diff --git a/acceptance/acceptance_test.go b/acceptance/acceptance_test.go
index e6eb380a4..2dfe2bce4 100644
--- a/acceptance/acceptance_test.go
+++ b/acceptance/acceptance_test.go
@@ -89,6 +89,7 @@ func TestAccept(t *testing.T) {
 	require.NotNil(t, user)
 	testdiff.PrepareReplacementsUser(t, &repls, *user)
 	testdiff.PrepareReplacementsWorkspaceClient(t, &repls, workspaceClient)
+	testdiff.PrepareReplacementsUUID(t, &repls)
 
 	testDirs := getTests(t)
 	require.NotEmpty(t, testDirs)
@@ -154,70 +155,86 @@ func runTest(t *testing.T, dir, coverDir string, repls testdiff.ReplacementsCont
 		require.NoError(t, err)
 		cmd.Env = append(os.Environ(), "GOCOVERDIR="+coverDir)
 	}
+
+	// Write combined output to a file
+	out, err := os.Create(filepath.Join(tmpDir, "output.txt"))
+	require.NoError(t, err)
+	cmd.Stdout = out
+	cmd.Stderr = out
 	cmd.Dir = tmpDir
-	outB, err := cmd.CombinedOutput()
+	err = cmd.Run()
 
-	out := formatOutput(string(outB), err)
-	out = repls.Replace(out)
-	doComparison(t, filepath.Join(dir, "output.txt"), "script output", out)
+	// Include exit code in output (if non-zero)
+	formatOutput(out, err)
+	require.NoError(t, out.Close())
 
-	for key := range outputs {
-		if key == "output.txt" {
-			// handled above
-			continue
-		}
-		pathNew := filepath.Join(tmpDir, key)
-		newValBytes, err := os.ReadFile(pathNew)
-		if err != nil {
-			if errors.Is(err, os.ErrNotExist) {
-				t.Errorf("%s: expected to find this file but could not (%s)", key, tmpDir)
-			} else {
-				t.Errorf("%s: could not read: %s", key, err)
-			}
-			continue
-		}
-		pathExpected := filepath.Join(dir, key)
-		newVal := repls.Replace(string(newValBytes))
-		doComparison(t, pathExpected, pathNew, newVal)
+	// Compare expected outputs
+	for relPath := range outputs {
+		doComparison(t, repls, dir, tmpDir, relPath)
 	}
 
 	// Make sure there are not unaccounted for new files
-	files, err := os.ReadDir(tmpDir)
+	files, err := ListDir(t, tmpDir)
 	require.NoError(t, err)
-
-	for _, f := range files {
-		name := f.Name()
-		if _, ok := inputs[name]; ok {
+	for _, relPath := range files {
+		if _, ok := inputs[relPath]; ok {
 			continue
 		}
-		if _, ok := outputs[name]; ok {
+		if _, ok := outputs[relPath]; ok {
 			continue
 		}
-		t.Errorf("Unexpected output: %s", f)
-		if strings.HasPrefix(name, "out") {
+		if strings.HasPrefix(relPath, "out") {
 			// We have a new file starting with "out"
 			// Show the contents & support overwrite mode for it:
-			pathNew := filepath.Join(tmpDir, name)
-			newVal := testutil.ReadFile(t, pathNew)
-			newVal = repls.Replace(newVal)
-			doComparison(t, filepath.Join(dir, name), filepath.Join(tmpDir, name), newVal)
+			doComparison(t, repls, dir, tmpDir, relPath)
 		}
 	}
 }
 
-func doComparison(t *testing.T, pathExpected, pathNew, valueNew string) {
-	valueNew = testdiff.NormalizeNewlines(valueNew)
-	valueExpected := string(readIfExists(t, pathExpected))
-	valueExpected = testdiff.NormalizeNewlines(valueExpected)
-	testdiff.AssertEqualTexts(t, pathExpected, pathNew, valueExpected, valueNew)
-	if testdiff.OverwriteMode {
-		if valueNew != "" {
-			t.Logf("Overwriting: %s", pathExpected)
-			testutil.WriteFile(t, pathExpected, valueNew)
-		} else {
-			t.Logf("Removing: %s", pathExpected)
-			_ = os.Remove(pathExpected)
+func doComparison(t *testing.T, repls testdiff.ReplacementsContext, dirRef, dirNew, relPath string) {
+	pathRef := filepath.Join(dirRef, relPath)
+	pathNew := filepath.Join(dirNew, relPath)
+	bufRef, okRef := readIfExists(t, pathRef)
+	bufNew, okNew := readIfExists(t, pathNew)
+	if !okRef && !okNew {
+		t.Errorf("Both files are missing: %s, %s", pathRef, pathNew)
+		return
+	}
+
+	valueRef := testdiff.NormalizeNewlines(string(bufRef))
+	valueNew := testdiff.NormalizeNewlines(string(bufNew))
+
+	// Apply replacements to the new value only.
+	// The reference value is stored after applying replacements.
+	valueNew = repls.Replace(valueNew)
+
+	// The test did not produce an expected output file.
+	if okRef && !okNew {
+		t.Errorf("Missing output file: %s", relPath)
+		testdiff.AssertEqualTexts(t, pathRef, pathNew, valueRef, valueNew)
+		if testdiff.OverwriteMode {
+			t.Logf("Removing output file: %s", relPath)
+			require.NoError(t, os.Remove(pathRef))
 		}
+		return
+	}
+
+	// The test produced an unexpected output file.
+	if !okRef && okNew {
+		t.Errorf("Unexpected output file: %s", relPath)
+		testdiff.AssertEqualTexts(t, pathRef, pathNew, valueRef, valueNew)
+		if testdiff.OverwriteMode {
+			t.Logf("Writing output file: %s", relPath)
+			testutil.WriteFile(t, pathRef, valueNew)
+		}
+		return
+	}
+
+	// Compare the reference and new values.
+	equal := testdiff.AssertEqualTexts(t, pathRef, pathNew, valueRef, valueNew)
+	if !equal && testdiff.OverwriteMode {
+		t.Logf("Overwriting existing output file: %s", relPath)
+		testutil.WriteFile(t, pathRef, valueNew)
 	}
 }
 
