diff --git a/.github/workflows/pr.yml b/.github/workflows/pr.yml
index 5ce0f4898..a7ec0148c 100644
--- a/.github/workflows/pr.yml
+++ b/.github/workflows/pr.yml
@@ -42,9 +42,9 @@ jobs:
     strategy:
       matrix:
         terraform:
-          - '1.0.2'
-          - '1.3.8'
-          - '1.4.0'
+          - '1.7.5'
+          - '1.8.5'
+          - '1.9.7'
     steps:
       - uses: actions/setup-go@v5
         with:
diff --git a/configstack/module_test.go b/configstack/module_test.go
index 847484c6a..51e33f8d1 100644
--- a/configstack/module_test.go
+++ b/configstack/module_test.go
@@ -46,7 +46,7 @@ func TestResolveTerraformModulesOneModuleWithIncludesNoDependencies(t *testing.T
 		Path:         canonical(t, "../test/fixture-modules/module-b/module-b-child"),
 		Dependencies: []*TerraformModule{},
 		Config: config.TerragruntConfig{
-			RemoteState: state(t, "bucket", "module-b-child/terraform.tfstate"),
+			RemoteState: state("bucket", "module-b-child/terraform.tfstate"),
 			Terraform:   &config.TerraformConfig{Source: "..."},
 		},
 		TerragruntOptions: mockOptions.Clone(canonical(t, "../test/fixture-modules/module-b/module-b-child/"+config.DefaultConfigName)),
@@ -104,7 +104,7 @@ func TestResolveTerraformModulesMultipleModulesWithDependencies(t *testing.T) {
 		Path:         canonical(t, "../test/fixture-modules/module-b/module-b-child"),
 		Dependencies: []*TerraformModule{},
 		Config: config.TerragruntConfig{
-			RemoteState: state(t, "bucket", "module-b-child/terraform.tfstate"),
+			RemoteState: state("bucket", "module-b-child/terraform.tfstate"),
 			Terraform:   &config.TerraformConfig{Source: "..."},
 		},
 		TerragruntOptions: mockOptions.Clone(canonical(t, "../test/fixture-modules/module-b/module-b-child/"+config.DefaultConfigName)),
@@ -152,7 +152,7 @@ func TestResolveTerraformModulesMultipleModulesWithDependenciesWithIncludes(t *t
 		Path:         canonical(t, "../test/fixture-modules/module-b/module-b-child"),
 		Dependencies: []*TerraformModule{},
 		Config: config.TerragruntConfig{
-			RemoteState: state(t, "bucket", "module-b-child/terraform.tfstate"),
+			RemoteState: state("bucket", "module-b-child/terraform.tfstate"),
 			Terraform:   &config.TerraformConfig{Source: "..."},
 		},
 		TerragruntOptions: mockOptions.Clone(canonical(t, "../test/fixture-modules/module-b/module-b-child/"+config.DefaultConfigName)),
@@ -162,7 +162,7 @@ func TestResolveTerraformModulesMultipleModulesWithDependenciesWithIncludes(t *t
 		Path:         canonical(t, "../test/fixture-modules/module-e/module-e-child"),
 		Dependencies: []*TerraformModule{moduleA, moduleB},
 		Config: config.TerragruntConfig{
-			RemoteState:  state(t, "bucket", "module-e-child/terraform.tfstate"),
+			RemoteState:  state("bucket", "module-e-child/terraform.tfstate"),
 			Dependencies: &config.ModuleDependencies{Paths: []string{Abs("../test/fixture-modules/module-a"), Abs("../test/fixture-modules/module-b/module-b-child")}},
 			Terraform:    &config.TerraformConfig{Source: "test"},
 		},
diff --git a/configstack/stack_test.go b/configstack/stack_test.go
index 9aeea3fcb..c78943064 100644
--- a/configstack/stack_test.go
+++ b/configstack/stack_test.go
@@ -17,14 +17,14 @@ func TestFindStackInSubfolders(t *testing.T) {
 	t.Parallel()
 
 	filePaths := []string{
-		"/stage/data-stores/redis/" + config.DefaultConfigName,
-		"/stage/data-stores/postgres/" + config.DefaultConfigName,
-		"/stage/ecs-cluster/" + config.DefaultConfigName,
-		"/stage/kms-master-key/" + config.DefaultConfigName,
-		"/stage/vpc/" + config.DefaultConfigName,
+		"stage/data-stores/redis/" + config.DefaultConfigName,
+		"stage/data-stores/postgres/" + config.DefaultConfigName,
+		"stage/ecs-cluster/" + config.DefaultConfigName,
+		"stage/kms-master-key/" + config.DefaultConfigName,
+		"stage/vpc/" + config.DefaultConfigName,
 	}
 
