-package bundle
-
-import (
-	"context"
-
-	"github.com/databricks/cli/bundle/config"
-	"github.com/databricks/cli/libs/vfs"
-	"github.com/databricks/databricks-sdk-go"
-)
-
-type ReadOnlyBundle struct {
-	b *Bundle
-}
-
-func ReadOnly(b *Bundle) ReadOnlyBundle {
-	return ReadOnlyBundle{b: b}
-}
-
-func (r ReadOnlyBundle) Config() config.Root {
-	return r.b.Config
-}
-
-func (r ReadOnlyBundle) RootPath() string {
-	return r.b.BundleRootPath
-}
-
-func (r ReadOnlyBundle) BundleRoot() vfs.Path {
-	return r.b.BundleRoot
-}
-
-func (r ReadOnlyBundle) SyncRoot() vfs.Path {
-	return r.b.SyncRoot
-}
-
-func (r ReadOnlyBundle) WorktreeRoot() vfs.Path {
-	return r.b.WorktreeRoot
-}
-
-func (r ReadOnlyBundle) WorkspaceClient() *databricks.WorkspaceClient {
-	return r.b.WorkspaceClient()
-}
-
-func (r ReadOnlyBundle) CacheDir(ctx context.Context, paths ...string) (string, error) {
-	return r.b.CacheDir(ctx, paths...)
-}
-
-func (r ReadOnlyBundle) GetSyncIncludePatterns(ctx context.Context) ([]string, error) {
-	return r.b.GetSyncIncludePatterns(ctx)
-}
diff --git a/bundle/config/loader/process_include.go b/bundle/config/loader/process_include.go
index f82f5db1e..9458ff09e 100644
--- a/bundle/config/loader/process_include.go
+++ b/bundle/config/loader/process_include.go
@@ -161,6 +161,17 @@ func (m *processInclude) Apply(_ context.Context, b *bundle.Bundle) diag.Diagnos
 		return diags
 	}
 
+	if len(this.Include) > 0 {
+		diags = diags.Append(diag.Diagnostic{
+			Severity: diag.Warning,
+			Summary:  "Include section is defined outside root file",
+			Detail: `An include section is defined in a file that is not databricks.yml.
+Only includes defined in databricks.yml are applied.`,
+			Locations: this.GetLocations("include"),
+			Paths:     []dyn.Path{dyn.MustPathFromString("include")},
+		})
+	}
+
 	err := b.Config.Merge(this)
 	if err != nil {
 		diags = diags.Extend(diag.FromErr(err))
diff --git a/bundle/config/loader/process_root_includes.go b/bundle/config/loader/process_root_includes.go
index 69e6dd4e4..1e1215b30 100644
--- a/bundle/config/loader/process_root_includes.go
+++ b/bundle/config/loader/process_root_includes.go
@@ -98,5 +98,5 @@ func (m *processRootIncludes) Apply(ctx context.Context, b *bundle.Bundle) diag.
 	// Swap out the original includes list with the expanded globs.
 	b.Config.Include = files
 
-	return bundle.Apply(ctx, b, bundle.Seq(out...))
+	return bundle.ApplySeq(ctx, b, out...)
 }
diff --git a/bundle/config/mutator/mutator.go b/bundle/config/mutator/mutator.go
index 5fd9f53e5..1e6d1f59d 100644
--- a/bundle/config/mutator/mutator.go
+++ b/bundle/config/mutator/mutator.go
@@ -1,16 +1,19 @@
 package mutator
 
 import (
+	"context"
+
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/bundle/config/loader"
 	pythonmutator "github.com/databricks/cli/bundle/config/mutator/python"
 	"github.com/databricks/cli/bundle/config/validate"
 	"github.com/databricks/cli/bundle/scripts"
+	"github.com/databricks/cli/libs/diag"
 )
 
-func DefaultMutators() []bundle.Mutator {
-	return []bundle.Mutator{
+func DefaultMutators(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	return bundle.ApplySeq(ctx, b,
 		loader.EntryPoint(),
 
 		// Execute preinit script before processing includes.
@@ -31,5 +34,5 @@ func DefaultMutators() []bundle.Mutator {
 		// Note: This mutator must run before the target overrides are merged.
 		// See the mutator for more details.
 		validate.UniqueResourceKeys(),
-	}
+	)
 }
diff --git a/bundle/config/mutator/prepend_workspace_prefix_test.go b/bundle/config/mutator/prepend_workspace_prefix_test.go
index 31393e6bd..d6741f868 100644
--- a/bundle/config/mutator/prepend_workspace_prefix_test.go
+++ b/bundle/config/mutator/prepend_workspace_prefix_test.go
@@ -80,7 +80,7 @@ func TestPrependWorkspaceForDefaultConfig(t *testing.T) {
 			},
 		},
 	}
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(DefineDefaultWorkspaceRoot(), ExpandWorkspaceRoot(), DefineDefaultWorkspacePaths(), PrependWorkspacePrefix()))
+	diags := bundle.ApplySeq(context.Background(), b, DefineDefaultWorkspaceRoot(), ExpandWorkspaceRoot(), DefineDefaultWorkspacePaths(), PrependWorkspacePrefix())
 	require.Empty(t, diags)
 	require.Equal(t, "/Workspace/Users/jane@doe.com/.bundle/test/dev", b.Config.Workspace.RootPath)
 	require.Equal(t, "/Workspace/Users/jane@doe.com/.bundle/test/dev/artifacts", b.Config.Workspace.ArtifactPath)
diff --git a/bundle/config/mutator/process_target_mode_test.go b/bundle/config/mutator/process_target_mode_test.go
index eb542c66e..d63f3ec86 100644
--- a/bundle/config/mutator/process_target_mode_test.go
+++ b/bundle/config/mutator/process_target_mode_test.go
@@ -163,8 +163,7 @@ func mockBundle(mode config.Mode) *bundle.Bundle {
 func TestProcessTargetModeDevelopment(t *testing.T) {
 	b := mockBundle(config.Development)
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	// Job 1
@@ -224,8 +223,7 @@ func TestProcessTargetModeDevelopmentTagNormalizationForAws(t *testing.T) {
 	})
 
 	b.Config.Workspace.CurrentUser.ShortName = "Héllö wörld?!"
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	// Assert that tag normalization took place.
@@ -239,8 +237,7 @@ func TestProcessTargetModeDevelopmentTagNormalizationForAzure(t *testing.T) {
 	})
 
 	b.Config.Workspace.CurrentUser.ShortName = "Héllö wörld?!"
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	// Assert that tag normalization took place (Azure allows more characters than AWS).
@@ -254,8 +251,7 @@ func TestProcessTargetModeDevelopmentTagNormalizationForGcp(t *testing.T) {
 	})
 
 	b.Config.Workspace.CurrentUser.ShortName = "Héllö wörld?!"
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	// Assert that tag normalization took place.
@@ -311,8 +307,7 @@ func TestValidateDevelopmentMode(t *testing.T) {
 func TestProcessTargetModeDefault(t *testing.T) {
 	b := mockBundle("")
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 	assert.Equal(t, "job1", b.Config.Resources.Jobs["job1"].Name)
 	assert.Equal(t, "pipeline1", b.Config.Resources.Pipelines["pipeline1"].Name)
@@ -429,8 +424,7 @@ func TestAllNonUcResourcesAreRenamed(t *testing.T) {
 		reflect.TypeOf(&resources.Volume{}),
 	}
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	resources := reflect.ValueOf(b.Config.Resources)
@@ -484,8 +478,7 @@ func TestPrefixAlreadySet(t *testing.T) {
 	b := mockBundle(config.Development)
 	b.Config.Presets.NamePrefix = "custom_lennart_deploy_"
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	assert.Equal(t, "custom_lennart_deploy_job1", b.Config.Resources.Jobs["job1"].Name)
@@ -498,8 +491,7 @@ func TestTagsAlreadySet(t *testing.T) {
 		"dev":    "foo",
 	}
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	assert.Equal(t, "tag", b.Config.Resources.Jobs["job1"].Tags["custom"])
@@ -510,8 +502,7 @@ func TestTagsNil(t *testing.T) {
 	b := mockBundle(config.Development)
 	b.Config.Presets.Tags = nil
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	assert.Equal(t, "lennart", b.Config.Resources.Jobs["job2"].Tags["dev"])
@@ -521,8 +512,7 @@ func TestTagsEmptySet(t *testing.T) {
 	b := mockBundle(config.Development)
 	b.Config.Presets.Tags = map[string]string{}
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	assert.Equal(t, "lennart", b.Config.Resources.Jobs["job2"].Tags["dev"])
@@ -532,8 +522,7 @@ func TestJobsMaxConcurrentRunsAlreadySet(t *testing.T) {
 	b := mockBundle(config.Development)
 	b.Config.Presets.JobsMaxConcurrentRuns = 10
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	assert.Equal(t, 10, b.Config.Resources.Jobs["job1"].MaxConcurrentRuns)
@@ -543,8 +532,7 @@ func TestJobsMaxConcurrentRunsDisabled(t *testing.T) {
 	b := mockBundle(config.Development)
 	b.Config.Presets.JobsMaxConcurrentRuns = 1
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	assert.Equal(t, 1, b.Config.Resources.Jobs["job1"].MaxConcurrentRuns)
@@ -554,8 +542,7 @@ func TestTriggerPauseStatusWhenUnpaused(t *testing.T) {
 	b := mockBundle(config.Development)
 	b.Config.Presets.TriggerPauseStatus = config.Unpaused
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.ErrorContains(t, diags.Error(), "target with 'mode: development' cannot set trigger pause status to UNPAUSED by default")
 }
 
@@ -564,8 +551,7 @@ func TestPipelinesDevelopmentDisabled(t *testing.T) {
 	notEnabled := false
 	b.Config.Presets.PipelinesDevelopment = &notEnabled
 
-	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
-	diags := bundle.Apply(context.Background(), b, m)
+	diags := bundle.ApplySeq(context.Background(), b, ProcessTargetMode(), ApplyPresets())
 	require.NoError(t, diags.Error())
 
 	assert.False(t, b.Config.Resources.Pipelines["pipeline1"].CreatePipeline.Development)
diff --git a/bundle/config/mutator/resolve_resource_references_test.go b/bundle/config/mutator/resolve_resource_references_test.go
index 624e337c7..6bd974199 100644
--- a/bundle/config/mutator/resolve_resource_references_test.go
+++ b/bundle/config/mutator/resolve_resource_references_test.go
@@ -176,7 +176,7 @@ func TestResolveVariableReferencesInVariableLookups(t *testing.T) {
 		{ClusterId: "9876-5432-xywz", ClusterName: "some other cluster"},
 	}, nil)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ResolveVariableReferencesInLookup(), ResolveResourceReferences()))
+	diags := bundle.ApplySeq(context.Background(), b, ResolveVariableReferencesInLookup(), ResolveResourceReferences())
 	require.NoError(t, diags.Error())
 	require.Equal(t, "cluster-bar-dev", b.Config.Variables["lookup"].Lookup.Cluster)
 	require.Equal(t, "1234-5678-abcd", b.Config.Variables["lookup"].Value)
@@ -203,7 +203,7 @@ func TestResolveLookupVariableReferencesInVariableLookups(t *testing.T) {
 	m := mocks.NewMockWorkspaceClient(t)
 	b.SetWorkpaceClient(m.WorkspaceClient)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ResolveVariableReferencesInLookup(), ResolveResourceReferences()))
+	diags := bundle.ApplySeq(context.Background(), b, ResolveVariableReferencesInLookup(), ResolveResourceReferences())
 	require.ErrorContains(t, diags.Error(), "lookup variables cannot contain references to another lookup variables")
 }
 
@@ -229,7 +229,7 @@ func TestNoResolveLookupIfVariableSetWithEnvVariable(t *testing.T) {
 	ctx := context.Background()
 	ctx = env.Set(ctx, "BUNDLE_VAR_lookup", "1234-5678-abcd")
 
-	diags := bundle.Apply(ctx, b, bundle.Seq(SetVariables(), ResolveVariableReferencesInLookup(), ResolveResourceReferences()))
+	diags := bundle.ApplySeq(ctx, b, SetVariables(), ResolveVariableReferencesInLookup(), ResolveResourceReferences())
 	require.NoError(t, diags.Error())
 	require.Equal(t, "1234-5678-abcd", b.Config.Variables["lookup"].Value)
 }
diff --git a/bundle/config/mutator/translate_paths_test.go b/bundle/config/mutator/translate_paths_test.go
index 6cfe5718a..14d99346e 100644
--- a/bundle/config/mutator/translate_paths_test.go
+++ b/bundle/config/mutator/translate_paths_test.go
@@ -828,12 +828,10 @@ func TestTranslatePathWithComplexVariables(t *testing.T) {
 	})
 	require.NoError(t, diags.Error())
 
-	diags = bundle.Apply(ctx, b,
-		bundle.Seq(
-			mutator.SetVariables(),
-			mutator.ResolveVariableReferences("variables"),
-			mutator.TranslatePaths(),
-		))
+	diags = bundle.ApplySeq(ctx, b,
+		mutator.SetVariables(),
+		mutator.ResolveVariableReferences("variables"),
+		mutator.TranslatePaths())
 	require.NoError(t, diags.Error())
 
 	assert.Equal(
diff --git a/bundle/config/validate/fast_validate.go b/bundle/config/validate/fast_validate.go
index 47d83036d..e116034ad 100644
--- a/bundle/config/validate/fast_validate.go
+++ b/bundle/config/validate/fast_validate.go
@@ -14,18 +14,18 @@ import (
 // 2. The validation is blocking for bundle deployments.
 //
 // The full suite of validation mutators is available in the [Validate] mutator.
-type fastValidateReadonly struct{}
+type fastValidate struct{ bundle.RO }
 
-func FastValidateReadonly() bundle.ReadOnlyMutator {
-	return &fastValidateReadonly{}
+func FastValidate() bundle.ReadOnlyMutator {
+	return &fastValidate{}
 }
 
-func (f *fastValidateReadonly) Name() string {
+func (f *fastValidate) Name() string {
 	return "fast_validate(readonly)"
 }
 
-func (f *fastValidateReadonly) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.Diagnostics {
-	return bundle.ApplyReadOnly(ctx, rb, bundle.Parallel(
+func (f *fastValidate) Apply(ctx context.Context, rb *bundle.Bundle) diag.Diagnostics {
+	return bundle.ApplyParallel(ctx, rb,
 		// Fast mutators with only in-memory checks
 		JobClusterKeyDefined(),
 		JobTaskClusterSpec(),
@@ -33,19 +33,5 @@ func (f *fastValidateReadonly) Apply(ctx context.Context, rb bundle.ReadOnlyBund
 
 		// Blocking mutators. Deployments will fail if these checks fail.
 		ValidateArtifactPath(),
-	))
-}
-
-type fastValidate struct{}
-
-func FastValidate() bundle.Mutator {
-	return &fastValidate{}
-}
-
-func (f *fastValidate) Name() string {
-	return "fast_validate"
-}
-
-func (f *fastValidate) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
-	return bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), FastValidateReadonly())
+	)
 }
diff --git a/bundle/config/validate/files_to_sync.go b/bundle/config/validate/files_to_sync.go
index b4de06773..aea78f710 100644
--- a/bundle/config/validate/files_to_sync.go
+++ b/bundle/config/validate/files_to_sync.go
@@ -13,20 +13,20 @@ func FilesToSync() bundle.ReadOnlyMutator {
 	return &filesToSync{}
 }
 
-type filesToSync struct{}
+type filesToSync struct{ bundle.RO }
 
 func (v *filesToSync) Name() string {
 	return "validate:files_to_sync"
 }
 
-func (v *filesToSync) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.Diagnostics {
+func (v *filesToSync) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	// The user may be intentional about not synchronizing any files.
 	// In this case, we should not show any warnings.
-	if len(rb.Config().Sync.Paths) == 0 {
+	if len(b.Config.Sync.Paths) == 0 {
 		return nil
 	}
 
-	sync, err := files.GetSync(ctx, rb)
+	sync, err := files.GetSync(ctx, b)
 	if err != nil {
 		return diag.FromErr(err)
 	}
@@ -42,20 +42,20 @@ func (v *filesToSync) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.
 	}
 
 	diags := diag.Diagnostics{}
-	if len(rb.Config().Sync.Exclude) == 0 {
+	if len(b.Config.Sync.Exclude) == 0 {
 		diags = diags.Append(diag.Diagnostic{
 			Severity: diag.Warning,
 			Summary:  "There are no files to sync, please check your .gitignore",
 		})
 	} else {
-		loc := location{path: "sync.exclude", rb: rb}
+		path := "sync.exclude"
 		diags = diags.Append(diag.Diagnostic{
 			Severity: diag.Warning,
 			Summary:  "There are no files to sync, please check your .gitignore and sync.exclude configuration",
 			// Show all locations where sync.exclude is defined, since merging
 			// sync.exclude is additive.
-			Locations: loc.Locations(),
-			Paths:     []dyn.Path{loc.Path()},
+			Locations: b.Config.GetLocations(path),
+			Paths:     []dyn.Path{dyn.MustPathFromString(path)},
 		})
 	}
 
diff --git a/bundle/config/validate/files_to_sync_test.go b/bundle/config/validate/files_to_sync_test.go
index dd40295c3..0a5f69727 100644
--- a/bundle/config/validate/files_to_sync_test.go
+++ b/bundle/config/validate/files_to_sync_test.go
@@ -29,8 +29,7 @@ func TestFilesToSync_NoPaths(t *testing.T) {
 	}
 
 	ctx := context.Background()
-	rb := bundle.ReadOnly(b)
-	diags := bundle.ApplyReadOnly(ctx, rb, FilesToSync())
+	diags := FilesToSync().Apply(ctx, b)
 	assert.Empty(t, diags)
 }
 
@@ -85,8 +84,7 @@ func TestFilesToSync_EverythingIgnored(t *testing.T) {
 	testutil.WriteFile(t, filepath.Join(b.BundleRootPath, ".gitignore"), "*\n.*\n")
 
 	ctx := context.Background()
-	rb := bundle.ReadOnly(b)
-	diags := bundle.ApplyReadOnly(ctx, rb, FilesToSync())
+	diags := FilesToSync().Apply(ctx, b)
 	require.Len(t, diags, 1)
 	assert.Equal(t, diag.Warning, diags[0].Severity)
 	assert.Equal(t, "There are no files to sync, please check your .gitignore", diags[0].Summary)
@@ -99,8 +97,7 @@ func TestFilesToSync_EverythingExcluded(t *testing.T) {
 	b.Config.Sync.Exclude = []string{"*"}
 
 	ctx := context.Background()
-	rb := bundle.ReadOnly(b)
-	diags := bundle.ApplyReadOnly(ctx, rb, FilesToSync())
+	diags := FilesToSync().Apply(ctx, b)
 	require.Len(t, diags, 1)
 	assert.Equal(t, diag.Warning, diags[0].Severity)
 	assert.Equal(t, "There are no files to sync, please check your .gitignore and sync.exclude configuration", diags[0].Summary)
diff --git a/bundle/config/validate/folder_permissions.go b/bundle/config/validate/folder_permissions.go
index 7b12b4b16..575702c34 100644
--- a/bundle/config/validate/folder_permissions.go
+++ b/bundle/config/validate/folder_permissions.go
@@ -16,15 +16,14 @@ import (
 	"golang.org/x/sync/errgroup"
 )
 
-type folderPermissions struct{}
+type folderPermissions struct{ bundle.RO }
 
-// Apply implements bundle.ReadOnlyMutator.
-func (f *folderPermissions) Apply(ctx context.Context, b bundle.ReadOnlyBundle) diag.Diagnostics {
-	if len(b.Config().Permissions) == 0 {
+func (f *folderPermissions) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	if len(b.Config.Permissions) == 0 {
 		return nil
 	}
 
-	bundlePaths := paths.CollectUniqueWorkspacePathPrefixes(b.Config().Workspace)
+	bundlePaths := paths.CollectUniqueWorkspacePathPrefixes(b.Config.Workspace)
 
 	var diags diag.Diagnostics
 	g, ctx := errgroup.WithContext(ctx)
@@ -48,7 +47,7 @@ func (f *folderPermissions) Apply(ctx context.Context, b bundle.ReadOnlyBundle)
 	return diags
 }
 
-func checkFolderPermission(ctx context.Context, b bundle.ReadOnlyBundle, folderPath string) diag.Diagnostics {
+func checkFolderPermission(ctx context.Context, b *bundle.Bundle, folderPath string) diag.Diagnostics {
 	// If the folder is shared, then we don't need to check permissions as it was already checked in the other mutator before.
 	if libraries.IsWorkspaceSharedPath(folderPath) {
 		return nil
@@ -69,7 +68,7 @@ func checkFolderPermission(ctx context.Context, b bundle.ReadOnlyBundle, folderP
 	}
 
 	p := permissions.ObjectAclToResourcePermissions(folderPath, objPermissions.AccessControlList)
-	return p.Compare(b.Config().Permissions)
+	return p.Compare(b.Config.Permissions)
 }
 
 func getClosestExistingObject(ctx context.Context, w workspace.WorkspaceInterface, folderPath string) (*workspace.ObjectInfo, error) {
diff --git a/bundle/config/validate/folder_permissions_test.go b/bundle/config/validate/folder_permissions_test.go
index 8e68c9fbf..40906ce6f 100644
--- a/bundle/config/validate/folder_permissions_test.go
+++ b/bundle/config/validate/folder_permissions_test.go
@@ -69,9 +69,7 @@ func TestFolderPermissionsInheritedWhenRootPathDoesNotExist(t *testing.T) {
 	}, nil)
 
 	b.SetWorkpaceClient(m.WorkspaceClient)
-	rb := bundle.ReadOnly(b)
-
-	diags := bundle.ApplyReadOnly(context.Background(), rb, ValidateFolderPermissions())
+	diags := ValidateFolderPermissions().Apply(context.Background(), b)
 	require.Empty(t, diags)
 }
 
@@ -118,9 +116,7 @@ func TestValidateFolderPermissionsFailsOnMissingBundlePermission(t *testing.T) {
 	}, nil)
 
 	b.SetWorkpaceClient(m.WorkspaceClient)
-	rb := bundle.ReadOnly(b)
-
-	diags := bundle.ApplyReadOnly(context.Background(), rb, ValidateFolderPermissions())
+	diags := ValidateFolderPermissions().Apply(context.Background(), b)
 	require.Len(t, diags, 1)
 	require.Equal(t, "untracked permissions apply to target workspace path", diags[0].Summary)
 	require.Equal(t, diag.Warning, diags[0].Severity)
@@ -164,9 +160,7 @@ func TestValidateFolderPermissionsFailsOnPermissionMismatch(t *testing.T) {
 	}, nil)
 
 	b.SetWorkpaceClient(m.WorkspaceClient)
-	rb := bundle.ReadOnly(b)
-
-	diags := bundle.ApplyReadOnly(context.Background(), rb, ValidateFolderPermissions())
+	diags := ValidateFolderPermissions().Apply(context.Background(), b)
 	require.Len(t, diags, 1)
 	require.Equal(t, "untracked permissions apply to target workspace path", diags[0].Summary)
 	require.Equal(t, diag.Warning, diags[0].Severity)
@@ -199,9 +193,7 @@ func TestValidateFolderPermissionsFailsOnNoRootFolder(t *testing.T) {
 	})
 
 	b.SetWorkpaceClient(m.WorkspaceClient)
-	rb := bundle.ReadOnly(b)
-
-	diags := bundle.ApplyReadOnly(context.Background(), rb, ValidateFolderPermissions())
+	diags := ValidateFolderPermissions().Apply(context.Background(), b)
 	require.Len(t, diags, 1)
 	require.Equal(t, "folder / and its parent folders do not exist", diags[0].Summary)
 	require.Equal(t, diag.Error, diags[0].Severity)
diff --git a/bundle/config/validate/interpolation_in_auth_config.go b/bundle/config/validate/interpolation_in_auth_config.go
new file mode 100644
index 000000000..1a5b64a26
--- /dev/null
+++ b/bundle/config/validate/interpolation_in_auth_config.go
@@ -0,0 +1,83 @@
+package validate
+
+import (
+	"context"
+	"fmt"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/libs/auth"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/dyn"
+	"github.com/databricks/cli/libs/dyn/dynvar"
+)
+
+type noInterpolationInAuthConfig struct{}
+
+func NoInterpolationInAuthConfig() bundle.Mutator {
+	return &noInterpolationInAuthConfig{}
+}
+
+func (f *noInterpolationInAuthConfig) Name() string {
+	return "validate:interpolation_in_auth_config"
+}
+
+func (f *noInterpolationInAuthConfig) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	authFields := []string{
+		// Generic attributes.
+		"host",
+		"profile",
+		"auth_type",
+		"metadata_service_url",
+
+		// OAuth specific attributes.
+		"client_id",
+
+		// Google specific attributes.
+		"google_service_account",
+
+		// Azure specific attributes.
+		"azure_resource_id",
+		"azure_use_msi",
+		"azure_client_id",
+		"azure_tenant_id",
+		"azure_environment",
+		"azure_login_app_id",
+	}
+
+	diags := diag.Diagnostics{}
+
+	for _, fieldName := range authFields {
+		p := dyn.NewPath(dyn.Key("workspace"), dyn.Key(fieldName))
+		v, err := dyn.GetByPath(b.Config.Value(), p)
+		if dyn.IsNoSuchKeyError(err) {
+			continue
+		}
+		if err != nil {
+			return diag.FromErr(err)
+		}
+
+		vv, ok := v.AsString()
+		if !ok {
+			continue
+		}
+
+		// Check if the field contains interpolation.
+		if dynvar.ContainsVariableReference(vv) {
+			envVar, ok := auth.GetEnvFor(fieldName)
+			if !ok {
+				continue
+			}
+
+			diags = append(diags, diag.Diagnostic{
+				Severity: diag.Warning,
+				Summary:  "Variable interpolation is not supported for fields that configure authentication",
+				Detail: fmt.Sprintf(`Interpolation is not supported for the field %s. Please set
+the %s environment variable if you wish to configure this field at runtime.`, p.String(), envVar),
+				Locations: v.Locations(),
+				Paths:     []dyn.Path{p},
+			})
+		}
+	}
+
+	return diags
+}
diff --git a/bundle/config/validate/job_cluster_key_defined.go b/bundle/config/validate/job_cluster_key_defined.go
index c3a1ab3df..5ae2f5437 100644
--- a/bundle/config/validate/job_cluster_key_defined.go
+++ b/bundle/config/validate/job_cluster_key_defined.go
@@ -13,16 +13,16 @@ func JobClusterKeyDefined() bundle.ReadOnlyMutator {
 	return &jobClusterKeyDefined{}
 }
 
-type jobClusterKeyDefined struct{}
+type jobClusterKeyDefined struct{ bundle.RO }
 
 func (v *jobClusterKeyDefined) Name() string {
 	return "validate:job_cluster_key_defined"
 }
 
-func (v *jobClusterKeyDefined) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.Diagnostics {
+func (v *jobClusterKeyDefined) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	diags := diag.Diagnostics{}
 
-	for k, job := range rb.Config().Resources.Jobs {
+	for k, job := range b.Config.Resources.Jobs {
 		jobClusterKeys := make(map[string]bool)
 		for _, cluster := range job.JobClusters {
 			if cluster.JobClusterKey != "" {
@@ -33,10 +33,7 @@ func (v *jobClusterKeyDefined) Apply(ctx context.Context, rb bundle.ReadOnlyBund
 		for index, task := range job.Tasks {
 			if task.JobClusterKey != "" {
 				if _, ok := jobClusterKeys[task.JobClusterKey]; !ok {
-					loc := location{
-						path: fmt.Sprintf("resources.jobs.%s.tasks[%d].job_cluster_key", k, index),
-						rb:   rb,
-					}
+					path := fmt.Sprintf("resources.jobs.%s.tasks[%d].job_cluster_key", k, index)
 
 					diags = diags.Append(diag.Diagnostic{
 						Severity: diag.Warning,
@@ -44,8 +41,8 @@ func (v *jobClusterKeyDefined) Apply(ctx context.Context, rb bundle.ReadOnlyBund
 						// Show only the location where the job_cluster_key is defined.
 						// Other associated locations are not relevant since they are
 						// overridden during merging.
-						Locations: []dyn.Location{loc.Location()},
-						Paths:     []dyn.Path{loc.Path()},
+						Locations: b.Config.GetLocations(path),
+						Paths:     []dyn.Path{dyn.MustPathFromString(path)},
 					})
 				}
 			}
diff --git a/bundle/config/validate/job_cluster_key_defined_test.go b/bundle/config/validate/job_cluster_key_defined_test.go
index 2cbdb7c6a..559bd1c46 100644
--- a/bundle/config/validate/job_cluster_key_defined_test.go
+++ b/bundle/config/validate/job_cluster_key_defined_test.go
@@ -33,7 +33,7 @@ func TestJobClusterKeyDefined(t *testing.T) {
 		},
 	}
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), JobClusterKeyDefined())
+	diags := JobClusterKeyDefined().Apply(context.Background(), b)
 	require.Empty(t, diags)
 	require.NoError(t, diags.Error())
 }
@@ -56,7 +56,7 @@ func TestJobClusterKeyNotDefined(t *testing.T) {
 		},
 	}
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), JobClusterKeyDefined())
+	diags := JobClusterKeyDefined().Apply(context.Background(), b)
 	require.Len(t, diags, 1)
 	require.NoError(t, diags.Error())
 	require.Equal(t, diag.Warning, diags[0].Severity)
@@ -89,7 +89,7 @@ func TestJobClusterKeyDefinedInDifferentJob(t *testing.T) {
 		},
 	}
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), JobClusterKeyDefined())
+	diags := JobClusterKeyDefined().Apply(context.Background(), b)
 	require.Len(t, diags, 1)
 	require.NoError(t, diags.Error())
 	require.Equal(t, diag.Warning, diags[0].Severity)
diff --git a/bundle/config/validate/job_task_cluster_spec.go b/bundle/config/validate/job_task_cluster_spec.go
index 5f532acfe..79672be63 100644
--- a/bundle/config/validate/job_task_cluster_spec.go
+++ b/bundle/config/validate/job_task_cluster_spec.go
@@ -17,31 +17,31 @@ func JobTaskClusterSpec() bundle.ReadOnlyMutator {
 	return &jobTaskClusterSpec{}
 }
 
-type jobTaskClusterSpec struct{}
+type jobTaskClusterSpec struct{ bundle.RO }
 
 func (v *jobTaskClusterSpec) Name() string {
 	return "validate:job_task_cluster_spec"
 }
 
-func (v *jobTaskClusterSpec) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.Diagnostics {
+func (v *jobTaskClusterSpec) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	diags := diag.Diagnostics{}
 
 	jobsPath := dyn.NewPath(dyn.Key("resources"), dyn.Key("jobs"))
 
-	for resourceName, job := range rb.Config().Resources.Jobs {
+	for resourceName, job := range b.Config.Resources.Jobs {
 		resourcePath := jobsPath.Append(dyn.Key(resourceName))
 
 		for taskIndex, task := range job.Tasks {
 			taskPath := resourcePath.Append(dyn.Key("tasks"), dyn.Index(taskIndex))
 