@@ -234,13 +251,13 @@ func readMergedScriptContents(t *testing.T, dir string) string {
 	cleanups := []string{}
 
 	for {
-		x := readIfExists(t, filepath.Join(dir, CleanupScript))
-		if len(x) > 0 {
+		x, ok := readIfExists(t, filepath.Join(dir, CleanupScript))
+		if ok {
 			cleanups = append(cleanups, string(x))
 		}
 
-		x = readIfExists(t, filepath.Join(dir, PrepareScript))
-		if len(x) > 0 {
+		x, ok = readIfExists(t, filepath.Join(dir, PrepareScript))
+		if ok {
 			prepares = append(prepares, string(x))
 		}
 
@@ -316,29 +333,28 @@ func copyFile(src, dst string) error {
 	return err
 }
 
-func formatOutput(out string, err error) string {
+func formatOutput(w io.Writer, err error) {
 	if err == nil {
-		return out
+		return
 	}
 	if exiterr, ok := err.(*exec.ExitError); ok {
 		exitCode := exiterr.ExitCode()
-		out += fmt.Sprintf("\nExit code: %d\n", exitCode)
+		fmt.Fprintf(w, "\nExit code: %d\n", exitCode)
 	} else {
-		out += fmt.Sprintf("\nError: %s\n", err)
+		fmt.Fprintf(w, "\nError: %s\n", err)
 	}
-	return out
 }
 
-func readIfExists(t *testing.T, path string) []byte {
+func readIfExists(t *testing.T, path string) ([]byte, bool) {
 	data, err := os.ReadFile(path)
 	if err == nil {
-		return data
+		return data, true
 	}
 
 	if !errors.Is(err, os.ErrNotExist) {
 		t.Fatalf("%s: %s", path, err)
 	}
-	return []byte{}
+	return []byte{}, false
 }
 
 func CopyDir(src, dst string, inputs, outputs map[string]bool) error {
@@ -353,8 +369,10 @@ func CopyDir(src, dst string, inputs, outputs map[string]bool) error {
 			return err
 		}
 
-		if strings.HasPrefix(name, "out") {
-			outputs[relPath] = true
+		if strings.HasPrefix(relPath, "out") {
+			if !info.IsDir() {
+				outputs[relPath] = true
+			}
 			return nil
 		} else {
 			inputs[relPath] = true
@@ -373,3 +391,25 @@ func CopyDir(src, dst string, inputs, outputs map[string]bool) error {
 		return copyFile(path, destPath)
 	})
 }
+
+func ListDir(t *testing.T, src string) ([]string, error) {
+	var files []string
+	err := filepath.Walk(src, func(path string, info os.FileInfo, err error) error {
+		if err != nil {
+			return err
+		}
+
+		if info.IsDir() {
+			return nil
+		}
+
+		relPath, err := filepath.Rel(src, path)
+		if err != nil {
+			return err
+		}
+
+		files = append(files, relPath)
+		return nil
+	})
+	return files, err
+}
diff --git a/acceptance/bundle/init/dbt-sql/script b/acceptance/bundle/init/dbt-sql/script
deleted file mode 100644
index 5f6efda99..000000000
--- a/acceptance/bundle/init/dbt-sql/script
+++ /dev/null
@@ -1,5 +0,0 @@
-trace $CLI bundle init dbt-sql --config-file ./input.json
-
-cd my_dbt_sql
-trace $CLI bundle validate -t dev
-trace $CLI bundle validate -t prod
diff --git a/acceptance/bundle/init/dbt-sql/script.cleanup b/acceptance/bundle/init/dbt-sql/script.cleanup
deleted file mode 100644
index b717c8d4a..000000000
--- a/acceptance/bundle/init/dbt-sql/script.cleanup
+++ /dev/null
@@ -1 +0,0 @@
-rm -fr my_dbt_sql
diff --git a/acceptance/bundle/init/default-python/script.cleanup b/acceptance/bundle/init/default-python/script.cleanup
deleted file mode 100644
index 4fd2e4aa7..000000000
--- a/acceptance/bundle/init/default-python/script.cleanup
+++ /dev/null
@@ -1 +0,0 @@
-rm -fr my_default_python
diff --git a/acceptance/bundle/init/default-sql/script b/acceptance/bundle/init/default-sql/script
deleted file mode 100644
index 6f7332a39..000000000
--- a/acceptance/bundle/init/default-sql/script
+++ /dev/null
@@ -1,5 +0,0 @@
-trace $CLI bundle init default-sql --config-file ./input.json
-
-cd my_default_sql
-trace $CLI bundle validate -t dev
-trace $CLI bundle validate -t prod
diff --git a/acceptance/bundle/init/default-sql/script.cleanup b/acceptance/bundle/init/default-sql/script.cleanup
deleted file mode 100644
index c46d9ad60..000000000
--- a/acceptance/bundle/init/default-sql/script.cleanup
+++ /dev/null
@@ -1 +0,0 @@
-rm -fr my_default_sql
diff --git a/acceptance/bundle/init/dbt-sql/input.json b/acceptance/bundle/templates/dbt-sql/input.json
similarity index 100%
rename from acceptance/bundle/init/dbt-sql/input.json
rename to acceptance/bundle/templates/dbt-sql/input.json
diff --git a/acceptance/bundle/init/dbt-sql/output.txt b/acceptance/bundle/templates/dbt-sql/output.txt
similarity index 92%
rename from acceptance/bundle/init/dbt-sql/output.txt
rename to acceptance/bundle/templates/dbt-sql/output.txt
index 4f6f83693..972c7e152 100644
--- a/acceptance/bundle/init/dbt-sql/output.txt
+++ b/acceptance/bundle/templates/dbt-sql/output.txt
@@ -1,5 +1,5 @@
 
->>> $CLI bundle init dbt-sql --config-file ./input.json
+>>> $CLI bundle init dbt-sql --config-file ./input.json --output-dir output
 
 Welcome to the dbt template for Databricks Asset Bundles!
 