-	tempFolder := createTempFolder(t)
+	tempFolder := createTempFolder()
 	writeDummyTerragruntConfigs(t, tempFolder, filePaths)
 
 	envFolder := filepath.ToSlash(util.JoinPath(tempFolder + "/stage"))
@@ -51,13 +51,8 @@ func TestFindStackInSubfolders(t *testing.T) {
 	}
 }
 
-func createTempFolder(t *testing.T) string {
-	tmpFolder, err := ioutil.TempDir("", "")
-	if err != nil {
-		t.Fatalf("Failed to create temp directory: %s\n", err.Error())
-	}
-
-	return filepath.ToSlash(tmpFolder)
+func createTempFolder() string {
+	return filepath.ToSlash(os.TempDir())
 }
 
 // Create a dummy Terragrunt config file at each of the given paths
diff --git a/configstack/test_helpers.go b/configstack/test_helpers.go
index 47b1c38da..c0bbae41d 100644
--- a/configstack/test_helpers.go
+++ b/configstack/test_helpers.go
@@ -111,7 +111,7 @@ func assertRunningModulesEqual(t *testing.T, expected *runningModule, actual *ru
 }
 
 // We can't do a simple IsError comparison for UnrecognizedDependency because that error is a struct that
-// contains an array, and in Go, trying to compare arrays gives a "comparing noncomparable type
+// contains an array, and in Go, trying to compare arrays gives a "comparing non comparable type
 // configstack.UnrecognizedDependency" panic. Therefore, we have to compare that error more manually.
 func assertErrorsEqual(t *testing.T, expected error, actual error, messageAndArgs ...interface{}) {
 	actual = tgerrors.Unwrap(actual)
@@ -165,7 +165,7 @@ func canonical(t *testing.T, path string) string {
 }
 
 // Create a State struct
-func state(t *testing.T, bucket string, key string) *remote.State {
+func state(bucket string, key string) *remote.State {
 	return &remote.State{
 		Backend: "s3",
 		Config: map[string]interface{}{
diff --git a/test/fixture-download/hello-world-with-backend/main.tf b/test/fixture-download/hello-world-with-backend/main.tf
index bc394d74e..caeb2a4cb 100644
--- a/test/fixture-download/hello-world-with-backend/main.tf
+++ b/test/fixture-download/hello-world-with-backend/main.tf
@@ -1,13 +1,9 @@
-data "template_file" "test" {
-  template = "hello, ${var.name}"
-}
-
 variable "name" {
   description = "Specify a name"
 }
 
-output "test" {
-  value = data.template_file.test.rendered
+output "example" {
+  value = "hello, ${var.name}"
 }
 
 terraform {
diff --git a/test/fixture-download/hello-world/main.tf b/test/fixture-download/hello-world/main.tf
index bd2e95e7e..41f2d21a4 100644
--- a/test/fixture-download/hello-world/main.tf
+++ b/test/fixture-download/hello-world/main.tf
@@ -1,13 +1,9 @@
-data "template_file" "test" {
-  template = "${module.hello.hello}, ${var.name}"
-}
-
 variable "name" {
   description = "Specify a name"
 }
 
 output "test" {
-  value = data.template_file.test.rendered
+  value = "${module.hello.hello}, ${var.name}"
 }
 
 module "hello" {
diff --git a/test/fixture-download/local-relative-extra-args-windows/JZwoL6Viko8bzuRvTOQFx3Jh8vs/3mU4huxMLOXOW5ZgJOFXGUFDKc8/main.tf b/test/fixture-download/local-relative-extra-args-windows/JZwoL6Viko8bzuRvTOQFx3Jh8vs/3mU4huxMLOXOW5ZgJOFXGUFDKc8/main.tf
index bd2e95e7e..41f2d21a4 100644
--- a/test/fixture-download/local-relative-extra-args-windows/JZwoL6Viko8bzuRvTOQFx3Jh8vs/3mU4huxMLOXOW5ZgJOFXGUFDKc8/main.tf
+++ b/test/fixture-download/local-relative-extra-args-windows/JZwoL6Viko8bzuRvTOQFx3Jh8vs/3mU4huxMLOXOW5ZgJOFXGUFDKc8/main.tf
@@ -1,13 +1,9 @@
-data "template_file" "test" {
-  template = "${module.hello.hello}, ${var.name}"
-}
-
 variable "name" {
   description = "Specify a name"
 }
 
