Problem with nested local modules in terraform

[iGlasmacher-funnellab]

Is there an existing issue for this?

• I have searched the existing issues

Package ecosystem

terraform

Package manager version

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Language version

1.10.0

Manifest location and content before the Dependabot update

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dependabot.yml content

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Updated dependency

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What you expected to see, versus what you actually saw

I have some local modules which are referenced in a chain, e.g. modules/global/app.tf calls a module at ../foo with each module having its own providers.

Now I want to upgrade the provider, but not the provider.tf files are updated.
They have the following form

terraform {
  required_version = ">= 1.7.3"

  required_providers {
    aws = {
      source  = "hashicorp/aws"
      version = "5.82.2"
    }
  }
}

Now on terraform providers lock [...] in the Dependabot workflow, there is the error

│ Error: Could not retrieve providers for locking
│ 
│ Terraform failed to fetch the requested providers for linux_amd64 in order to
│ calculate their checksums: some providers could not be installed:
│ - registry.terraform.io/hashicorp/aws: locked provider
│ registry.terraform.io/hashicorp/aws 5.75.1 does not match configured version
│ constraint >= 4.40.0, >= 5.46.0, 5.75.1, 5.82.2; must use terraform init
│ -upgrade to allow selection of new versions.

This is because the 5.75.1 constraint was not replaced by the 5.82.2 constraint in every modules provider.tf.

If the modules are not chained (a local module includes another local module), everything works just fine and all the providers of the top level included modules are updated correctly.

Native package manager behavior

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Images of the diff or a link to the PR, issue, or logs

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Smallest manifest that reproduces the issue

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