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.gitignore b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.gitignore
new file mode 100644
index 000000000..de811f118
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.gitignore
@@ -0,0 +1,2 @@
+
+.databricks
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.vscode/__builtins__.pyi b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.vscode/__builtins__.pyi
new file mode 100644
index 000000000..0edd5181b
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.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/dbt-sql/output/my_dbt_sql/.vscode/extensions.json b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.vscode/extensions.json
new file mode 100644
index 000000000..28fe943fd
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.vscode/extensions.json
@@ -0,0 +1,6 @@
+{
+    "recommendations": [
+        "redhat.vscode-yaml",
+        "innoverio.vscode-dbt-power-user",
+    ]
+}
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.vscode/settings.json b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.vscode/settings.json
new file mode 100644
index 000000000..e8dcd1a83
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/.vscode/settings.json
@@ -0,0 +1,32 @@
+{
+    "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,
+    },
+    "python.envFile": "${workspaceFolder}/.databricks/.databricks.env",
+    "python.defaultInterpreterPath": "${workspaceFolder}/.venv/bin/python",
+    "sqltools.connections": [
+        {
+            "connectionMethod": "VS Code Extension (beta)",
+            "catalog": "hive_metastore",
+            "previewLimit": 50,
+            "driver": "Databricks",
+            "name": "databricks",
+            "path": "/sql/2.0/warehouses/f00dcafe"
+        }
+    ],
+    "sqltools.autoConnectTo": "",
+    "[jinja-sql]": {
+        "editor.defaultFormatter": "innoverio.vscode-dbt-power-user"
+    }
+}
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/README.md b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/README.md
new file mode 100644
index 000000000..756a2eda4
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/README.md
@@ -0,0 +1,138 @@
+# my_dbt_sql
+
+The 'my_dbt_sql' project was generated by using the dbt template for
+Databricks Asset Bundles. It follows the standard dbt project structure
+and has an additional `resources` directory to define Databricks resources such as jobs
+that run dbt models.
+
+* Learn more about dbt and its standard project structure here: https://docs.getdbt.com/docs/build/projects.
+* Learn more about Databricks Asset Bundles here: https://docs.databricks.com/en/dev-tools/bundles/index.html
+
+The remainder of this file includes instructions for local development (using dbt)
+and deployment to production (using Databricks Asset Bundles).
+
+## Development setup
+
+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. Install dbt
+
+   To install dbt, you need a recent version of Python. For the instructions below,
+   we assume `python3` refers to the Python version you want to use. On some systems,
+   you may need to refer to a different Python version, e.g. `python` or `/usr/bin/python`.
+
+   Run these instructions from the `my_dbt_sql` directory. We recommend making
+   use of a Python virtual environment and installing dbt as follows:
+
+   ```
+   $ python3 -m venv .venv
+   $ . .venv/bin/activate
+   $ pip install -r requirements-dev.txt
+   ```
+
+4. Initialize your dbt profile
+
+   Use `dbt init` to initialize your profile.
+
+   ```
+   $ dbt init
+   ```
+
+   Note that dbt authentication uses personal access tokens by default
+   (see https://docs.databricks.com/dev-tools/auth/pat.html).
+   You can use OAuth as an alternative, but this currently requires manual configuration.
+   See https://github.com/databricks/dbt-databricks/blob/main/docs/oauth.md
+   for general instructions, or https://community.databricks.com/t5/technical-blog/using-dbt-core-with-oauth-on-azure-databricks/ba-p/46605
+   for advice on setting up OAuth for Azure Databricks.
+
+   To setup up additional profiles, such as a 'prod' profile,
+   see https://docs.getdbt.com/docs/core/connect-data-platform/connection-profiles.
+
+5. Activate dbt so it can be used from the terminal
+
+   ```
+   $ . .venv/bin/activate
+    ```
+
+## Local development with dbt
+
+Use `dbt` to [run this project locally using a SQL warehouse](https://docs.databricks.com/partners/prep/dbt.html):
+
+```
+$ dbt seed
+$ dbt run
+```
+
+(Did you get an error that the dbt command could not be found? You may need
+to try the last step from the development setup above to re-activate
+your Python virtual environment!)
+
+
+To just evaluate a single model defined in a file called orders.sql, use:
+
+```
+$ dbt run --model orders
+```
+
+Use `dbt test` to run tests generated from yml files such as `models/schema.yml`
+and any SQL tests from `tests/`
+
+```
+$ dbt test
+```
+
+## Production setup
+
+Your production dbt profiles are defined in dbt_profiles/profiles.yml.
+These profiles define the default catalog, schema, and any other
+target-specific settings. Read more about dbt profiles on Databricks at
+https://docs.databricks.com/en/workflows/jobs/how-to/use-dbt-in-workflows.html#advanced-run-dbt-with-a-custom-profile.
+
+The target workspaces for staging and prod are defined in databricks.yml.
+You can manually deploy based on these configurations (see below).
+Or you can use CI/CD to automate deployment. See
+https://docs.databricks.com/dev-tools/bundles/ci-cd.html for documentation
+on CI/CD setup.
+
+## Manually deploying to Databricks with Databricks Asset Bundles
+
+Databricks Asset Bundles can be used to deploy to Databricks and to execute
+dbt commands as a job using Databricks Workflows. See
+https://docs.databricks.com/dev-tools/bundles/index.html to learn more.
+
+Use the Databricks CLI to deploy a development copy of this project to a workspace:
+
+```
+$ 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_dbt_sql_job` to your workspace.
+You can find that job by opening your workpace and clicking on **Workflows**.
+
+You can also deploy to your production target directly from the command-line.
+The warehouse, catalog, and schema for that target are configured in databricks.yml.
+When deploying to this target, note that the default job at resources/my_dbt_sql.job.yml
+has a schedule set that runs every day. The schedule is paused when deploying in development mode
+(see https://docs.databricks.com/dev-tools/bundles/deployment-modes.html).
+
+To deploy a production copy, type:
+
+```
+$ databricks bundle deploy --target prod
+```
+
+## IDE support
+
+Optionally, install developer tools such as the Databricks extension for Visual Studio Code from
+https://docs.databricks.com/dev-tools/vscode-ext.html. Third-party extensions
+related to dbt may further enhance your dbt development experience!
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/databricks.yml b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/databricks.yml
new file mode 100644
index 000000000..1962bc543
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/databricks.yml
@@ -0,0 +1,34 @@
+# This file defines the structure of this project and how it is deployed
+# to production using Databricks Asset Bundles.
+# See https://docs.databricks.com/dev-tools/bundles/index.html for documentation.
+bundle:
+  name: my_dbt_sql
+  uuid: <UUID>
+
+include:
+  - resources/*.yml
+
+# Deployment targets.
+# The default schema, catalog, etc. for dbt are defined in dbt_profiles/profiles.yml
+targets:
+  dev:
+    default: true
+    # 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
+    workspace:
+      host: $DATABRICKS_URL
+
+  prod:
+    mode: production
+    workspace:
+      host: $DATABRICKS_URL
+      # We explicitly specify /Workspace/Users/$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
+    run_as:
+      user_name: $USERNAME
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/dbt_profiles/profiles.yml b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/dbt_profiles/profiles.yml
new file mode 100644
index 000000000..fdaf30dda
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/dbt_profiles/profiles.yml
@@ -0,0 +1,38 @@
+
+# This file defines dbt profiles for deployed dbt jobs.
+my_dbt_sql:
+   target: dev # default target
+   outputs:
+
+    # Doing local development with the dbt CLI?
+    # Then you should create your own profile in your .dbt/profiles.yml using 'dbt init'
+    # (See README.md)
+
+    # The default target when deployed with the Databricks CLI
+    # N.B. when you use dbt from the command line, it uses the profile from .dbt/profiles.yml
+    dev:
+      type: databricks
+      method: http
+      catalog: main
+      schema: "{{ var('dev_schema') }}"
+
+      http_path: /sql/2.0/warehouses/f00dcafe
+
+      # The workspace host / token are provided by Databricks
+      # see databricks.yml for the workspace host used for 'dev'
+      host: "{{ env_var('DBT_HOST') }}"
+      token: "{{ env_var('DBT_ACCESS_TOKEN') }}"
+
+    # The production target when deployed with the Databricks CLI
+    prod:
+      type: databricks
+      method: http
+      catalog: main
+      schema: default
+
+      http_path: /sql/2.0/warehouses/f00dcafe
+
+      # The workspace host / token are provided by Databricks
+      # see databricks.yml for the workspace host used for 'prod'
+      host: "{{ env_var('DBT_HOST') }}"
+      token: "{{ env_var('DBT_ACCESS_TOKEN') }}"
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/dbt_project.yml b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/dbt_project.yml
new file mode 100644
index 000000000..4218640d8
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/dbt_project.yml
@@ -0,0 +1,32 @@
+name: 'my_dbt_sql'
+version: '1.0.0'
+config-version: 2
+
+# This setting configures which "profile" dbt uses for this project.
+profile: 'my_dbt_sql'
+
+# These configurations specify where dbt should look for different types of files.
+# For Databricks asset bundles, we put everything in src, as you may have
+# non-dbt resources in your project.
+model-paths: ["src/models"]
+analysis-paths: ["src/analyses"]
+test-paths: ["src/tests"]
+seed-paths: ["src/seeds"]
+macro-paths: ["src/macros"]
+snapshot-paths: ["src/snapshots"]
+
+clean-targets:         # directories to be removed by `dbt clean`
+  - "target"
+  - "dbt_packages"
+
+# Configuring models
+# Full documentation: https://docs.getdbt.com/docs/configuring-models
+
+# In this example config, we tell dbt to build all models in the example/
+# directory as views by default. These settings can be overridden in the
+# individual model files using the `{{ config(...) }}` macro.
+models:
+  my_dbt_sql:
+    # Config indicated by + and applies to all files under models/example/
+    example:
+      +materialized: view
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/profile_template.yml b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/profile_template.yml
new file mode 100644
index 000000000..5e0f0fc29
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/profile_template.yml
@@ -0,0 +1,23 @@
+# This file defines prompts with defaults for dbt initializaton.
+# It is used when the `dbt init` command is invoked.
+#
+fixed:
+  type: databricks
+prompts:
+  host:
+    default: $DATABRICKS_HOST
+  token:
+    hint: 'personal access token to use, dapiXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX'
+    hide_input: true
+  http_path:
+    hint: 'HTTP path of SQL warehouse to use'
+    default: /sql/2.0/warehouses/f00dcafe
+  catalog:
+    hint: 'initial catalog'
+    default: main
+  schema:
+    hint: 'personal schema where dbt will build objects during development, example: $USERNAME'
+  threads:
+    hint: 'threads to use during development, 1 or more'
+    type: 'int'