 output "test" {
-  value = data.template_file.test.rendered
+  value = "${module.hello.hello}, ${var.name}"
 }
 
 module "hello" {
diff --git a/test/fixture-gotemplate/main.tf b/test/fixture-gotemplate/main.tf
index 55529fb9b..3e8d641f3 100644
--- a/test/fixture-gotemplate/main.tf
+++ b/test/fixture-gotemplate/main.tf
@@ -1,9 +1,5 @@
-data "template_file" "@String(`This is an example`).Fields().Join(`_`)" {
-  template = "ok"
-}
-
-output "result" {
-  value = data.template_file.This_is_an_example.rendered
+output "@String(`This is an output`).Fields().Join(`_`)" {
+  value = "ok"
 }
 
 variable "test1" {
diff --git a/test/fixture-hooks/after-only/main.tf b/test/fixture-hooks/after-only/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/after-only/main.tf
+++ b/test/fixture-hooks/after-only/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/before-and-after-merge/qa/my-app/main.tf b/test/fixture-hooks/before-and-after-merge/qa/my-app/main.tf
index 7cc7209a9..6cc719cf1 100644
--- a/test/fixture-hooks/before-and-after-merge/qa/my-app/main.tf
+++ b/test/fixture-hooks/before-and-after-merge/qa/my-app/main.tf
@@ -2,10 +2,6 @@ terraform {
   backend "s3" {}
 }
 
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/before-and-after/main.tf b/test/fixture-hooks/before-and-after/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/before-and-after/main.tf
+++ b/test/fixture-hooks/before-and-after/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/before-only/main.tf b/test/fixture-hooks/before-only/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/before-only/main.tf
+++ b/test/fixture-hooks/before-only/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/before-only/terragrunt.hcl b/test/fixture-hooks/before-only/terragrunt.hcl
index f883891f0..9050fc38b 100644
--- a/test/fixture-hooks/before-only/terragrunt.hcl
+++ b/test/fixture-hooks/before-only/terragrunt.hcl
@@ -1,4 +1,4 @@
 pre_hook "pre_hook_1" {
   on_commands = ["apply", "plan"]
   command     = "touch file.out"
-}
\ No newline at end of file
+}
diff --git a/test/fixture-hooks/exitcode-1-run-on-errors/main.tf b/test/fixture-hooks/exitcode-1-run-on-errors/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/exitcode-1-run-on-errors/main.tf
+++ b/test/fixture-hooks/exitcode-1-run-on-errors/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/exitcode-1/main.tf b/test/fixture-hooks/exitcode-1/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/exitcode-1/main.tf
+++ b/test/fixture-hooks/exitcode-1/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/exitcode-1/terragrunt.hcl b/test/fixture-hooks/exitcode-1/terragrunt.hcl
index cb6622bc7..48cf67281 100644
--- a/test/fixture-hooks/exitcode-1/terragrunt.hcl
+++ b/test/fixture-hooks/exitcode-1/terragrunt.hcl
@@ -6,4 +6,4 @@ post_hook "post_hook_1" {
 post_hook "post_hook_2" {
   on_commands = ["apply", "plan"]
   command     = "touch test.out"
-}
\ No newline at end of file
+}
diff --git a/test/fixture-hooks/exitcode-2-pre/main.tf b/test/fixture-hooks/exitcode-2-pre/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/exitcode-2-pre/main.tf
+++ b/test/fixture-hooks/exitcode-2-pre/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/exitcode-2/main.tf b/test/fixture-hooks/exitcode-2/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/exitcode-2/main.tf
+++ b/test/fixture-hooks/exitcode-2/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/ignore-error/main.tf b/test/fixture-hooks/ignore-error/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/ignore-error/main.tf
+++ b/test/fixture-hooks/ignore-error/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-hooks/interpolations/main.tf b/test/fixture-hooks/interpolations/main.tf
index 15d67cca8..d024551a2 100644
--- a/test/fixture-hooks/interpolations/main.tf
+++ b/test/fixture-hooks/interpolations/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "hello, world"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "hello, world"
 }
diff --git a/test/fixture-import-files/bad-source/main.tf b/test/fixture-import-files/bad-source/main.tf
index f756b484c..f537b5b64 100644
--- a/test/fixture-import-files/bad-source/main.tf
+++ b/test/fixture-import-files/bad-source/main.tf
@@ -1,7 +1,7 @@
-data "template_file" "example" {
-  template = var.var
+output "example" {
+  value = var.var
 }
 