-			diags = diags.Extend(validateJobTask(rb, task, taskPath))
+			diags = diags.Extend(validateJobTask(b, task, taskPath))
 		}
 	}
 
 	return diags
 }
 
-func validateJobTask(rb bundle.ReadOnlyBundle, task jobs.Task, taskPath dyn.Path) diag.Diagnostics {
+func validateJobTask(b *bundle.Bundle, task jobs.Task, taskPath dyn.Path) diag.Diagnostics {
 	diags := diag.Diagnostics{}
 
 	var specified []string
@@ -74,7 +74,7 @@ func validateJobTask(rb bundle.ReadOnlyBundle, task jobs.Task, taskPath dyn.Path
 	if task.ForEachTask != nil {
 		forEachTaskPath := taskPath.Append(dyn.Key("for_each_task"), dyn.Key("task"))
 
-		diags = diags.Extend(validateJobTask(rb, task.ForEachTask.Task, forEachTaskPath))
+		diags = diags.Extend(validateJobTask(b, task.ForEachTask.Task, forEachTaskPath))
 	}
 
 	if isComputeTask(task) && len(specified) == 0 {
@@ -92,7 +92,7 @@ func validateJobTask(rb bundle.ReadOnlyBundle, task jobs.Task, taskPath dyn.Path
 				Severity:  diag.Error,
 				Summary:   "Missing required cluster or environment settings",
 				Detail:    detail,
-				Locations: rb.Config().GetLocations(taskPath.String()),
+				Locations: b.Config.GetLocations(taskPath.String()),
 				Paths:     []dyn.Path{taskPath},
 			})
 		}
diff --git a/bundle/config/validate/job_task_cluster_spec_test.go b/bundle/config/validate/job_task_cluster_spec_test.go
index a3a7ccf25..fd316d61f 100644
--- a/bundle/config/validate/job_task_cluster_spec_test.go
+++ b/bundle/config/validate/job_task_cluster_spec_test.go
@@ -174,7 +174,7 @@ Specify one of the following fields: job_cluster_key, environment_key, existing_
 			}
 
 			b := createBundle(map[string]*resources.Job{"job1": job})
-			diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), JobTaskClusterSpec())
+			diags := JobTaskClusterSpec().Apply(context.Background(), b)
 
 			if tc.errorPath != "" || tc.errorDetail != "" || tc.errorSummary != "" {
 				assert.Len(t, diags, 1)
diff --git a/bundle/config/validate/single_node_cluster.go b/bundle/config/validate/single_node_cluster.go
index 7c159f61a..acc5f444d 100644
--- a/bundle/config/validate/single_node_cluster.go
+++ b/bundle/config/validate/single_node_cluster.go
@@ -16,7 +16,7 @@ func SingleNodeCluster() bundle.ReadOnlyMutator {
 	return &singleNodeCluster{}
 }
 
-type singleNodeCluster struct{}
+type singleNodeCluster struct{ bundle.RO }
 
 func (m *singleNodeCluster) Name() string {
 	return "validate:SingleNodeCluster"
@@ -98,7 +98,7 @@ func showSingleNodeClusterWarning(ctx context.Context, v dyn.Value) bool {
 	return false
 }
 
-func (m *singleNodeCluster) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.Diagnostics {
+func (m *singleNodeCluster) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	diags := diag.Diagnostics{}
 
 	patterns := []dyn.Pattern{
@@ -115,7 +115,7 @@ func (m *singleNodeCluster) Apply(ctx context.Context, rb bundle.ReadOnlyBundle)
 	}
 
 	for _, p := range patterns {
-		_, err := dyn.MapByPattern(rb.Config().Value(), p, func(p dyn.Path, v dyn.Value) (dyn.Value, error) {
+		_, err := dyn.MapByPattern(b.Config.Value(), p, func(p dyn.Path, v dyn.Value) (dyn.Value, error) {
 			warning := diag.Diagnostic{
 				Severity:  diag.Warning,
 				Summary:   singleNodeWarningSummary,
diff --git a/bundle/config/validate/single_node_cluster_test.go b/bundle/config/validate/single_node_cluster_test.go
index be93420c6..c6d5f8ca9 100644
--- a/bundle/config/validate/single_node_cluster_test.go
+++ b/bundle/config/validate/single_node_cluster_test.go
@@ -116,7 +116,7 @@ func TestValidateSingleNodeClusterFailForInteractiveClusters(t *testing.T) {
 			bundletest.Mutate(t, b, func(v dyn.Value) (dyn.Value, error) {
 				return dyn.Set(v, "resources.clusters.foo.num_workers", dyn.V(0))
 			})
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := SingleNodeCluster().Apply(ctx, b)
 			assert.Equal(t, diag.Diagnostics{
 				{
 					Severity:  diag.Warning,
@@ -165,7 +165,7 @@ func TestValidateSingleNodeClusterFailForJobClusters(t *testing.T) {
 				return dyn.Set(v, "resources.jobs.foo.job_clusters[0].new_cluster.num_workers", dyn.V(0))
 			})
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := SingleNodeCluster().Apply(ctx, b)
 			assert.Equal(t, diag.Diagnostics{
 				{
 					Severity:  diag.Warning,
@@ -214,7 +214,7 @@ func TestValidateSingleNodeClusterFailForJobTaskClusters(t *testing.T) {
 				return dyn.Set(v, "resources.jobs.foo.tasks[0].new_cluster.num_workers", dyn.V(0))
 			})
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Equal(t, diag.Diagnostics{
 				{
 					Severity:  diag.Warning,
@@ -260,7 +260,7 @@ func TestValidateSingleNodeClusterFailForPipelineClusters(t *testing.T) {
 				return dyn.Set(v, "resources.pipelines.foo.clusters[0].num_workers", dyn.V(0))
 			})
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Equal(t, diag.Diagnostics{
 				{
 					Severity:  diag.Warning,
@@ -313,7 +313,7 @@ func TestValidateSingleNodeClusterFailForJobForEachTaskCluster(t *testing.T) {
 				return dyn.Set(v, "resources.jobs.foo.tasks[0].for_each_task.task.new_cluster.num_workers", dyn.V(0))
 			})
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Equal(t, diag.Diagnostics{
 				{
 					Severity:  diag.Warning,
@@ -397,7 +397,7 @@ func TestValidateSingleNodeClusterPassInteractiveClusters(t *testing.T) {
 				})
 			}
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Empty(t, diags)
 		})
 	}
@@ -437,7 +437,7 @@ func TestValidateSingleNodeClusterPassJobClusters(t *testing.T) {
 				})
 			}
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Empty(t, diags)
 		})
 	}
@@ -477,7 +477,7 @@ func TestValidateSingleNodeClusterPassJobTaskClusters(t *testing.T) {
 				})
 			}
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Empty(t, diags)
 		})
 	}
@@ -514,7 +514,7 @@ func TestValidateSingleNodeClusterPassPipelineClusters(t *testing.T) {
 				})
 			}
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Empty(t, diags)
 		})
 	}
@@ -558,7 +558,7 @@ func TestValidateSingleNodeClusterPassJobForEachTaskCluster(t *testing.T) {
 				})
 			}
 
-			diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), SingleNodeCluster())
+			diags := bundle.Apply(ctx, b, SingleNodeCluster())
 			assert.Empty(t, diags)
 		})
 	}
diff --git a/bundle/config/validate/validate.go b/bundle/config/validate/validate.go
index 8fdd704ab..83d17337d 100644
--- a/bundle/config/validate/validate.go
+++ b/bundle/config/validate/validate.go
@@ -5,46 +5,16 @@ import (
 
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/libs/diag"
-	"github.com/databricks/cli/libs/dyn"
 )
 
-type validate struct{}
-
-type location struct {
-	path string
-	rb   bundle.ReadOnlyBundle
-}
-
-func (l location) Location() dyn.Location {
-	return l.rb.Config().GetLocation(l.path)
-}
-
-func (l location) Locations() []dyn.Location {
-	return l.rb.Config().GetLocations(l.path)
-}
-
-func (l location) Path() dyn.Path {
-	return dyn.MustPathFromString(l.path)
-}
-
-// Apply implements bundle.Mutator.
-func (v *validate) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
-	return bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), bundle.Parallel(
-		FastValidateReadonly(),
+func Validate(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	return bundle.ApplyParallel(ctx, b,
+		FastValidate(),
 
 		// Slow mutators that require network or file i/o. These are only
 		// run in the `bundle validate` command.
 		FilesToSync(),
 		ValidateFolderPermissions(),
 		ValidateSyncPatterns(),
-	))
-}
-
-// Name implements bundle.Mutator.
-func (v *validate) Name() string {
-	return "validate"
-}
-
-func Validate() bundle.Mutator {
-	return &validate{}
+	)
 }
diff --git a/bundle/config/validate/validate_artifact_path.go b/bundle/config/validate/validate_artifact_path.go
index aa4492670..78536d4bd 100644
--- a/bundle/config/validate/validate_artifact_path.go
+++ b/bundle/config/validate/validate_artifact_path.go
@@ -16,7 +16,7 @@ import (
 	"github.com/databricks/databricks-sdk-go/apierr"
 )
 
-type validateArtifactPath struct{}
+type validateArtifactPath struct{ bundle.RO }
 
 func ValidateArtifactPath() bundle.ReadOnlyMutator {
 	return &validateArtifactPath{}
@@ -74,9 +74,9 @@ func findVolumeInBundle(r config.Root, catalogName, schemaName, volumeName strin
 	return nil, nil, false
 }
 
-func (v *validateArtifactPath) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.Diagnostics {
+func (v *validateArtifactPath) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	// We only validate UC Volumes paths right now.
-	if !libraries.IsVolumesPath(rb.Config().Workspace.ArtifactPath) {
+	if !libraries.IsVolumesPath(b.Config.Workspace.ArtifactPath) {
 		return nil
 	}
 
@@ -85,25 +85,25 @@ func (v *validateArtifactPath) Apply(ctx context.Context, rb bundle.ReadOnlyBund
 			{
 				Summary:   s,
 				Severity:  diag.Error,
-				Locations: rb.Config().GetLocations("workspace.artifact_path"),
+				Locations: b.Config.GetLocations("workspace.artifact_path"),
 				Paths:     []dyn.Path{dyn.MustPathFromString("workspace.artifact_path")},
 			},
 		}
 	}
 
-	catalogName, schemaName, volumeName, err := extractVolumeFromPath(rb.Config().Workspace.ArtifactPath)
+	catalogName, schemaName, volumeName, err := extractVolumeFromPath(b.Config.Workspace.ArtifactPath)
 	if err != nil {
 		return wrapErrorMsg(err.Error())
 	}
 	volumeFullName := fmt.Sprintf("%s.%s.%s", catalogName, schemaName, volumeName)
-	w := rb.WorkspaceClient()
+	w := b.WorkspaceClient()
 	_, err = w.Volumes.ReadByName(ctx, volumeFullName)
 
 	if errors.Is(err, apierr.ErrPermissionDenied) {
 		return wrapErrorMsg(fmt.Sprintf("cannot access volume %s: %s", volumeFullName, err))
 	}
 	if errors.Is(err, apierr.ErrNotFound) {
-		path, locations, ok := findVolumeInBundle(rb.Config(), catalogName, schemaName, volumeName)
+		path, locations, ok := findVolumeInBundle(b.Config, catalogName, schemaName, volumeName)
 		if !ok {
 			return wrapErrorMsg(fmt.Sprintf("volume %s does not exist", volumeFullName))
 		}
@@ -117,7 +117,7 @@ func (v *validateArtifactPath) Apply(ctx context.Context, rb bundle.ReadOnlyBund
 this bundle but which has not been deployed yet. Please first deploy
 the volume using 'bundle deploy' and then switch over to using it in
 the artifact_path.`,
-			Locations: slices.Concat(rb.Config().GetLocations("workspace.artifact_path"), locations),
+			Locations: slices.Concat(b.Config.GetLocations("workspace.artifact_path"), locations),
 			Paths:     append([]dyn.Path{dyn.MustPathFromString("workspace.artifact_path")}, path),
 		}}
 
diff --git a/bundle/config/validate/validate_artifact_path_test.go b/bundle/config/validate/validate_artifact_path_test.go
index e1ae6af34..3f998567b 100644
--- a/bundle/config/validate/validate_artifact_path_test.go
+++ b/bundle/config/validate/validate_artifact_path_test.go
@@ -49,7 +49,7 @@ func TestValidateArtifactPathWithVolumeInBundle(t *testing.T) {
 	})
 	b.SetWorkpaceClient(m.WorkspaceClient)
 
-	diags := bundle.ApplyReadOnly(ctx, bundle.ReadOnly(b), ValidateArtifactPath())
+	diags := ValidateArtifactPath().Apply(ctx, b)
 	assert.Equal(t, diag.Diagnostics{{
 		Severity: diag.Error,
 		Summary:  "volume catalogN.schemaN.volumeN does not exist",
@@ -88,7 +88,6 @@ func TestValidateArtifactPath(t *testing.T) {
 		}}, diags)
 	}
 
-	rb := bundle.ReadOnly(b)
 	ctx := context.Background()
 
 	tcases := []struct {
@@ -123,7 +122,7 @@ func TestValidateArtifactPath(t *testing.T) {
 		api.EXPECT().ReadByName(mock.Anything, "catalogN.schemaN.volumeN").Return(nil, tc.err)
 		b.SetWorkpaceClient(m.WorkspaceClient)
 
-		diags := bundle.ApplyReadOnly(ctx, rb, ValidateArtifactPath())
+		diags := ValidateArtifactPath().Apply(ctx, b)
 		assertDiags(t, diags, tc.expectedSummary)
 	}
 }
@@ -167,7 +166,7 @@ func TestValidateArtifactPathWithInvalidPaths(t *testing.T) {
 
 		bundletest.SetLocation(b, "workspace.artifact_path", []dyn.Location{{File: "config.yml", Line: 1, Column: 2}})
 
-		diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), ValidateArtifactPath())
+		diags := ValidateArtifactPath().Apply(context.Background(), b)
 		require.Equal(t, diag.Diagnostics{{
 			Severity:  diag.Error,
 			Summary:   "expected UC volume path to be in the format /Volumes/<catalog>/<schema>/<volume>/..., got " + p,
diff --git a/bundle/config/validate/validate_sync_patterns.go b/bundle/config/validate/validate_sync_patterns.go
index 04acd28ab..04df36e4f 100644
--- a/bundle/config/validate/validate_sync_patterns.go
+++ b/bundle/config/validate/validate_sync_patterns.go
@@ -17,24 +17,24 @@ func ValidateSyncPatterns() bundle.ReadOnlyMutator {
 	return &validateSyncPatterns{}
 }
 
-type validateSyncPatterns struct{}
+type validateSyncPatterns struct{ bundle.RO }
 
 func (v *validateSyncPatterns) Name() string {
 	return "validate:validate_sync_patterns"
 }
 
-func (v *validateSyncPatterns) Apply(ctx context.Context, rb bundle.ReadOnlyBundle) diag.Diagnostics {
-	s := rb.Config().Sync
+func (v *validateSyncPatterns) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	s := b.Config.Sync
 	if len(s.Exclude) == 0 && len(s.Include) == 0 {
 		return nil
 	}
 
-	diags, err := checkPatterns(s.Exclude, "sync.exclude", rb)
+	diags, err := checkPatterns(s.Exclude, "sync.exclude", b)
 	if err != nil {
 		return diag.FromErr(err)
 	}
 
-	includeDiags, err := checkPatterns(s.Include, "sync.include", rb)
+	includeDiags, err := checkPatterns(s.Include, "sync.include", b)
 	if err != nil {
 		return diag.FromErr(err)
 	}
@@ -42,7 +42,7 @@ func (v *validateSyncPatterns) Apply(ctx context.Context, rb bundle.ReadOnlyBund
 	return diags.Extend(includeDiags)
 }
 
-func checkPatterns(patterns []string, path string, rb bundle.ReadOnlyBundle) (diag.Diagnostics, error) {
+func checkPatterns(patterns []string, path string, b *bundle.Bundle) (diag.Diagnostics, error) {
 	var mu sync.Mutex
 	var errs errgroup.Group
 	var diags diag.Diagnostics
@@ -55,7 +55,7 @@ func checkPatterns(patterns []string, path string, rb bundle.ReadOnlyBundle) (di
 		// it means: do not include these files into result set
 		p := strings.TrimPrefix(pattern, "!")
 		errs.Go(func() error {
-			fs, err := fileset.NewGlobSet(rb.BundleRoot(), []string{p})
+			fs, err := fileset.NewGlobSet(b.BundleRoot, []string{p})
 			if err != nil {
 				return err
 			}
@@ -66,13 +66,13 @@ func checkPatterns(patterns []string, path string, rb bundle.ReadOnlyBundle) (di
 			}
 
 			if len(all) == 0 {
-				loc := location{path: fmt.Sprintf("%s[%d]", path, index), rb: rb}
+				path := fmt.Sprintf("%s[%d]", path, index)
 				mu.Lock()
 				diags = diags.Append(diag.Diagnostic{
 					Severity:  diag.Warning,
 					Summary:   fmt.Sprintf("Pattern %s does not match any files", pattern),
-					Locations: []dyn.Location{loc.Location()},
-					Paths:     []dyn.Path{loc.Path()},
+					Locations: b.Config.GetLocations(path),
+					Paths:     []dyn.Path{dyn.MustPathFromString(path)},
 				})
 				mu.Unlock()
 			}
diff --git a/bundle/deferred.go b/bundle/deferred.go
deleted file mode 100644
index e7e0c2aeb..000000000
--- a/bundle/deferred.go
+++ /dev/null
@@ -1,30 +0,0 @@
-package bundle
-
-import (
-	"context"
-
-	"github.com/databricks/cli/libs/diag"
-)
-
-type DeferredMutator struct {
-	mutator Mutator
-	finally Mutator
-}
-
-func (d *DeferredMutator) Name() string {
-	return "deferred"
-}
-
-func Defer(mutator, finally Mutator) Mutator {
-	return &DeferredMutator{
-		mutator: mutator,
-		finally: finally,
-	}
-}
-
-func (d *DeferredMutator) Apply(ctx context.Context, b *Bundle) diag.Diagnostics {
-	var diags diag.Diagnostics
-	diags = diags.Extend(Apply(ctx, b, d.mutator))
-	diags = diags.Extend(Apply(ctx, b, d.finally))
-	return diags
-}
diff --git a/bundle/deferred_test.go b/bundle/deferred_test.go
deleted file mode 100644
index ea3df17c4..000000000
--- a/bundle/deferred_test.go
+++ /dev/null
@@ -1,114 +0,0 @@
-package bundle
-
-import (
-	"context"
-	"testing"
-
-	"github.com/databricks/cli/libs/diag"
-	"github.com/stretchr/testify/assert"
-)
-
-type mutatorWithError struct {
-	applyCalled int
-	errorMsg    string
-}
-
-func (t *mutatorWithError) Name() string {
-	return "mutatorWithError"
-}
-
-func (t *mutatorWithError) Apply(_ context.Context, b *Bundle) diag.Diagnostics {
-	t.applyCalled++
-	return diag.Errorf(t.errorMsg) // nolint:govet
-}
-
-func TestDeferredMutatorWhenAllMutatorsSucceed(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	m3 := &testMutator{}
-	cleanup := &testMutator{}
-	deferredMutator := Defer(Seq(m1, m2, m3), cleanup)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, deferredMutator)
-	assert.NoError(t, diags.Error())
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-	assert.Equal(t, 1, m3.applyCalled)
-	assert.Equal(t, 1, cleanup.applyCalled)
-}
-
-func TestDeferredMutatorWhenFirstFails(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	mErr := &mutatorWithError{errorMsg: "mutator error occurred"}
-	cleanup := &testMutator{}
-	deferredMutator := Defer(Seq(mErr, m1, m2), cleanup)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, deferredMutator)
-	assert.ErrorContains(t, diags.Error(), "mutator error occurred")
-
-	assert.Equal(t, 1, mErr.applyCalled)
-	assert.Equal(t, 0, m1.applyCalled)
-	assert.Equal(t, 0, m2.applyCalled)
-	assert.Equal(t, 1, cleanup.applyCalled)
-}
-
-func TestDeferredMutatorWhenMiddleOneFails(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	mErr := &mutatorWithError{errorMsg: "mutator error occurred"}
-	cleanup := &testMutator{}
-	deferredMutator := Defer(Seq(m1, mErr, m2), cleanup)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, deferredMutator)
-	assert.ErrorContains(t, diags.Error(), "mutator error occurred")
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, mErr.applyCalled)
-	assert.Equal(t, 0, m2.applyCalled)
-	assert.Equal(t, 1, cleanup.applyCalled)
-}
-
-func TestDeferredMutatorWhenLastOneFails(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	mErr := &mutatorWithError{errorMsg: "mutator error occurred"}
-	cleanup := &testMutator{}
-	deferredMutator := Defer(Seq(m1, m2, mErr), cleanup)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, deferredMutator)
-	assert.ErrorContains(t, diags.Error(), "mutator error occurred")
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-	assert.Equal(t, 1, mErr.applyCalled)
-	assert.Equal(t, 1, cleanup.applyCalled)
-}
-
-func TestDeferredMutatorCombinesErrorMessages(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	mErr := &mutatorWithError{errorMsg: "mutator error occurred"}
-	cleanupErr := &mutatorWithError{errorMsg: "cleanup error occurred"}
-	deferredMutator := Defer(Seq(m1, m2, mErr), cleanupErr)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, deferredMutator)
-
-	var errs []string
-	for _, d := range diags {
-		errs = append(errs, d.Summary)
-	}
-	assert.Contains(t, errs, "mutator error occurred")
-	assert.Contains(t, errs, "cleanup error occurred")
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-	assert.Equal(t, 1, mErr.applyCalled)
-	assert.Equal(t, 1, cleanupErr.applyCalled)
-}
diff --git a/bundle/deploy/files/delete.go b/bundle/deploy/files/delete.go
index bb28c2722..971186d5b 100644
--- a/bundle/deploy/files/delete.go
+++ b/bundle/deploy/files/delete.go
@@ -40,7 +40,7 @@ func (m *delete) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 }
 
 func deleteSnapshotFile(ctx context.Context, b *bundle.Bundle) error {
-	opts, err := GetSyncOptions(ctx, bundle.ReadOnly(b))
+	opts, err := GetSyncOptions(ctx, b)
 	if err != nil {
 		return fmt.Errorf("cannot get sync options: %w", err)
 	}
diff --git a/bundle/deploy/files/sync.go b/bundle/deploy/files/sync.go
index e3abc5fef..a3ead13a4 100644
--- a/bundle/deploy/files/sync.go
+++ b/bundle/deploy/files/sync.go
@@ -8,43 +8,43 @@ import (
 	"github.com/databricks/cli/libs/sync"
 )
 
-func GetSync(ctx context.Context, rb bundle.ReadOnlyBundle) (*sync.Sync, error) {
-	opts, err := GetSyncOptions(ctx, rb)
+func GetSync(ctx context.Context, b *bundle.Bundle) (*sync.Sync, error) {
+	opts, err := GetSyncOptions(ctx, b)
 	if err != nil {
 		return nil, fmt.Errorf("cannot get sync options: %w", err)
 	}
 	return sync.New(ctx, *opts)
 }
 
-func GetSyncOptions(ctx context.Context, rb bundle.ReadOnlyBundle) (*sync.SyncOptions, error) {
-	cacheDir, err := rb.CacheDir(ctx)
+func GetSyncOptions(ctx context.Context, b *bundle.Bundle) (*sync.SyncOptions, error) {
+	cacheDir, err := b.CacheDir(ctx)
 	if err != nil {
 		return nil, fmt.Errorf("cannot get bundle cache directory: %w", err)
 	}
 
-	includes, err := rb.GetSyncIncludePatterns(ctx)
+	includes, err := b.GetSyncIncludePatterns(ctx)
 	if err != nil {
 		return nil, fmt.Errorf("cannot get list of sync includes: %w", err)
 	}
 
 	opts := &sync.SyncOptions{
-		WorktreeRoot: rb.WorktreeRoot(),
-		LocalRoot:    rb.SyncRoot(),
-		Paths:        rb.Config().Sync.Paths,
+		WorktreeRoot: b.WorktreeRoot,
+		LocalRoot:    b.SyncRoot,
+		Paths:        b.Config.Sync.Paths,
 		Include:      includes,
-		Exclude:      rb.Config().Sync.Exclude,
+		Exclude:      b.Config.Sync.Exclude,
 
-		RemotePath: rb.Config().Workspace.FilePath,
-		Host:       rb.WorkspaceClient().Config.Host,
+		RemotePath: b.Config.Workspace.FilePath,
+		Host:       b.WorkspaceClient().Config.Host,
 
 		Full: false,
 
 		SnapshotBasePath: cacheDir,
-		WorkspaceClient:  rb.WorkspaceClient(),
+		WorkspaceClient:  b.WorkspaceClient(),
 	}
 
-	if rb.Config().Workspace.CurrentUser != nil {
-		opts.CurrentUser = rb.Config().Workspace.CurrentUser.User
+	if b.Config.Workspace.CurrentUser != nil {
+		opts.CurrentUser = b.Config.Workspace.CurrentUser.User
 	}
 
 	return opts, nil
diff --git a/bundle/deploy/files/upload.go b/bundle/deploy/files/upload.go
index 452850dc4..bb46c97c9 100644
--- a/bundle/deploy/files/upload.go
+++ b/bundle/deploy/files/upload.go
@@ -30,7 +30,7 @@ func (m *upload) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	}
 
 	cmdio.LogString(ctx, fmt.Sprintf("Uploading bundle files to %s...", b.Config.Workspace.FilePath))
-	opts, err := GetSyncOptions(ctx, bundle.ReadOnly(b))
+	opts, err := GetSyncOptions(ctx, b)
 	if err != nil {
 		return diag.FromErr(err)
 	}
diff --git a/bundle/deploy/state_pull.go b/bundle/deploy/state_pull.go
index 8fffca073..844dcb77e 100644
--- a/bundle/deploy/state_pull.go
+++ b/bundle/deploy/state_pull.go
@@ -85,7 +85,7 @@ func (s *statePull) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostic
 	}
 
 	// Create a new snapshot based on the deployment state file.
-	opts, err := files.GetSyncOptions(ctx, bundle.ReadOnly(b))
+	opts, err := files.GetSyncOptions(ctx, b)
 	if err != nil {
 		return diag.FromErr(err)
 	}
diff --git a/bundle/deploy/state_pull_test.go b/bundle/deploy/state_pull_test.go
index f38b71f6b..b3d838fce 100644
--- a/bundle/deploy/state_pull_test.go
+++ b/bundle/deploy/state_pull_test.go
@@ -92,7 +92,7 @@ func testStatePull(t *testing.T, opts statePullOpts) {
 	}
 
 	if opts.withExistingSnapshot {
-		opts, err := files.GetSyncOptions(ctx, bundle.ReadOnly(b))
+		opts, err := files.GetSyncOptions(ctx, b)
 		require.NoError(t, err)
 
 		snapshotPath, err := sync.SnapshotPath(opts)
@@ -134,7 +134,7 @@ func testStatePull(t *testing.T, opts statePullOpts) {
 	}
 
 	if opts.expects.snapshotState != nil {
-		syncOpts, err := files.GetSyncOptions(ctx, bundle.ReadOnly(b))
+		syncOpts, err := files.GetSyncOptions(ctx, b)
 		require.NoError(t, err)
 
 		snapshotPath, err := sync.SnapshotPath(syncOpts)
diff --git a/bundle/deploy/terraform/load_test.go b/bundle/deploy/terraform/load_test.go
index b7243ca19..e892535fe 100644
--- a/bundle/deploy/terraform/load_test.go
+++ b/bundle/deploy/terraform/load_test.go
@@ -32,10 +32,10 @@ func TestLoadWithNoState(t *testing.T) {
 	t.Setenv("DATABRICKS_TOKEN", "foobar")
 	b.WorkspaceClient()
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(
+	diags := bundle.ApplySeq(context.Background(), b,
 		Initialize(),
 		Load(ErrorOnEmptyState),
-	))
+	)
 
 	require.ErrorContains(t, diags.Error(), "Did you forget to run 'databricks bundle deploy'")
 }
diff --git a/bundle/docsgen/templates/reference.md b/bundle/docsgen/templates/reference.md
index 77708350f..a21c7eb17 100644
--- a/bundle/docsgen/templates/reference.md
+++ b/bundle/docsgen/templates/reference.md
@@ -1,11 +1,13 @@
 ---
 description: "Configuration reference for databricks.yml"
+last_update:
+  date: 2025-02-14
 ---
 
-<!-- DO NOT EDIT. This file is autogenerated with https://github.com/databricks/cli -->
+<!--DO NOT EDIT. This file is autogenerated with https://github.com/databricks/cli-->
 
 # Configuration reference
 
-This article provides reference for keys supported by Databricks Asset Bundles configuration (YAML). See [\_](/dev-tools/bundles/index.md).
+This article provides reference for keys supported by :re[DABS] configuration (YAML). See [\_](/dev-tools/bundles/index.md).
 
 For complete bundle examples, see [\_](/dev-tools/bundles/resource-examples.md) and the [bundle-examples GitHub repository](https://github.com/databricks/bundle-examples).
diff --git a/bundle/docsgen/templates/resources.md b/bundle/docsgen/templates/resources.md
index 9bd570ae4..04e677183 100644
--- a/bundle/docsgen/templates/resources.md
+++ b/bundle/docsgen/templates/resources.md
@@ -1,14 +1,22 @@
 ---
 description: "Learn about resources supported by Databricks Asset Bundles and how to configure them."
+last_update:
+  date: 2025-02-14
 ---
 
 <!-- DO NOT EDIT. This file is autogenerated with https://github.com/databricks/cli -->
 
 # :re[DABS] resources
 
-:re[DABS] allows you to specify information about the :re[Databricks] resources used by the bundle in the `resources` mapping in the bundle configuration. See [resources mapping](settings.md#resources) and [resources key reference](reference.md#resources).
+:re[DABS] allows you to specify information about the :re[Databricks] resources used by the bundle in the `resources` mapping in the bundle configuration. See [resources mapping](/dev-tools/bundles/settings.md#resources) and [resources key reference](/dev-tools/bundles/reference.md#resources).
 