+    default: 4
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/requirements-dev.txt b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/requirements-dev.txt
new file mode 100644
index 000000000..e6b861203
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/requirements-dev.txt
@@ -0,0 +1,3 @@
+## requirements-dev.txt: dependencies for local development.
+
+dbt-databricks>=1.8.0,<2.0.0
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/resources/my_dbt_sql.job.yml b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/resources/my_dbt_sql.job.yml
new file mode 100644
index 000000000..d52f8ed50
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/resources/my_dbt_sql.job.yml
@@ -0,0 +1,43 @@
+resources:
+  jobs:
+    my_dbt_sql_job:
+      name: my_dbt_sql_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:
+          - $USERNAME
+
+
+      tasks:
+        - task_key: dbt
+
+          dbt_task:
+            project_directory: ../
+            # The default schema, catalog, etc. are defined in ../dbt_profiles/profiles.yml
+            profiles_directory: dbt_profiles/
+            commands:
+            # The dbt commands to run (see also dbt_profiles/profiles.yml; dev_schema is used in the dev profile)
+            - 'dbt deps --target=${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/templates/dbt-sql/output/my_dbt_sql/src/analyses/.gitkeep b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/analyses/.gitkeep
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/macros/.gitkeep b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/macros/.gitkeep
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/orders_daily.sql b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/orders_daily.sql
new file mode 100644
index 000000000..e32736ceb
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/orders_daily.sql
@@ -0,0 +1,17 @@
+
+-- This model file defines a materialized view called 'orders_daily'
+--
+-- Read more about materialized at https://docs.getdbt.com/reference/resource-configs/databricks-configs#materialized-views-and-streaming-tables
+-- Current limitation: a "full refresh" is needed in case the definition below is changed; see https://github.com/databricks/dbt-databricks/issues/561.
+{{ config(materialized = 'materialized_view') }}
+
+select order_date, count(*) AS number_of_orders
+
+from {{ ref('orders_raw') }}
+
+-- During development, only process a smaller range of data
+{% if target.name != 'prod' %}
+where order_date >= '2019-08-01' and order_date < '2019-09-01'
+{% endif %}
+
+group by order_date
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/orders_raw.sql b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/orders_raw.sql
new file mode 100644
index 000000000..8faf8f38b
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/orders_raw.sql
@@ -0,0 +1,16 @@
+-- This model file defines a streaming table called 'orders_raw'
+--
+-- The streaming table below ingests all JSON files in /databricks-datasets/retail-org/sales_orders/
+-- Read more about streaming tables at https://docs.getdbt.com/reference/resource-configs/databricks-configs#materialized-views-and-streaming-tables
+-- Current limitation: a "full refresh" is needed in case the definition below is changed; see https://github.com/databricks/dbt-databricks/issues/561.
+{{ config(materialized = 'streaming_table') }}
+
+select
+  customer_name,
+  date(timestamp(from_unixtime(try_cast(order_datetime as bigint)))) as order_date,
+  order_number
+from stream read_files(
+  "/databricks-datasets/retail-org/sales_orders/",
+  format => "json",
+  header => true
+)
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/schema.yml b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/schema.yml
new file mode 100644
index 000000000..c64f1bfce
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/models/example/schema.yml
@@ -0,0 +1,21 @@
+
+version: 2
+
+models:
+  - name: orders_raw
+    description: "Raw ingested orders"
+    columns:
+      - name: customer_name
+        description: "The name of a customer"
+        data_tests:
+          - unique
+          - not_null
+
+  - name: orders_daily
+    description: "Number of orders by day"
+    columns:
+      - name: order_date
+        description: "The date on which orders took place"
+        data_tests:
+          - unique
+          - not_null
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/seeds/.gitkeep b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/seeds/.gitkeep
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/snapshots/.gitkeep b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/snapshots/.gitkeep
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/tests/.gitkeep b/acceptance/bundle/templates/dbt-sql/output/my_dbt_sql/src/tests/.gitkeep
new file mode 100644
index 000000000..e69de29bb
diff --git a/acceptance/bundle/templates/dbt-sql/script b/acceptance/bundle/templates/dbt-sql/script
new file mode 100644
index 000000000..c4ca817fe
--- /dev/null
+++ b/acceptance/bundle/templates/dbt-sql/script
@@ -0,0 +1,5 @@
+trace $CLI bundle init dbt-sql --config-file ./input.json --output-dir output
+
+cd output/my_dbt_sql
+trace $CLI bundle validate -t dev
+trace $CLI bundle validate -t prod
diff --git a/acceptance/bundle/init/default-python/input.json b/acceptance/bundle/templates/default-python/input.json
similarity index 100%
rename from acceptance/bundle/init/default-python/input.json
rename to acceptance/bundle/templates/default-python/input.json
diff --git a/acceptance/bundle/init/default-python/output.txt b/acceptance/bundle/templates/default-python/output.txt
similarity index 90%
rename from acceptance/bundle/init/default-python/output.txt
rename to acceptance/bundle/templates/default-python/output.txt
index a02a7d41b..5493ac2cf 100644
--- a/acceptance/bundle/init/default-python/output.txt
+++ b/acceptance/bundle/templates/default-python/output.txt
@@ -1,5 +1,5 @@
 
