Merge e9b72895dc into 7f3fb10c4a

## Changes
Fixes #1904 

## Tests
Added regression test

bundle/config/mutator/apply_presets_test.go

@@ -8,6 +8,7 @@ import (
 	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/bundle/config/mutator"
 	"github.com/databricks/cli/bundle/config/resources"
+	"github.com/databricks/cli/libs/dbr"
 	"github.com/databricks/cli/libs/vfs"
 	"github.com/databricks/databricks-sdk-go/service/catalog"
 	"github.com/databricks/databricks-sdk-go/service/jobs"
@@ -371,3 +372,86 @@ func TestApplyPresetsResourceNotDefined(t *testing.T) {
 		})
 	}
 }
+
+func TestApplyPresetsInPlaceDeployment(t *testing.T) {
+	testContext := context.Background()
+	enabled := true
+	disabled := false
+	remotePath := "/Users/files"
+	workspacePath := "/Workspace/user.name@company.com"
+
+	tests := []struct {
+		bundlePath       string
+		ctx              context.Context
+		name             string
+		initialValue     *bool
+		expectedValue    *bool
+		expectedFilePath string
+	}{
+		{
+			name:             "preset enabled, bundle in Workspace, databricks runtime",
+			bundlePath:       workspacePath,
+			ctx:              dbr.MockRuntime(testContext, true),
+			initialValue:     &enabled,
+			expectedValue:    &enabled,
+			expectedFilePath: workspacePath,
+		},
+		{
+			name:             "preset enabled, bundle not in Workspace, databricks runtime",
+			bundlePath:       "/Users/user.name@company.com",
+			ctx:              dbr.MockRuntime(testContext, true),
+			initialValue:     &enabled,
+			expectedValue:    &disabled,
+			expectedFilePath: remotePath,
+		},
+		{
+			name:             "preset enabled, bundle in Workspace, not databricks runtime",
+			bundlePath:       workspacePath,
+			ctx:              dbr.MockRuntime(testContext, false),
+			initialValue:     &enabled,
+			expectedValue:    &disabled,
+			expectedFilePath: remotePath,
+		},
+		{
+			name:             "preset disabled, bundle in Workspace, databricks runtime",
+			bundlePath:       workspacePath,
+			ctx:              dbr.MockRuntime(testContext, true),
+			initialValue:     &disabled,
+			expectedValue:    &disabled,
+			expectedFilePath: remotePath,
+		},
+		{
+			name:             "preset nil, bundle in Workspace, databricks runtime",
+			bundlePath:       workspacePath,
+			ctx:              dbr.MockRuntime(testContext, true),
+			initialValue:     nil,
+			expectedValue:    nil,
+			expectedFilePath: remotePath,
+		},
+	}
+
+	for _, tt := range tests {
+		t.Run(tt.name, func(t *testing.T) {
+			b := &bundle.Bundle{
+				Config: config.Root{
+					Presets: config.Presets{
+						InPlaceDeployment: tt.initialValue,
+					},
+					Workspace: config.Workspace{
+						FilePath: remotePath,
+					},
+				},
+				SyncRoot:     vfs.MustNew(tt.bundlePath),
+				SyncRootPath: tt.bundlePath,
+			}
+
+			diags := bundle.Apply(tt.ctx, b, mutator.ApplyPresets())
+			if diags.HasError() {
+				t.Fatalf("unexpected error: %v", diags)
+			}
+
+			require.Equal(t, tt.expectedFilePath, b.Config.Workspace.FilePath)
+			require.Equal(t, tt.expectedValue, b.Config.Presets.InPlaceDeployment)
+		})
+	}
+}

bundle/config/mutator/prepend_workspace_prefix.go

@@ -44,6 +44,11 @@ func (m *prependWorkspacePrefix) Apply(ctx context.Context, b *bundle.Bundle) di
 					return dyn.InvalidValue, fmt.Errorf("expected string, got %s", v.Kind())
 				}
 
+				// Skip prefixing if the path does not start with /, it might be variable reference or smth else.
+				if !strings.HasPrefix(path, "/") {
+					return pv, nil
+				}
+
 				for _, prefix := range skipPrefixes {
 					if strings.HasPrefix(path, prefix) {
 						return pv, nil

bundle/config/mutator/prepend_workspace_prefix_test.go

@@ -31,6 +31,14 @@ func TestPrependWorkspacePrefix(t *testing.T) {
 			path:     "/Volumes/Users/test",
 			expected: "/Volumes/Users/test",
 		},
+		{
+			path:     "~/test",
+			expected: "~/test",
+		},
+		{
+			path:     "${workspace.file_path}/test",
+			expected: "${workspace.file_path}/test",
+		},
 	}
 
 	for _, tc := range testCases {

bundle/config/mutator/process_target_mode_test.go

@@ -9,6 +9,7 @@ import (
 	"github.com/databricks/cli/bundle"
 	"github.com/databricks/cli/bundle/config"
 	"github.com/databricks/cli/bundle/config/resources"
+	"github.com/databricks/cli/libs/dbr"
 	"github.com/databricks/cli/libs/diag"
 	"github.com/databricks/cli/libs/tags"
 	"github.com/databricks/cli/libs/vfs"
@@ -524,3 +525,31 @@ func TestPipelinesDevelopmentDisabled(t *testing.T) {
 
 	assert.False(t, b.Config.Resources.Pipelines["pipeline1"].PipelineSpec.Development)
 }
+
+func TestInPlaceDeploymentEnabled(t *testing.T) {
+	b, diags := processInPlaceBundle(true)
+	require.NoError(t, diags.Error())
+	assert.True(t, *b.Config.Presets.InPlaceDeployment)
+	assert.Equal(t, b.Config.Workspace.FilePath, b.SyncRootPath)
+}
+
+func TestInPlaceDeploymentDisabled(t *testing.T) {
+	b, diags := processInPlaceBundle(false)
+	require.NoError(t, diags.Error())
+	assert.False(t, *b.Config.Presets.InPlaceDeployment)
+	assert.NotEqual(t, b.Config.Workspace.FilePath, b.SyncRootPath)
+}
+
+func processInPlaceBundle(presetEnabled bool) (*bundle.Bundle, diag.Diagnostics) {
+	b := mockBundle(config.Development)
+
+	workspacePath := "/Workspace/lennart@company.com/"
+	b.SyncRoot = vfs.MustNew(workspacePath)
+	b.SyncRootPath = workspacePath
+	b.Config.Presets.InPlaceDeployment = &presetEnabled
+
+	ctx := dbr.MockRuntime(context.Background(), true)
+	m := bundle.Seq(ProcessTargetMode(), ApplyPresets())
+	diags := bundle.Apply(ctx, b, m)
+	return b, diags
+}