-This article outlines supported resource types for bundles and provides details and an example for each supported type. For additional examples, see [\_](resource-examples.md).
+This article outlines supported resource types for bundles and provides details and an example for each supported type. For additional examples, see [\_](/dev-tools/bundles/resource-examples.md).
+
+:::tip
+
+To generate YAML for any existing resource, use the `databricks bundle generate` command. See [\_](/dev-tools/cli/bundle-commands.md#generate).
+
+:::
 
 ## <a id="resource-types"></a>Supported resources
 
@@ -22,54 +30,95 @@ The `databricks bundle validate` command returns warnings if unknown resource pr
 
 :::
 
+::::aws-azure
+
 :::list-table
 
 - - Resource
   - Create support
   - Corresponding REST API object
-
+- - [app](#apps)
+  - ✓
+  - [App object](https://docs.databricks.com/api/workspace/apps/create)
 - - [cluster](#clusters)
   - ✓
   - [Cluster object](https://docs.databricks.com/api/workspace/clusters/create)
-
 - - [dashboard](#dashboards)
   -
   - [Dashboard object](https://docs.databricks.com/api/workspace/lakeview/create)
-
 - - [experiment](#experiments)
   - ✓
   - [Experiment object](https://docs.databricks.com/api/workspace/experiments/createexperiment)
-
-- - [job](#jobs)
+- - [job](#job)
   - ✓
   - [Job object](https://docs.databricks.com/api/workspace/jobs/create)
-
 - - [model (legacy)](#models)
   - ✓
   - [Model (legacy) object](https://docs.databricks.com/api/workspace/modelregistry/createmodel)
-
 - - [model_serving_endpoint](#model_serving_endpoints)
   - ✓
   - [Model serving endpoint object](https://docs.databricks.com/api/workspace/servingendpoints/create)
-
-- - [pipeline](#pipelines)
+- - [pipeline](#pipeline)
   - ✓
   - [Pipeline object](https://docs.databricks.com/api/workspace/pipelines/create)
-
 - - [quality_monitor](#quality_monitors)
   - ✓
   - [Quality monitor object](https://docs.databricks.com/api/workspace/qualitymonitors/create)
-
-- - [registered_model](#registered_models) (Unity Catalog)
+- - [registered_model](#registered_models) (:re[UC])
   - ✓
   - [Registered model object](https://docs.databricks.com/api/workspace/registeredmodels/create)
-
-- - [schema](#schemas) (Unity Catalog)
+- - [schema](#schemas) (:re[UC])
   - ✓
   - [Schema object](https://docs.databricks.com/api/workspace/schemas/create)
-
-- - [volume](#volumes) (Unity Catalog)
+- - [volume](#volumes) (:re[UC])
   - ✓
   - [Volume object](https://docs.databricks.com/api/workspace/volumes/create)
 
 :::
+
+::::
+
+::::gcp
+
+:::list-table
+
+- - Resource
+  - Create support
+  - Corresponding REST API object
+- - [cluster](#clusters)
+  - ✓
+  - [Cluster object](https://docs.databricks.com/api/workspace/clusters/create)
+- - [dashboard](#dashboards)
+  -
+  - [Dashboard object](https://docs.databricks.com/api/workspace/lakeview/create)
+- - [experiment](#experiments)
+  - ✓
+  - [Experiment object](https://docs.databricks.com/api/workspace/experiments/createexperiment)
+- - [job](#jobs)
+  - ✓
+  - [Job object](https://docs.databricks.com/api/workspace/jobs/create)
+- - [model (legacy)](#models)
+  - ✓
+  - [Model (legacy) object](https://docs.databricks.com/api/workspace/modelregistry/createmodel)
+- - [model_serving_endpoint](#model_serving_endpoints)
+  - ✓
+  - [Model serving endpoint object](https://docs.databricks.com/api/workspace/servingendpoints/create)
+- - [pipeline](#pipelines)
+  - ✓
+  - [Pipeline object]](https://docs.databricks.com/api/workspace/pipelines/create)
+- - [quality_monitor](#quality_monitors)
+  - ✓
+  - [Quality monitor object](https://docs.databricks.com/api/workspace/qualitymonitors/create)
+- - [registered_model](#registered_models) (:re[UC])
+  - ✓
+  - [Registered model object](https://docs.databricks.com/api/workspace/registeredmodels/create)
+- - [schema](#schemas) (:re[UC])
+  - ✓
+  - [Schema object](https://docs.databricks.com/api/workspace/schemas/create)
+- - [volume](#volumes) (:re[UC])
+  - ✓
+  - [Volume object](https://docs.databricks.com/api/workspace/volumes/create)
+
+:::
+
+::::
diff --git a/bundle/if.go b/bundle/if.go
deleted file mode 100644
index bad1d72d2..000000000
--- a/bundle/if.go
+++ /dev/null
@@ -1,40 +0,0 @@
-package bundle
-
-import (
-	"context"
-
-	"github.com/databricks/cli/libs/diag"
-)
-
-type ifMutator struct {
-	condition      func(context.Context, *Bundle) (bool, error)
-	onTrueMutator  Mutator
-	onFalseMutator Mutator
-}
-
-func If(
-	condition func(context.Context, *Bundle) (bool, error),
-	onTrueMutator Mutator,
-	onFalseMutator Mutator,
-) Mutator {
-	return &ifMutator{
-		condition, onTrueMutator, onFalseMutator,
-	}
-}
-
-func (m *ifMutator) Apply(ctx context.Context, b *Bundle) diag.Diagnostics {
-	v, err := m.condition(ctx, b)
-	if err != nil {
-		return diag.FromErr(err)
-	}
-
-	if v {
-		return Apply(ctx, b, m.onTrueMutator)
-	} else {
-		return Apply(ctx, b, m.onFalseMutator)
-	}
-}
-
-func (m *ifMutator) Name() string {
-	return "If"
-}
diff --git a/bundle/if_test.go b/bundle/if_test.go
deleted file mode 100644
index b3fc0b9d9..000000000
--- a/bundle/if_test.go
+++ /dev/null
@@ -1,53 +0,0 @@
-package bundle
-
-import (
-	"context"
-	"testing"
-
-	"github.com/stretchr/testify/assert"
-)
-
-func TestIfMutatorTrue(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	ifMutator := If(func(context.Context, *Bundle) (bool, error) {
-		return true, nil
-	}, m1, m2)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, ifMutator)
-	assert.NoError(t, diags.Error())
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 0, m2.applyCalled)
-}
-
-func TestIfMutatorFalse(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	ifMutator := If(func(context.Context, *Bundle) (bool, error) {
-		return false, nil
-	}, m1, m2)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, ifMutator)
-	assert.NoError(t, diags.Error())
-
-	assert.Equal(t, 0, m1.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-}
-
-func TestIfMutatorError(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	ifMutator := If(func(context.Context, *Bundle) (bool, error) {
-		return true, assert.AnError
-	}, m1, m2)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, ifMutator)
-	assert.Error(t, diags.Error())
-
-	assert.Equal(t, 0, m1.applyCalled)
-	assert.Equal(t, 0, m2.applyCalled)
-}
diff --git a/bundle/internal/schema/annotations.yml b/bundle/internal/schema/annotations.yml
index 183422ca9..183948b79 100644
--- a/bundle/internal/schema/annotations.yml
+++ b/bundle/internal/schema/annotations.yml
@@ -1,25 +1,25 @@
 github.com/databricks/cli/bundle/config.Artifact:
   "build":
     "description": |-
-      An optional set of non-default build commands to run locally before deployment.
+      An optional set of build commands to run locally before deployment.
   "executable":
     "description": |-
       The executable type. Valid values are `bash`, `sh`, and `cmd`.
   "files":
     "description": |-
-      The source files for the artifact.
+      The relative or absolute path to the built artifact files.
   "path":
     "description": |-
-      The location where the built artifact will be saved.
+      The local path of the directory for the artifact.
   "type":
     "description": |-
-      Required. The type of the artifact.
+      Required if the artifact is a Python wheel. The type of the artifact. Valid values are `whl` and `jar`.
     "markdown_description": |-
-      Required. The type of the artifact. Valid values are `whl`.
+      Required if the artifact is a Python wheel. The type of the artifact. Valid values are `whl` and `jar`.
 github.com/databricks/cli/bundle/config.ArtifactFile:
   "source":
     "description": |-
-      Required. The path of the files used to build the artifact.
+      Required. The artifact source file.
 github.com/databricks/cli/bundle/config.Bundle:
   "cluster_id":
     "description": |-
@@ -28,7 +28,7 @@ github.com/databricks/cli/bundle/config.Bundle:
       The ID of a cluster to use to run the bundle. See [_](/dev-tools/bundles/settings.md#cluster_id).
   "compute_id":
     "description": |-
-      PLACEHOLDER
+      Deprecated. The ID of the compute to use to run the bundle.
   "databricks_cli_version":
     "description": |-
       The Databricks CLI version to use for the bundle.
@@ -141,47 +141,49 @@ github.com/databricks/cli/bundle/config.Python:
 github.com/databricks/cli/bundle/config.Resources:
   "apps":
     "description": |-
-      PLACEHOLDER
+      The app resource defines a Databricks app.
+    "markdown_description": |-
+      The app resource defines a [Databricks app](/api/workspace/apps/create). For information about Databricks Apps, see [_](/dev-tools/databricks-apps/index.md).
   "clusters":
     "description": |-
       The cluster definitions for the bundle, where each key is the name of a cluster.
     "markdown_description": |-
-      The cluster definitions for the bundle, where each key is the name of a cluster. See [_](/dev-tools/bundles/resources.md#clusters)
+      The cluster definitions for the bundle, where each key is the name of a cluster. See [_](/dev-tools/bundles/resources.md#clusters).
   "dashboards":
     "description": |-
       The dashboard definitions for the bundle, where each key is the name of the dashboard.
     "markdown_description": |-
-      The dashboard definitions for the bundle, where each key is the name of the dashboard. See [_](/dev-tools/bundles/resources.md#dashboards)
+      The dashboard definitions for the bundle, where each key is the name of the dashboard. See [_](/dev-tools/bundles/resources.md#dashboards).
   "experiments":
     "description": |-
       The experiment definitions for the bundle, where each key is the name of the experiment.
     "markdown_description": |-
-      The experiment definitions for the bundle, where each key is the name of the experiment. See [_](/dev-tools/bundles/resources.md#experiments)
+      The experiment definitions for the bundle, where each key is the name of the experiment. See [_](/dev-tools/bundles/resources.md#experiments).
   "jobs":
     "description": |-
       The job definitions for the bundle, where each key is the name of the job.
     "markdown_description": |-
-      The job definitions for the bundle, where each key is the name of the job. See [_](/dev-tools/bundles/resources.md#jobs)
+      The job definitions for the bundle, where each key is the name of the job. See [_](/dev-tools/bundles/resources.md#jobs).
   "model_serving_endpoints":
     "description": |-
       The model serving endpoint definitions for the bundle, where each key is the name of the model serving endpoint.
     "markdown_description": |-
-      The model serving endpoint definitions for the bundle, where each key is the name of the model serving endpoint. See [_](/dev-tools/bundles/resources.md#model_serving_endpoints)
+      The model serving endpoint definitions for the bundle, where each key is the name of the model serving endpoint. See [_](/dev-tools/bundles/resources.md#model_serving_endpoints).
   "models":
     "description": |-
       The model definitions for the bundle, where each key is the name of the model.
     "markdown_description": |-
-      The model definitions for the bundle, where each key is the name of the model. See [_](/dev-tools/bundles/resources.md#models)
+      The model definitions for the bundle, where each key is the name of the model. See [_](/dev-tools/bundles/resources.md#models).
   "pipelines":
     "description": |-
       The pipeline definitions for the bundle, where each key is the name of the pipeline.
     "markdown_description": |-
-      The pipeline definitions for the bundle, where each key is the name of the pipeline. See [_](/dev-tools/bundles/resources.md#pipelines)
+      The pipeline definitions for the bundle, where each key is the name of the pipeline. See [_](/dev-tools/bundles/resources.md#pipelines).
   "quality_monitors":
     "description": |-
       The quality monitor definitions for the bundle, where each key is the name of the quality monitor.
     "markdown_description": |-
-      The quality monitor definitions for the bundle, where each key is the name of the quality monitor. See [_](/dev-tools/bundles/resources.md#quality_monitors)
+      The quality monitor definitions for the bundle, where each key is the name of the quality monitor. See [_](/dev-tools/bundles/resources.md#quality_monitors).
   "registered_models":
     "description": |-
       The registered model definitions for the bundle, where each key is the name of the Unity Catalog registered model.
@@ -191,12 +193,12 @@ github.com/databricks/cli/bundle/config.Resources:
     "description": |-
       The schema definitions for the bundle, where each key is the name of the schema.
     "markdown_description": |-
-      The schema definitions for the bundle, where each key is the name of the schema. See [_](/dev-tools/bundles/resources.md#schemas)
+      The schema definitions for the bundle, where each key is the name of the schema. See [_](/dev-tools/bundles/resources.md#schemas).
   "volumes":
     "description": |-
       The volume definitions for the bundle, where each key is the name of the volume.
     "markdown_description": |-
-      The volume definitions for the bundle, where each key is the name of the volume. See [_](/dev-tools/bundles/resources.md#volumes)
+      The volume definitions for the bundle, where each key is the name of the volume. See [_](/dev-tools/bundles/resources.md#volumes).
 github.com/databricks/cli/bundle/config.Root:
   "artifacts":
     "description": |-
@@ -225,7 +227,7 @@ github.com/databricks/cli/bundle/config.Root:
     "description": |-
       Specifies a list of path globs that contain configuration files to include within the bundle.
     "markdown_description": |-
-      Specifies a list of path globs that contain configuration files to include within the bundle. See [_](/dev-tools/bundles/settings.md#include)
+      Specifies a list of path globs that contain configuration files to include within the bundle. See [_](/dev-tools/bundles/settings.md#include).
   "permissions":
     "description": |-
       Defines a permission for a specific entity.
@@ -417,44 +419,44 @@ github.com/databricks/cli/bundle/config/resources.Permission:
 github.com/databricks/cli/bundle/config/variable.Lookup:
   "alert":
     "description": |-
-      PLACEHOLDER
+      The name of the alert for which to retrieve an ID.
   "cluster":
     "description": |-
-      PLACEHOLDER
+      The name of the cluster for which to retrieve an ID.
   "cluster_policy":
     "description": |-
-      PLACEHOLDER
+      The name of the cluster_policy for which to retrieve an ID.
   "dashboard":
     "description": |-
-      PLACEHOLDER
+      The name of the dashboard for which to retrieve an ID.
   "instance_pool":
     "description": |-
-      PLACEHOLDER
+      The name of the instance_pool for which to retrieve an ID.
   "job":
     "description": |-
-      PLACEHOLDER
+      The name of the job for which to retrieve an ID.
   "metastore":
     "description": |-
-      PLACEHOLDER
+      The name of the metastore for which to retrieve an ID.
   "notification_destination":
     "description": |-
-      PLACEHOLDER
+      The name of the notification_destination for which to retrieve an ID.
   "pipeline":
     "description": |-
-      PLACEHOLDER
+      The name of the pipeline for which to retrieve an ID.
   "query":
     "description": |-
-      PLACEHOLDER
+      The name of the query for which to retrieve an ID.
   "service_principal":
     "description": |-
-      PLACEHOLDER
+      The name of the service_principal for which to retrieve an ID.
   "warehouse":
     "description": |-
-      PLACEHOLDER
+      The name of the warehouse for which to retrieve an ID.
 github.com/databricks/cli/bundle/config/variable.TargetVariable:
   "default":
     "description": |-
-      PLACEHOLDER
+      The default value for the variable.
   "description":
     "description": |-
       The description of the variable.
@@ -475,7 +477,7 @@ github.com/databricks/cli/bundle/config/variable.Variable:
       Defines a custom variable for the bundle. See [_](/dev-tools/bundles/settings.md#variables).
   "default":
     "description": |-
-      PLACEHOLDER
+      The default value for the variable.
   "description":
     "description": |-
       The description of the variable
diff --git a/bundle/internal/schema/annotations_openapi.yml b/bundle/internal/schema/annotations_openapi.yml
index 74cd06c66..669ecb9ed 100644
--- a/bundle/internal/schema/annotations_openapi.yml
+++ b/bundle/internal/schema/annotations_openapi.yml
@@ -19,6 +19,9 @@ github.com/databricks/cli/bundle/config/resources.App:
   "description":
     "description": |-
       The description of the app.
+  "id":
+    "description": |-
+      The unique identifier of the app.
   "name":
     "description": |-
       The name of the app. The name must contain only lowercase alphanumeric characters and hyphens.
@@ -67,7 +70,7 @@ github.com/databricks/cli/bundle/config/resources.Cluster:
   "cluster_log_conf":
     "description": |-
       The configuration for delivering spark logs to a long-term storage destination.
-      Two kinds of destinations (dbfs and s3) are supported. Only one destination can be specified
+      Three kinds of destinations (DBFS, S3 and Unity Catalog volumes) are supported. Only one destination can be specified
       for one cluster. If the conf is given, the logs will be delivered to the destination every
       `5 mins`. The destination of driver logs is `$destination/$clusterId/driver`, while
       the destination of executor logs is `$destination/$clusterId/executor`.
@@ -1009,6 +1012,10 @@ github.com/databricks/databricks-sdk-go/service/compute.ClusterLogConf:
       `{ "s3": { "destination" : "s3://cluster_log_bucket/prefix", "region" : "us-west-2" } }`
       Cluster iam role is used to access s3, please make sure the cluster iam role in
       `instance_profile_arn` has permission to write data to the s3 destination.
+  "volumes":
+    "description": |-
+      destination needs to be provided. e.g.
+      `{ "volumes" : { "destination" : "/Volumes/catalog/schema/volume/cluster_log" } }`
 github.com/databricks/databricks-sdk-go/service/compute.ClusterSpec:
   "apply_policy_default_values":
     "description": |-
@@ -1034,7 +1041,7 @@ github.com/databricks/databricks-sdk-go/service/compute.ClusterSpec:
   "cluster_log_conf":
     "description": |-
       The configuration for delivering spark logs to a long-term storage destination.
-      Two kinds of destinations (dbfs and s3) are supported. Only one destination can be specified
+      Three kinds of destinations (DBFS, S3 and Unity Catalog volumes) are supported. Only one destination can be specified
       for one cluster. If the conf is given, the logs will be delivered to the destination every
       `5 mins`. The destination of driver logs is `$destination/$clusterId/driver`, while
       the destination of executor logs is `$destination/$clusterId/executor`.
@@ -1428,7 +1435,7 @@ github.com/databricks/databricks-sdk-go/service/compute.S3StorageInfo:
 github.com/databricks/databricks-sdk-go/service/compute.VolumesStorageInfo:
   "destination":
     "description": |-
-      Unity Catalog Volumes file destination, e.g. `/Volumes/my-init.sh`
+      Unity Catalog volumes file destination, e.g. `/Volumes/catalog/schema/volume/dir/file`
 github.com/databricks/databricks-sdk-go/service/compute.WorkloadType:
   "clients":
     "description": |2-
@@ -2985,7 +2992,7 @@ github.com/databricks/databricks-sdk-go/service/serving.ExternalModel:
       PaLM Config. Only required if the provider is 'palm'.
   "provider":
     "description": |-
-      The name of the provider for the external model. Currently, the supported providers are 'ai21labs', 'anthropic', 'amazon-bedrock', 'cohere', 'databricks-model-serving', 'google-cloud-vertex-ai', 'openai', and 'palm'.
+      The name of the provider for the external model. Currently, the supported providers are 'ai21labs', 'anthropic', 'amazon-bedrock', 'cohere', 'databricks-model-serving', 'google-cloud-vertex-ai', 'openai', 'palm', and 'custom'.
   "task":
     "description": |-
       The task type of the external model.
diff --git a/bundle/libraries/expand_glob_references.go b/bundle/libraries/expand_glob_references.go
index bb1905045..7a808f627 100644
--- a/bundle/libraries/expand_glob_references.go
+++ b/bundle/libraries/expand_glob_references.go
@@ -92,7 +92,7 @@ func expandLibraries(b *bundle.Bundle, p dyn.Path, v dyn.Value) (diag.Diagnostic
 
 		for _, match := range matches {
 			output = append(output, dyn.NewValue(map[string]dyn.Value{
-				libType: dyn.V(match),
+				libType: dyn.NewValue(match, lib.Locations()),
 			}, lib.Locations()))
 		}
 	}
diff --git a/bundle/libraries/same_name_libraries.go b/bundle/libraries/same_name_libraries.go
new file mode 100644
index 000000000..907843193
--- /dev/null
+++ b/bundle/libraries/same_name_libraries.go
@@ -0,0 +1,106 @@
+package libraries
+
+import (
+	"context"
+	"path/filepath"
+	"strings"
+
+	"github.com/databricks/cli/bundle"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/dyn"
+)
+
+type checkForSameNameLibraries struct{}
+
+var patterns = []dyn.Pattern{
+	taskLibrariesPattern.Append(dyn.AnyIndex(), dyn.Key("whl")),
+	taskLibrariesPattern.Append(dyn.AnyIndex(), dyn.Key("jar")),
+	forEachTaskLibrariesPattern.Append(dyn.AnyIndex(), dyn.Key("whl")),
+	forEachTaskLibrariesPattern.Append(dyn.AnyIndex(), dyn.Key("jar")),
+	envDepsPattern.Append(dyn.AnyIndex()),
+}
+
+type libData struct {
+	fullPath   string
+	locations  []dyn.Location
+	paths      []dyn.Path
+	otherPaths []string
+}
+
+func (c checkForSameNameLibraries) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	var diags diag.Diagnostics
+	libs := make(map[string]*libData)
+
+	err := b.Config.Mutate(func(rootConfig dyn.Value) (dyn.Value, error) {
+		var err error
+		for _, pattern := range patterns {
+			rootConfig, err = dyn.MapByPattern(rootConfig, pattern, func(p dyn.Path, libraryValue dyn.Value) (dyn.Value, error) {
+				libPath, ok := libraryValue.AsString()
+				if !ok {
+					return libraryValue, nil
+				}
+
+				// If not local library, skip the check
+				if !IsLibraryLocal(libPath) {
+					return libraryValue, nil
+				}
+
+				lib := filepath.Base(libPath)
+				// If the same basename was seen already but full path is different
+				// then it's a duplicate. Add the location to the location list.
+				lp, ok := libs[lib]
+				if !ok {
+					libs[lib] = &libData{
+						fullPath:   libPath,
+						locations:  []dyn.Location{libraryValue.Location()},
+						paths:      []dyn.Path{p},
+						otherPaths: []string{},
+					}
+				} else if lp.fullPath != libPath {
+					lp.locations = append(lp.locations, libraryValue.Location())
+					lp.paths = append(lp.paths, p)
+					lp.otherPaths = append(lp.otherPaths, libPath)
+				}
+
+				return libraryValue, nil
+			})
+			if err != nil {
+				return dyn.InvalidValue, err
+			}
+		}
+
+		if err != nil {
+			return dyn.InvalidValue, err
+		}
+
+		return rootConfig, nil
+	})
+
+	// Iterate over all the libraries and check if there are any duplicates.
+	// Duplicates will have more than one location.
+	// If there are duplicates, add a diagnostic.
+	for lib, lv := range libs {
+		if len(lv.locations) > 1 {
+			diags = append(diags, diag.Diagnostic{
+				Severity:  diag.Error,
+				Summary:   "Duplicate local library names: " + lib,
+				Detail:    "Local library names must be unique but found libraries with the same name: " + lv.fullPath + ", " + strings.Join(lv.otherPaths, ", "),
+				Locations: lv.locations,
+				Paths:     lv.paths,
+			})
+		}
+	}
+	if err != nil {
+		diags = diags.Extend(diag.FromErr(err))
+	}
+
+	return diags
+}
+
+func (c checkForSameNameLibraries) Name() string {
+	return "CheckForSameNameLibraries"
+}
+
+func CheckForSameNameLibraries() bundle.Mutator {
+	return checkForSameNameLibraries{}
+}
diff --git a/bundle/libraries/upload_test.go b/bundle/libraries/upload_test.go
index 44b194c56..3ce67eeb6 100644
--- a/bundle/libraries/upload_test.go
+++ b/bundle/libraries/upload_test.go
@@ -93,7 +93,7 @@ func TestArtifactUploadForWorkspace(t *testing.T) {
 		filer.CreateParentDirectories,
 	).Return(nil)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ExpandGlobReferences(), UploadWithClient(mockFiler)))
+	diags := bundle.ApplySeq(context.Background(), b, ExpandGlobReferences(), UploadWithClient(mockFiler))
 	require.NoError(t, diags.Error())
 
 	// Test that libraries path is updated
@@ -181,7 +181,7 @@ func TestArtifactUploadForVolumes(t *testing.T) {
 		filer.CreateParentDirectories,
 	).Return(nil)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ExpandGlobReferences(), UploadWithClient(mockFiler)))
+	diags := bundle.ApplySeq(context.Background(), b, ExpandGlobReferences(), UploadWithClient(mockFiler))
 	require.NoError(t, diags.Error())
 
 	// Test that libraries path is updated
@@ -225,7 +225,7 @@ func TestArtifactUploadWithNoLibraryReference(t *testing.T) {
 		filer.CreateParentDirectories,
 	).Return(nil)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ExpandGlobReferences(), UploadWithClient(mockFiler)))
+	diags := bundle.ApplySeq(context.Background(), b, ExpandGlobReferences(), UploadWithClient(mockFiler))
 	require.NoError(t, diags.Error())
 
 	require.Equal(t, "/Workspace/foo/bar/artifacts/.internal/source.whl", b.Config.Artifacts["whl"].Files[0].RemotePath)
@@ -311,7 +311,7 @@ func TestUploadMultipleLibraries(t *testing.T) {
 		filer.CreateParentDirectories,
 	).Return(nil).Once()
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ExpandGlobReferences(), UploadWithClient(mockFiler)))
+	diags := bundle.ApplySeq(context.Background(), b, ExpandGlobReferences(), UploadWithClient(mockFiler))
 	require.NoError(t, diags.Error())
 
 	// Test that libraries path is updated
diff --git a/bundle/log_string.go b/bundle/log_string.go
deleted file mode 100644
index f14e3a3ad..000000000
--- a/bundle/log_string.go
+++ /dev/null
@@ -1,28 +0,0 @@
-package bundle
-
-import (
-	"context"
-
-	"github.com/databricks/cli/libs/cmdio"
-	"github.com/databricks/cli/libs/diag"
-)
-
-type LogStringMutator struct {
-	message string
-}
-
-func (d *LogStringMutator) Name() string {
-	return "log_string"
-}
-
-func LogString(message string) Mutator {
-	return &LogStringMutator{
-		message: message,
-	}
-}
-
-func (m *LogStringMutator) Apply(ctx context.Context, b *Bundle) diag.Diagnostics {
-	cmdio.LogString(ctx, m.message)
-
-	return nil
-}
diff --git a/bundle/mutator.go b/bundle/mutator.go
index 16ef79ee7..af3940414 100644
--- a/bundle/mutator.go
+++ b/bundle/mutator.go
@@ -48,6 +48,17 @@ func Apply(ctx context.Context, b *Bundle, m Mutator) diag.Diagnostics {
 	return diags
 }
 
+func ApplySeq(ctx context.Context, b *Bundle, mutators ...Mutator) diag.Diagnostics {
+	diags := diag.Diagnostics{}
+	for _, m := range mutators {
+		diags = diags.Extend(Apply(ctx, b, m))
+		if diags.HasError() {
+			return diags
+		}
+	}
+	return diags
+}
+
 type funcMutator struct {
 	fn func(context.Context, *Bundle) diag.Diagnostics
 }
diff --git a/bundle/mutator_read_only.go b/bundle/mutator_read_only.go
index 700a90d8d..87857022d 100644
--- a/bundle/mutator_read_only.go
+++ b/bundle/mutator_read_only.go
@@ -2,28 +2,59 @@ package bundle
 
 import (
 	"context"
+	"sync"
 
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/log"
 )
 
-// ReadOnlyMutator is the interface type that allows access to bundle configuration but does not allow any mutations.
 type ReadOnlyMutator interface {
-	// Name returns the mutators name.
-	Name() string
+	Mutator
 
-	// Apply access the specified read-only bundle object.
-	Apply(context.Context, ReadOnlyBundle) diag.Diagnostics
+	// This is just tag, to differentiate this interface from bundle.Mutator
+	// This prevents non-readonly mutators being passed to ApplyParallel().
+	IsRO()
 }
 
-func ApplyReadOnly(ctx context.Context, rb ReadOnlyBundle, m ReadOnlyMutator) diag.Diagnostics {
-	ctx = log.NewContext(ctx, log.GetLogger(ctx).With("mutator (read-only)", m.Name()))
+// Helper to mark the mutator as "read-only"
+type RO struct{}
 
-	log.Debugf(ctx, "ApplyReadOnly")
-	diags := m.Apply(ctx, rb)
-	if err := diags.Error(); err != nil {
-		log.Debugf(ctx, "Error: %s", err)
+func (*RO) IsRO() {}
+
+// Run mutators in parallel. Unlike Apply and ApplySeq, this does not perform sync between
+// dynamic and static configuration.
+// Warning: none of the mutators involved must modify bundle directly or indirectly. In particular,
+// they must not call bundle.Apply or bundle.ApplySeq because those include writes to config even if mutator does not.
+// Deprecated: do not use for new use cases. Refactor your parallel task not to depend on bundle at all.
+func ApplyParallel(ctx context.Context, b *Bundle, mutators ...ReadOnlyMutator) diag.Diagnostics {
+	var allDiags diag.Diagnostics
+	resultsChan := make(chan diag.Diagnostics, len(mutators))
+	var wg sync.WaitGroup
+
+	contexts := make([]context.Context, len(mutators))
+
+	for ind, m := range mutators {
+		contexts[ind] = log.NewContext(ctx, log.GetLogger(ctx).With("mutator", m.Name()))
+		// log right away to have deterministic order of log messages
+		log.Debug(contexts[ind], "ApplyParallel")
 	}
 
-	return diags
+	for ind, m := range mutators {
+		wg.Add(1)
+		go func() {
+			defer wg.Done()
+			// We're not using bundle.Apply here because we don't do copy between typed and dynamic values
+			resultsChan <- m.Apply(contexts[ind], b)
+		}()
+	}
+
+	wg.Wait()
+	close(resultsChan)
+
+	// Collect results into a single slice
+	for diags := range resultsChan {
+		allDiags = append(allDiags, diags...)
+	}
+
+	return allDiags
 }
diff --git a/bundle/mutator_test.go b/bundle/mutator_test.go
index 04ff19cff..d6f21adc9 100644
--- a/bundle/mutator_test.go
+++ b/bundle/mutator_test.go
@@ -19,7 +19,7 @@ func (t *testMutator) Name() string {
 
 func (t *testMutator) Apply(ctx context.Context, b *Bundle) diag.Diagnostics {
 	t.applyCalled++
-	return Apply(ctx, b, Seq(t.nestedMutators...))
+	return ApplySeq(ctx, b, t.nestedMutators...)
 }
 
 func TestMutator(t *testing.T) {
diff --git a/bundle/parallel.go b/bundle/parallel.go
deleted file mode 100644
index ebb91661a..000000000
--- a/bundle/parallel.go
+++ /dev/null
@@ -1,43 +0,0 @@
-package bundle
-
-import (
-	"context"
-	"sync"
-
-	"github.com/databricks/cli/libs/diag"
-)
-
-type parallel struct {
-	mutators []ReadOnlyMutator
-}
-
-func (m *parallel) Name() string {
-	return "parallel"
-}
-
-func (m *parallel) Apply(ctx context.Context, rb ReadOnlyBundle) diag.Diagnostics {
-	var wg sync.WaitGroup
-	var mu sync.Mutex
-	var diags diag.Diagnostics
-
-	wg.Add(len(m.mutators))
-	for _, mutator := range m.mutators {
-		go func(mutator ReadOnlyMutator) {
-			defer wg.Done()
-			d := ApplyReadOnly(ctx, rb, mutator)
-
-			mu.Lock()
-			diags = diags.Extend(d)
-			mu.Unlock()
-		}(mutator)
-	}
-	wg.Wait()
-	return diags
-}
-
-// Parallel runs the given mutators in parallel.
-func Parallel(mutators ...ReadOnlyMutator) ReadOnlyMutator {
-	return &parallel{
-		mutators: mutators,
-	}
-}
diff --git a/bundle/parallel_test.go b/bundle/parallel_test.go
deleted file mode 100644
index dfc7ddac9..000000000
--- a/bundle/parallel_test.go
+++ /dev/null
@@ -1,82 +0,0 @@
-package bundle
-
-import (
-	"context"
-	"sync"
-	"testing"
-
-	"github.com/databricks/cli/bundle/config"
-	"github.com/databricks/cli/libs/diag"
-	"github.com/stretchr/testify/require"
-)
-
-type addToContainer struct {
-	t         *testing.T
-	container *[]int
-	value     int
-	err       bool
-
-	// mu is a mutex that protects container. It is used to ensure that the
-	// container slice is only modified by one goroutine at a time.
-	mu *sync.Mutex
-}
-
-func (m *addToContainer) Apply(ctx context.Context, b ReadOnlyBundle) diag.Diagnostics {
-	if m.err {
-		return diag.Errorf("error")
-	}
-
-	m.mu.Lock()
-	*m.container = append(*m.container, m.value)
-	m.mu.Unlock()
-
-	return nil
-}
-
-func (m *addToContainer) Name() string {
-	return "addToContainer"
-}
-
-func TestParallelMutatorWork(t *testing.T) {
-	b := &Bundle{
-		Config: config.Root{},
-	}
-
-	container := []int{}
-	var mu sync.Mutex
-	m1 := &addToContainer{t: t, container: &container, value: 1, mu: &mu}
-	m2 := &addToContainer{t: t, container: &container, value: 2, mu: &mu}
-	m3 := &addToContainer{t: t, container: &container, value: 3, mu: &mu}
-
-	m := Parallel(m1, m2, m3)
-
-	// Apply the mutator
-	diags := ApplyReadOnly(context.Background(), ReadOnly(b), m)
-	require.Empty(t, diags)
-	require.Len(t, container, 3)
-	require.Contains(t, container, 1)
-	require.Contains(t, container, 2)
-	require.Contains(t, container, 3)
-}
-
-func TestParallelMutatorWorkWithErrors(t *testing.T) {
-	b := &Bundle{
-		Config: config.Root{},
-	}
-
-	container := []int{}
-	var mu sync.Mutex
-	m1 := &addToContainer{container: &container, value: 1, mu: &mu}
-	m2 := &addToContainer{container: &container, err: true, value: 2, mu: &mu}
-	m3 := &addToContainer{container: &container, value: 3, mu: &mu}
-
-	m := Parallel(m1, m2, m3)
-
-	// Apply the mutator
-	diags := ApplyReadOnly(context.Background(), ReadOnly(b), m)
-	require.Len(t, diags, 1)
-	require.Equal(t, "error", diags[0].Summary)
-	require.Len(t, container, 2)
-	require.Contains(t, container, 1)
-	require.Contains(t, container, 3)
-}
diff --git a/bundle/permissions/validate_test.go b/bundle/permissions/validate_test.go
index ff132b4e1..aa0b486d3 100644
--- a/bundle/permissions/validate_test.go
+++ b/bundle/permissions/validate_test.go
@@ -34,7 +34,7 @@ func TestValidateSharedRootPermissionsForShared(t *testing.T) {
 	m := mocks.NewMockWorkspaceClient(t)
 	b.SetWorkpaceClient(m.WorkspaceClient)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ValidateSharedRootPermissions()))
+	diags := bundle.Apply(context.Background(), b, ValidateSharedRootPermissions())
 	require.Empty(t, diags)
 }
 
