Merge pull request #36122 from hashicorp/jbardin/backport-36118

v1.10 backport of #36118

Author: jbardin

Diff for: internal/lang/funcs/filesystem.go

@@ -137,7 +137,7 @@ func MakeTemplateFileFunc(baseDir string, funcsCb func() (funcs map[string]funct
 
 			vars, varsMarks := args[1].UnmarkDeep()
 
-			if !pathArg.IsKnown() {
+			if !pathArg.IsKnown() || !vars.IsKnown() {
 				return cty.UnknownVal(retType).WithMarks(pathMarks, varsMarks), nil
 			}
 

Diff for: internal/lang/funcs/filesystem_test.go

@@ -216,6 +216,12 @@ func TestTemplateFile(t *testing.T) {
 			cty.StringVal("- a\n- b\n- c\n").Mark("path").Mark("var"),
 			``,
 		},
+		{
+			cty.StringVal("testdata/list.tmpl").Mark("path"),
+			cty.UnknownVal(cty.Map(cty.String)),
+			cty.DynamicVal.Mark("path"),
+			``,
+		},
 		{
 			cty.StringVal("testdata/list.tmpl").Mark("path"),
 			cty.ObjectVal(map[string]cty.Value{