-output "example" {
-  value = data.template_file.example.rendered
+variable "var" {
+  default = "123"
 }
diff --git a/test/fixture-import-files/bad-source/vars.tf b/test/fixture-import-files/bad-source/vars.tf
deleted file mode 100644
index 8ca5aa0ef..000000000
--- a/test/fixture-import-files/bad-source/vars.tf
+++ /dev/null
@@ -1,3 +0,0 @@
-variable "var" {
-  default = "123"
-}
diff --git a/test/fixture-import-files/basic/main.tf b/test/fixture-import-files/basic/main.tf
index f756b484c..1f3b61fa8 100644
--- a/test/fixture-import-files/basic/main.tf
+++ b/test/fixture-import-files/basic/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.var
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.var
 }
diff --git a/test/fixture-import-files/overwrite/main.tf b/test/fixture-import-files/overwrite/main.tf
index f756b484c..1f3b61fa8 100644
--- a/test/fixture-import-files/overwrite/main.tf
+++ b/test/fixture-import-files/overwrite/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.var
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.var
 }
diff --git a/test/fixture-include/qa/my-app/main.tf b/test/fixture-include/qa/my-app/main.tf
index dabe32d12..2b89c7c92 100644
--- a/test/fixture-include/qa/my-app/main.tf
+++ b/test/fixture-include/qa/my-app/main.tf
@@ -2,7 +2,6 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "test" {
-  template = "Hello, I am a template."
-}
\ No newline at end of file
+output "text" {
+  value = "Hello, I am an output"
+}
diff --git a/test/fixture-parent-folders/terragrunt-in-root/child/sub-child/sub-sub-child/main.tf b/test/fixture-parent-folders/terragrunt-in-root/child/sub-child/sub-sub-child/main.tf
index dabe32d12..aa7ebf5af 100644
--- a/test/fixture-parent-folders/terragrunt-in-root/child/sub-child/sub-sub-child/main.tf
+++ b/test/fixture-parent-folders/terragrunt-in-root/child/sub-child/sub-sub-child/main.tf
@@ -2,7 +2,6 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "test" {
-  template = "Hello, I am a template."
-}
\ No newline at end of file
+output "test" {
+  value = "Hello, I am a output"
+}
diff --git a/test/fixture-provider/provider.tf b/test/fixture-provider/provider.tf
deleted file mode 100644
index 91460b1b6..000000000
--- a/test/fixture-provider/provider.tf
+++ /dev/null
@@ -1,13 +0,0 @@
-provider "template" {
-  alias = "test"
-}
-
-# Create an arbitrary local resource
-data "template_file" "test" {
-  provider = "template.@(`test`)"
-  template = "Everything is fine"
-}
-
-output "ok" {
-  value = data.template_file.test.rendered
-}
diff --git a/test/fixture-provider/terragrunt.hcl b/test/fixture-provider/terragrunt.hcl
deleted file mode 100644
index c99c29955..000000000
--- a/test/fixture-provider/terragrunt.hcl
+++ /dev/null
@@ -1,3 +0,0 @@
-terraform {
-  source = "."
-}
diff --git a/test/fixture-stack/mgmt/bastion-host/main.tf b/test/fixture-stack/mgmt/bastion-host/main.tf
index b83465aa4..87f38533d 100644
--- a/test/fixture-stack/mgmt/bastion-host/main.tf
+++ b/test/fixture-stack/mgmt/bastion-host/main.tf
@@ -2,13 +2,8 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a bastion-host template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}]"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a bastion-host template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}]"
 }
 