@@ -59,7 +59,7 @@ func TestValidateSharedRootPermissionsForSharedError(t *testing.T) {
 	m := mocks.NewMockWorkspaceClient(t)
 	b.SetWorkpaceClient(m.WorkspaceClient)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ValidateSharedRootPermissions()))
+	diags := bundle.Apply(context.Background(), b, ValidateSharedRootPermissions())
 	require.Len(t, diags, 1)
 	require.Equal(t, "the bundle root path /Workspace/Shared/foo/bar is writable by all workspace users", diags[0].Summary)
 	require.Equal(t, diag.Warning, diags[0].Severity)
diff --git a/bundle/permissions/workspace_root_test.go b/bundle/permissions/workspace_root_test.go
index 3e5f9c61b..f9c5da7d6 100644
--- a/bundle/permissions/workspace_root_test.go
+++ b/bundle/permissions/workspace_root_test.go
@@ -73,7 +73,7 @@ func TestApplyWorkspaceRootPermissions(t *testing.T) {
 		WorkspaceObjectType: "directories",
 	}).Return(nil, nil)
 
-	diags := bundle.Apply(context.Background(), b, bundle.Seq(ValidateSharedRootPermissions(), ApplyWorkspaceRootPermissions()))
+	diags := bundle.ApplySeq(context.Background(), b, ValidateSharedRootPermissions(), ApplyWorkspaceRootPermissions())
 	require.Empty(t, diags)
 }
 
diff --git a/bundle/phases/bind.go b/bundle/phases/bind.go
index c62c48aea..ae54e8657 100644
--- a/bundle/phases/bind.go
+++ b/bundle/phases/bind.go
@@ -1,45 +1,57 @@
 package phases
 
 import (
+	"context"
+
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/deploy/lock"
 	"github.com/databricks/cli/bundle/deploy/terraform"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/log"
 )
 
-func Bind(opts *terraform.BindOptions) bundle.Mutator {
-	return newPhase(
-		"bind",
-		[]bundle.Mutator{
-			lock.Acquire(),
-			bundle.Defer(
-				bundle.Seq(
-					terraform.StatePull(),
-					terraform.Interpolate(),
-					terraform.Write(),
-					terraform.Import(opts),
-					terraform.StatePush(),
-				),
-				lock.Release(lock.GoalBind),
-			),
-		},
-	)
+func Bind(ctx context.Context, b *bundle.Bundle, opts *terraform.BindOptions) (diags diag.Diagnostics) {
+	log.Info(ctx, "Phase: bind")
+
+	diags = bundle.Apply(ctx, b, lock.Acquire())
+	if diags.HasError() {
+		return diags
+	}
+
+	defer func() {
+		diags = diags.Extend(bundle.Apply(ctx, b, lock.Release(lock.GoalBind)))
+	}()
+
+	diags = diags.Extend(bundle.ApplySeq(ctx, b,
+		terraform.StatePull(),
+		terraform.Interpolate(),
+		terraform.Write(),
+		terraform.Import(opts),
+		terraform.StatePush(),
+	))
+
+	return diags
 }
 
-func Unbind(resourceType, resourceKey string) bundle.Mutator {
-	return newPhase(
-		"unbind",
-		[]bundle.Mutator{
-			lock.Acquire(),
-			bundle.Defer(
-				bundle.Seq(
-					terraform.StatePull(),
-					terraform.Interpolate(),
-					terraform.Write(),
-					terraform.Unbind(resourceType, resourceKey),
-					terraform.StatePush(),
-				),
-				lock.Release(lock.GoalUnbind),
-			),
-		},
-	)
+func Unbind(ctx context.Context, b *bundle.Bundle, resourceType, resourceKey string) (diags diag.Diagnostics) {
+	log.Info(ctx, "Phase: unbind")
+
+	diags = bundle.Apply(ctx, b, lock.Acquire())
+	if diags.HasError() {
+		return diags
+	}
+
+	defer func() {
+		diags = diags.Extend(bundle.Apply(ctx, b, lock.Release(lock.GoalUnbind)))
+	}()
+
+	diags = diags.Extend(bundle.ApplySeq(ctx, b,
+		terraform.StatePull(),
+		terraform.Interpolate(),
+		terraform.Write(),
+		terraform.Unbind(resourceType, resourceKey),
+		terraform.StatePush(),
+	))
+
+	return diags
 }
diff --git a/bundle/phases/build.go b/bundle/phases/build.go
index 3ddc6b181..0170ed51c 100644
--- a/bundle/phases/build.go
+++ b/bundle/phases/build.go
@@ -1,27 +1,31 @@
 package phases
 
 import (
+	"context"
+
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/artifacts"
+	"github.com/databricks/cli/bundle/artifacts/whl"
 	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/bundle/config/mutator"
 	"github.com/databricks/cli/bundle/scripts"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/log"
 )
 
 // The build phase builds artifacts.
-func Build() bundle.Mutator {
-	return newPhase(
-		"build",
-		[]bundle.Mutator{
-			scripts.Execute(config.ScriptPreBuild),
-			artifacts.DetectPackages(),
-			artifacts.InferMissingProperties(),
-			artifacts.PrepareAll(),
-			artifacts.BuildAll(),
-			scripts.Execute(config.ScriptPostBuild),
-			mutator.ResolveVariableReferences(
-				"artifacts",
-			),
-		},
+func Build(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	log.Info(ctx, "Phase: build")
+
+	return bundle.ApplySeq(ctx, b,
+		scripts.Execute(config.ScriptPreBuild),
+		whl.DetectPackage(),
+		artifacts.InferMissingProperties(),
+		artifacts.PrepareAll(),
+		artifacts.BuildAll(),
+		scripts.Execute(config.ScriptPostBuild),
+		mutator.ResolveVariableReferences(
+			"artifacts",
+		),
 	)
 }
diff --git a/bundle/phases/deploy.go b/bundle/phases/deploy.go
index c6ec04962..02e0e9bd8 100644
--- a/bundle/phases/deploy.go
+++ b/bundle/phases/deploy.go
@@ -19,6 +19,8 @@ import (
 	"github.com/databricks/cli/bundle/scripts"
 	"github.com/databricks/cli/bundle/trampoline"
 	"github.com/databricks/cli/libs/cmdio"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/log"
 	"github.com/databricks/cli/libs/sync"
 	terraformlib "github.com/databricks/cli/libs/terraform"
 	tfjson "github.com/hashicorp/terraform-json"
@@ -124,60 +126,94 @@ is removed from the catalog, but the underlying files are not deleted:`
 	return approved, nil
 }
 
-// The deploy phase deploys artifacts and resources.
-func Deploy(outputHandler sync.OutputHandler) bundle.Mutator {
+func deployCore(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	// Core mutators that CRUD resources and modify deployment state. These
 	// mutators need informed consent if they are potentially destructive.
-	deployCore := bundle.Defer(
-		bundle.Seq(
-			bundle.LogString("Deploying resources..."),
-			terraform.Apply(),
-		),
-		bundle.Seq(
-			terraform.StatePush(),
-			terraform.Load(),
-			apps.InterpolateVariables(),
-			apps.UploadConfig(),
-			metadata.Compute(),
-			metadata.Upload(),
-			bundle.LogString("Deployment complete!"),
-		),
-	)
+	cmdio.LogString(ctx, "Deploying resources...")
+	diags := bundle.Apply(ctx, b, terraform.Apply())
 
-	deployMutator := bundle.Seq(
+	// following original logic, continuing with sequence below even if terraform had errors
+
+	diags = diags.Extend(bundle.ApplySeq(ctx, b,
+		terraform.StatePush(),
+		terraform.Load(),
+		apps.InterpolateVariables(),
+		apps.UploadConfig(),
+		metadata.Compute(),
+		metadata.Upload(),
+	))
+
+	if !diags.HasError() {
+		cmdio.LogString(ctx, "Deployment complete!")
+	}
+
+	return diags
+}
+
+// The deploy phase deploys artifacts and resources.
+func Deploy(ctx context.Context, b *bundle.Bundle, outputHandler sync.OutputHandler) (diags diag.Diagnostics) {
+	log.Info(ctx, "Phase: deploy")
+
+	// Core mutators that CRUD resources and modify deployment state. These
+	// mutators need informed consent if they are potentially destructive.
+	diags = bundle.ApplySeq(ctx, b,
 		scripts.Execute(config.ScriptPreDeploy),
 		lock.Acquire(),
-		bundle.Defer(
-			bundle.Seq(
-				terraform.StatePull(),
-				terraform.CheckDashboardsModifiedRemotely(),
-				deploy.StatePull(),
-				mutator.ValidateGitDetails(),
-				artifacts.CleanUp(),
-				libraries.ExpandGlobReferences(),
-				libraries.Upload(),
-				trampoline.TransformWheelTask(),
-				files.Upload(outputHandler),
-				deploy.StateUpdate(),
-				deploy.StatePush(),
-				permissions.ApplyWorkspaceRootPermissions(),
-				terraform.Interpolate(),
-				terraform.Write(),
-				terraform.CheckRunningResource(),
-				terraform.Plan(terraform.PlanGoal("deploy")),
-				bundle.If(
-					approvalForDeploy,
-					deployCore,
-					bundle.LogString("Deployment cancelled!"),
-				),
-			),
-			lock.Release(lock.GoalDeploy),
-		),
-		scripts.Execute(config.ScriptPostDeploy),
 	)
 
-	return newPhase(
-		"deploy",
-		[]bundle.Mutator{deployMutator},
+	if diags.HasError() {
+		// lock is not acquired here
+		return diags
+	}
+
+	// lock is acquired here
+	defer func() {
+		diags = diags.Extend(bundle.Apply(ctx, b, lock.Release(lock.GoalDeploy)))
+	}()
+
+	diags = bundle.ApplySeq(ctx, b,
+		terraform.StatePull(),
+		terraform.CheckDashboardsModifiedRemotely(),
+		deploy.StatePull(),
+		mutator.ValidateGitDetails(),
+		artifacts.CleanUp(),
+		// libraries.CheckForSameNameLibraries() needs to be run after we expand glob references so we
+		// know what are the actual library paths.
+		// libraries.ExpandGlobReferences() has to be run after the libraries are built and thus this
+		// mutator is part of the deploy step rather than validate.
+		libraries.ExpandGlobReferences(),
+		libraries.CheckForSameNameLibraries(),
+		libraries.Upload(),
+		trampoline.TransformWheelTask(),
+		files.Upload(outputHandler),
+		deploy.StateUpdate(),
+		deploy.StatePush(),
+		permissions.ApplyWorkspaceRootPermissions(),
+		terraform.Interpolate(),
+		terraform.Write(),
+		terraform.CheckRunningResource(),
+		terraform.Plan(terraform.PlanGoal("deploy")),
 	)
+
+	if diags.HasError() {
+		return diags
+	}
+
+	haveApproval, err := approvalForDeploy(ctx, b)
+	if err != nil {
+		diags = diags.Extend(diag.FromErr(err))
+		return diags
+	}
+
+	if haveApproval {
+		diags = diags.Extend(deployCore(ctx, b))
+	} else {
+		cmdio.LogString(ctx, "Deployment cancelled!")
+	}
+
+	if diags.HasError() {
+		return diags
+	}
+
+	return diags.Extend(bundle.Apply(ctx, b, scripts.Execute(config.ScriptPostDeploy)))
 }
diff --git a/bundle/phases/destroy.go b/bundle/phases/destroy.go
index 05a41dea2..daff07965 100644
--- a/bundle/phases/destroy.go
+++ b/bundle/phases/destroy.go
@@ -11,6 +11,7 @@ import (
 	"github.com/databricks/cli/bundle/deploy/terraform"
 
 	"github.com/databricks/cli/libs/cmdio"
+	"github.com/databricks/cli/libs/diag"
 
 	"github.com/databricks/cli/libs/log"
 	terraformlib "github.com/databricks/cli/libs/terraform"
@@ -77,42 +78,65 @@ func approvalForDestroy(ctx context.Context, b *bundle.Bundle) (bool, error) {
 	return approved, nil
 }
 
-// The destroy phase deletes artifacts and resources.
-func Destroy() bundle.Mutator {
+func destroyCore(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
 	// Core destructive mutators for destroy. These require informed user consent.
-	destroyCore := bundle.Seq(
+	diags := bundle.ApplySeq(ctx, b,
 		terraform.Apply(),
 		files.Delete(),
-		bundle.LogString("Destroy complete!"),
 	)
 
-	destroyMutator := bundle.Seq(
-		lock.Acquire(),
-		bundle.Defer(
-			bundle.Seq(
-				terraform.StatePull(),
-				terraform.Interpolate(),
-				terraform.Write(),
-				terraform.Plan(terraform.PlanGoal("destroy")),
-				bundle.If(
-					approvalForDestroy,
-					destroyCore,
-					bundle.LogString("Destroy cancelled!"),
-				),
-			),
-			lock.Release(lock.GoalDestroy),
-		),
-	)
+	if !diags.HasError() {
+		cmdio.LogString(ctx, "Destroy complete!")
+	}
 
-	return newPhase(
-		"destroy",
-		[]bundle.Mutator{
-			// Only run deploy mutator if root path exists.
-			bundle.If(
-				assertRootPathExists,
-				destroyMutator,
-				bundle.LogString("No active deployment found to destroy!"),
-			),
-		},
-	)
+	return diags
+}
+
+// The destroy phase deletes artifacts and resources.
+func Destroy(ctx context.Context, b *bundle.Bundle) (diags diag.Diagnostics) {
+	log.Info(ctx, "Phase: destroy")
+
+	ok, err := assertRootPathExists(ctx, b)
+	if err != nil {
+		return diag.FromErr(err)
+	}
+
+	if !ok {
+		cmdio.LogString(ctx, "No active deployment found to destroy!")
+		return diags
+	}
+
+	diags = diags.Extend(bundle.Apply(ctx, b, lock.Acquire()))
+	if diags.HasError() {
+		return diags
+	}
+
+	defer func() {
+		diags = diags.Extend(bundle.Apply(ctx, b, lock.Release(lock.GoalDestroy)))
+	}()
+
+	diags = diags.Extend(bundle.ApplySeq(ctx, b,
+		terraform.StatePull(),
+		terraform.Interpolate(),
+		terraform.Write(),
+		terraform.Plan(terraform.PlanGoal("destroy")),
+	))
+
+	if diags.HasError() {
+		return diags
+	}
+
+	hasApproval, err := approvalForDestroy(ctx, b)
+	if err != nil {
+		diags = diags.Extend(diag.FromErr(err))
+		return diags
+	}
+
+	if hasApproval {
+		diags = diags.Extend(destroyCore(ctx, b))
+	} else {
+		cmdio.LogString(ctx, "Destroy cancelled!")
+	}
+
+	return diags
 }
diff --git a/bundle/phases/initialize.go b/bundle/phases/initialize.go
index afd6def3f..1da5b61f4 100644
--- a/bundle/phases/initialize.go
+++ b/bundle/phases/initialize.go
@@ -1,6 +1,8 @@
 package phases
 
 import (
+	"context"
+
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/apps"
 	"github.com/databricks/cli/bundle/config"
@@ -12,95 +14,97 @@ import (
 	"github.com/databricks/cli/bundle/permissions"
 	"github.com/databricks/cli/bundle/scripts"
 	"github.com/databricks/cli/bundle/trampoline"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/log"
 )
 
 // The initialize phase fills in defaults and connects to the workspace.
 // Interpolation of fields referring to the "bundle" and "workspace" keys
 // happens upon completion of this phase.
-func Initialize() bundle.Mutator {
-	return newPhase(
-		"initialize",
-		[]bundle.Mutator{
-			validate.AllResourcesHaveValues(),
+func Initialize(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	log.Info(ctx, "Phase: initialize")
 
-			// Update all path fields in the sync block to be relative to the bundle root path.
-			mutator.RewriteSyncPaths(),
+	return bundle.ApplySeq(ctx, b,
+		validate.AllResourcesHaveValues(),
+		validate.NoInterpolationInAuthConfig(),
 
-			// Configure the default sync path to equal the bundle root if not explicitly configured.
-			// By default, this means all files in the bundle root directory are synchronized.
-			mutator.SyncDefaultPath(),
+		// Update all path fields in the sync block to be relative to the bundle root path.
+		mutator.RewriteSyncPaths(),
 
-			// Figure out if the sync root path is identical or an ancestor of the bundle root path.
-			// If it is an ancestor, this updates all paths to be relative to the sync root path.
-			mutator.SyncInferRoot(),
+		// Configure the default sync path to equal the bundle root if not explicitly configured.
+		// By default, this means all files in the bundle root directory are synchronized.
+		mutator.SyncDefaultPath(),
 
-			mutator.PopulateCurrentUser(),
-			mutator.LoadGitDetails(),
+		// Figure out if the sync root path is identical or an ancestor of the bundle root path.
+		// If it is an ancestor, this updates all paths to be relative to the sync root path.
+		mutator.SyncInferRoot(),
 
-			// This mutator needs to be run before variable interpolation and defining default workspace paths
-			// because it affects how workspace variables are resolved.
-			mutator.ApplySourceLinkedDeploymentPreset(),
+		mutator.PopulateCurrentUser(),
+		mutator.LoadGitDetails(),
 
-			mutator.DefineDefaultWorkspaceRoot(),
-			mutator.ExpandWorkspaceRoot(),
-			mutator.DefineDefaultWorkspacePaths(),
-			mutator.PrependWorkspacePrefix(),
+		// This mutator needs to be run before variable interpolation and defining default workspace paths
+		// because it affects how workspace variables are resolved.
+		mutator.ApplySourceLinkedDeploymentPreset(),
 
-			// This mutator needs to be run before variable interpolation because it
-			// searches for strings with variable references in them.
-			mutator.RewriteWorkspacePrefix(),
+		mutator.DefineDefaultWorkspaceRoot(),
+		mutator.ExpandWorkspaceRoot(),
+		mutator.DefineDefaultWorkspacePaths(),
+		mutator.PrependWorkspacePrefix(),
 
-			mutator.SetVariables(),
+		// This mutator needs to be run before variable interpolation because it
+		// searches for strings with variable references in them.
+		mutator.RewriteWorkspacePrefix(),
 
-			// Intentionally placed before ResolveVariableReferencesInLookup, ResolveResourceReferences,
-			// ResolveVariableReferencesInComplexVariables and ResolveVariableReferences.
-			// See what is expected in PythonMutatorPhaseInit doc
-			pythonmutator.PythonMutator(pythonmutator.PythonMutatorPhaseInit),
-			pythonmutator.PythonMutator(pythonmutator.PythonMutatorPhaseLoadResources),
-			pythonmutator.PythonMutator(pythonmutator.PythonMutatorPhaseApplyMutators),
-			mutator.ResolveVariableReferencesInLookup(),
-			mutator.ResolveResourceReferences(),
-			mutator.ResolveVariableReferences(
-				"bundle",
-				"workspace",
-				"variables",
-			),
+		mutator.SetVariables(),
 
-			mutator.MergeJobClusters(),
-			mutator.MergeJobParameters(),
-			mutator.MergeJobTasks(),
-			mutator.MergePipelineClusters(),
-			mutator.MergeApps(),
+		// Intentionally placed before ResolveVariableReferencesInLookup, ResolveResourceReferences,
+		// ResolveVariableReferencesInComplexVariables and ResolveVariableReferences.
+		// See what is expected in PythonMutatorPhaseInit doc
+		pythonmutator.PythonMutator(pythonmutator.PythonMutatorPhaseInit),
+		pythonmutator.PythonMutator(pythonmutator.PythonMutatorPhaseLoadResources),
+		pythonmutator.PythonMutator(pythonmutator.PythonMutatorPhaseApplyMutators),
+		mutator.ResolveVariableReferencesInLookup(),
+		mutator.ResolveResourceReferences(),
+		mutator.ResolveVariableReferences(
+			"bundle",
+			"workspace",
+			"variables",
+		),
 
-			mutator.CaptureSchemaDependency(),
+		mutator.MergeJobClusters(),
+		mutator.MergeJobParameters(),
+		mutator.MergeJobTasks(),
+		mutator.MergePipelineClusters(),
+		mutator.MergeApps(),
 
-			// Provide permission config errors & warnings after initializing all variables
-			permissions.PermissionDiagnostics(),
-			mutator.SetRunAs(),
-			mutator.OverrideCompute(),
-			mutator.ConfigureDashboardDefaults(),
-			mutator.ConfigureVolumeDefaults(),
-			mutator.ProcessTargetMode(),
-			mutator.ApplyPresets(),
-			mutator.DefaultQueueing(),
-			mutator.ExpandPipelineGlobPaths(),
+		mutator.CaptureSchemaDependency(),
 
-			// Configure use of WSFS for reads if the CLI is running on Databricks.
-			mutator.ConfigureWSFS(),
+		// Provide permission config errors & warnings after initializing all variables
+		permissions.PermissionDiagnostics(),
+		mutator.SetRunAs(),
+		mutator.OverrideCompute(),
+		mutator.ConfigureDashboardDefaults(),
+		mutator.ConfigureVolumeDefaults(),
+		mutator.ProcessTargetMode(),
+		mutator.ApplyPresets(),
+		mutator.DefaultQueueing(),
+		mutator.ExpandPipelineGlobPaths(),
 
-			mutator.TranslatePaths(),
-			trampoline.WrapperWarning(),
+		// Configure use of WSFS for reads if the CLI is running on Databricks.
+		mutator.ConfigureWSFS(),
 
-			apps.Validate(),
+		mutator.TranslatePaths(),
+		trampoline.WrapperWarning(),
 
-			permissions.ValidateSharedRootPermissions(),
-			permissions.ApplyBundlePermissions(),
-			permissions.FilterCurrentUser(),
+		apps.Validate(),
 
-			metadata.AnnotateJobs(),
-			metadata.AnnotatePipelines(),
-			terraform.Initialize(),
-			scripts.Execute(config.ScriptPostInit),
-		},
+		permissions.ValidateSharedRootPermissions(),
+		permissions.ApplyBundlePermissions(),
+		permissions.FilterCurrentUser(),
+
+		metadata.AnnotateJobs(),
+		metadata.AnnotatePipelines(),
+		terraform.Initialize(),
+		scripts.Execute(config.ScriptPostInit),
 	)
 }
diff --git a/bundle/phases/load.go b/bundle/phases/load.go
index fa0668775..844bc0776 100644
--- a/bundle/phases/load.go
+++ b/bundle/phases/load.go
@@ -1,29 +1,40 @@
 package phases
 
 import (
+	"context"
+
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/config/mutator"
+	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/log"
 )
 
 // The load phase loads configuration from disk and performs
 // lightweight preprocessing (anything that can be done without network I/O).
-func Load() bundle.Mutator {
-	return newPhase(
-		"load",
-		mutator.DefaultMutators(),
-	)
+func Load(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	log.Info(ctx, "Phase: load")
+
+	return mutator.DefaultMutators(ctx, b)
 }
 
-func LoadDefaultTarget() bundle.Mutator {
-	return newPhase(
-		"load",
-		append(mutator.DefaultMutators(), mutator.SelectDefaultTarget()),
-	)
+func LoadDefaultTarget(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	log.Info(ctx, "Phase: load")
+
+	diags := mutator.DefaultMutators(ctx, b)
+	if diags.HasError() {
+		return diags
+	}
+
+	return diags.Extend(bundle.Apply(ctx, b, mutator.SelectDefaultTarget()))
 }
 
-func LoadNamedTarget(target string) bundle.Mutator {
-	return newPhase(
-		"load",
-		append(mutator.DefaultMutators(), mutator.SelectTarget(target)),
-	)
+func LoadNamedTarget(ctx context.Context, b *bundle.Bundle, target string) diag.Diagnostics {
+	log.Info(ctx, "Phase: load")
+
+	diags := mutator.DefaultMutators(ctx, b)
+	if diags.HasError() {
+		return diags
+	}
+
+	return diags.Extend(bundle.Apply(ctx, b, mutator.SelectTarget(target)))
 }
diff --git a/bundle/phases/phase.go b/bundle/phases/phase.go
deleted file mode 100644
index 1bb4f86a2..000000000
--- a/bundle/phases/phase.go
+++ /dev/null
@@ -1,33 +0,0 @@
-// Package phases defines build phases as logical groups of [bundle.Mutator] instances.
-package phases
-
-import (
-	"context"
-
-	"github.com/databricks/cli/bundle"
-	"github.com/databricks/cli/libs/diag"
-	"github.com/databricks/cli/libs/log"
-)
-
-// This phase type groups mutators that belong to a lifecycle phase.
-// It expands into the specific mutators when applied.
-type phase struct {
-	name     string
-	mutators []bundle.Mutator
-}
-
-func newPhase(name string, mutators []bundle.Mutator) bundle.Mutator {
-	return &phase{
-		name:     name,
-		mutators: mutators,
-	}
-}
-
-func (p *phase) Name() string {
-	return p.name
-}
-
-func (p *phase) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
-	log.Infof(ctx, "Phase: %s", p.Name())
-	return bundle.Apply(ctx, b, bundle.Seq(p.mutators...))
-}
diff --git a/bundle/run/app_test.go b/bundle/run/app_test.go
index 77f197e8d..e988988f4 100644
--- a/bundle/run/app_test.go
+++ b/bundle/run/app_test.go
@@ -76,10 +76,10 @@ func setupBundle(t *testing.T) (context.Context, *bundle.Bundle, *mocks.MockWork
 
 	ctx := cmdio.MockDiscard(context.Background())
 