->>> $CLI bundle init default-python --config-file ./input.json
+>>> $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
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/.gitignore b/acceptance/bundle/templates/default-python/output/my_default_python/.gitignore
new file mode 100644
index 000000000..0dab7f499
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/output/my_default_python/.gitignore
@@ -0,0 +1,8 @@
+.databricks/
+build/
+dist/
+__pycache__/
+*.egg-info
+.venv/
+scratch/**
+!scratch/README.md
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/.vscode/__builtins__.pyi b/acceptance/bundle/templates/default-python/output/my_default_python/.vscode/__builtins__.pyi
new file mode 100644
index 000000000..0edd5181b
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/.vscode/extensions.json b/acceptance/bundle/templates/default-python/output/my_default_python/.vscode/extensions.json
new file mode 100644
index 000000000..5d15eba36
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/.vscode/settings.json b/acceptance/bundle/templates/default-python/output/my_default_python/.vscode/settings.json
new file mode 100644
index 000000000..8ee87c30d
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/README.md b/acceptance/bundle/templates/default-python/output/my_default_python/README.md
new file mode 100644
index 000000000..97d7d7949
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/output/my_default_python/README.md
@@ -0,0 +1,47 @@
+# 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 developer tools such as the Databricks extension for Visual Studio Code from
+   https://docs.databricks.com/dev-tools/vscode-ext.html. Or read the "getting started" documentation for
+   **Databricks Connect** for instructions on running the included Python code from a different IDE.
+
+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/output/my_default_python/databricks.yml b/acceptance/bundle/templates/default-python/output/my_default_python/databricks.yml
new file mode 100644
index 000000000..9deca9cf5
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/output/my_default_python/databricks.yml
@@ -0,0 +1,31 @@
+# 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: $DATABRICKS_URL
+      # We explicitly specify /Workspace/Users/$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
+    run_as:
+      user_name: $USERNAME
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/fixtures/.gitkeep b/acceptance/bundle/templates/default-python/output/my_default_python/fixtures/.gitkeep
new file mode 100644
index 000000000..fa25d2745
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/pytest.ini b/acceptance/bundle/templates/default-python/output/my_default_python/pytest.ini
new file mode 100644
index 000000000..80432c220
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/output/my_default_python/pytest.ini
@@ -0,0 +1,3 @@
+[pytest]
+testpaths = tests
+pythonpath = src
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/requirements-dev.txt b/acceptance/bundle/templates/default-python/output/my_default_python/requirements-dev.txt
new file mode 100644
index 000000000..0ffbf6aed
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/resources/my_default_python.job.yml b/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.job.yml
new file mode 100644
index 000000000..e6148a4ad
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.job.yml
@@ -0,0 +1,49 @@
+# 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
+          job_cluster_key: job_cluster
+          notebook_task:
+            notebook_path: ../src/notebook.ipynb
+        
+        - task_key: refresh_pipeline
+          depends_on:
+            - task_key: notebook_task
+          pipeline_task:
+            pipeline_id: ${resources.pipelines.my_default_python_pipeline.id}
+        
+        - task_key: main_task
+          depends_on:
+            - task_key: refresh_pipeline
+          job_cluster_key: job_cluster
+          python_wheel_task:
+            package_name: my_default_python
+            entry_point: main
+          libraries:
+            # By default we just include the .whl file generated for the my_default_python package.
+            # See https://docs.databricks.com/dev-tools/bundles/library-dependencies.html
+            # for more information on how to add other libraries.
+            - whl: ../dist/*.whl
+
+      job_clusters:
+        - job_cluster_key: job_cluster
+          new_cluster:
+            spark_version: 15.4.x-scala2.12
+            node_type_id: i3.xlarge
+            autoscale:
+                min_workers: 1
+                max_workers: 4
diff --git a/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.pipeline.yml b/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.pipeline.yml
new file mode 100644
index 000000000..f9e083f4f
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/output/my_default_python/resources/my_default_python.pipeline.yml
@@ -0,0 +1,13 @@
+# The main pipeline for my_default_python
+resources:
+  pipelines:
+    my_default_python_pipeline:
+      name: my_default_python_pipeline
+      catalog: main
+      target: my_default_python_${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/output/my_default_python/scratch/README.md
new file mode 100644
index 000000000..e6cfb81b4
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/scratch/exploration.ipynb b/acceptance/bundle/templates/default-python/output/my_default_python/scratch/exploration.ipynb
new file mode 100644
index 000000000..3b2fef4b4
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/setup.py b/acceptance/bundle/templates/default-python/output/my_default_python/setup.py
new file mode 100644
index 000000000..84b24ecb8
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/src/dlt_pipeline.ipynb b/acceptance/bundle/templates/default-python/output/my_default_python/src/dlt_pipeline.ipynb
new file mode 100644
index 000000000..36e993af7
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/src/my_default_python/__init__.py b/acceptance/bundle/templates/default-python/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/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/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/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/output/my_default_python/src/notebook.ipynb b/acceptance/bundle/templates/default-python/output/my_default_python/src/notebook.ipynb
new file mode 100644
index 000000000..0d560443b
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/output/my_default_python/tests/main_test.py b/acceptance/bundle/templates/default-python/output/my_default_python/tests/main_test.py
new file mode 100644
index 000000000..dc449154a
--- /dev/null
+++ b/acceptance/bundle/templates/default-python/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/init/default-python/script b/acceptance/bundle/templates/default-python/script
similarity index 73%
rename from acceptance/bundle/init/default-python/script
rename to acceptance/bundle/templates/default-python/script
index 84834ce3f..b11a7ea21 100644
--- a/acceptance/bundle/init/default-python/script
+++ b/acceptance/bundle/templates/default-python/script
@@ -1,5 +1,5 @@
-trace $CLI bundle init default-python --config-file ./input.json
+trace $CLI bundle init default-python --config-file ./input.json --output-dir output
 