 variable "terraform_remote_state_s3_bucket" {
diff --git a/test/fixture-stack/mgmt/vpc/main.tf b/test/fixture-stack/mgmt/vpc/main.tf
index 5f95fe801..a6da068ec 100644
--- a/test/fixture-stack/mgmt/vpc/main.tf
+++ b/test/fixture-stack/mgmt/vpc/main.tf
@@ -6,11 +6,6 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a mgmt vpc template. I have no dependencies.]"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a mgmt vpc template. I have no dependencies.]"
 }
diff --git a/test/fixture-stack/stage/backend-app/main.tf b/test/fixture-stack/stage/backend-app/main.tf
index 6792d0833..1beed50de 100644
--- a/test/fixture-stack/stage/backend-app/main.tf
+++ b/test/fixture-stack/stage/backend-app/main.tf
@@ -2,13 +2,8 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a backend-app template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}, bastion-host = ${data.terraform_remote_state.bastion_host.outputs.text}, mysql = ${data.terraform_remote_state.mysql.outputs.text}, search-app = ${data.terraform_remote_state.search_app.outputs.text}]"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a backend-app template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}, bastion-host = ${data.terraform_remote_state.bastion_host.outputs.text}, mysql = ${data.terraform_remote_state.mysql.outputs.text}, search-app = ${data.terraform_remote_state.search_app.outputs.text}]"
 }
 
 variable "terraform_remote_state_s3_bucket" {
diff --git a/test/fixture-stack/stage/frontend-app/main.tf b/test/fixture-stack/stage/frontend-app/main.tf
index 1a9ce74f9..3e199ca05 100644
--- a/test/fixture-stack/stage/frontend-app/main.tf
+++ b/test/fixture-stack/stage/frontend-app/main.tf
@@ -2,13 +2,8 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a frontend-app template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}, bastion-host = ${data.terraform_remote_state.bastion_host.outputs.text}, backend-app = ${data.terraform_remote_state.backend_app.outputs.text}]"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a frontend-app template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}, bastion-host = ${data.terraform_remote_state.bastion_host.outputs.text}, backend-app = ${data.terraform_remote_state.backend_app.outputs.text}]"
 }
 
 variable "terraform_remote_state_s3_bucket" {
diff --git a/test/fixture-stack/stage/mysql/main.tf b/test/fixture-stack/stage/mysql/main.tf
index 6c1d78d01..8a3df19c3 100644
--- a/test/fixture-stack/stage/mysql/main.tf
+++ b/test/fixture-stack/stage/mysql/main.tf
@@ -2,13 +2,8 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a mysql template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}]"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a mysql template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}]"
 }
 
 variable "terraform_remote_state_s3_bucket" {
diff --git a/test/fixture-stack/stage/redis/main.tf b/test/fixture-stack/stage/redis/main.tf
index 3307441cc..6fa0d7c47 100644
--- a/test/fixture-stack/stage/redis/main.tf
+++ b/test/fixture-stack/stage/redis/main.tf
@@ -2,13 +2,8 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a redis template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}]"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a redis template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}]"
 }
 
 variable "terraform_remote_state_s3_bucket" {
diff --git a/test/fixture-stack/stage/search-app/example-module/main.tf b/test/fixture-stack/stage/search-app/example-module/main.tf
index 2368e3baf..ee084f844 100644
--- a/test/fixture-stack/stage/search-app/example-module/main.tf
+++ b/test/fixture-stack/stage/search-app/example-module/main.tf
@@ -1,8 +1,3 @@
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "Example text from a module"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "Example text from a module"
 }
diff --git a/test/fixture-stack/stage/search-app/main.tf b/test/fixture-stack/stage/search-app/main.tf
index 45db4328f..8d1a9d4aa 100644
--- a/test/fixture-stack/stage/search-app/main.tf
+++ b/test/fixture-stack/stage/search-app/main.tf
@@ -2,17 +2,12 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a search-app template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}, redis = ${data.terraform_remote_state.redis.outputs.text}, example_module = ${module.example_module.text}]"
-}
-
 module "example_module" {
   source = "./example-module"
 }
 
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a search-app template. Data from my dependencies: vpc = ${data.terraform_remote_state.vpc.outputs.text}, redis = ${data.terraform_remote_state.redis.outputs.text}, example_module = ${module.example_module.text}]"
 }
 
 variable "terraform_remote_state_s3_bucket" {
diff --git a/test/fixture-stack/stage/vpc/main.tf b/test/fixture-stack/stage/vpc/main.tf
index c15ddccd2..059363eb7 100644
--- a/test/fixture-stack/stage/vpc/main.tf
+++ b/test/fixture-stack/stage/vpc/main.tf
@@ -2,13 +2,8 @@ terraform {
   backend "s3" {}
 }
 