-	diags := bundle.Apply(ctx, b, bundle.Seq(
+	diags := bundle.ApplySeq(ctx, b,
 		mutator.DefineDefaultWorkspacePaths(),
 		mutator.TranslatePaths(),
-	))
+	)
 	require.Empty(t, diags)
 
 	return ctx, b, mwc
diff --git a/bundle/schema/jsonschema.json b/bundle/schema/jsonschema.json
index 2ef2efbfd..02fe1125b 100644
--- a/bundle/schema/jsonschema.json
+++ b/bundle/schema/jsonschema.json
@@ -88,6 +88,10 @@
                       "description": {
                         "$ref": "#/$defs/string"
                       },
+                      "id": {
+                        "description": "The unique identifier of the app.",
+                        "$ref": "#/$defs/string"
+                      },
                       "name": {
                         "$ref": "#/$defs/string"
                       },
@@ -123,10 +127,7 @@
                       }
                     },
                     "additionalProperties": false,
-                    "required": [
-                      "source_code_path",
-                      "name"
-                    ]
+                    "required": ["source_code_path", "name"]
                   },
                   {
                     "type": "string",
@@ -160,7 +161,7 @@
                         "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/compute.AzureAttributes"
                       },
                       "cluster_log_conf": {
-                        "description": "The configuration for delivering spark logs to a long-term storage destination.\nTwo kinds of destinations (dbfs and s3) are supported. Only one destination can be specified\nfor one cluster. If the conf is given, the logs will be delivered to the destination every\n`5 mins`. The destination of driver logs is `$destination/$clusterId/driver`, while\nthe destination of executor logs is `$destination/$clusterId/executor`.",
+                        "description": "The configuration for delivering spark logs to a long-term storage destination.\nThree kinds of destinations (DBFS, S3 and Unity Catalog volumes) are supported. Only one destination can be specified\nfor one cluster. If the conf is given, the logs will be delivered to the destination every\n`5 mins`. The destination of driver logs is `$destination/$clusterId/driver`, while\nthe destination of executor logs is `$destination/$clusterId/executor`.",
                         "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/compute.ClusterLogConf"
                       },
                       "cluster_name": {
@@ -346,10 +347,7 @@
                       }
                     },
                     "additionalProperties": false,
-                    "required": [
-                      "privileges",
-                      "principal"
-                    ]
+                    "required": ["privileges", "principal"]
                   },
                   {
                     "type": "string",
@@ -583,9 +581,7 @@
                       }
                     },
                     "additionalProperties": false,
-                    "required": [
-                      "name"
-                    ],
+                    "required": ["name"],
                     "markdownDescription": "The model_serving_endpoint resource allows you to define [model serving endpoints](https://docs.databricks.com/api/workspace/servingendpoints/create). See [link](https://docs.databricks.com/machine-learning/model-serving/manage-serving-endpoints.html)."
                   },
                   {
@@ -617,9 +613,7 @@
                       }
                     },
                     "additionalProperties": false,
-                    "required": [
-                      "level"
-                    ]
+                    "required": ["level"]
                   },
                   {
                     "type": "string",
@@ -845,11 +839,7 @@
                       }
                     },
                     "additionalProperties": false,
-                    "required": [
-                      "catalog_name",
-                      "name",
-                      "schema_name"
-                    ],
+                    "required": ["catalog_name", "name", "schema_name"],
                     "markdownDescription": "The registered model resource allows you to define models in Unity Catalog. For information about Unity Catalog [registered models](https://docs.databricks.com/api/workspace/registeredmodels/create), see [link](https://docs.databricks.com/machine-learning/manage-model-lifecycle/index.html)."
                   },
                   {
@@ -887,10 +877,7 @@
                       }
                     },
                     "additionalProperties": false,
-                    "required": [
-                      "catalog_name",
-                      "name"
-                    ],
+                    "required": ["catalog_name", "name"],
                     "markdownDescription": "The schema resource type allows you to define Unity Catalog [schemas](https://docs.databricks.com/api/workspace/schemas/create) for tables and other assets in your workflows and pipelines created as part of a bundle. A schema, different from other resource types, has the following limitations:\n\n- The owner of a schema resource is always the deployment user, and cannot be changed. If `run_as` is specified in the bundle, it will be ignored by operations on the schema.\n- Only fields supported by the corresponding [Schemas object create API](https://docs.databricks.com/api/workspace/schemas/create) are available for the schema resource. For example, `enable_predictive_optimization` is not supported as it is only available on the [update API](https://docs.databricks.com/api/workspace/schemas/update)."
                   },
                   {
@@ -932,11 +919,7 @@
                       }
                     },
                     "additionalProperties": false,
-                    "required": [
-                      "catalog_name",
-                      "name",
-                      "schema_name"
-                    ],
+                    "required": ["catalog_name", "name", "schema_name"],
                     "markdownDescription": "The volume resource type allows you to define and create Unity Catalog [volumes](https://docs.databricks.com/api/workspace/volumes/create) as part of a bundle. When deploying a bundle with a volume defined, note that:\n\n- A volume cannot be referenced in the `artifact_path` for the bundle until it exists in the workspace. Hence, if you want to use Databricks Asset Bundles to create the volume, you must first define the volume in the bundle, deploy it to create the volume, then reference it in the `artifact_path` in subsequent deployments.\n\n- Volumes in the bundle are not prepended with the `dev_${workspace.current_user.short_name}` prefix when the deployment target has `mode: development` configured. However, you can manually configure this prefix. See [custom-presets](https://docs.databricks.com/dev-tools/bundles/deployment-modes.html#custom-presets)."
                   },
                   {
@@ -951,39 +934,51 @@
                     "type": "object",
                     "properties": {
                       "alert": {
+                        "description": "The name of the alert for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "cluster": {
+                        "description": "The name of the cluster for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "cluster_policy": {
+                        "description": "The name of the cluster_policy for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "dashboard": {
+                        "description": "The name of the dashboard for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "instance_pool": {
+                        "description": "The name of the instance_pool for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "job": {
+                        "description": "The name of the job for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "metastore": {
+                        "description": "The name of the metastore for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "notification_destination": {
+                        "description": "The name of the notification_destination for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "pipeline": {
+                        "description": "The name of the pipeline for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "query": {
+                        "description": "The name of the query for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "service_principal": {
+                        "description": "The name of the service_principal for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       },
                       "warehouse": {
+                        "description": "The name of the warehouse for which to retrieve an ID.",
                         "$ref": "#/$defs/string"
                       }
                     },
@@ -1001,6 +996,7 @@
                     "type": "object",
                     "properties": {
                       "default": {
+                        "description": "The default value for the variable.",
                         "$ref": "#/$defs/interface"
                       },
                       "description": {
@@ -1026,6 +1022,7 @@
                 "description": "Defines a custom variable for the bundle.",
                 "properties": {
                   "default": {
+                    "description": "The default value for the variable.",
                     "$ref": "#/$defs/interface"
                   },
                   "description": {
@@ -1055,7 +1052,7 @@
                   "type": "object",
                   "properties": {
                     "build": {
-                      "description": "An optional set of non-default build commands to run locally before deployment.",
+                      "description": "An optional set of build commands to run locally before deployment.",
                       "$ref": "#/$defs/string"
                     },
                     "executable": {
@@ -1063,23 +1060,21 @@
                       "$ref": "#/$defs/github.com/databricks/cli/libs/exec.ExecutableType"
                     },
                     "files": {
-                      "description": "The source files for the artifact.",
+                      "description": "The relative or absolute path to the built artifact files.",
                       "$ref": "#/$defs/slice/github.com/databricks/cli/bundle/config.ArtifactFile"
                     },
                     "path": {
-                      "description": "The location where the built artifact will be saved.",
+                      "description": "The local path of the directory for the artifact.",
                       "$ref": "#/$defs/string"
                     },
                     "type": {
-                      "description": "Required. The type of the artifact.",
+                      "description": "Required if the artifact is a Python wheel. The type of the artifact. Valid values are `whl` and `jar`.",
                       "$ref": "#/$defs/github.com/databricks/cli/bundle/config.ArtifactType",
-                      "markdownDescription": "Required. The type of the artifact. Valid values are `whl`."
+                      "markdownDescription": "Required if the artifact is a Python wheel. The type of the artifact. Valid values are `whl` and `jar`."
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "type"
-                  ]
+                  "required": ["type"]
                 },
                 {
                   "type": "string",
@@ -1093,14 +1088,12 @@
                   "type": "object",
                   "properties": {
                     "source": {
-                      "description": "Required. The path of the files used to build the artifact.",
+                      "description": "Required. The artifact source file.",
                       "$ref": "#/$defs/string"
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "source"
-                  ]
+                  "required": ["source"]
                 },
                 {
                   "type": "string",
@@ -1122,6 +1115,7 @@
                       "markdownDescription": "The ID of a cluster to use to run the bundle. See [cluster_id](https://docs.databricks.com/dev-tools/bundles/settings.html#cluster_id)."
                     },
                     "compute_id": {
+                      "description": "Deprecated. The ID of the compute to use to run the bundle.",
                       "$ref": "#/$defs/string"
                     },
                     "databricks_cli_version": {
@@ -1149,9 +1143,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "name"
-                  ]
+                  "required": ["name"]
                 },
                 {
                   "type": "string",
@@ -1350,10 +1342,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "resources",
-                    "mutators"
-                  ]
+                  "required": ["resources", "mutators"]
                 },
                 {
                   "type": "string",
@@ -1367,47 +1356,49 @@
                   "type": "object",
                   "properties": {
                     "apps": {
-                      "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.App"
+                      "description": "The app resource defines a Databricks app.",
+                      "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.App",
+                      "markdownDescription": "The app resource defines a [Databricks app](https://docs.databricks.com/api/workspace/apps/create). For information about Databricks Apps, see [link](https://docs.databricks.com/dev-tools/databricks-apps/index.html)."
                     },
                     "clusters": {
                       "description": "The cluster definitions for the bundle, where each key is the name of a cluster.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.Cluster",
-                      "markdownDescription": "The cluster definitions for the bundle, where each key is the name of a cluster. See [clusters](https://docs.databricks.com/dev-tools/bundles/resources.html#clusters)"
+                      "markdownDescription": "The cluster definitions for the bundle, where each key is the name of a cluster. See [clusters](https://docs.databricks.com/dev-tools/bundles/resources.html#clusters)."
                     },
                     "dashboards": {
                       "description": "The dashboard definitions for the bundle, where each key is the name of the dashboard.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.Dashboard",
-                      "markdownDescription": "The dashboard definitions for the bundle, where each key is the name of the dashboard. See [dashboards](https://docs.databricks.com/dev-tools/bundles/resources.html#dashboards)"
+                      "markdownDescription": "The dashboard definitions for the bundle, where each key is the name of the dashboard. See [dashboards](https://docs.databricks.com/dev-tools/bundles/resources.html#dashboards)."
                     },
                     "experiments": {
                       "description": "The experiment definitions for the bundle, where each key is the name of the experiment.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.MlflowExperiment",
-                      "markdownDescription": "The experiment definitions for the bundle, where each key is the name of the experiment. See [experiments](https://docs.databricks.com/dev-tools/bundles/resources.html#experiments)"
+                      "markdownDescription": "The experiment definitions for the bundle, where each key is the name of the experiment. See [experiments](https://docs.databricks.com/dev-tools/bundles/resources.html#experiments)."
                     },
                     "jobs": {
                       "description": "The job definitions for the bundle, where each key is the name of the job.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.Job",
-                      "markdownDescription": "The job definitions for the bundle, where each key is the name of the job. See [jobs](https://docs.databricks.com/dev-tools/bundles/resources.html#jobs)"
+                      "markdownDescription": "The job definitions for the bundle, where each key is the name of the job. See [jobs](https://docs.databricks.com/dev-tools/bundles/resources.html#jobs)."
                     },
                     "model_serving_endpoints": {
                       "description": "The model serving endpoint definitions for the bundle, where each key is the name of the model serving endpoint.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.ModelServingEndpoint",
-                      "markdownDescription": "The model serving endpoint definitions for the bundle, where each key is the name of the model serving endpoint. See [model_serving_endpoints](https://docs.databricks.com/dev-tools/bundles/resources.html#model_serving_endpoints)"
+                      "markdownDescription": "The model serving endpoint definitions for the bundle, where each key is the name of the model serving endpoint. See [model_serving_endpoints](https://docs.databricks.com/dev-tools/bundles/resources.html#model_serving_endpoints)."
                     },
                     "models": {
                       "description": "The model definitions for the bundle, where each key is the name of the model.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.MlflowModel",
-                      "markdownDescription": "The model definitions for the bundle, where each key is the name of the model. See [models](https://docs.databricks.com/dev-tools/bundles/resources.html#models)"
+                      "markdownDescription": "The model definitions for the bundle, where each key is the name of the model. See [models](https://docs.databricks.com/dev-tools/bundles/resources.html#models)."
                     },
                     "pipelines": {
                       "description": "The pipeline definitions for the bundle, where each key is the name of the pipeline.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.Pipeline",
-                      "markdownDescription": "The pipeline definitions for the bundle, where each key is the name of the pipeline. See [pipelines](https://docs.databricks.com/dev-tools/bundles/resources.html#pipelines)"
+                      "markdownDescription": "The pipeline definitions for the bundle, where each key is the name of the pipeline. See [pipelines](https://docs.databricks.com/dev-tools/bundles/resources.html#pipelines)."
                     },
                     "quality_monitors": {
                       "description": "The quality monitor definitions for the bundle, where each key is the name of the quality monitor.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.QualityMonitor",
-                      "markdownDescription": "The quality monitor definitions for the bundle, where each key is the name of the quality monitor. See [quality_monitors](https://docs.databricks.com/dev-tools/bundles/resources.html#quality_monitors)"
+                      "markdownDescription": "The quality monitor definitions for the bundle, where each key is the name of the quality monitor. See [quality_monitors](https://docs.databricks.com/dev-tools/bundles/resources.html#quality_monitors)."
                     },
                     "registered_models": {
                       "description": "The registered model definitions for the bundle, where each key is the name of the Unity Catalog registered model.",
@@ -1417,12 +1408,12 @@
                     "schemas": {
                       "description": "The schema definitions for the bundle, where each key is the name of the schema.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.Schema",
-                      "markdownDescription": "The schema definitions for the bundle, where each key is the name of the schema. See [schemas](https://docs.databricks.com/dev-tools/bundles/resources.html#schemas)"
+                      "markdownDescription": "The schema definitions for the bundle, where each key is the name of the schema. See [schemas](https://docs.databricks.com/dev-tools/bundles/resources.html#schemas)."
                     },
                     "volumes": {
                       "description": "The volume definitions for the bundle, where each key is the name of the volume.",
                       "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/resources.Volume",
-                      "markdownDescription": "The volume definitions for the bundle, where each key is the name of the volume. See [volumes](https://docs.databricks.com/dev-tools/bundles/resources.html#volumes)"
+                      "markdownDescription": "The volume definitions for the bundle, where each key is the name of the volume. See [volumes](https://docs.databricks.com/dev-tools/bundles/resources.html#volumes)."
                     }
                   },
                   "additionalProperties": false
@@ -1677,10 +1668,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "SNAPSHOT",
-                    "AUTO_SYNC"
-                  ]
+                  "enum": ["SNAPSHOT", "AUTO_SYNC"]
                 },
                 {
                   "type": "string",
@@ -1692,12 +1680,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "SUCCEEDED",
-                    "FAILED",
-                    "IN_PROGRESS",
-                    "CANCELLED"
-                  ]
+                  "enum": ["SUCCEEDED", "FAILED", "IN_PROGRESS", "CANCELLED"]
                 },
                 {
                   "type": "string",
@@ -1752,9 +1735,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "name"
-                  ]
+                  "required": ["name"]
                 },
                 {
                   "type": "string",
@@ -1775,10 +1756,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "id",
-                    "permission"
-                  ]
+                  "required": ["id", "permission"]
                 },
                 {
                   "type": "string",
@@ -1819,11 +1797,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "key",
-                    "permission",
-                    "scope"
-                  ]
+                  "required": ["key", "permission", "scope"]
                 },
                 {
                   "type": "string",
@@ -1836,11 +1810,7 @@
                 {
                   "type": "string",
                   "description": "Permission to grant on the secret scope. Supported permissions are: \"READ\", \"WRITE\", \"MANAGE\".",
-                  "enum": [
-                    "READ",
-                    "WRITE",
-                    "MANAGE"
-                  ]
+                  "enum": ["READ", "WRITE", "MANAGE"]
                 },
                 {
                   "type": "string",
@@ -1861,10 +1831,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "name",
-                    "permission"
-                  ]
+                  "required": ["name", "permission"]
                 },
                 {
                   "type": "string",
@@ -1876,11 +1843,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "CAN_MANAGE",
-                    "CAN_QUERY",
-                    "CAN_VIEW"
-                  ]
+                  "enum": ["CAN_MANAGE", "CAN_QUERY", "CAN_VIEW"]
                 },
                 {
                   "type": "string",
@@ -1901,10 +1864,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "id",
-                    "permission"
-                  ]
+                  "required": ["id", "permission"]
                 },
                 {
                   "type": "string",
@@ -1916,11 +1876,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "CAN_MANAGE",
-                    "CAN_USE",
-                    "IS_OWNER"
-                  ]
+                  "enum": ["CAN_MANAGE", "CAN_USE", "IS_OWNER"]
                 },
                 {
                   "type": "string",
@@ -1932,12 +1888,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "DEPLOYING",
-                    "RUNNING",
-                    "CRASHED",
-                    "UNAVAILABLE"
-                  ]
+                  "enum": ["DEPLOYING", "RUNNING", "CRASHED", "UNAVAILABLE"]
                 },
                 {
                   "type": "string",
@@ -2025,10 +1976,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "quartz_cron_expression",
-                    "timezone_id"
-                  ]
+                  "required": ["quartz_cron_expression", "timezone_id"]
                 },
                 {
                   "type": "string",
@@ -2041,10 +1989,7 @@
                 {
                   "type": "string",
                   "description": "Read only field that indicates whether a schedule is paused or not.",
-                  "enum": [
-                    "UNPAUSED",
-                    "PAUSED"
-                  ]
+                  "enum": ["UNPAUSED", "PAUSED"]
                 },
                 {
                   "type": "string",
@@ -2260,10 +2205,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "granularities",
-                    "timestamp_col"
-                  ]
+                  "required": ["granularities", "timestamp_col"]
                 },
                 {
                   "type": "string",
@@ -2275,10 +2217,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "EXTERNAL",
-                    "MANAGED"
-                  ]
+                  "enum": ["EXTERNAL", "MANAGED"]
                 },
                 {
                   "type": "string",
@@ -2297,9 +2236,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "destination"
-                  ]
+                  "required": ["destination"]
                 },
                 {
                   "type": "string",
@@ -2386,11 +2323,7 @@
                 {
                   "type": "string",
                   "description": "Availability type used for all subsequent nodes past the `first_on_demand` ones.\n\nNote: If `first_on_demand` is zero, this availability type will be used for the entire cluster.\n",
-                  "enum": [
-                    "SPOT",
-                    "ON_DEMAND",
-                    "SPOT_WITH_FALLBACK"
-                  ]
+                  "enum": ["SPOT", "ON_DEMAND", "SPOT_WITH_FALLBACK"]
                 },
                 {
                   "type": "string",
@@ -2478,6 +2411,10 @@
                     "s3": {
                       "description": "destination and either the region or endpoint need to be provided. e.g.\n`{ \"s3\": { \"destination\" : \"s3://cluster_log_bucket/prefix\", \"region\" : \"us-west-2\" } }`\nCluster iam role is used to access s3, please make sure the cluster iam role in\n`instance_profile_arn` has permission to write data to the s3 destination.",
                       "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/compute.S3StorageInfo"
+                    },
+                    "volumes": {
+                      "description": "destination needs to be provided. e.g.\n`{ \"volumes\" : { \"destination\" : \"/Volumes/catalog/schema/volume/cluster_log\" } }`",
+                      "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/compute.VolumesStorageInfo"
                     }
                   },
                   "additionalProperties": false
@@ -2514,7 +2451,7 @@
                       "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/compute.AzureAttributes"
                     },
                     "cluster_log_conf": {
-                      "description": "The configuration for delivering spark logs to a long-term storage destination.\nTwo kinds of destinations (dbfs and s3) are supported. Only one destination can be specified\nfor one cluster. If the conf is given, the logs will be delivered to the destination every\n`5 mins`. The destination of driver logs is `$destination/$clusterId/driver`, while\nthe destination of executor logs is `$destination/$clusterId/executor`.",
+                      "description": "The configuration for delivering spark logs to a long-term storage destination.\nThree kinds of destinations (DBFS, S3 and Unity Catalog volumes) are supported. Only one destination can be specified\nfor one cluster. If the conf is given, the logs will be delivered to the destination every\n`5 mins`. The destination of driver logs is `$destination/$clusterId/driver`, while\nthe destination of executor logs is `$destination/$clusterId/executor`.",
                       "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/compute.ClusterLogConf"
                     },
                     "cluster_name": {
@@ -2652,9 +2589,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "destination"
-                  ]
+                  "required": ["destination"]
                 },
                 {
                   "type": "string",
@@ -2710,10 +2645,7 @@
                 {
                   "type": "string",
                   "description": "The type of EBS volumes that will be launched with this cluster.",
-                  "enum": [
-                    "GENERAL_PURPOSE_SSD",
-                    "THROUGHPUT_OPTIMIZED_HDD"
-                  ]
+                  "enum": ["GENERAL_PURPOSE_SSD", "THROUGHPUT_OPTIMIZED_HDD"]
                 },
                 {
                   "type": "string",
@@ -2737,9 +2669,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "client"
-                  ]
+                  "required": ["client"]
                 },
                 {
                   "type": "string",
@@ -2812,9 +2742,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "destination"
-                  ]
+                  "required": ["destination"]
                 },
                 {
                   "type": "string",
@@ -2920,9 +2848,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "destination"
-                  ]
+                  "required": ["destination"]
                 },
                 {
                   "type": "string",
@@ -2971,9 +2897,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "coordinates"
-                  ]
+                  "required": ["coordinates"]
                 },
                 {
                   "type": "string",
@@ -2996,9 +2920,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "package"
-                  ]
+                  "required": ["package"]
                 },
                 {
                   "type": "string",
@@ -3021,9 +2943,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "package"
-                  ]
+                  "required": ["package"]
                 },
                 {
                   "type": "string",
@@ -3036,11 +2956,7 @@
                 {
                   "type": "string",
                   "description": "Determines the cluster's runtime engine, either standard or Photon.\n\nThis field is not compatible with legacy `spark_version` values that contain `-photon-`.\nRemove `-photon-` from the `spark_version` and set `runtime_engine` to `PHOTON`.\n\nIf left unspecified, the runtime engine defaults to standard unless the spark_version\ncontains -photon-, in which case Photon will be used.\n",
-                  "enum": [
-                    "NULL",
-                    "STANDARD",
-                    "PHOTON"
-                  ]
+                  "enum": ["NULL", "STANDARD", "PHOTON"]
                 },
                 {
                   "type": "string",
@@ -3083,9 +2999,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "destination"
-                  ]
+                  "required": ["destination"]
                 },
                 {
                   "type": "string",
@@ -3099,14 +3013,12 @@
                   "type": "object",
                   "properties": {
                     "destination": {
-                      "description": "Unity Catalog Volumes file destination, e.g. `/Volumes/my-init.sh`",
+                      "description": "Unity Catalog volumes file destination, e.g. `/Volumes/catalog/schema/volume/dir/file`",
                       "$ref": "#/$defs/string"
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "destination"
-                  ]
+                  "required": ["destination"]
                 },
                 {
                   "type": "string",
@@ -3125,9 +3037,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "clients"
-                  ]
+                  "required": ["clients"]
                 },
                 {
                   "type": "string",
@@ -3146,9 +3056,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "destination"
-                  ]
+                  "required": ["destination"]
                 },
                 {
                   "type": "string",
@@ -3160,10 +3068,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "ACTIVE",
-                    "TRASHED"
-                  ]
+                  "enum": ["ACTIVE", "TRASHED"]
                 },
                 {
                   "type": "string",
@@ -3194,10 +3099,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "clean_room_name",
-                    "notebook_name"
-                  ]
+                  "required": ["clean_room_name", "notebook_name"]
                 },
                 {
                   "type": "string",
@@ -3209,10 +3111,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "ANY_UPDATED",
-                    "ALL_UPDATED"
-                  ]
+                  "enum": ["ANY_UPDATED", "ALL_UPDATED"]
                 },
                 {
                   "type": "string",
@@ -3239,11 +3138,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "left",
-                    "op",
-                    "right"
-                  ]
+                  "required": ["left", "op", "right"]
                 },
                 {
                   "type": "string",
@@ -3308,10 +3203,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "quartz_cron_expression",
-                    "timezone_id"
-                  ]
+                  "required": ["quartz_cron_expression", "timezone_id"]
                 },
                 {
                   "type": "string",
@@ -3354,9 +3246,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "commands"
-                  ]
+                  "required": ["commands"]
                 },
                 {
                   "type": "string",
@@ -3383,9 +3273,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "url"
-                  ]
+                  "required": ["url"]
                 },
                 {
                   "type": "string",
@@ -3412,10 +3300,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "inputs",
-                    "task"
-                  ]
+                  "required": ["inputs", "task"]
                 },
                 {
                   "type": "string",
@@ -3427,10 +3312,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "SINGLE_TASK",
-                    "MULTI_TASK"
-                  ]
+                  "enum": ["SINGLE_TASK", "MULTI_TASK"]
                 },
                 {
                   "type": "string",
@@ -3506,10 +3388,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "git_provider",
-                    "git_url"
-                  ]
+                  "required": ["git_provider", "git_url"]
                 },
                 {
                   "type": "string",
@@ -3532,10 +3411,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "job_cluster_key",
-                    "new_cluster"
-                  ]
+                  "required": ["job_cluster_key", "new_cluster"]
                 },
                 {
                   "type": "string",
@@ -3558,9 +3434,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "kind"
-                  ]
+                  "required": ["kind"]
                 },
                 {
                   "type": "string",
@@ -3573,9 +3447,7 @@
                 {
                   "type": "string",
                   "description": "* `BUNDLE`: The job is managed by Databricks Asset Bundle.",
-                  "enum": [
-                    "BUNDLE"
-                  ]
+                  "enum": ["BUNDLE"]
                 },
                 {
                   "type": "string",
@@ -3588,10 +3460,7 @@
                 {
                   "type": "string",
                   "description": "Edit mode of the job.\n\n* `UI_LOCKED`: The job is in a locked UI state and cannot be modified.\n* `EDITABLE`: The job is in an editable state and can be modified.",
-                  "enum": [
-                    "UI_LOCKED",
-                    "EDITABLE"
-                  ]
+                  "enum": ["UI_LOCKED", "EDITABLE"]
                 },
                 {
                   "type": "string",
@@ -3651,9 +3520,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "environment_key"
-                  ]
+                  "required": ["environment_key"]
                 },
                 {
                   "type": "string",
@@ -3698,10 +3565,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "default",
-                    "name"
-                  ]
+                  "required": ["default", "name"]
                 },
                 {
                   "type": "string",
@@ -3752,10 +3616,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "import_from_git_branch",
-                    "job_config_path"
-                  ]
+                  "required": ["import_from_git_branch", "job_config_path"]
                 },
                 {
                   "type": "string",
@@ -3768,10 +3629,7 @@
                 {
                   "type": "string",
                   "description": "Dirty state indicates the job is not fully synced with the job specification\nin the remote repository.\n\nPossible values are:\n* `NOT_SYNCED`: The job is not yet synced with the remote job specification. Import the remote job specification from UI to make the job fully synced.\n* `DISCONNECTED`: The job is temporary disconnected from the remote job specification and is allowed for live edit. Import the remote job specification again from UI to make the job fully synced.",
-                  "enum": [
-                    "NOT_SYNCED",
-                    "DISCONNECTED"
-                  ]
+                  "enum": ["NOT_SYNCED", "DISCONNECTED"]
                 },
                 {
                   "type": "string",
@@ -3803,9 +3661,7 @@
                 {
                   "type": "string",
                   "description": "Specifies the operator used to compare the health metric value with the specified threshold.",
-                  "enum": [
-                    "GREATER_THAN"
-                  ]
+                  "enum": ["GREATER_THAN"]
                 },
                 {
                   "type": "string",
@@ -3830,11 +3686,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "metric",
-                    "op",
-                    "value"
-                  ]
+                  "required": ["metric", "op", "value"]
                 },
                 {
                   "type": "string",
@@ -3883,9 +3735,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "notebook_path"
-                  ]
+                  "required": ["notebook_path"]
                 },
                 {
                   "type": "string",
@@ -3897,10 +3747,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "UNPAUSED",
-                    "PAUSED"
-                  ]
+                  "enum": ["UNPAUSED", "PAUSED"]
                 },
                 {
                   "type": "string",
@@ -3913,10 +3760,7 @@
                 {
                   "type": "string",
                   "description": "PerformanceTarget defines how performant (lower latency) or cost efficient the execution of run on serverless compute should be.\nThe performance mode on the job or pipeline should map to a performance setting that is passed to Cluster Manager\n(see cluster-common PerformanceTarget).",
-                  "enum": [
-                    "PERFORMANCE_OPTIMIZED",
-                    "COST_OPTIMIZED"
-                  ]
+                  "enum": ["PERFORMANCE_OPTIMIZED", "COST_OPTIMIZED"]
                 },
                 {
                   "type": "string",
@@ -3939,10 +3783,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "interval",
-                    "unit"
-                  ]
+                  "required": ["interval", "unit"]
                 },
                 {
                   "type": "string",
@@ -3954,11 +3795,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "HOURS",
-                    "DAYS",
-                    "WEEKS"
-                  ]
+                  "enum": ["HOURS", "DAYS", "WEEKS"]
                 },
                 {
                   "type": "string",
@@ -3999,9 +3836,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "pipeline_id"
-                  ]
+                  "required": ["pipeline_id"]
                 },
                 {
                   "type": "string",
@@ -4032,10 +3867,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "entry_point",
-                    "package_name"
-                  ]
+                  "required": ["entry_point", "package_name"]
                 },
                 {
                   "type": "string",
@@ -4054,9 +3886,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "enabled"
-                  ]
+                  "required": ["enabled"]
                 },
                 {
                   "type": "string",
@@ -4130,9 +3960,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "job_id"
-                  ]
+                  "required": ["job_id"]
                 },
                 {
                   "type": "string",
@@ -4145,10 +3973,7 @@
                 {
                   "type": "string",
                   "description": "Optional location type of the SQL file. When set to `WORKSPACE`, the SQL file will be retrieved\\\nfrom the local Databricks workspace. When set to `GIT`, the SQL file will be retrieved from a Git repository\ndefined in `git_source`. If the value is empty, the task will use `GIT` if `git_source` is defined and `WORKSPACE` otherwise.\n\n* `WORKSPACE`: SQL file is located in Databricks workspace.\n* `GIT`: SQL file is located in cloud Git provider.",
-                  "enum": [
-                    "WORKSPACE",
-                    "GIT"
-                  ]
+                  "enum": ["WORKSPACE", "GIT"]
                 },
                 {
                   "type": "string",
@@ -4205,9 +4030,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "python_file"
-                  ]
+                  "required": ["python_file"]
                 },
                 {
                   "type": "string",
@@ -4264,9 +4087,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "warehouse_id"
-                  ]
+                  "required": ["warehouse_id"]
                 },
                 {
                   "type": "string",
@@ -4293,9 +4114,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "alert_id"
-                  ]
+                  "required": ["alert_id"]
                 },
                 {
                   "type": "string",
@@ -4326,9 +4145,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "dashboard_id"
-                  ]
+                  "required": ["dashboard_id"]
                 },
                 {
                   "type": "string",
@@ -4351,9 +4168,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "path"
-                  ]
+                  "required": ["path"]
                 },
                 {
                   "type": "string",
@@ -4372,9 +4187,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "query_id"
-                  ]
+                  "required": ["query_id"]
                 },
                 {
                   "type": "string",
@@ -4560,9 +4373,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "task_key"
-                  ]
+                  "required": ["task_key"]
                 },
                 {
                   "type": "string",
@@ -4585,9 +4396,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "task_key"
-                  ]
+                  "required": ["task_key"]
                 },
                 {
                   "type": "string",
@@ -4702,9 +4511,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "id"
-                  ]
+                  "required": ["id"]
                 },
                 {
                   "type": "string",
@@ -4941,9 +4748,7 @@
                 {
                   "type": "string",
                   "description": "The deployment method that manages the pipeline:\n- BUNDLE: The pipeline is managed by a Databricks Asset Bundle.\n",
-                  "enum": [
-                    "BUNDLE"
-                  ]
+                  "enum": ["BUNDLE"]
                 },
                 {
                   "type": "string",
@@ -5242,10 +5047,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "max_workers",
-                    "min_workers"
-                  ]
+                  "required": ["max_workers", "min_workers"]
                 },
                 {
                   "type": "string",
@@ -5258,10 +5060,7 @@
                 {
                   "type": "string",
                   "description": "Databricks Enhanced Autoscaling optimizes cluster utilization by automatically\nallocating cluster resources based on workload volume, with minimal impact to\nthe data processing latency of your pipelines. Enhanced Autoscaling is available\nfor `updates` clusters only. The legacy autoscaling feature is used for `maintenance`\nclusters.\n",
-                  "enum": [
-                    "ENHANCED",
-                    "LEGACY"
-                  ]
+                  "enum": ["ENHANCED", "LEGACY"]
                 },
                 {
                   "type": "string",
@@ -5398,9 +5197,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "start_hour"
-                  ]
+                  "required": ["start_hour"]
                 },
                 {
                   "type": "string",
@@ -5542,10 +5339,7 @@
                 {
                   "type": "string",
                   "description": "The SCD type to use to ingest the table.",
-                  "enum": [
-                    "SCD_TYPE_1",
-                    "SCD_TYPE_2"
-                  ]
+                  "enum": ["SCD_TYPE_1", "SCD_TYPE_2"]
                 },
                 {
                   "type": "string",
@@ -5657,10 +5451,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "NONE",
-                    "BLOCK"
-                  ]
+                  "enum": ["NONE", "BLOCK"]
                 },
                 {
                   "type": "string",
@@ -5739,10 +5530,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "calls",
-                    "renewal_period"
-                  ]
+                  "required": ["calls", "renewal_period"]
                 },
                 {
                   "type": "string",
@@ -5754,10 +5542,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "user",
-                    "endpoint"
-                  ]
+                  "enum": ["user", "endpoint"]
                 },
                 {
                   "type": "string",
@@ -5769,9 +5554,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "minute"
-                  ]
+                  "enum": ["minute"]
                 },
                 {
                   "type": "string",
@@ -5828,10 +5611,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "aws_region",
-                    "bedrock_provider"
-                  ]
+                  "required": ["aws_region", "bedrock_provider"]
                 },
                 {
                   "type": "string",
@@ -5843,12 +5623,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "anthropic",
-                    "cohere",
-                    "ai21labs",
-                    "amazon"
-                  ]
+                  "enum": ["anthropic", "cohere", "ai21labs", "amazon"]
                 },
                 {
                   "type": "string",
@@ -5953,9 +5728,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "databricks_workspace_url"
-                  ]
+                  "required": ["databricks_workspace_url"]
                 },
                 {
                   "type": "string",
@@ -6008,9 +5781,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "key"
-                  ]
+                  "required": ["key"]
                 },
                 {
                   "type": "string",
@@ -6060,7 +5831,7 @@
                       "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/serving.PaLmConfig"
                     },
                     "provider": {
-                      "description": "The name of the provider for the external model. Currently, the supported providers are 'ai21labs', 'anthropic', 'amazon-bedrock', 'cohere', 'databricks-model-serving', 'google-cloud-vertex-ai', 'openai', and 'palm'.",
+                      "description": "The name of the provider for the external model. Currently, the supported providers are 'ai21labs', 'anthropic', 'amazon-bedrock', 'cohere', 'databricks-model-serving', 'google-cloud-vertex-ai', 'openai', 'palm', and 'custom'.",
                       "$ref": "#/$defs/github.com/databricks/databricks-sdk-go/service/serving.ExternalModelProvider"
                     },
                     "task": {
@@ -6069,11 +5840,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "name",
-                    "provider",
-                    "task"
-                  ]
+                  "required": ["name", "provider", "task"]
                 },
                 {
                   "type": "string",
@@ -6125,10 +5892,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "project_id",
-                    "region"
-                  ]
+                  "required": ["project_id", "region"]
                 },
                 {
                   "type": "string",
@@ -6236,10 +6000,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "calls",
-                    "renewal_period"
-                  ]
+                  "required": ["calls", "renewal_period"]
                 },
                 {
                   "type": "string",
@@ -6251,10 +6012,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "user",
-                    "endpoint"
-                  ]
+                  "enum": ["user", "endpoint"]
                 },
                 {
                   "type": "string",
@@ -6266,9 +6024,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "minute"
-                  ]
+                  "enum": ["minute"]
                 },
                 {
                   "type": "string",
@@ -6291,10 +6047,7 @@
                     }
                   },
                   "additionalProperties": false,
-                  "required": [
-                    "served_model_name",
-                    "traffic_percentage"
-                  ]
+                  "required": ["served_model_name", "traffic_percentage"]
                 },
                 {
                   "type": "string",
@@ -6420,11 +6173,7 @@
               "oneOf": [
                 {
                   "type": "string",
-                  "enum": [
-                    "Small",
-                    "Medium",
-                    "Large"
-                  ]
+                  "enum": ["Small", "Medium", "Large"]
                 },
                 {
                   "type": "string",
@@ -7296,7 +7045,7 @@
     "include": {
       "description": "Specifies a list of path globs that contain configuration files to include within the bundle.",
       "$ref": "#/$defs/slice/string",
-      "markdownDescription": "Specifies a list of path globs that contain configuration files to include within the bundle. See [include](https://docs.databricks.com/dev-tools/bundles/settings.html#include)"
+      "markdownDescription": "Specifies a list of path globs that contain configuration files to include within the bundle. See [include](https://docs.databricks.com/dev-tools/bundles/settings.html#include)."
     },
     "permissions": {
       "description": "Defines a permission for a specific entity.",
@@ -7339,4 +7088,4 @@
     }
   },
   "additionalProperties": {}
-}
\ No newline at end of file
+}
diff --git a/bundle/seq.go b/bundle/seq.go
deleted file mode 100644
index c1260a3f0..000000000
--- a/bundle/seq.go
+++ /dev/null
@@ -1,30 +0,0 @@
-package bundle
-
-import (
-	"context"
-
-	"github.com/databricks/cli/libs/diag"
-)
-
-type seqMutator struct {
-	mutators []Mutator
-}
-
-func (s *seqMutator) Name() string {
-	return "seq"
-}
-
-func (s *seqMutator) Apply(ctx context.Context, b *Bundle) diag.Diagnostics {
-	var diags diag.Diagnostics
-	for _, m := range s.mutators {
-		diags = diags.Extend(Apply(ctx, b, m))
-		if diags.HasError() {
-			break
-		}
-	}
-	return diags
-}
-
-func Seq(ms ...Mutator) Mutator {
-	return &seqMutator{mutators: ms}
-}
diff --git a/bundle/seq_test.go b/bundle/seq_test.go
deleted file mode 100644
index 74f975ed8..000000000
--- a/bundle/seq_test.go
+++ /dev/null
@@ -1,91 +0,0 @@
-package bundle
-
-import (
-	"context"
-	"testing"
-
-	"github.com/stretchr/testify/assert"
-)
-
-func TestSeqMutator(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	m3 := &testMutator{}
-	seqMutator := Seq(m1, m2, m3)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, seqMutator)
-	assert.NoError(t, diags.Error())
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-	assert.Equal(t, 1, m3.applyCalled)
-}
-
-func TestSeqWithDeferredMutator(t *testing.T) {
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	m3 := &testMutator{}
-	m4 := &testMutator{}
-	seqMutator := Seq(m1, Defer(m2, m3), m4)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, seqMutator)
-	assert.NoError(t, diags.Error())
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-	assert.Equal(t, 1, m3.applyCalled)
-	assert.Equal(t, 1, m4.applyCalled)
-}
-
-func TestSeqWithErrorAndDeferredMutator(t *testing.T) {
-	errorMut := &mutatorWithError{errorMsg: "error msg"}
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	m3 := &testMutator{}
-	seqMutator := Seq(errorMut, Defer(m1, m2), m3)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, seqMutator)
-	assert.Error(t, diags.Error())
-
-	assert.Equal(t, 1, errorMut.applyCalled)
-	assert.Equal(t, 0, m1.applyCalled)
-	assert.Equal(t, 0, m2.applyCalled)
-	assert.Equal(t, 0, m3.applyCalled)
-}
-
-func TestSeqWithErrorInsideDeferredMutator(t *testing.T) {
-	errorMut := &mutatorWithError{errorMsg: "error msg"}
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	m3 := &testMutator{}
-	seqMutator := Seq(m1, Defer(errorMut, m2), m3)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, seqMutator)
-	assert.Error(t, diags.Error())
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, errorMut.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-	assert.Equal(t, 0, m3.applyCalled)
-}
-
-func TestSeqWithErrorInsideFinallyStage(t *testing.T) {
-	errorMut := &mutatorWithError{errorMsg: "error msg"}
-	m1 := &testMutator{}
-	m2 := &testMutator{}
-	m3 := &testMutator{}
-	seqMutator := Seq(m1, Defer(m2, errorMut), m3)
-
-	b := &Bundle{}
-	diags := Apply(context.Background(), b, seqMutator)
-	assert.Error(t, diags.Error())
-
-	assert.Equal(t, 1, m1.applyCalled)
-	assert.Equal(t, 1, m2.applyCalled)
-	assert.Equal(t, 1, errorMut.applyCalled)
-	assert.Equal(t, 0, m3.applyCalled)
-}
diff --git a/bundle/tests/apps_test.go b/bundle/tests/apps_test.go
index 7fee60d14..c3a0da2ca 100644
--- a/bundle/tests/apps_test.go
+++ b/bundle/tests/apps_test.go
@@ -13,11 +13,10 @@ func TestApps(t *testing.T) {
 	b := load(t, "./apps")
 	assert.Equal(t, "apps", b.Config.Bundle.Name)
 