-cd my_default_python
+cd output/my_default_python
 trace $CLI bundle validate -t dev
 trace $CLI bundle validate -t prod
diff --git a/acceptance/bundle/templates/default-sql/.ruff.toml b/acceptance/bundle/templates/default-sql/.ruff.toml
new file mode 100644
index 000000000..43f86042e
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/.ruff.toml
@@ -0,0 +1,2 @@
+[format]
+exclude = ["*.ipynb"]
diff --git a/acceptance/bundle/init/default-sql/input.json b/acceptance/bundle/templates/default-sql/input.json
similarity index 100%
rename from acceptance/bundle/init/default-sql/input.json
rename to acceptance/bundle/templates/default-sql/input.json
diff --git a/acceptance/bundle/init/default-sql/output.txt b/acceptance/bundle/templates/default-sql/output.txt
similarity index 91%
rename from acceptance/bundle/init/default-sql/output.txt
rename to acceptance/bundle/templates/default-sql/output.txt
index ff107eae0..fe0139093 100644
--- a/acceptance/bundle/init/default-sql/output.txt
+++ b/acceptance/bundle/templates/default-sql/output.txt
@@ -1,5 +1,5 @@
 
->>> $CLI bundle init default-sql --config-file ./input.json
+>>> $CLI bundle init default-sql --config-file ./input.json --output-dir output
 