-# Create an arbitrary local resource
-data "template_file" "text" {
-  template = "[I am a stage vpc template. Data from my dependencies: vpc = ${data.terraform_remote_state.mgmt_vpc.outputs.text}]"
-}
-
 output "text" {
-  value = data.template_file.text.rendered
+  value = "[I am a stage vpc template. Data from my dependencies: vpc = ${data.terraform_remote_state.mgmt_vpc.outputs.text}]"
 }
 
 variable "terraform_remote_state_s3_bucket" {
diff --git a/test/fixture-variables/basic-file/main.tf b/test/fixture-variables/basic-file/main.tf
index f3bdd731a..dea2742fa 100644
--- a/test/fixture-variables/basic-file/main.tf
+++ b/test/fixture-variables/basic-file/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.hello
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.hello
 }
diff --git a/test/fixture-variables/basic-file/vars.json b/test/fixture-variables/basic-file/vars.json
index 076b39e6d..a09a9f53a 100644
--- a/test/fixture-variables/basic-file/vars.json
+++ b/test/fixture-variables/basic-file/vars.json
@@ -1,3 +1,3 @@
 {
-    "hello": 123
+    "hello": "123"
 }
\ No newline at end of file
diff --git a/test/fixture-variables/basic/main.tf b/test/fixture-variables/basic/main.tf
index f3bdd731a..dea2742fa 100644
--- a/test/fixture-variables/basic/main.tf
+++ b/test/fixture-variables/basic/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.hello
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.hello
 }
diff --git a/test/fixture-variables/different-types/main.tf b/test/fixture-variables/different-types/main.tf
index a6aad10fb..8ea9ad04d 100644
--- a/test/fixture-variables/different-types/main.tf
+++ b/test/fixture-variables/different-types/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "${var.bool ? var.list[1] : var.list[0]}-${var.int > 2 ? var.string : ""}"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "${var.bool ? var.list[1] : var.list[0]}-${var.int > 2 ? var.string : ""}"
 }
diff --git a/test/fixture-variables/export-config/main.tf b/test/fixture-variables/export-config/main.tf
index ce90582e4..6e37d08b8 100644
--- a/test/fixture-variables/export-config/main.tf
+++ b/test/fixture-variables/export-config/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.ImportVariables[0].Vars[0]
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.ImportVariables[0].Vars[0]
 }
diff --git a/test/fixture-variables/glob-file/main.tf b/test/fixture-variables/glob-file/main.tf
index 134ef3f53..9c72409d8 100644
--- a/test/fixture-variables/glob-file/main.tf
+++ b/test/fixture-variables/glob-file/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "${var.var1}-${var.var2}-${var.var3}-${var.var4}"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "${var.var1}-${var.var2}-${var.var3}-${var.var4}"
 }
diff --git a/test/fixture-variables/list_from_inputs/main.tf b/test/fixture-variables/list_from_inputs/main.tf
index ffa372385..5fcdc9885 100644
--- a/test/fixture-variables/list_from_inputs/main.tf
+++ b/test/fixture-variables/list_from_inputs/main.tf
@@ -1,5 +1,4 @@
 variable "my_list" {
-
   type = list(object({
     var1 = string
     var2 = string
diff --git a/test/fixture-variables/list_from_tfvars/main.tf b/test/fixture-variables/list_from_tfvars/main.tf
index ffa372385..5fcdc9885 100644
--- a/test/fixture-variables/list_from_tfvars/main.tf
+++ b/test/fixture-variables/list_from_tfvars/main.tf
@@ -1,5 +1,4 @@
 variable "my_list" {
-
   type = list(object({
     var1 = string
     var2 = string
diff --git a/test/fixture-variables/load-tf-variables/main.tf b/test/fixture-variables/load-tf-variables/main.tf
index 43c2b1f58..4bb62f95d 100644
--- a/test/fixture-variables/load-tf-variables/main.tf
+++ b/test/fixture-variables/load-tf-variables/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "${var.var1}-${var.var2}-${var.loaded.var1}-${var.loaded.var2}"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "${var.var1}-${var.var2}-${var.loaded.var1}-${var.loaded.var2}"
 }
diff --git a/test/fixture-variables/load-tf-variables/terragrunt.hcl b/test/fixture-variables/load-tf-variables/terragrunt.hcl
index f11c2a394..6f3e36365 100644
--- a/test/fixture-variables/load-tf-variables/terragrunt.hcl
+++ b/test/fixture-variables/load-tf-variables/terragrunt.hcl
@@ -1,6 +1,6 @@
 import_variables "test" {
   required_var_files = [
-    "vars.tf",
+    "vars.tfvars",
   ]
 