-	diags := bundle.Apply(context.Background(), b,
-		bundle.Seq(
-			mutator.SetVariables(),
-			mutator.ResolveVariableReferences("variables"),
-		))
+	diags := bundle.ApplySeq(context.Background(), b,
+		mutator.SetVariables(),
+		mutator.ResolveVariableReferences("variables"),
+	)
 	assert.Empty(t, diags)
 
 	app := b.Config.Resources.Apps["my_app"]
@@ -37,11 +36,10 @@ func TestAppsOverride(t *testing.T) {
 	b := loadTarget(t, "./apps", "development")
 	assert.Equal(t, "apps", b.Config.Bundle.Name)
 
-	diags := bundle.Apply(context.Background(), b,
-		bundle.Seq(
-			mutator.SetVariables(),
-			mutator.ResolveVariableReferences("variables"),
-		))
+	diags := bundle.ApplySeq(context.Background(), b,
+		mutator.SetVariables(),
+		mutator.ResolveVariableReferences("variables"),
+	)
 	assert.Empty(t, diags)
 	app := b.Config.Resources.Apps["my_app"]
 	assert.Equal(t, "my-app", app.Name)
diff --git a/bundle/tests/enviroment_key_test.go b/bundle/tests/enviroment_key_test.go
index 135ef1917..c22059313 100644
--- a/bundle/tests/enviroment_key_test.go
+++ b/bundle/tests/enviroment_key_test.go
@@ -9,11 +9,6 @@ import (
 	"github.com/stretchr/testify/require"
 )
 
-func TestEnvironmentKeySupported(t *testing.T) {
-	_, diags := loadTargetWithDiags("./python_wheel/environment_key", "default")
-	require.Empty(t, diags)
-}
-
 func TestEnvironmentKeyProvidedAndNoPanic(t *testing.T) {
 	b, diags := loadTargetWithDiags("./environment_key_only", "default")
 	require.Empty(t, diags)
diff --git a/bundle/tests/include_test.go b/bundle/tests/include_test.go
index 15f8fcec1..07ec4a775 100644
--- a/bundle/tests/include_test.go
+++ b/bundle/tests/include_test.go
@@ -17,7 +17,7 @@ func TestIncludeInvalid(t *testing.T) {
 	ctx := context.Background()
 	b, err := bundle.Load(ctx, "./include_invalid")
 	require.NoError(t, err)
-	diags := bundle.Apply(ctx, b, phases.Load())
+	diags := phases.Load(ctx, b)
 	require.Error(t, diags.Error())
 	assert.ErrorContains(t, diags.Error(), "notexists.yml defined in 'include' section does not match any files")
 }
diff --git a/bundle/tests/job_cluster_key_test.go b/bundle/tests/job_cluster_key_test.go
index 6a08da89c..0306bf7b5 100644
--- a/bundle/tests/job_cluster_key_test.go
+++ b/bundle/tests/job_cluster_key_test.go
@@ -13,7 +13,7 @@ import (
 func TestJobClusterKeyNotDefinedTest(t *testing.T) {
 	b := loadTarget(t, "./job_cluster_key", "default")
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), validate.JobClusterKeyDefined())
+	diags := bundle.Apply(context.Background(), b, validate.JobClusterKeyDefined())
 	require.Len(t, diags, 1)
 	require.NoError(t, diags.Error())
 	require.Equal(t, diag.Warning, diags[0].Severity)
@@ -23,6 +23,6 @@ func TestJobClusterKeyNotDefinedTest(t *testing.T) {
 func TestJobClusterKeyDefinedTest(t *testing.T) {
 	b := loadTarget(t, "./job_cluster_key", "development")
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), validate.JobClusterKeyDefined())
+	diags := bundle.Apply(context.Background(), b, validate.JobClusterKeyDefined())
 	require.Empty(t, diags)
 }
diff --git a/bundle/tests/loader.go b/bundle/tests/loader.go
index 9b246b7cc..6748e6409 100644
--- a/bundle/tests/loader.go
+++ b/bundle/tests/loader.go
@@ -20,7 +20,7 @@ func load(t *testing.T, path string) *bundle.Bundle {
 	ctx := context.Background()
 	b, err := bundle.Load(ctx, path)
 	require.NoError(t, err)
-	diags := bundle.Apply(ctx, b, phases.Load())
+	diags := phases.Load(ctx, b)
 	require.NoError(t, diags.Error())
 	return b
 }
@@ -38,8 +38,9 @@ func loadTargetWithDiags(path, env string) (*bundle.Bundle, diag.Diagnostics) {
 		return nil, diag.FromErr(err)
 	}
 
-	diags := bundle.Apply(ctx, b, bundle.Seq(
-		phases.LoadNamedTarget(env),
+	diags := phases.LoadNamedTarget(ctx, b, env)
+
+	diags = diags.Extend(bundle.ApplySeq(ctx, b,
 		mutator.RewriteSyncPaths(),
 		mutator.SyncDefaultPath(),
 		mutator.SyncInferRoot(),
@@ -69,10 +70,8 @@ func initializeTarget(t *testing.T, path, env string) (*bundle.Bundle, diag.Diag
 	configureMock(t, b)
 
 	ctx := dbr.MockRuntime(context.Background(), false)
-	diags := bundle.Apply(ctx, b, bundle.Seq(
-		mutator.SelectTarget(env),
-		phases.Initialize(),
-	))
+	diags := bundle.Apply(ctx, b, mutator.SelectTarget(env))
+	diags = diags.Extend(phases.Initialize(ctx, b))
 
 	return b, diags
 }
diff --git a/bundle/tests/python_wheel_test.go b/bundle/tests/python_wheel_test.go
deleted file mode 100644
index 06cb05270..000000000
--- a/bundle/tests/python_wheel_test.go
+++ /dev/null
@@ -1,144 +0,0 @@
-package config_tests
-
-import (
-	"context"
-	"path/filepath"
-	"testing"
-
-	"github.com/databricks/cli/bundle"
-	"github.com/databricks/cli/bundle/libraries"
-	"github.com/databricks/cli/bundle/phases"
-	mockfiler "github.com/databricks/cli/internal/mocks/libs/filer"
-	"github.com/databricks/cli/libs/filer"
-	"github.com/stretchr/testify/mock"
-	"github.com/stretchr/testify/require"
-)
-
-func TestPythonWheelBuild(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/python_wheel", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	matches, err := filepath.Glob("./python_wheel/python_wheel/my_test_code/dist/my_test_code-*.whl")
-	require.NoError(t, err)
-	require.Len(t, matches, 1)
-
-	match := libraries.ExpandGlobReferences()
-	diags = bundle.Apply(ctx, b, match)
-	require.NoError(t, diags.Error())
-}
-
-func TestPythonWheelBuildAutoDetect(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/python_wheel_no_artifact", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	matches, err := filepath.Glob("./python_wheel/python_wheel_no_artifact/dist/my_test_code-*.whl")
-	require.NoError(t, err)
-	require.Len(t, matches, 1)
-
-	match := libraries.ExpandGlobReferences()
-	diags = bundle.Apply(ctx, b, match)
-	require.NoError(t, diags.Error())
-}
-
-func TestPythonWheelBuildAutoDetectWithNotebookTask(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/python_wheel_no_artifact_notebook", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	matches, err := filepath.Glob("./python_wheel/python_wheel_no_artifact_notebook/dist/my_test_code-*.whl")
-	require.NoError(t, err)
-	require.Len(t, matches, 1)
-
-	match := libraries.ExpandGlobReferences()
-	diags = bundle.Apply(ctx, b, match)
-	require.NoError(t, diags.Error())
-}
-
-func TestPythonWheelWithDBFSLib(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/python_wheel_dbfs_lib", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	match := libraries.ExpandGlobReferences()
-	diags = bundle.Apply(ctx, b, match)
-	require.NoError(t, diags.Error())
-}
-
-func TestPythonWheelBuildNoBuildJustUpload(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/python_wheel_no_artifact_no_setup", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	mockFiler := mockfiler.NewMockFiler(t)
-	mockFiler.EXPECT().Write(
-		mock.Anything,
-		filepath.Join("my_test_code-0.0.1-py3-none-any.whl"),
-		mock.AnythingOfType("*os.File"),
-		filer.OverwriteIfExists,
-		filer.CreateParentDirectories,
-	).Return(nil)
-
-	diags = bundle.Apply(ctx, b, bundle.Seq(
-		libraries.ExpandGlobReferences(),
-		libraries.UploadWithClient(mockFiler),
-	))
-	require.NoError(t, diags.Error())
-	require.Empty(t, diags)
-	require.Equal(t, "/Workspace/foo/bar/.internal/my_test_code-0.0.1-py3-none-any.whl", b.Config.Resources.Jobs["test_job"].JobSettings.Tasks[0].Libraries[0].Whl)
-}
-
-func TestPythonWheelBuildWithEnvironmentKey(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/environment_key", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	matches, err := filepath.Glob("./python_wheel/environment_key/my_test_code/dist/my_test_code-*.whl")
-	require.NoError(t, err)
-	require.Len(t, matches, 1)
-
-	match := libraries.ExpandGlobReferences()
-	diags = bundle.Apply(ctx, b, match)
-	require.NoError(t, diags.Error())
-}
-
-func TestPythonWheelBuildMultiple(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/python_wheel_multiple", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	matches, err := filepath.Glob("./python_wheel/python_wheel_multiple/my_test_code/dist/my_test_code*.whl")
-	require.NoError(t, err)
-	require.Len(t, matches, 2)
-
-	match := libraries.ExpandGlobReferences()
-	diags = bundle.Apply(ctx, b, match)
-	require.NoError(t, diags.Error())
-}
-
-func TestPythonWheelNoBuild(t *testing.T) {
-	b := loadTarget(t, "./python_wheel/python_wheel_no_build", "default")
-
-	ctx := context.Background()
-	diags := bundle.Apply(ctx, b, phases.Build())
-	require.NoError(t, diags.Error())
-
-	match := libraries.ExpandGlobReferences()
-	diags = bundle.Apply(ctx, b, match)
-	require.NoError(t, diags.Error())
-}
diff --git a/bundle/tests/sync_include_exclude_no_matches_test.go b/bundle/tests/sync_include_exclude_no_matches_test.go
index c206e7471..ed929518a 100644
--- a/bundle/tests/sync_include_exclude_no_matches_test.go
+++ b/bundle/tests/sync_include_exclude_no_matches_test.go
@@ -16,7 +16,7 @@ import (
 func TestSyncIncludeExcludeNoMatchesTest(t *testing.T) {
 	b := loadTarget(t, "./sync/override", "development")
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), validate.ValidateSyncPatterns())
+	diags := bundle.Apply(context.Background(), b, validate.ValidateSyncPatterns())
 	require.Len(t, diags, 3)
 	require.NoError(t, diags.Error())
 
@@ -46,7 +46,7 @@ func TestSyncIncludeExcludeNoMatchesTest(t *testing.T) {
 func TestSyncIncludeWithNegate(t *testing.T) {
 	b := loadTarget(t, "./sync/negate", "default")
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), validate.ValidateSyncPatterns())
+	diags := bundle.Apply(context.Background(), b, validate.ValidateSyncPatterns())
 	require.Empty(t, diags)
 	require.NoError(t, diags.Error())
 }
@@ -54,7 +54,7 @@ func TestSyncIncludeWithNegate(t *testing.T) {
 func TestSyncIncludeWithNegateNoMatches(t *testing.T) {
 	b := loadTarget(t, "./sync/negate", "dev")
 
-	diags := bundle.ApplyReadOnly(context.Background(), bundle.ReadOnly(b), validate.ValidateSyncPatterns())
+	diags := bundle.Apply(context.Background(), b, validate.ValidateSyncPatterns())
 	require.Len(t, diags, 1)
 	require.NoError(t, diags.Error())
 
diff --git a/bundle/tests/validate_test.go b/bundle/tests/validate_test.go
index 9cd7c201b..a71b604b0 100644
--- a/bundle/tests/validate_test.go
+++ b/bundle/tests/validate_test.go
@@ -132,7 +132,7 @@ func TestValidateUniqueResourceIdentifiers(t *testing.T) {
 			require.NoError(t, err)
 
 			// The UniqueResourceKeys mutator is run as part of the Load phase.
-			diags := bundle.Apply(ctx, b, phases.Load())
+			diags := phases.Load(ctx, b)
 			assert.Equal(t, tc.diagnostics, diags)
 		})
 	}
diff --git a/bundle/trampoline/python_dbr_warning.go b/bundle/trampoline/python_dbr_warning.go
index 0318df7c9..18fbbb353 100644
--- a/bundle/trampoline/python_dbr_warning.go
+++ b/bundle/trampoline/python_dbr_warning.go
@@ -9,6 +9,7 @@ import (
 	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/bundle/libraries"
 	"github.com/databricks/cli/libs/diag"
+	"github.com/databricks/cli/libs/dyn/dynvar"
 	"github.com/databricks/cli/libs/log"
 	"github.com/databricks/databricks-sdk-go"
 	"golang.org/x/mod/semver"
@@ -60,11 +61,37 @@ func hasIncompatibleWheelTasks(ctx context.Context, b *bundle.Bundle) bool {
 		}
 
 		if task.ExistingClusterId != "" {
-			version, err := getSparkVersionForCluster(ctx, b.WorkspaceClient(), task.ExistingClusterId)
-			// If there's error getting spark version for cluster, do not mark it as incompatible
-			if err != nil {
-				log.Warnf(ctx, "unable to get spark version for cluster %s, err: %s", task.ExistingClusterId, err.Error())
-				return false
+			var version string
+			var err error
+			// If the cluster id is a variable and it's not resolved, it means it references a cluster defined in the same bundle.
+			// So we can get the version from the cluster definition.
+			// It's defined in a form of resources.clusters.<cluster_key>.id
+			if strings.HasPrefix(task.ExistingClusterId, "${") {
+				p, ok := dynvar.PureReferenceToPath(task.ExistingClusterId)
+				if !ok || len(p) < 3 {
+					log.Warnf(ctx, "unable to parse cluster key from %s", task.ExistingClusterId)
+					return false
+				}
+
+				if p[0].Key() != "resources" || p[1].Key() != "clusters" {
+					log.Warnf(ctx, "incorrect variable reference for cluster id %s", task.ExistingClusterId)
+					return false
+				}
+
+				clusterKey := p[2].Key()
+				cluster, ok := b.Config.Resources.Clusters[clusterKey]
+				if !ok {
+					log.Warnf(ctx, "unable to find cluster with key %s", clusterKey)
+					return false
+				}
+				version = cluster.SparkVersion
+			} else {
+				version, err = getSparkVersionForCluster(ctx, b.WorkspaceClient(), task.ExistingClusterId)
+				// If there's error getting spark version for cluster, do not mark it as incompatible
+				if err != nil {
+					log.Warnf(ctx, "unable to get spark version for cluster %s, err: %s", task.ExistingClusterId, err.Error())
+					return false
+				}
 			}
 
 			if lowerThanExpectedVersion(version) {
@@ -82,7 +109,7 @@ func lowerThanExpectedVersion(sparkVersion string) bool {
 		return false
 	}
 
-	if parts[1][0] == 'x' { // treat versions like 13.x as the very latest minor (13.99)
+	if len(parts[1]) > 0 && parts[1][0] == 'x' { // treat versions like 13.x as the very latest minor (13.99)
 		parts[1] = "99"
 	}
 
diff --git a/bundle/trampoline/python_dbr_warning_test.go b/bundle/trampoline/python_dbr_warning_test.go
index d293c9477..96fac7329 100644
--- a/bundle/trampoline/python_dbr_warning_test.go
+++ b/bundle/trampoline/python_dbr_warning_test.go
@@ -346,6 +346,7 @@ func TestSparkVersionLowerThanExpected(t *testing.T) {
 		"13.x-rc-scala-2.12":              false,
 		"client.1.10-scala2.12":           false,
 		"latest-stable-gpu-scala2.11":     false,
+		"1.":                              false,
 		"10.4.x-aarch64-photon-scala2.12": true,
 		"10.4.x-scala2.12":                true,
 		"13.0.x-scala2.12":                true,
diff --git a/bundle/trampoline/python_wheel.go b/bundle/trampoline/python_wheel.go
index 075804479..0951b340c 100644
--- a/bundle/trampoline/python_wheel.go
+++ b/bundle/trampoline/python_wheel.go
@@ -8,8 +8,8 @@ import (
 	"strings"
 
 	"github.com/databricks/cli/bundle"
-	"github.com/databricks/cli/bundle/config/mutator"
 	"github.com/databricks/cli/bundle/libraries"
+	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/databricks-sdk-go/service/compute"
 	"github.com/databricks/databricks-sdk-go/service/jobs"
 )
@@ -61,22 +61,30 @@ s = f.getvalue()
 dbutils.notebook.exit(s)
 `
 
+type transformWheelTask struct{}
+
+func (transformWheelTask) Name() string {
+	return "TransformWheelTask"
+}
+
 // This mutator takes the wheel task and transforms it into notebook
 // which installs uploaded wheels using %pip and then calling corresponding
 // entry point.
 func TransformWheelTask() bundle.Mutator {
-	return bundle.If(
-		func(_ context.Context, b *bundle.Bundle) (bool, error) {
-			res := b.Config.Experimental != nil && b.Config.Experimental.PythonWheelWrapper
-			return res, nil
-		},
-		NewTrampoline(
-			"python_wheel",
-			&pythonTrampoline{},
-			NOTEBOOK_TEMPLATE,
-		),
-		mutator.NoOp(),
-	)
+	return transformWheelTask{}
+}
+
+func (transformWheelTask) Apply(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
+	isEnabled := b.Config.Experimental != nil && b.Config.Experimental.PythonWheelWrapper
+	if !isEnabled {
+		return nil
+	}
+
+	return bundle.Apply(ctx, b, NewTrampoline(
+		"python_wheel",
+		&pythonTrampoline{},
+		NOTEBOOK_TEMPLATE,
+	))
 }
 
 type pythonTrampoline struct{}
diff --git a/cmd/account/budget-policy/budget-policy.go b/cmd/account/budget-policy/budget-policy.go
index 28b14ea91..fb9f8e5a6 100755
--- a/cmd/account/budget-policy/budget-policy.go
+++ b/cmd/account/budget-policy/budget-policy.go
@@ -3,8 +3,6 @@
 package budget_policy
 
 import (
-	"fmt"
-
 	"github.com/databricks/cli/cmd/root"
 	"github.com/databricks/cli/libs/cmdio"
 	"github.com/databricks/cli/libs/flags"
@@ -305,6 +303,8 @@ func newUpdate() *cobra.Command {
 	// TODO: short flags
 	cmd.Flags().Var(&updateJson, "json", `either inline JSON string or @path/to/file.json with request body`)
 
+	// TODO: complex arg: limit_config
+
 	// TODO: array: custom_tags
 	cmd.Flags().StringVar(&updateReq.Policy.PolicyName, "policy-name", updateReq.Policy.PolicyName, `The name of the policy.`)
 
@@ -321,13 +321,6 @@ func newUpdate() *cobra.Command {
 	cmd.Annotations = make(map[string]string)
 
 	cmd.Args = func(cmd *cobra.Command, args []string) error {
-		if cmd.Flags().Changed("json") {
-			err := root.ExactArgs(0)(cmd, args)
-			if err != nil {
-				return fmt.Errorf("when --json flag is specified, no positional arguments are required. Provide 'policy_id' in your JSON input")
-			}
-			return nil
-		}
 		check := root.ExactArgs(1)
 		return check(cmd, args)
 	}
diff --git a/cmd/bundle/deploy.go b/cmd/bundle/deploy.go
index 560b07e39..407a14d8d 100644
--- a/cmd/bundle/deploy.go
+++ b/cmd/bundle/deploy.go
@@ -69,14 +69,19 @@ func newDeployCommand() *cobra.Command {
 				}
 			}
 
-			diags = diags.Extend(
-				bundle.Apply(ctx, b, bundle.Seq(
-					phases.Initialize(),
-					validate.FastValidate(),
-					phases.Build(),
-					phases.Deploy(outputHandler),
-				)),
-			)
+			diags = diags.Extend(phases.Initialize(ctx, b))
+
+			if !diags.HasError() {
+				diags = diags.Extend(bundle.Apply(ctx, b, validate.FastValidate()))
+			}
+
+			if !diags.HasError() {
+				diags = diags.Extend(phases.Build(ctx, b))
+			}
+
+			if !diags.HasError() {
+				diags = diags.Extend(phases.Deploy(ctx, b, outputHandler))
+			}
 		}
 
 		renderOpts := render.RenderOptions{RenderSummaryTable: false}
diff --git a/cmd/bundle/deployment/bind.go b/cmd/bundle/deployment/bind.go
index 71f441d3d..b11984c51 100644
--- a/cmd/bundle/deployment/bind.go
+++ b/cmd/bundle/deployment/bind.go
@@ -53,15 +53,15 @@ func newBindCommand() *cobra.Command {
 			return nil
 		})
 
-		diags = bundle.Apply(ctx, b, bundle.Seq(
-			phases.Initialize(),
-			phases.Bind(&terraform.BindOptions{
+		diags = phases.Initialize(ctx, b)
+		if !diags.HasError() {
+			diags = diags.Extend(phases.Bind(ctx, b, &terraform.BindOptions{
 				AutoApprove:  autoApprove,
 				ResourceType: resource.TerraformResourceName(),
 				ResourceKey:  args[0],
 				ResourceId:   args[1],
-			}),
-		))
+			}))
+		}
 		if err := diags.Error(); err != nil {
 			return fmt.Errorf("failed to bind the resource, err: %w", err)
 		}
diff --git a/cmd/bundle/deployment/unbind.go b/cmd/bundle/deployment/unbind.go
index 9de5285a5..3fe5fbce6 100644
--- a/cmd/bundle/deployment/unbind.go
+++ b/cmd/bundle/deployment/unbind.go
@@ -38,10 +38,10 @@ func newUnbindCommand() *cobra.Command {
 			return nil
 		})
 
-		diags = bundle.Apply(cmd.Context(), b, bundle.Seq(
-			phases.Initialize(),
-			phases.Unbind(resource.TerraformResourceName(), args[0]),
-		))
+		diags = phases.Initialize(ctx, b)
+		if !diags.HasError() {
+			diags = diags.Extend(phases.Unbind(ctx, b, resource.TerraformResourceName(), args[0]))
+		}
 		if err := diags.Error(); err != nil {
 			return err
 		}
diff --git a/cmd/bundle/destroy.go b/cmd/bundle/destroy.go
index 0b2f14875..82580f994 100644
--- a/cmd/bundle/destroy.go
+++ b/cmd/bundle/destroy.go
@@ -61,20 +61,25 @@ func newDestroyCommand() *cobra.Command {
 			return errors.New("please specify --auto-approve since selected logging format is json")
 		}
 
-		diags = bundle.Apply(ctx, b, bundle.Seq(
-			phases.Initialize(),
-			// We need to resolve artifact variable (how we do it in build phase)
-			// because some of the to-be-destroyed resource might use this variable.
-			// Not resolving might lead to terraform "Reference to undeclared resource" error
-			mutator.ResolveVariableReferences(
-				"artifacts",
-			),
-			phases.Destroy(),
-		))
+		diags = phases.Initialize(ctx, b)
 		if err := diags.Error(); err != nil {
 			return err
 		}
-		return nil
+
+		diags = diags.Extend(
+			// We need to resolve artifact variable (how we do it in build phase)
+			// because some of the to-be-destroyed resource might use this variable.
+			// Not resolving might lead to terraform "Reference to undeclared resource" error
+			bundle.Apply(ctx, b, mutator.ResolveVariableReferences("artifacts")),
+		)
+
+		if err := diags.Error(); err != nil {
+			return err
+		}
+
+		diags = diags.Extend(phases.Destroy(ctx, b))
+		// QQQ we're not reporting warnings there. This would be addressed by switching to streaming warnings/errors instead of accumulating.
+		return diags.Error()
 	}
 
 	return cmd
diff --git a/cmd/bundle/generate/dashboard.go b/cmd/bundle/generate/dashboard.go
index d56d246c2..92cd2f164 100644
--- a/cmd/bundle/generate/dashboard.go
+++ b/cmd/bundle/generate/dashboard.go
@@ -345,8 +345,12 @@ func (d *dashboard) initialize(b *bundle.Bundle) diag.Diagnostics {
 }
 
 func (d *dashboard) runForResource(ctx context.Context, b *bundle.Bundle) diag.Diagnostics {
-	diags := bundle.Apply(ctx, b, bundle.Seq(
-		phases.Initialize(),
+	diags := phases.Initialize(ctx, b)
+	if diags.HasError() {
+		return diags
+	}
+
+	diags = diags.Extend(bundle.ApplySeq(ctx, b,
 		terraform.Interpolate(),
 		terraform.Write(),
 		terraform.StatePull(),
diff --git a/cmd/bundle/open.go b/cmd/bundle/open.go
index 5a26e1ea7..733758a8e 100644
--- a/cmd/bundle/open.go
+++ b/cmd/bundle/open.go
@@ -67,7 +67,7 @@ func newOpenCommand() *cobra.Command {
 			return diags.Error()
 		}
 