 Welcome to the default SQL template for Databricks Asset Bundles!
 
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/.gitignore b/acceptance/bundle/templates/default-sql/output/my_default_sql/.gitignore
new file mode 100644
index 000000000..de811f118
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/.gitignore
@@ -0,0 +1,2 @@
+
+.databricks
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/.vscode/extensions.json b/acceptance/bundle/templates/default-sql/output/my_default_sql/.vscode/extensions.json
new file mode 100644
index 000000000..8e1023465
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/.vscode/extensions.json
@@ -0,0 +1,7 @@
+{
+    "recommendations": [
+        "databricks.databricks",
+        "redhat.vscode-yaml",
+        "databricks.sqltools-databricks-driver",
+    ]
+}
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/.vscode/settings.json b/acceptance/bundle/templates/default-sql/output/my_default_sql/.vscode/settings.json
new file mode 100644
index 000000000..c641abe39
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/.vscode/settings.json
@@ -0,0 +1,27 @@
+{
+    "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,
+    },
+    "sqltools.connections": [
+        {
+            "connectionMethod": "VS Code Extension (beta)",
+            "catalog": "main",
+            "previewLimit": 50,
+            "driver": "Databricks",
+            "name": "databricks",
+            "path": "/sql/2.0/warehouses/f00dcafe"
+        }
+    ],
+    "sqltools.autoConnectTo": "",
+}
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/README.md b/acceptance/bundle/templates/default-sql/output/my_default_sql/README.md
new file mode 100644
index 000000000..67ded153f
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/README.md
@@ -0,0 +1,41 @@
+# my_default_sql
+
+The 'my_default_sql' project was generated by using the default-sql template.
+
+## Getting started
+
+1. Install the Databricks CLI from https://docs.databricks.com/dev-tools/cli/install.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_sql_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
+   ```
+
+5. To run a job, use the "run" command:
+   ```
+   $ databricks bundle run
+   ```
+
+6. Optionally, install developer tools such as the Databricks extension for Visual Studio Code from
+   https://docs.databricks.com/dev-tools/vscode-ext.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-sql/output/my_default_sql/databricks.yml b/acceptance/bundle/templates/default-sql/output/my_default_sql/databricks.yml
new file mode 100644
index 000000000..ab857287e
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/databricks.yml
@@ -0,0 +1,48 @@
+# This is a Databricks asset bundle definition for my_default_sql.
+# See https://docs.databricks.com/dev-tools/bundles/index.html for documentation.
+bundle:
+  name: my_default_sql
+  uuid: <UUID>
+
+include:
+  - resources/*.yml
+
+# Variable declarations. These variables are assigned in the dev/prod targets below.
+variables:
+  warehouse_id:
+    description: The warehouse to use
+  catalog:
+    description: The catalog to use
+  schema:
+    description: The schema to use
+
+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
+    variables:
+      warehouse_id: f00dcafe
+      catalog: main
+      schema: ${workspace.current_user.short_name}
+
+  prod:
+    mode: production
+    workspace:
+      host: $DATABRICKS_URL
+      # We explicitly specify /Workspace/Users/$USERNAME to make sure we only have a single copy.
+      root_path: /Workspace/Users/$USERNAME/.bundle/${bundle.name}/${bundle.target}
+    variables:
+      warehouse_id: f00dcafe
+      catalog: main
+      schema: default
+    permissions:
+      - user_name: $USERNAME
+        level: CAN_MANAGE
+    run_as:
+      user_name: $USERNAME
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/resources/my_default_sql_sql.job.yml b/acceptance/bundle/templates/default-sql/output/my_default_sql/resources/my_default_sql_sql.job.yml
new file mode 100644
index 000000000..86de0f9db
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/resources/my_default_sql_sql.job.yml
@@ -0,0 +1,38 @@
+# A job running SQL queries on a SQL warehouse
+resources:
+  jobs:
+    my_default_sql_sql_job:
+      name: my_default_sql_sql_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
+
+      parameters:
+        - name: catalog
+          default: ${var.catalog}
+        - name: schema
+          default: ${var.schema}
+        - name: bundle_target
+          default: ${bundle.target}
+
+      tasks:
+        - task_key: orders_raw
+          sql_task:
+            warehouse_id: ${var.warehouse_id}
+            file:
+              path: ../src/orders_raw.sql
+
+        - task_key: orders_daily
+          depends_on:
+            - task_key: orders_raw
+          sql_task:
+            warehouse_id: ${var.warehouse_id}
+            file:
+              path: ../src/orders_daily.sql
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/scratch/README.md b/acceptance/bundle/templates/default-sql/output/my_default_sql/scratch/README.md
new file mode 100644
index 000000000..5350d09cf
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/scratch/README.md
@@ -0,0 +1,4 @@
+# scratch
+
+This folder is reserved for personal, exploratory notebooks and SQL files.
+By default these are not committed to Git, as 'scratch' is listed in .gitignore.
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/scratch/exploration.ipynb b/acceptance/bundle/templates/default-sql/output/my_default_sql/scratch/exploration.ipynb
new file mode 100644
index 000000000..c3fd072e5
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/scratch/exploration.ipynb
@@ -0,0 +1,35 @@
+{
+ "cells": [
+  {
+   "cell_type": "code",
+   "execution_count": 0,
+   "metadata": {
+    "application/vnd.databricks.v1+cell": {
+     "cellMetadata": {},
+     "inputWidgets": {},
+     "nuid": "<UUID>",
+     "showTitle": false,
+     "title": ""
+    }
+   },
+   "outputs": [],
+   "source": [
+    "%sql\n",
+    "SELECT * FROM json.`/databricks-datasets/nyctaxi/sample/json/`"
+   ]
+  }
+ ],
+ "metadata": {
+  "application/vnd.databricks.v1+notebook": {
+   "dashboards": [],
+   "language": "python",
+   "notebookMetadata": {
+    "pythonIndentUnit": 2
+   },
+   "notebookName": "exploration",
+   "widgets": {}
+  }
+ },
+ "nbformat": 4,
+ "nbformat_minor": 0
+}
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/src/orders_daily.sql b/acceptance/bundle/templates/default-sql/output/my_default_sql/src/orders_daily.sql
new file mode 100644
index 000000000..ea7b80b54
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/src/orders_daily.sql
@@ -0,0 +1,21 @@
+-- This query is executed using Databricks Workflows (see resources/my_default_sql_sql.job.yml)
+
+USE CATALOG {{catalog}};
+USE IDENTIFIER({{schema}});
+
+CREATE OR REPLACE MATERIALIZED VIEW
+  orders_daily
+AS SELECT
+  order_date, count(*) AS number_of_orders
+FROM
+  orders_raw
+
+WHERE if(
+  {{bundle_target}} = "prod",
+  true,
+
+  -- During development, only process a smaller range of data
+  order_date >= '2019-08-01' AND order_date < '2019-09-01'
+)
+
+GROUP BY order_date
diff --git a/acceptance/bundle/templates/default-sql/output/my_default_sql/src/orders_raw.sql b/acceptance/bundle/templates/default-sql/output/my_default_sql/src/orders_raw.sql
new file mode 100644
index 000000000..79b1354cf
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/output/my_default_sql/src/orders_raw.sql
@@ -0,0 +1,19 @@
+-- This query is executed using Databricks Workflows (see resources/my_default_sql_sql.job.yml)
+--
+-- The streaming table below ingests all JSON files in /databricks-datasets/retail-org/sales_orders/
+-- See also https://docs.databricks.com/sql/language-manual/sql-ref-syntax-ddl-create-streaming-table.html
+
+USE CATALOG {{catalog}};
+USE IDENTIFIER({{schema}});
+
+CREATE OR REFRESH STREAMING TABLE
+  orders_raw
+AS SELECT
+  customer_name,
+  DATE(TIMESTAMP(FROM_UNIXTIME(TRY_CAST(order_datetime AS BIGINT)))) AS order_date,
+  order_number
+FROM STREAM READ_FILES(
+  "/databricks-datasets/retail-org/sales_orders/",
+  format => "json",
+  header => true
+)
diff --git a/acceptance/bundle/templates/default-sql/script b/acceptance/bundle/templates/default-sql/script
new file mode 100644
index 000000000..66e7a14a2
--- /dev/null
+++ b/acceptance/bundle/templates/default-sql/script
@@ -0,0 +1,5 @@
+trace $CLI bundle init default-sql --config-file ./input.json --output-dir output
+
+cd output/my_default_sql
+trace $CLI bundle validate -t dev
+trace $CLI bundle validate -t prod
diff --git a/libs/testdiff/testdiff.go b/libs/testdiff/testdiff.go
index fef1d5ae2..232f38b41 100644
--- a/libs/testdiff/testdiff.go
+++ b/libs/testdiff/testdiff.go
@@ -17,18 +17,20 @@ func UnifiedDiff(filename1, filename2, s1, s2 string) string {
 	return fmt.Sprint(gotextdiff.ToUnified(filename1, filename2, s1, edits))
 }
 
-func AssertEqualTexts(t testutil.TestingT, filename1, filename2, expected, out string) {
+func AssertEqualTexts(t testutil.TestingT, filename1, filename2, expected, out string) bool {
 	t.Helper()
 	if len(out) < 1000 && len(expected) < 1000 {
 		// This shows full strings + diff which could be useful when debugging newlines
-		assert.Equal(t, expected, out, "%s vs %s", filename1, filename2)
+		return assert.Equal(t, expected, out, "%s vs %s", filename1, filename2)
 	} else {
 		// only show diff for large texts
 		diff := UnifiedDiff(filename1, filename2, expected, out)
 		if diff != "" {
 			t.Errorf("Diff:\n" + diff)
+			return false
 		}
 	}
+	return true
 }
 
 func AssertEqualJQ(t testutil.TestingT, expectedName, outName, expected, out string, ignorePaths []string) {