   nested_under = ["loaded"]
diff --git a/test/fixture-variables/load-tf-variables/vars.tfvars b/test/fixture-variables/load-tf-variables/vars.tfvars
new file mode 100644
index 000000000..1f4c52669
--- /dev/null
+++ b/test/fixture-variables/load-tf-variables/vars.tfvars
@@ -0,0 +1,2 @@
+var1 = "hello1"
+var2 = "hello2"
diff --git a/test/fixture-variables/map/main.tf b/test/fixture-variables/map/main.tf
index 9b0a489cd..5337508e1 100644
--- a/test/fixture-variables/map/main.tf
+++ b/test/fixture-variables/map/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "${var.testmap.test1}-${var.testmap.test2}-${var.nested.testmap2.test1}-${var.nested.testmap2.test2}-@(nested.testmap2.test1)-@(nested.testmap2.test2)"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "${var.testmap.test1}-${var.testmap.test2}-${var.nested.testmap2.test1}-${var.nested.testmap2.test2}-@(nested.testmap2.test1)-@(nested.testmap2.test2)"
 }
diff --git a/test/fixture-variables/module-inline/my-module/main.tf b/test/fixture-variables/module-inline/my-module/main.tf
index f3bdd731a..dea2742fa 100644
--- a/test/fixture-variables/module-inline/my-module/main.tf
+++ b/test/fixture-variables/module-inline/my-module/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.hello
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.hello
 }
diff --git a/test/fixture-variables/multiple-nested/main.tf b/test/fixture-variables/multiple-nested/main.tf
index f58e699ce..8ab4c30ea 100644
--- a/test/fixture-variables/multiple-nested/main.tf
+++ b/test/fixture-variables/multiple-nested/main.tf
@@ -1,8 +1,3 @@
-data "template_file" "nested" {
-  template = "${var.testmap.test1}${var.main.testmap.test2}${var.local.testmap.test3}"
-}
-
 output "nested" {
-  value = data.template_file.nested.rendered
+  value = "${var.testmap.test1}${var.main.testmap.test2}${var.local.testmap.test3}"
 }
-
diff --git a/test/fixture-variables/nested/main.tf b/test/fixture-variables/nested/main.tf
index 4d6c511f6..b930f3b8f 100644
--- a/test/fixture-variables/nested/main.tf
+++ b/test/fixture-variables/nested/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "${var.nested1["var"]}-${var.nested2["var"]}"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "${var.nested1["var"]}-${var.nested2["var"]}"
 }
diff --git a/test/fixture-variables/no-templating-in-file/main.tf b/test/fixture-variables/no-templating-in-file/main.tf
index f3bdd731a..dea2742fa 100644
--- a/test/fixture-variables/no-templating-in-file/main.tf
+++ b/test/fixture-variables/no-templating-in-file/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.hello
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.hello
 }
diff --git a/test/fixture-variables/no-tf-variables/main.tf b/test/fixture-variables/no-tf-variables/main.tf
index 3783306e1..0b6eb82cf 100644
--- a/test/fixture-variables/no-tf-variables/main.tf
+++ b/test/fixture-variables/no-tf-variables/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "@(hello1)@(hello2)@(hello3)"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "@(hello1)@(hello2)@(hello3)"
 }
diff --git a/test/fixture-variables/overwrite/main.tf b/test/fixture-variables/overwrite/main.tf
index f3bdd731a..dea2742fa 100644
--- a/test/fixture-variables/overwrite/main.tf
+++ b/test/fixture-variables/overwrite/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.hello
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.hello
 }
diff --git a/test/fixture-variables/source/main.tf b/test/fixture-variables/source/main.tf
index 2e0e6a920..b845b27c9 100644
--- a/test/fixture-variables/source/main.tf
+++ b/test/fixture-variables/source/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = "${var.hello1}${var.hello2}"
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = "${var.hello1}${var.hello2}"
 }
diff --git a/test/fixture-variables/templating-in-file/main.tf b/test/fixture-variables/templating-in-file/main.tf
index f3bdd731a..dea2742fa 100644
--- a/test/fixture-variables/templating-in-file/main.tf
+++ b/test/fixture-variables/templating-in-file/main.tf
@@ -1,7 +1,3 @@
-data "template_file" "example" {
-  template = var.hello
-}
-
 output "example" {
-  value = data.template_file.example.rendered
+  value = var.hello
 }
diff --git a/test/fixture/main.tf b/test/fixture/main.tf
index a337394c1..24982bda7 100644
--- a/test/fixture/main.tf
+++ b/test/fixture/main.tf
@@ -3,10 +3,16 @@ terraform {
 }
 