-		diags = bundle.Apply(ctx, b, phases.Initialize())
+		diags = phases.Initialize(ctx, b)
 		if err := diags.Error(); err != nil {
 			return err
 		}
@@ -86,20 +86,20 @@ func newOpenCommand() *cobra.Command {
 		noCache := errors.Is(stateFileErr, os.ErrNotExist) || errors.Is(configFileErr, os.ErrNotExist)
 
 		if forcePull || noCache {
-			diags = bundle.Apply(ctx, b, bundle.Seq(
+			diags = bundle.ApplySeq(ctx, b,
 				terraform.StatePull(),
 				terraform.Interpolate(),
 				terraform.Write(),
-			))
+			)
 			if err := diags.Error(); err != nil {
 				return err
 			}
 		}
 
-		diags = bundle.Apply(ctx, b, bundle.Seq(
+		diags = bundle.ApplySeq(ctx, b,
 			terraform.Load(),
 			mutator.InitializeURLs(),
-		))
+		)
 		if err := diags.Error(); err != nil {
 			return err
 		}
diff --git a/cmd/bundle/run.go b/cmd/bundle/run.go
index ffb9c1b88..574ad1016 100644
--- a/cmd/bundle/run.go
+++ b/cmd/bundle/run.go
@@ -111,7 +111,7 @@ task or a Python wheel task, the second example applies.
 			return diags.Error()
 		}
 
-		diags = bundle.Apply(ctx, b, phases.Initialize())
+		diags = phases.Initialize(ctx, b)
 		if err := diags.Error(); err != nil {
 			return err
 		}
@@ -121,12 +121,12 @@ task or a Python wheel task, the second example applies.
 			return err
 		}
 
-		diags = bundle.Apply(ctx, b, bundle.Seq(
+		diags = bundle.ApplySeq(ctx, b,
 			terraform.Interpolate(),
 			terraform.Write(),
 			terraform.StatePull(),
 			terraform.Load(terraform.ErrorOnEmptyState),
-		))
+		)
 		if err := diags.Error(); err != nil {
 			return err
 		}
diff --git a/cmd/bundle/summary.go b/cmd/bundle/summary.go
index 2871c82ff..a0e93b78b 100644
--- a/cmd/bundle/summary.go
+++ b/cmd/bundle/summary.go
@@ -35,7 +35,7 @@ func newSummaryCommand() *cobra.Command {
 			return diags.Error()
 		}
 
-		diags = bundle.Apply(ctx, b, phases.Initialize())
+		diags = phases.Initialize(ctx, b)
 		if err := diags.Error(); err != nil {
 			return err
 		}
@@ -49,18 +49,20 @@ func newSummaryCommand() *cobra.Command {
 		noCache := errors.Is(stateFileErr, os.ErrNotExist) || errors.Is(configFileErr, os.ErrNotExist)
 
 		if forcePull || noCache {
-			diags = bundle.Apply(ctx, b, bundle.Seq(
+			diags = bundle.ApplySeq(ctx, b,
 				terraform.StatePull(),
 				terraform.Interpolate(),
 				terraform.Write(),
-			))
+			)
 			if err := diags.Error(); err != nil {
 				return err
 			}
 		}
 
-		diags = bundle.Apply(ctx, b,
-			bundle.Seq(terraform.Load(), mutator.InitializeURLs()))
+		diags = bundle.ApplySeq(ctx, b,
+			terraform.Load(),
+			mutator.InitializeURLs(),
+		)
 		if err := diags.Error(); err != nil {
 			return err
 		}
diff --git a/cmd/bundle/sync.go b/cmd/bundle/sync.go
index 274bba0e0..25475206d 100644
--- a/cmd/bundle/sync.go
+++ b/cmd/bundle/sync.go
@@ -25,7 +25,7 @@ type syncFlags struct {
 }
 
 func (f *syncFlags) syncOptionsFromBundle(cmd *cobra.Command, b *bundle.Bundle) (*sync.SyncOptions, error) {
-	opts, err := files.GetSyncOptions(cmd.Context(), bundle.ReadOnly(b))
+	opts, err := files.GetSyncOptions(cmd.Context(), b)
 	if err != nil {
 		return nil, fmt.Errorf("cannot get sync options: %w", err)
 	}
@@ -71,7 +71,7 @@ func newSyncCommand() *cobra.Command {
 		}
 
 		// Run initialize phase to make sure paths are set.
-		diags = bundle.Apply(ctx, b, phases.Initialize())
+		diags = phases.Initialize(ctx, b)
 		if err := diags.Error(); err != nil {
 			return err
 		}
diff --git a/cmd/bundle/validate.go b/cmd/bundle/validate.go
index c45453af6..0a902806f 100644
--- a/cmd/bundle/validate.go
+++ b/cmd/bundle/validate.go
@@ -46,11 +46,11 @@ func newValidateCommand() *cobra.Command {
 		}
 
 		if !diags.HasError() {
-			diags = diags.Extend(bundle.Apply(ctx, b, phases.Initialize()))
+			diags = diags.Extend(phases.Initialize(ctx, b))
 		}
 
 		if !diags.HasError() {
-			diags = diags.Extend(bundle.Apply(ctx, b, validate.Validate()))
+			diags = diags.Extend(validate.Validate(ctx, b))
 		}
 
 		switch root.OutputType(cmd) {
diff --git a/cmd/cmd.go b/cmd/cmd.go
index 5d835409f..4f5337fd3 100644
--- a/cmd/cmd.go
+++ b/cmd/cmd.go
@@ -12,6 +12,7 @@ import (
 	"github.com/databricks/cli/cmd/fs"
 	"github.com/databricks/cli/cmd/labs"
 	"github.com/databricks/cli/cmd/root"
+	"github.com/databricks/cli/cmd/selftest"
 	"github.com/databricks/cli/cmd/sync"
 	"github.com/databricks/cli/cmd/version"
 	"github.com/databricks/cli/cmd/workspace"
@@ -74,6 +75,7 @@ func New(ctx context.Context) *cobra.Command {
 	cli.AddCommand(labs.New(ctx))
 	cli.AddCommand(sync.New())
 	cli.AddCommand(version.New())
+	cli.AddCommand(selftest.New())
 
 	return cli
 }
diff --git a/cmd/root/auth.go b/cmd/root/auth.go
index 4fcfbb4d8..e2dac68cc 100644
--- a/cmd/root/auth.go
+++ b/cmd/root/auth.go
@@ -195,6 +195,12 @@ func MustWorkspaceClient(cmd *cobra.Command, args []string) error {
 		cfg.Profile = profile
 	}
 
+	_, isTargetFlagSet := targetFlagValue(cmd)
+	// If the profile flag is set but the target flag is not, we should skip loading the bundle configuration.
+	if !isTargetFlagSet && hasProfileFlag {
+		cmd.SetContext(SkipLoadBundle(cmd.Context()))
+	}
+
 	ctx := cmd.Context()
 	ctx = context.WithValue(ctx, &configUsed, cfg)
 	cmd.SetContext(ctx)
diff --git a/cmd/root/bundle.go b/cmd/root/bundle.go
index 5842526f3..b40803707 100644
--- a/cmd/root/bundle.go
+++ b/cmd/root/bundle.go
@@ -14,26 +14,35 @@ import (
 
 // getTarget returns the name of the target to operate in.
 func getTarget(cmd *cobra.Command) (value string) {
+	target, isFlagSet := targetFlagValue(cmd)
+	if isFlagSet {
+		return target
+	}
+
+	// If it's not set, use the environment variable.
+	target, _ = env.Target(cmd.Context())
+	return target
+}
+
+func targetFlagValue(cmd *cobra.Command) (string, bool) {
 	// The command line flag takes precedence.
 	flag := cmd.Flag("target")
 	if flag != nil {
-		value = flag.Value.String()
+		value := flag.Value.String()
 		if value != "" {
-			return
+			return value, true
 		}
 	}
 
 	oldFlag := cmd.Flag("environment")
 	if oldFlag != nil {
-		value = oldFlag.Value.String()
+		value := oldFlag.Value.String()
 		if value != "" {
-			return
+			return value, true
 		}
 	}
 
-	// If it's not set, use the environment variable.
-	target, _ := env.Target(cmd.Context())
-	return target
+	return "", false
 }
 
 func getProfile(cmd *cobra.Command) (value string) {
@@ -65,16 +74,15 @@ func configureProfile(cmd *cobra.Command, b *bundle.Bundle) diag.Diagnostics {
 
 // configureBundle loads the bundle configuration and configures flag values, if any.
 func configureBundle(cmd *cobra.Command, b *bundle.Bundle) (*bundle.Bundle, diag.Diagnostics) {
-	var m bundle.Mutator
-	if target := getTarget(cmd); target == "" {
-		m = phases.LoadDefaultTarget()
-	} else {
-		m = phases.LoadNamedTarget(target)
-	}
-
 	// Load bundle and select target.
 	ctx := cmd.Context()
-	diags := bundle.Apply(ctx, b, m)
+	var diags diag.Diagnostics
+	if target := getTarget(cmd); target == "" {
+		diags = phases.LoadDefaultTarget(ctx, b)
+	} else {
+		diags = phases.LoadNamedTarget(ctx, b, target)
+	}
+
 	if diags.HasError() {
 		return b, diags
 	}
@@ -150,7 +158,7 @@ func targetCompletion(cmd *cobra.Command, args []string, toComplete string) ([]s
 	}
 
 	// Load bundle but don't select a target (we're completing those).
-	diags := bundle.Apply(ctx, b, phases.Load())
+	diags := phases.Load(ctx, b)
 	if err := diags.Error(); err != nil {
 		cobra.CompErrorln(err.Error())
 		return nil, cobra.ShellCompDirectiveError
diff --git a/cmd/root/root.go b/cmd/root/root.go
index d7adf47f4..04815f48b 100644
--- a/cmd/root/root.go
+++ b/cmd/root/root.go
@@ -6,6 +6,7 @@ import (
 	"fmt"
 	"log/slog"
 	"os"
+	"runtime/debug"
 	"strings"
 
 	"github.com/databricks/cli/internal/build"
@@ -96,11 +97,35 @@ func flagErrorFunc(c *cobra.Command, err error) error {
 
 // Execute adds all child commands to the root command and sets flags appropriately.
 // This is called by main.main(). It only needs to happen once to the rootCmd.
-func Execute(ctx context.Context, cmd *cobra.Command) error {
-	// TODO: deferred panic recovery
+func Execute(ctx context.Context, cmd *cobra.Command) (err error) {
+	defer func() {
+		r := recover()
+
+		// No panic. Return normally.
+		if r == nil {
+			return
+		}
+
+		version := build.GetInfo().Version
+		trace := debug.Stack()
+
+		// Set the error so that the CLI exits with a non-zero exit code.
+		err = fmt.Errorf("panic: %v", r)
+
+		fmt.Fprintf(cmd.ErrOrStderr(), `The Databricks CLI unexpectedly had a fatal error.
+Please report this issue to Databricks in the form of a GitHub issue at:
+https://github.com/databricks/cli
+
+CLI Version: %s
+
+Panic Payload: %v
+
+Stack Trace:
+%s`, version, r, string(trace))
+	}()
 
 	// Run the command
-	cmd, err := cmd.ExecuteContextC(ctx)
+	cmd, err = cmd.ExecuteContextC(ctx)
 	if err != nil && !errors.Is(err, ErrAlreadyPrinted) {
 		// If cmdio logger initialization succeeds, then this function logs with the
 		// initialized cmdio logger, otherwise with the default cmdio logger
diff --git a/cmd/selftest/panic.go b/cmd/selftest/panic.go
new file mode 100644
index 000000000..58d8b24e5
--- /dev/null
+++ b/cmd/selftest/panic.go
@@ -0,0 +1,12 @@
+package selftest
+
+import "github.com/spf13/cobra"
+
+func newPanic() *cobra.Command {
+	return &cobra.Command{
+		Use: "panic",
+		Run: func(cmd *cobra.Command, args []string) {
+			panic("the databricks selftest panic command always panics")
+		},
+	}
+}
diff --git a/cmd/selftest/selftest.go b/cmd/selftest/selftest.go
new file mode 100644
index 000000000..7d8cfcb76
--- /dev/null
+++ b/cmd/selftest/selftest.go
@@ -0,0 +1,16 @@
+package selftest
+
+import (
+	"github.com/spf13/cobra"
+)
+
+func New() *cobra.Command {
+	cmd := &cobra.Command{
+		Use:    "selftest",
+		Short:  "Non functional CLI commands that are useful for testing",
+		Hidden: true,
+	}
+
+	cmd.AddCommand(newPanic())
+	return cmd
+}
diff --git a/cmd/sync/sync.go b/cmd/sync/sync.go
index dea40f96a..0f4a4aacc 100644
--- a/cmd/sync/sync.go
+++ b/cmd/sync/sync.go
@@ -33,7 +33,7 @@ func (f *syncFlags) syncOptionsFromBundle(cmd *cobra.Command, args []string, b *
 		return nil, errors.New("SRC and DST are not configurable in the context of a bundle")
 	}
 
-	opts, err := files.GetSyncOptions(cmd.Context(), bundle.ReadOnly(b))
+	opts, err := files.GetSyncOptions(cmd.Context(), b)
 	if err != nil {
 		return nil, fmt.Errorf("cannot get sync options: %w", err)
 	}
diff --git a/cmd/workspace/apps/apps.go b/cmd/workspace/apps/apps.go
index f7c08ece1..6eb85d873 100755
--- a/cmd/workspace/apps/apps.go
+++ b/cmd/workspace/apps/apps.go
@@ -956,13 +956,6 @@ func newUpdate() *cobra.Command {
 	cmd.Annotations = make(map[string]string)
 
 	cmd.Args = func(cmd *cobra.Command, args []string) error {
-		if cmd.Flags().Changed("json") {
-			err := root.ExactArgs(0)(cmd, args)
-			if err != nil {
-				return fmt.Errorf("when --json flag is specified, no positional arguments are required. Provide 'name' in your JSON input")
-			}
-			return nil
-		}
 		check := root.ExactArgs(1)
 		return check(cmd, args)
 	}
diff --git a/cmd/workspace/genie/genie.go b/cmd/workspace/genie/genie.go
index 25fa9396d..99841637a 100755
--- a/cmd/workspace/genie/genie.go
+++ b/cmd/workspace/genie/genie.go
@@ -40,6 +40,7 @@ func New() *cobra.Command {
 	cmd.AddCommand(newExecuteMessageQuery())
 	cmd.AddCommand(newGetMessage())
 	cmd.AddCommand(newGetMessageQueryResult())
+	cmd.AddCommand(newGetMessageQueryResultByAttachment())
 	cmd.AddCommand(newStartConversation())
 
 	// Apply optional overrides to this command.
@@ -344,6 +345,71 @@ func newGetMessageQueryResult() *cobra.Command {
 	return cmd
 }
 
+// start get-message-query-result-by-attachment command
+
+// Slice with functions to override default command behavior.
+// Functions can be added from the `init()` function in manually curated files in this directory.
+var getMessageQueryResultByAttachmentOverrides []func(
+	*cobra.Command,
+	*dashboards.GenieGetQueryResultByAttachmentRequest,
+)
+
+func newGetMessageQueryResultByAttachment() *cobra.Command {
+	cmd := &cobra.Command{}
+
+	var getMessageQueryResultByAttachmentReq dashboards.GenieGetQueryResultByAttachmentRequest
+
+	// TODO: short flags
+
+	cmd.Use = "get-message-query-result-by-attachment SPACE_ID CONVERSATION_ID MESSAGE_ID ATTACHMENT_ID"
+	cmd.Short = `Get conversation message SQL query result by attachment id.`
+	cmd.Long = `Get conversation message SQL query result by attachment id.
+  
+  Get the result of SQL query by attachment id This is only available if a
+  message has a query attachment and the message status is EXECUTING_QUERY.
+
+  Arguments:
+    SPACE_ID: Genie space ID
+    CONVERSATION_ID: Conversation ID
+    MESSAGE_ID: Message ID
+    ATTACHMENT_ID: Attachment ID`
+
+	cmd.Annotations = make(map[string]string)
+
+	cmd.Args = func(cmd *cobra.Command, args []string) error {
+		check := root.ExactArgs(4)
+		return check(cmd, args)
+	}
+
+	cmd.PreRunE = root.MustWorkspaceClient
+	cmd.RunE = func(cmd *cobra.Command, args []string) (err error) {
+		ctx := cmd.Context()
+		w := root.WorkspaceClient(ctx)
+
+		getMessageQueryResultByAttachmentReq.SpaceId = args[0]
+		getMessageQueryResultByAttachmentReq.ConversationId = args[1]
+		getMessageQueryResultByAttachmentReq.MessageId = args[2]
+		getMessageQueryResultByAttachmentReq.AttachmentId = args[3]
+
+		response, err := w.Genie.GetMessageQueryResultByAttachment(ctx, getMessageQueryResultByAttachmentReq)
+		if err != nil {
+			return err
+		}
+		return cmdio.Render(ctx, response)
+	}
+
+	// Disable completions since they are not applicable.
+	// Can be overridden by manual implementation in `override.go`.
+	cmd.ValidArgsFunction = cobra.NoFileCompletions
+
+	// Apply optional overrides to this command.
+	for _, fn := range getMessageQueryResultByAttachmentOverrides {
+		fn(cmd, &getMessageQueryResultByAttachmentReq)
+	}
+
+	return cmd
+}
+
 // start start-conversation command
 
 // Slice with functions to override default command behavior.
diff --git a/cmd/workspace/lakeview/lakeview.go b/cmd/workspace/lakeview/lakeview.go
index 6686f16da..eb2f5d8fa 100755
--- a/cmd/workspace/lakeview/lakeview.go
+++ b/cmd/workspace/lakeview/lakeview.go
@@ -163,13 +163,6 @@ func newCreateSchedule() *cobra.Command {
 	cmd.Annotations = make(map[string]string)
 
 	cmd.Args = func(cmd *cobra.Command, args []string) error {
-		if cmd.Flags().Changed("json") {
-			err := root.ExactArgs(0)(cmd, args)
-			if err != nil {
-				return fmt.Errorf("when --json flag is specified, no positional arguments are required. Provide 'cron_schedule' in your JSON input")
-			}
-			return nil
-		}
 		check := root.ExactArgs(1)
 		return check(cmd, args)
 	}
@@ -242,13 +235,6 @@ func newCreateSubscription() *cobra.Command {
 	cmd.Annotations = make(map[string]string)
 
 	cmd.Args = func(cmd *cobra.Command, args []string) error {
-		if cmd.Flags().Changed("json") {
-			err := root.ExactArgs(0)(cmd, args)
-			if err != nil {
-				return fmt.Errorf("when --json flag is specified, no positional arguments are required. Provide 'subscriber' in your JSON input")
-			}
-			return nil
-		}
 		check := root.ExactArgs(2)
 		return check(cmd, args)
 	}
@@ -1195,13 +1181,6 @@ func newUpdateSchedule() *cobra.Command {
 	cmd.Annotations = make(map[string]string)
 
 	cmd.Args = func(cmd *cobra.Command, args []string) error {
-		if cmd.Flags().Changed("json") {
-			err := root.ExactArgs(0)(cmd, args)
-			if err != nil {
-				return fmt.Errorf("when --json flag is specified, no positional arguments are required. Provide 'cron_schedule' in your JSON input")
-			}
-			return nil
-		}
 		check := root.ExactArgs(2)
 		return check(cmd, args)
 	}
diff --git a/go.mod b/go.mod
index b4157c61b..6e3c51e79 100644
--- a/go.mod
+++ b/go.mod
@@ -9,7 +9,7 @@ require (
 	github.com/BurntSushi/toml v1.4.0 // MIT
 	github.com/Masterminds/semver/v3 v3.3.1 // MIT
 	github.com/briandowns/spinner v1.23.1 // Apache 2.0
-	github.com/databricks/databricks-sdk-go v0.57.0 // Apache 2.0
+	github.com/databricks/databricks-sdk-go v0.58.1 // Apache 2.0
 	github.com/fatih/color v1.18.0 // MIT
 	github.com/google/uuid v1.6.0 // BSD-3-Clause
 	github.com/gorilla/mux v1.8.1 // BSD 3-Clause
@@ -23,7 +23,7 @@ require (
 	github.com/nwidger/jsoncolor v0.3.2 // MIT
 	github.com/pkg/browser v0.0.0-20210911075715-681adbf594b8 // BSD-2-Clause
 	github.com/sabhiram/go-gitignore v0.0.0-20210923224102-525f6e181f06 // MIT
-	github.com/spf13/cobra v1.8.1 // Apache 2.0
+	github.com/spf13/cobra v1.9.1 // Apache 2.0
 	github.com/spf13/pflag v1.0.6 // BSD-3-Clause
 	github.com/stretchr/testify v1.10.0 // MIT
 	github.com/wI2L/jsondiff v0.6.1 // MIT
@@ -31,14 +31,13 @@ require (
 	golang.org/x/mod v0.23.0
 	golang.org/x/oauth2 v0.26.0
 	golang.org/x/sync v0.11.0
+	golang.org/x/sys v0.30.0
 	golang.org/x/term v0.29.0
 	golang.org/x/text v0.22.0
 	gopkg.in/ini.v1 v1.67.0 // Apache 2.0
 	gopkg.in/yaml.v3 v3.0.1
 )
 
-require golang.org/x/sys v0.30.0
-
 require (
 	cloud.google.com/go/auth v0.4.2 // indirect
 	cloud.google.com/go/auth/oauth2adapt v0.2.2 // indirect
diff --git a/go.sum b/go.sum
index fbf942148..2caabeb95 100644
--- a/go.sum
+++ b/go.sum
@@ -31,11 +31,11 @@ github.com/client9/misspell v0.3.4/go.mod h1:qj6jICC3Q7zFZvVWo7KLAzC3yx5G7kyvSDk
 github.com/cloudflare/circl v1.3.7 h1:qlCDlTPz2n9fu58M0Nh1J/JzcFpfgkFHHX3O35r5vcU=
 github.com/cloudflare/circl v1.3.7/go.mod h1:sRTcRWXGLrKw6yIGJ+l7amYJFfAXbZG0kBSc8r4zxgA=
 github.com/cncf/udpa/go v0.0.0-20191209042840-269d4d468f6f/go.mod h1:M8M6+tZqaGXZJjfX53e64911xZQV5JYwmTeXPW+k8Sc=
-github.com/cpuguy83/go-md2man/v2 v2.0.4/go.mod h1:tgQtvFlXSQOSOSIRvRPT7W67SCa46tRHOmNcaadrF8o=
+github.com/cpuguy83/go-md2man/v2 v2.0.6/go.mod h1:oOW0eioCTA6cOiMLiUPZOpcVxMig6NIQQ7OS05n1F4g=
 github.com/cyphar/filepath-securejoin v0.2.5 h1:6iR5tXJ/e6tJZzzdMc1km3Sa7RRIVBKAK32O2s7AYfo=
 github.com/cyphar/filepath-securejoin v0.2.5/go.mod h1:aPGpWjXOXUn2NCNjFvBE6aRxGGx79pTxQpKOJNYHHl4=
-github.com/databricks/databricks-sdk-go v0.57.0 h1:Vs3a+Zmg403er4+xpD7ZTQWm7e51d2q3yYEyIIgvtYw=
-github.com/databricks/databricks-sdk-go v0.57.0/go.mod h1:JpLizplEs+up9/Z4Xf2x++o3sM9eTTWFGzIXAptKJzI=
+github.com/databricks/databricks-sdk-go v0.58.1 h1:dUs9ZmFi7hYiL3NwLSAbxqQu66E3BzwM8EU/wcCTJ10=
+github.com/databricks/databricks-sdk-go v0.58.1/go.mod h1:JpLizplEs+up9/Z4Xf2x++o3sM9eTTWFGzIXAptKJzI=
 github.com/davecgh/go-spew v1.1.0/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=
 github.com/davecgh/go-spew v1.1.1 h1:vj9j/u1bqnvCEfJOwUhtlOARqs3+rkHYY13jYWTU97c=
 github.com/davecgh/go-spew v1.1.1/go.mod h1:J7Y8YcW2NihsgmVo/mv3lAwl/skON4iLHjSsI+c5H38=
@@ -147,9 +147,8 @@ github.com/sergi/go-diff v1.3.2-0.20230802210424-5b0b94c5c0d3 h1:n661drycOFuPLCN
 github.com/sergi/go-diff v1.3.2-0.20230802210424-5b0b94c5c0d3/go.mod h1:A0bzQcvG0E7Rwjx0REVgAGH58e96+X0MeOfepqsbeW4=
 github.com/skeema/knownhosts v1.3.0 h1:AM+y0rI04VksttfwjkSTNQorvGqmwATnvnAHpSgc0LY=
 github.com/skeema/knownhosts v1.3.0/go.mod h1:sPINvnADmT/qYH1kfv+ePMmOBTH6Tbl7b5LvTDjFK7M=
-github.com/spf13/cobra v1.8.1 h1:e5/vxKd/rZsfSJMUX1agtjeTDf+qv1/JdBF8gg5k9ZM=
-github.com/spf13/cobra v1.8.1/go.mod h1:wHxEcudfqmLYa8iTfL+OuZPbBZkmvliBWKIezN3kD9Y=
-github.com/spf13/pflag v1.0.5/go.mod h1:McXfInJRrz4CZXVZOBLb0bTZqETkiAhM9Iw0y3An2Bg=
+github.com/spf13/cobra v1.9.1 h1:CXSaggrXdbHK9CF+8ywj8Amf7PBRmPCOJugH954Nnlo=
+github.com/spf13/cobra v1.9.1/go.mod h1:nDyEzZ8ogv936Cinf6g1RU9MRY64Ir93oCnqb9wxYW0=
 github.com/spf13/pflag v1.0.6 h1:jFzHGLGAlb3ruxLB8MhbI6A8+AQX/2eW4qeyNZXNp2o=
 github.com/spf13/pflag v1.0.6/go.mod h1:McXfInJRrz4CZXVZOBLb0bTZqETkiAhM9Iw0y3An2Bg=
 github.com/stretchr/objx v0.1.0/go.mod h1:HFkY916IF+rwdDfMAkV7OtwuqBVzrE8GR6GFx+wExME=
diff --git a/integration/bundle/artifacts_test.go b/integration/bundle/artifacts_test.go
index 94b96899e..125b5febd 100644
--- a/integration/bundle/artifacts_test.go
+++ b/integration/bundle/artifacts_test.go
@@ -80,7 +80,7 @@ func TestUploadArtifactFileToCorrectRemotePath(t *testing.T) {
 		},
 	}
 
-	diags := bundle.Apply(ctx, b, bundle.Seq(libraries.ExpandGlobReferences(), libraries.Upload()))
+	diags := bundle.ApplySeq(ctx, b, libraries.ExpandGlobReferences(), libraries.Upload())
 	require.NoError(t, diags.Error())
 
 	// The remote path attribute on the artifact file should have been set.
@@ -144,7 +144,7 @@ func TestUploadArtifactFileToCorrectRemotePathWithEnvironments(t *testing.T) {
 		},
 	}
 
-	diags := bundle.Apply(ctx, b, bundle.Seq(libraries.ExpandGlobReferences(), libraries.Upload()))
+	diags := bundle.ApplySeq(ctx, b, libraries.ExpandGlobReferences(), libraries.Upload())
 	require.NoError(t, diags.Error())
 
 	// The remote path attribute on the artifact file should have been set.
@@ -213,7 +213,7 @@ func TestUploadArtifactFileToCorrectRemotePathForVolumes(t *testing.T) {
 		},
 	}
 
-	diags := bundle.Apply(ctx, b, bundle.Seq(libraries.ExpandGlobReferences(), libraries.Upload()))
+	diags := bundle.ApplySeq(ctx, b, libraries.ExpandGlobReferences(), libraries.Upload())
 	require.NoError(t, diags.Error())
 
 	// The remote path attribute on the artifact file should have been set.
diff --git a/integration/bundle/init_default_python_test.go b/integration/bundle/init_default_python_test.go
index 931660032..9ac8f47bd 100644
--- a/integration/bundle/init_default_python_test.go
+++ b/integration/bundle/init_default_python_test.go
@@ -5,6 +5,7 @@ import (
 	"os"
 	"os/exec"
 	"path/filepath"
+	"strings"
 	"testing"
 
 	"github.com/databricks/cli/integration/internal/acc"
@@ -30,8 +31,8 @@ var pythonVersionsShort = []string{
 }
 
 var extraInstalls = map[string][]string{
-	"3.12": {"setuptools"},
-	"3.13": {"setuptools"},
+	"3.12": {"setuptools==75.8.2"},
+	"3.13": {"setuptools==75.8.2"},
 }
 
 func TestDefaultPython(t *testing.T) {
@@ -53,6 +54,7 @@ func testDefaultPython(t *testing.T, pythonVersion string) {
 	uniqueProjectId := testutil.RandomName("")
 	ctx, replacements := testdiff.WithReplacementsMap(ctx)
 	replacements.Set(uniqueProjectId, "$UNIQUE_PRJ")
+	replacements.Set(strings.ToLower(uniqueProjectId), "$UNIQUE_PRJ")
 
 	user, err := wt.W.CurrentUser.Me(ctx)
 	require.NoError(t, err)
diff --git a/integration/bundle/spark_jar_test.go b/integration/bundle/spark_jar_test.go
index cbdf5a00c..fc2fe0d0f 100644
--- a/integration/bundle/spark_jar_test.go
+++ b/integration/bundle/spark_jar_test.go
@@ -11,6 +11,50 @@ import (
 	"github.com/stretchr/testify/require"
 )
 
