It would be nice to be able to perform transforms on package contents in the Apply Terraform step.
The deploy package step has this feature to do things like Web.Release.config => Web.config. Can we have something similar to do vars.release.tf => vars.tf in Apply Terraform?
Thanks for getting in touch and thanks for the feedback on our Terraform feature.
We have an open GitHub issue here that we believe will address your problem. In this case, each environment would bind the var file to the given environment.
Does that sound like a solution that could work for your case? If so, you can track this issue to be notified when these updates are available.