 # Create an arbitrary local resource
-data "template_file" "test" {
-  template = "Hello, I am a template. My sample_var value = $${sample_var}"
+locals {
+  test = "Hello, I am a template. My sample_var value = $${sample_var}"
+}
+
+output "rendered_template" {
+  value = templatestring(local.test, {sample_var = var.sample_var})
+}
 
-  vars = {
-    sample_var = var.sample_var
-  }
+# Configure these variables
+variable "sample_var" {
+  description = "A sample_var to pass to the template."
+  default     = "hello"
 }
diff --git a/test/fixture/outputs.tf b/test/fixture/outputs.tf
deleted file mode 100644
index af9fb11e4..000000000
--- a/test/fixture/outputs.tf
+++ /dev/null
@@ -1,3 +0,0 @@
-output "rendered_template" {
-  value = data.template_file.test.rendered
-}
diff --git a/test/fixture/vars.tf b/test/fixture/vars.tf
deleted file mode 100644
index 8c0b97eed..000000000
--- a/test/fixture/vars.tf
+++ /dev/null
@@ -1,5 +0,0 @@
-# Configure these variables
-variable "sample_var" {
-  description = "A sample_var to pass to the template."
-  default     = "hello"
-}
diff --git a/test/integration_gotemplate_test.go b/test/integration_gotemplate_test.go
index 1bf550a84..70d0a0de0 100644
--- a/test/integration_gotemplate_test.go
+++ b/test/integration_gotemplate_test.go
@@ -16,32 +16,19 @@ func TestTerragruntGoTemplate(t *testing.T) {
 		project        string
 		args           string
 		expectedOutput []string
-		additionalTest func(*testing.T, string, string, string)
 	}
 	tests := []test{
-		// Test that the provider substitution is working properly
-		{
-			project:        "fixture-provider",
-			args:           "--terragrunt-apply-template",
-			expectedOutput: []string{`^ok = "Everything is fine"$`},
-			additionalTest: func(t *testing.T, folder, stdout, stderr string) {
-				assert.NotContains(t, stdout, "Warning")
-			},
-		},
-		// Test that loading default variablesthe works even if the terraform original source is not compliant
+		// Test that loading default variables works even if the terraform original source is not compliant
 		{
 			project: "fixture-gotemplate",
 			args:    "--terragrunt-apply-template --terragrunt-logging-level DEBUG",
 			expectedOutput: []string{
-				`^result = "ok"$`,
+				`^This_is_an_output = "ok"$`,
 				`^test1 = "I am test 1"$`,
 				`^test2 = "I am test 2 \(overridden\)"$`,
 				`^json1 = "I am json 1"$`,
 				`^json2 = "I am json 2 \(overridden\)"$`,
 			},
-			additionalTest: func(t *testing.T, folder, stdout, stderr string) {
-				assert.Contains(t, stderr, "caught errors while trying to load default variable values from")
-			},
 		},
 	}
 	for _, test := range tests {
@@ -57,9 +44,6 @@ func TestTerragruntGoTemplate(t *testing.T) {
 			for _, expectedOutput := range tt.expectedOutput {
 				assert.Regexp(t, fmt.Sprintf(`(?m).*%s.*`, expectedOutput), stdout.String())
 			}
-			if tt.additionalTest != nil {
-				tt.additionalTest(t, rootPath, stdout.String(), stderr.String())
-			}
 		})
 	}
 }