+// sparkJarTestCase defines a Databricks runtime version and a local Java version requirement
+type sparkJarTestCase struct {
+	name                string // Test name
+	runtimeVersion      string // The Spark runtime version to test
+	requiredJavaVersion string // Java version that can compile jar to pass this test
+}
+
+// runSparkJarTests runs a set of test cases with appropriate Java version checks
+// testRunner is the function that runs the actual test with the runtime version
+func runSparkJarTests(t *testing.T, testCases []sparkJarTestCase, testRunner func(t *testing.T, runtimeVersion string)) {
+	t.Helper()
+
+	testCanRun := make(map[string]bool)
+	atLeastOneCanRun := false
+	for _, tc := range testCases {
+		if testutil.HasJDK(t, context.Background(), tc.requiredJavaVersion) {
+			testCanRun[tc.name] = true
+			atLeastOneCanRun = true
+			continue
+		}
+		testCanRun[tc.name] = false
+	}
+
+	if !atLeastOneCanRun {
+		t.Fatal("At least one test is required to pass. All tests were skipped because no compatible Java version was found.")
+	}
+
+	// Run the tests that can run
+	for _, tc := range testCases {
+		tc := tc // Capture range variable for goroutine
+		canRun := testCanRun[tc.name]
+
+		t.Run(tc.name, func(t *testing.T) {
+			if !canRun {
+				t.Skipf("Skipping %s: requires Java version %v", tc.name, tc.requiredJavaVersion)
+				return
+			}
+
+			t.Parallel()
+			testRunner(t, tc.runtimeVersion)
+		})
+	}
+}
+
 func runSparkJarTestCommon(t *testing.T, ctx context.Context, sparkVersion, artifactPath string) {
 	nodeTypeId := testutil.GetCloud(t).NodeTypeID()
 	tmpDir := t.TempDir()
@@ -54,46 +98,60 @@ func runSparkJarTestFromWorkspace(t *testing.T, sparkVersion string) {
 }
 
 func TestSparkJarTaskDeployAndRunOnVolumes(t *testing.T) {
-	testutil.RequireJDK(t, context.Background(), "1.8.0")
-
 	// Failure on earlier DBR versions:
 	//
 	//   JAR installation from Volumes is supported on UC Clusters with DBR >= 13.3.
 	//   Denied library is Jar(/Volumes/main/test-schema-ldgaklhcahlg/my-volume/.internal/PrintArgs.jar)
 	//
 
-	versions := []string{
-		"13.3.x-scala2.12", // 13.3 LTS (includes Apache Spark 3.4.1, Scala 2.12)
-		"14.3.x-scala2.12", // 14.3 LTS (includes Apache Spark 3.5.0, Scala 2.12)
-		"15.4.x-scala2.12", // 15.4 LTS Beta (includes Apache Spark 3.5.0, Scala 2.12)
-	}
-
-	for _, version := range versions {
-		t.Run(version, func(t *testing.T) {
-			t.Parallel()
-			runSparkJarTestFromVolume(t, version)
-		})
+	testCases := []sparkJarTestCase{
+		{
+			name:                "Databricks Runtime 13.3 LTS",
+			runtimeVersion:      "13.3.x-scala2.12", // 13.3 LTS (includes Apache Spark 3.4.1, Scala 2.12)
+			requiredJavaVersion: "1.8.0",            // Only JDK 8 is supported
+		},
+		{
+			name:                "Databricks Runtime 14.3 LTS",
+			runtimeVersion:      "14.3.x-scala2.12", // 14.3 LTS (includes Apache Spark 3.5.0, Scala 2.12)
+			requiredJavaVersion: "1.8.0",            // Only JDK 8 is supported
+		},
+		{
+			name:                "Databricks Runtime 15.4 LTS",
+			runtimeVersion:      "15.4.x-scala2.12", // 15.4 LTS (includes Apache Spark 3.5.0, Scala 2.12)
+			requiredJavaVersion: "1.8.0",            // Only JDK 8 is supported
+		},
+		{
+			name:                "Databricks Runtime 16.2",
+			runtimeVersion:      "16.2.x-scala2.12", // 16.2 (includes Apache Spark 3.5.2, Scala 2.12)
+			requiredJavaVersion: "11.0",             // Can run jars compiled by Java 11
+		},
 	}
+	runSparkJarTests(t, testCases, runSparkJarTestFromVolume)
 }
 
 func TestSparkJarTaskDeployAndRunOnWorkspace(t *testing.T) {
-	testutil.RequireJDK(t, context.Background(), "1.8.0")
-
 	// Failure on earlier DBR versions:
 	//
 	//   Library from /Workspace is not allowed on this cluster.
 	//   Please switch to using DBR 14.1+ No Isolation Shared or DBR 13.1+ Shared cluster or 13.2+ Assigned cluster to use /Workspace libraries.
 	//
 
-	versions := []string{
-		"14.3.x-scala2.12", // 14.3 LTS (includes Apache Spark 3.5.0, Scala 2.12)
-		"15.4.x-scala2.12", // 15.4 LTS Beta (includes Apache Spark 3.5.0, Scala 2.12)
-	}
-
-	for _, version := range versions {
-		t.Run(version, func(t *testing.T) {
-			t.Parallel()
-			runSparkJarTestFromWorkspace(t, version)
-		})
+	testCases := []sparkJarTestCase{
+		{
+			name:                "Databricks Runtime 14.3 LTS",
+			runtimeVersion:      "14.3.x-scala2.12", // 14.3 LTS (includes Apache Spark 3.5.0, Scala 2.12)
+			requiredJavaVersion: "1.8.0",            // Only JDK 8 is supported
+		},
+		{
+			name:                "Databricks Runtime 15.4 LTS",
+			runtimeVersion:      "15.4.x-scala2.12", // 15.4 LTS (includes Apache Spark 3.5.0, Scala 2.12)
+			requiredJavaVersion: "1.8.0",            // Only JDK 8 is supported
+		},
+		{
+			name:                "Databricks Runtime 16.2",
+			runtimeVersion:      "16.2.x-scala2.12", // 16.2 (includes Apache Spark 3.5.2, Scala 2.12)
+			requiredJavaVersion: "11.0",             // Can run jars compiled by Java 11
+		},
 	}
+	runSparkJarTests(t, testCases, runSparkJarTestFromWorkspace)
 }
diff --git a/integration/bundle/testdata/apps/bundle_deploy.txt b/integration/bundle/testdata/apps/bundle_deploy.txt
index 437a55596..55b8dedc6 100644
--- a/integration/bundle/testdata/apps/bundle_deploy.txt
+++ b/integration/bundle/testdata/apps/bundle_deploy.txt
@@ -2,3 +2,7 @@ Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/$UNIQUE_PRJ/files.
 Deploying resources...
 Updating deployment state...
 Deployment complete!
+Warning: App config section detected
+
+remove 'config' from app resource 'test_app' section and use app.yml file in the root of this app instead
+
diff --git a/integration/bundle/testdata/apps/bundle_validate.txt b/integration/bundle/testdata/apps/bundle_validate.txt
index 567fafd24..cb37fc4bd 100644
--- a/integration/bundle/testdata/apps/bundle_validate.txt
+++ b/integration/bundle/testdata/apps/bundle_validate.txt
@@ -1,7 +1,11 @@
+Warning: App config section detected
+
+remove 'config' from app resource 'test_app' section and use app.yml file in the root of this app instead
+
 Name: basic
 Target: default
 Workspace:
   User: [USERNAME]
   Path: /Workspace/Users/[USERNAME]/.bundle/$UNIQUE_PRJ
 
-Validation OK!
+Found 1 warning
diff --git a/integration/bundle/testdata/default_python/bundle_deploy.txt b/integration/bundle/testdata/default_python/bundle_deploy.txt
index 076e7618f..fe1cc4fac 100644
--- a/integration/bundle/testdata/default_python/bundle_deploy.txt
+++ b/integration/bundle/testdata/default_python/bundle_deploy.txt
@@ -1,4 +1,4 @@
-Building project_name_$UNIQUE_PRJ...
+Building python_artifact...
 Uploading project_name_$UNIQUE_PRJ-0.0.1+[NUMID].[NUMID]-py3-none-any.whl...
 Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/project_name_$UNIQUE_PRJ/dev/files...
 Deploying resources...
diff --git a/integration/bundle/testdata/default_python/bundle_summary.txt b/integration/bundle/testdata/default_python/bundle_summary.txt
index 450f01c46..968009759 100644
--- a/integration/bundle/testdata/default_python/bundle_summary.txt
+++ b/integration/bundle/testdata/default_python/bundle_summary.txt
@@ -82,6 +82,7 @@
                 "max_workers": 4,
                 "min_workers": 1
               },
+              "data_security_mode": "SINGLE_USER",
               "node_type_id": "i3.xlarge",
               "spark_version": "15.4.x-scala2.12"
             }
diff --git a/integration/cmd/auth/describe_test.go b/integration/cmd/auth/describe_test.go
index f592bc276..66b83b557 100644
--- a/integration/cmd/auth/describe_test.go
+++ b/integration/cmd/auth/describe_test.go
@@ -2,6 +2,8 @@ package auth_test
 
 import (
 	"context"
+	"regexp"
+	"strings"
 	"testing"
 
 	"github.com/databricks/cli/internal/testcli"
@@ -10,8 +12,6 @@ import (
 )
 
 func TestAuthDescribeSuccess(t *testing.T) {
-	t.Skipf("Skipping because of https://github.com/databricks/cli/issues/2010")
-
 	ctx := context.Background()
 	stdout, _ := testcli.RequireSuccessfulRun(t, ctx, "auth", "describe")
 	outStr := stdout.String()
@@ -20,7 +20,9 @@ func TestAuthDescribeSuccess(t *testing.T) {
 	require.NoError(t, err)
 
 	require.NotEmpty(t, outStr)
-	require.Contains(t, outStr, "Host: "+w.Config.Host)
+
+	hostWithoutPrefix := strings.TrimPrefix(w.Config.Host, "https://")
+	require.Regexp(t, "Host: (?:https://)?"+regexp.QuoteMeta(hostWithoutPrefix), outStr)
 
 	me, err := w.CurrentUser.Me(context.Background())
 	require.NoError(t, err)
diff --git a/internal/testutil/jdk.go b/internal/testutil/jdk.go
index 60fa439db..6c3277719 100644
--- a/internal/testutil/jdk.go
+++ b/internal/testutil/jdk.go
@@ -1,23 +1,44 @@
 package testutil
 
 import (
-	"bytes"
 	"context"
 	"os/exec"
 	"strings"
-
-	"github.com/stretchr/testify/require"
 )
 
-func RequireJDK(t TestingT, ctx context.Context, version string) {
-	var stderr bytes.Buffer
+// HasJDK checks if the specified Java version is available in the system.
+// It returns true if the required JDK version is present, false otherwise.
+// This is a non-failing variant of RequireJDK.
+//
+// Example output of `java -version` in eclipse-temurin:8:
+// openjdk version "1.8.0_442"
+// OpenJDK Runtime Environment (Temurin)(build 1.8.0_442-b06)
+// OpenJDK 64-Bit Server VM (Temurin)(build 25.442-b06, mixed mode)
+//
+// Example output of `java -version` in java11 (homebrew):
+// openjdk version "11.0.26" 2025-01-21
+// OpenJDK Runtime Environment Homebrew (build 11.0.26+0)
+// OpenJDK 64-Bit Server VM Homebrew (build 11.0.26+0, mixed mode)
+func HasJDK(t TestingT, ctx context.Context, version string) bool {
+	t.Helper()
 
-	cmd := exec.Command("javac", "-version")
-	cmd.Stderr = &stderr
-	err := cmd.Run()
-	require.NoError(t, err, "Unable to run javac -version")
+	// Try to execute "java -version" command
+	cmd := exec.CommandContext(ctx, "java", "-version")
+	output, err := cmd.CombinedOutput()
+	if err != nil {
+		t.Logf("Failed to execute java -version: %v", err)
+		return false
+	}
 
-	// Get the first line of the output
-	line := strings.Split(stderr.String(), "\n")[0]
-	require.Contains(t, line, version, "Expected JDK version %s, got %s", version, line)
+	javaVersionOutput := string(output)
+
+	// Check if the output contains the expected version
+	expectedVersionString := "version \"" + version
+	if strings.Contains(javaVersionOutput, expectedVersionString) {
+		t.Logf("Detected JDK version %s", version)
+		return true
+	}
+
+	t.Logf("Required JDK version %s not found, instead got: %s", version, javaVersionOutput)
+	return false
 }
diff --git a/libs/auth/env.go b/libs/auth/env.go
index c58cc53e3..7413662b9 100644
--- a/libs/auth/env.go
+++ b/libs/auth/env.go
@@ -24,3 +24,36 @@ func Env(cfg *config.Config) map[string]string {
 
 	return out
 }
+
+func GetEnvFor(name string) (string, bool) {
+	for _, attr := range config.ConfigAttributes {
+		if attr.Name != name {
+			continue
+		}
+		if len(attr.EnvVars) == 0 {
+			return "", false
+		}
+		return attr.EnvVars[0], true
+	}
+
+	return "", false
+}
+
+// EnvVars returns the list of environment variables that the SDK reads to configure
+// authentication.
+// This is useful for spawning subprocesses since you can unset all auth environment
+// variables to clean up the environment before configuring authentication for the
+// child process.
+func EnvVars() []string {
+	out := []string{}
+
+	for _, attr := range config.ConfigAttributes {
+		if len(attr.EnvVars) == 0 {
+			continue
+		}
+
+		out = append(out, attr.EnvVars...)
+	}
+
+	return out
+}
diff --git a/libs/auth/env_test.go b/libs/auth/env_test.go
index be1cfc7ac..38dc1c6b7 100644
--- a/libs/auth/env_test.go
+++ b/libs/auth/env_test.go
@@ -40,3 +40,90 @@ func TestAuthEnv(t *testing.T) {
 	out := Env(in)
 	assert.Equal(t, expected, out)
 }
+
+func TestGetEnvFor(t *testing.T) {
+	tcases := []struct {
+		name     string
+		expected string
+	}{
+		// Generic attributes.
+		{"host", "DATABRICKS_HOST"},
+		{"profile", "DATABRICKS_CONFIG_PROFILE"},
+		{"auth_type", "DATABRICKS_AUTH_TYPE"},
+		{"metadata_service_url", "DATABRICKS_METADATA_SERVICE_URL"},
+
+		// OAuth specific attributes.
+		{"client_id", "DATABRICKS_CLIENT_ID"},
+
+		// Google specific attributes.
+		{"google_service_account", "DATABRICKS_GOOGLE_SERVICE_ACCOUNT"},
+
+		// Azure specific attributes.
+		{"azure_workspace_resource_id", "DATABRICKS_AZURE_RESOURCE_ID"},
+		{"azure_use_msi", "ARM_USE_MSI"},
+		{"azure_client_id", "ARM_CLIENT_ID"},
+		{"azure_tenant_id", "ARM_TENANT_ID"},
+		{"azure_environment", "ARM_ENVIRONMENT"},
+		{"azure_login_app_id", "DATABRICKS_AZURE_LOGIN_APP_ID"},
+	}
+
+	for _, tcase := range tcases {
+		t.Run(tcase.name, func(t *testing.T) {
+			out, ok := GetEnvFor(tcase.name)
+			assert.True(t, ok)
+			assert.Equal(t, tcase.expected, out)
+		})
+	}
+
+	out, ok := GetEnvFor("notfound")
+	assert.False(t, ok)
+	assert.Empty(t, out)
+}
+
+func TestAuthEnvVars(t *testing.T) {
+	// Few common environment variables that we expect the SDK to support.
+	contains := []string{
+		// Generic attributes.
+		"DATABRICKS_HOST",
+		"DATABRICKS_CONFIG_PROFILE",
+		"DATABRICKS_AUTH_TYPE",
+		"DATABRICKS_METADATA_SERVICE_URL",
+		"DATABRICKS_CONFIG_FILE",
+
+		// OAuth specific attributes.
+		"DATABRICKS_CLIENT_ID",
+		"DATABRICKS_CLIENT_SECRET",
+		"DATABRICKS_CLI_PATH",
+
+		// Google specific attributes.
+		"DATABRICKS_GOOGLE_SERVICE_ACCOUNT",
+		"GOOGLE_CREDENTIALS",
+
+		// Personal access token specific attributes.
+		"DATABRICKS_TOKEN",
+
+		// Databricks password specific attributes.
+		"DATABRICKS_USERNAME",
+		"DATABRICKS_PASSWORD",
+
+		// Account authentication attributes.
+		"DATABRICKS_ACCOUNT_ID",
+
+		// Azure attributes
+		"DATABRICKS_AZURE_RESOURCE_ID",
+		"ARM_USE_MSI",
+		"ARM_CLIENT_SECRET",
+		"ARM_CLIENT_ID",
+		"ARM_TENANT_ID",
+		"ARM_ENVIRONMENT",
+
+		// Github attributes
+		"ACTIONS_ID_TOKEN_REQUEST_URL",
+		"ACTIONS_ID_TOKEN_REQUEST_TOKEN",
+	}
+
+	out := EnvVars()
+	for _, v := range contains {
+		assert.Contains(t, out, v)
+	}
+}
diff --git a/libs/cmdgroup/command_test.go b/libs/cmdgroup/command_test.go
index 2c248f09f..20904aad0 100644
--- a/libs/cmdgroup/command_test.go
+++ b/libs/cmdgroup/command_test.go
@@ -41,7 +41,7 @@ func TestCommandFlagGrouping(t *testing.T) {
 	cmd.Flags().BoolP("bool", "b", false, "Bool flag")
 
 	buf := bytes.NewBuffer(nil)
-	cmd.SetOutput(buf)
+	cmd.SetOut(buf)
 	err := cmd.Usage()
 	require.NoError(t, err)
 
diff --git a/libs/cmdio/logger.go b/libs/cmdio/logger.go
index 48b76ce42..7d369a8a0 100644
--- a/libs/cmdio/logger.go
+++ b/libs/cmdio/logger.go
@@ -9,6 +9,7 @@ import (
 	"io"
 	"os"
 	"strings"
+	"sync"
 
 	"github.com/databricks/cli/libs/flags"
 	"github.com/manifoldco/promptui"
@@ -29,6 +30,8 @@ type Logger struct {
 	// If true, indicates no events have been printed by the logger yet. Used
 	// by inplace logging for formatting
 	isFirstEvent bool
+
+	mutex sync.Mutex
 }
 
 func NewLogger(mode flags.ProgressLogFormat) *Logger {
@@ -216,6 +219,8 @@ func (l *Logger) writeInplace(event Event) {
 }
 
 func (l *Logger) Log(event Event) {
+	l.mutex.Lock()
+	defer l.mutex.Unlock()
 	switch l.Mode {
 	case flags.ModeInplace:
 		if event.IsInplaceSupported() {
diff --git a/libs/daemon/daemon.go b/libs/daemon/daemon.go
index 91914477b..7ab9a6f81 100644
--- a/libs/daemon/daemon.go
+++ b/libs/daemon/daemon.go
@@ -8,8 +8,6 @@ import (
 	"strconv"
 )
 
-const DatabricksCliParentPid = "DATABRICKS_CLI_PARENT_PID"
-
 type Daemon struct {
 	// If provided, the child process's pid will be written in the file at this
 	// path.
@@ -33,22 +31,17 @@ type Daemon struct {
 }
 
 func (d *Daemon) Start() error {
-	cli, err := os.Executable()
-	if err != nil {
-		return err
-	}
-
+	var err error
 	executable := d.Executable
 	if executable == "" {
-		executable = cli
+		// If Executable is not provided, use the current CLI executable.
+		executable, err = os.Executable()
+		if err != nil {
+			return err
+		}
 	}
 
 	d.cmd = exec.Command(executable, d.Args...)
-
-	// Set environment variable so that the child process knows its parent's PID.
-	// In unix systems orphaned processes are automatically re-parented to init (pid 1)
-	// so we cannot rely on os.Getppid() to get the original parent's pid.
-	d.Env = append(d.Env, fmt.Sprintf("%s=%d", DatabricksCliParentPid, os.Getpid()))
 	d.cmd.Env = d.Env
 
 	d.cmd.SysProcAttr = sysProcAttr()
@@ -64,6 +57,7 @@ func (d *Daemon) Start() error {
 			return fmt.Errorf("failed to open log file: %w", err)
 		}
 
+		// The file descriptor for the log file is closed in the [Daemon.Release] method.
 		d.cmd.Stdout = d.logFile
 		d.cmd.Stderr = d.logFile
 	}
@@ -101,7 +95,7 @@ func (d *Daemon) Release() error {
 		}
 	}
 
-	// Note that the child process will stream it's output directly to the log file.
+	// Note that the child process will stream its output directly to the log file.
 	// So it's safe to close this file handle even if the child process is still running.
 	if d.logFile != nil {
 		err := d.logFile.Close()
@@ -114,7 +108,7 @@ func (d *Daemon) Release() error {
 		return nil
 	}
 
-	// The docs for [os.Process.Release] recommend calling Release if Wait is not called.
-	// It's probably not necessary but we call it just to be safe.
+	// The docs for [os.Process.Release] specify that we need to call Release if
+	// Wait is not called.
 	return d.cmd.Process.Release()
 }
diff --git a/libs/dyn/dynvar/ref.go b/libs/dyn/dynvar/ref.go
index ba397267a..21ec00fda 100644
--- a/libs/dyn/dynvar/ref.go
+++ b/libs/dyn/dynvar/ref.go
@@ -76,6 +76,10 @@ func IsPureVariableReference(s string) bool {
 	return len(s) > 0 && re.FindString(s) == s
 }
 
+func ContainsVariableReference(s string) bool {
+	return re.MatchString(s)
+}
+
 // If s is a pure variable reference, this function returns the corresponding
 // dyn.Path. Otherwise, it returns false.
 func PureReferenceToPath(s string) (dyn.Path, bool) {
diff --git a/libs/template/renderer_test.go b/libs/template/renderer_test.go
index b2ec388bd..97030324b 100644
--- a/libs/template/renderer_test.go
+++ b/libs/template/renderer_test.go
@@ -78,7 +78,7 @@ func assertBuiltinTemplateValid(t *testing.T, template string, settings map[stri
 
 	b, err := bundle.Load(ctx, filepath.Join(tempDir, "my_project"))
 	require.NoError(t, err)
-	diags := bundle.Apply(ctx, b, phases.LoadNamedTarget(target))
+	diags := phases.LoadNamedTarget(ctx, b, target)
 	require.NoError(t, diags.Error())
 
 	// Apply initialize / validation mutators
@@ -93,14 +93,12 @@ func assertBuiltinTemplateValid(t *testing.T, template string, settings map[stri
 	b.Tagging = tags.ForCloud(w.Config)
 	b.WorkspaceClient()
 
-	diags = bundle.Apply(ctx, b, bundle.Seq(
-		phases.Initialize(),
-	))
+	diags = phases.Initialize(ctx, b)
 	require.NoError(t, diags.Error())
 
 	// Apply build mutator
 	if build {
-		diags = bundle.Apply(ctx, b, phases.Build())
+		diags = phases.Build(ctx, b)
 		require.NoError(t, diags.Error())
 	}
 }
@@ -116,14 +114,17 @@ func TestBuiltinPythonTemplateValid(t *testing.T) {
 		for _, includeDlt := range options {
 			for _, includePython := range options {
 				for _, isServicePrincipal := range []bool{true, false} {
-					config := map[string]any{
-						"project_name":     "my_project",
-						"include_notebook": includeNotebook,
-						"include_dlt":      includeDlt,
-						"include_python":   includePython,
+					for _, serverless := range options {
+						config := map[string]any{
+							"project_name":     "my_project",
+							"include_notebook": includeNotebook,
+							"include_dlt":      includeDlt,
+							"include_python":   includePython,
+							"serverless":       serverless,
+						}
+						tempDir := t.TempDir()
+						assertBuiltinTemplateValid(t, "default-python", config, "dev", isServicePrincipal, build, tempDir)
 					}
-					tempDir := t.TempDir()
-					assertBuiltinTemplateValid(t, "default-python", config, "dev", isServicePrincipal, build, tempDir)
 				}
 			}
 		}
@@ -135,6 +136,7 @@ func TestBuiltinPythonTemplateValid(t *testing.T) {
 		"include_notebook": "yes",
 		"include_dlt":      "yes",
 		"include_python":   "yes",
+		"serverless":       "yes",
 	}
 	isServicePrincipal = false
 	build = true
diff --git a/libs/template/templates/dbt-sql/template/{{.project_name}}/.gitignore b/libs/template/templates/dbt-sql/template/{{.project_name}}/.gitignore
new file mode 100644
index 000000000..231162918
--- /dev/null
+++ b/libs/template/templates/dbt-sql/template/{{.project_name}}/.gitignore
@@ -0,0 +1,15 @@
+# DABs
+.databricks/
+build/
+dist/
+__pycache__/
+*.egg-info
+.venv/
+scratch/**
+!scratch/README.md
+
+# dbt
+target/
+dbt_packages/
+dbt_modules/
+logs/
diff --git a/libs/template/templates/default-python/databricks_template_schema.json b/libs/template/templates/default-python/databricks_template_schema.json
index d53bad91a..6d42d4115 100644
--- a/libs/template/templates/default-python/databricks_template_schema.json
+++ b/libs/template/templates/default-python/databricks_template_schema.json
@@ -29,6 +29,14 @@
             "enum": ["yes", "no"],
             "description": "Include a stub (sample) Python package in '{{.project_name}}{{path_separator}}src'",
             "order": 4
+        },
+        "serverless": {
+            "type": "string",
+            "default": "no",
+            "enum": ["no", "yes"],
+            "description": "Use serverless compute",
+            "skip_prompt_if": {},
+            "order": 5
         }
     },
     "success_message": "Workspace to use (auto-detected, edit in '{{.project_name}}/databricks.yml'): {{workspace_host}}\n\n✨ Your new project has been created in the '{{.project_name}}' directory!\n\nPlease refer to the README.md file for \"getting started\" instructions.\nSee also the documentation at https://docs.databricks.com/dev-tools/bundles/index.html."
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.job.yml.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.job.yml.tmpl
index 5211e3894..22434aa64 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.job.yml.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.job.yml.tmpl
@@ -4,6 +4,7 @@
 {{if and (eq .include_dlt "yes") (and (eq .include_notebook "no") (eq .include_python "no")) -}}
 # This job runs {{.project_name}}_pipeline on a schedule.
 {{end -}}
+{{$with_serverless := (eq .serverless "yes") -}}
 
 resources:
   jobs:
@@ -29,7 +30,8 @@ resources:
       tasks:
         {{- if eq .include_notebook "yes" }}
         - task_key: notebook_task
-          job_cluster_key: job_cluster
+        {{- if not $with_serverless}}
+          job_cluster_key: job_cluster{{end}}
           notebook_task:
             notebook_path: ../src/notebook.ipynb
         {{end -}}
@@ -52,23 +54,41 @@ resources:
           depends_on:
             - task_key: notebook_task
           {{end}}
-          job_cluster_key: job_cluster
+          {{- if $with_serverless }}
+          environment_key: default
+          {{- else }}
+          job_cluster_key: job_cluster{{end}}
           python_wheel_task:
             package_name: {{.project_name}}
             entry_point: main
+          {{- if not $with_serverless }}
           libraries:
             # By default we just include the .whl file generated for the {{.project_name}} package.
             # See https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
             # for more information on how to add other libraries.
             - whl: ../dist/*.whl
+{{- end -}}
+{{else}}
+{{- end}}
+{{if $with_serverless}}
+      # A list of task execution environment specifications that can be referenced by tasks of this job.
+      environments:
+        - environment_key: default
 
-      {{else}}
-      {{end -}}
+          # Full documentation of this spec can be found at:
+          # https://docs.databricks.com/api/workspace/jobs/create#environments-spec
+          spec:
+            client: "1"
+            dependencies:
+              - ../dist/*.whl
+{{ else }}
       job_clusters:
         - job_cluster_key: job_cluster
           new_cluster:
             spark_version: {{template "latest_lts_dbr_version"}}
             node_type_id: {{smallest_node_type}}
+            data_security_mode: SINGLE_USER
             autoscale:
                 min_workers: 1
                 max_workers: 4
+{{end -}}
diff --git a/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.pipeline.yml.tmpl b/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.pipeline.yml.tmpl
index 50f11fe2c..024c1ab15 100644
--- a/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.pipeline.yml.tmpl
+++ b/libs/template/templates/default-python/template/{{.project_name}}/resources/{{.project_name}}.pipeline.yml.tmpl
@@ -1,15 +1,22 @@
+{{$with_serverless := (eq .serverless "yes") -}}
 # The main pipeline for {{.project_name}}
 resources:
   pipelines:
     {{.project_name}}_pipeline:
       name: {{.project_name}}_pipeline
       {{- if or (eq default_catalog "") (eq default_catalog "hive_metastore")}}
+      {{- if $with_serverless }}
+      ## Catalog is required for serverless compute
+      catalog: main{{else}}
       ## Specify the 'catalog' field to configure this pipeline to make use of Unity Catalog:
-      # catalog: catalog_name
+      # catalog: catalog_name{{end}}
       {{- else}}
       catalog: {{default_catalog}}
       {{- end}}
       target: {{.project_name}}_${bundle.target}
+      {{- if $with_serverless }}
+      serverless: true
+      {{- end}}
       libraries:
         - notebook:
             path: ../src/dlt_pipeline.ipynb
diff --git a/libs/template/templates/default-sql/template/{{.project_name}}/.gitignore b/libs/template/templates/default-sql/template/{{.project_name}}/.gitignore
new file mode 100644
index 000000000..0dab7f499
--- /dev/null
+++ b/libs/template/templates/default-sql/template/{{.project_name}}/.gitignore
@@ -0,0 +1,8 @@
+.databricks/
+build/
+dist/
+__pycache__/
+*.egg-info
+.venv/
+scratch/**
+!scratch/README.md
diff --git a/libs/template/templates/experimental-jobs-as-code/template/{{.project_name}}/resources/{{.project_name}}_job.py.tmpl b/libs/template/templates/experimental-jobs-as-code/template/{{.project_name}}/resources/{{.project_name}}_job.py.tmpl
index 7c7a0d33f..d9d248799 100644
--- a/libs/template/templates/experimental-jobs-as-code/template/{{.project_name}}/resources/{{.project_name}}_job.py.tmpl
+++ b/libs/template/templates/experimental-jobs-as-code/template/{{.project_name}}/resources/{{.project_name}}_job.py.tmpl
@@ -97,6 +97,7 @@ This job runs {{.project_name}}_pipeline on a schedule.
                 "new_cluster": {
                     "spark_version": "{{template "latest_lts_dbr_version"}}",
                     "node_type_id": "{{smallest_node_type}}",
+                    "data_security_mode": "SINGLE_USER",
                     "autoscale": {
                         "min_workers": 1,
                         "max_workers": 4,
diff --git a/libs/testserver/server.go b/libs/testserver/server.go
index a10ddf4d8..4aa2d2dc0 100644
--- a/libs/testserver/server.go
+++ b/libs/testserver/server.go
@@ -2,6 +2,7 @@ package testserver
 
 import (
 	"encoding/json"
+	"fmt"
 	"io"
 	"net/http"
 	"net/http/httptest"
@@ -191,24 +192,23 @@ func New(t testutil.TestingT) *Server {
 	// Set up the not found handler as fallback
 	router.NotFoundHandler = http.HandlerFunc(func(w http.ResponseWriter, r *http.Request) {
 		pattern := r.Method + " " + r.URL.Path
+		bodyBytes, err := io.ReadAll(r.Body)
+		var body string
+		if err != nil {
+			body = fmt.Sprintf("failed to read the body: %s", err)
+		} else {
+			body = fmt.Sprintf("[%d bytes] %s", len(bodyBytes), bodyBytes)
+		}
 
-		t.Errorf(`
+		t.Errorf(`No handler for URL: %s
+Body: %s
 
-----------------------------------------
-No stub found for pattern: %s
-
-To stub a response for this request, you can add
-the following to test.toml:
+For acceptance tests, add this to test.toml:
 [[Server]]
 Pattern = %q
-Response.Body = '''
-<response body here>
-'''
-Response.StatusCode = <response status-code here>
-----------------------------------------
-
-
-`, pattern, pattern)
+Response.Body = '<response body here>'
+# Response.StatusCode = <response code if not 200>
+`, r.URL, body, pattern)
 
 		w.Header().Set("Content-Type", "application/json")
 		w.WriteHeader(http.StatusNotImplemented)