diff --git a/Makefile b/Makefile
index c5e78d546..066dfe3eb 100644
--- a/Makefile
+++ b/Makefile
@@ -5,14 +5,12 @@ PROVIDER_NAME := azure
 PROJECT_NAME := provider-$(PROVIDER_NAME)
 PROJECT_REPO := github.com/upbound/$(PROJECT_NAME)
 
-export PROVIDER_NAME
 export TERRAFORM_VERSION ?= 1.5.5
-export TERRAFORM_PROVIDER_SOURCE ?= hashicorp/azurerm
 export TERRAFORM_PROVIDER_VERSION ?= 3.57.0
-export TERRAFORM_PROVIDER_DOWNLOAD_NAME := terraform-provider-azurerm
-export TERRAFORM_PROVIDER_DOWNLOAD_URL_PREFIX := https://github.com/hashicorp/terraform-provider-azurerm/releases/download/v$(TERRAFORM_PROVIDER_VERSION)
+export TERRAFORM_PROVIDER_SOURCE ?= hashicorp/azurerm
 export TERRAFORM_PROVIDER_REPO ?= https://github.com/hashicorp/terraform-provider-azurerm
 export TERRAFORM_DOCS_PATH ?= website/docs/r
+export PROVIDER_NAME
 
 PLATFORMS ?= linux_amd64 linux_arm64
 
diff --git a/cluster/images/provider-azure/Dockerfile b/cluster/images/provider-azure/Dockerfile
index 5fd4384aa..ce0ad79bf 100644
--- a/cluster/images/provider-azure/Dockerfile
+++ b/cluster/images/provider-azure/Dockerfile
@@ -1,57 +1,15 @@
-FROM alpine:3.19.0 AS builder
-RUN apk --no-cache add curl
+FROM alpine:3.19.0
+RUN apk --no-cache add ca-certificates bash
 
 ARG TARGETOS
 ARG TARGETARCH
-
-# Setup Terraform environment
-
-## Provider-dependent configuration
-ARG TERRAFORM_VERSION
-ARG TERRAFORM_PROVIDER_VERSION
-ARG TERRAFORM_PROVIDER_DOWNLOAD_NAME
-## End of - Provider-dependent configuration
-
-RUN curl -L -o /tmp/terraform_${TERRAFORM_VERSION}_${TARGETOS}_${TARGETARCH}.zip https://github.com/upbound/terraform/releases/download/v${TERRAFORM_VERSION}/terraform_${TERRAFORM_VERSION}_${TARGETOS}_${TARGETARCH}.zip \
-  && unzip /tmp/terraform_${TERRAFORM_VERSION}_${TARGETOS}_${TARGETARCH}.zip -d /tmp/ \
-  && chmod +x /tmp/terraform \
-  && rm /tmp/terraform_${TERRAFORM_VERSION}_${TARGETOS}_${TARGETARCH}.zip \
-  && curl -L -o /tmp/${TERRAFORM_PROVIDER_DOWNLOAD_NAME}_${TERRAFORM_PROVIDER_VERSION}_${TARGETOS}_${TARGETARCH}.zip https://releases.hashicorp.com/${TERRAFORM_PROVIDER_DOWNLOAD_NAME}/${TERRAFORM_PROVIDER_VERSION}/${TERRAFORM_PROVIDER_DOWNLOAD_NAME}_${TERRAFORM_PROVIDER_VERSION}_${TARGETOS}_${TARGETARCH}.zip \
-  && unzip /tmp/${TERRAFORM_PROVIDER_DOWNLOAD_NAME}_${TERRAFORM_PROVIDER_VERSION}_${TARGETOS}_${TARGETARCH}.zip -d /tmp/native/ \
-  && chmod +x /tmp/native/* \
-  && rm /tmp/${TERRAFORM_PROVIDER_DOWNLOAD_NAME}_${TERRAFORM_PROVIDER_VERSION}_${TARGETOS}_${TARGETARCH}.zip
-# End of - Setup Terraform environment
-
-FROM alpine:3.19.0 as base
-
 ARG CROSSPLANE_PROVIDER_VERSION
-ARG TARGETOS
-ARG TARGETARCH
-ARG TERRAFORM_VERSION
-ARG TERRAFORM_PROVIDER_SOURCE
-ARG TERRAFORM_PROVIDER_VERSION
-ARG TERRAFORM_PROVIDER_DOWNLOAD_NAME
-ARG PLUGIN_DIR=/terraform/provider-mirror/registry.terraform.io/${TERRAFORM_PROVIDER_SOURCE}/${TERRAFORM_PROVIDER_VERSION}/${TARGETOS}_${TARGETARCH}
 
 ENV USER_ID=65532
-ENV TF_CLI_CONFIG_FILE /terraform/.terraformrc
-ENV TF_FORK 0
 # ENV ARM_PARTNER_ID <guid>
 ENV ARM_DISABLE_TERRAFORM_PARTNER_ID true
 
-# Provider controller needs these environment variable at runtime
-ENV TERRAFORM_VERSION ${TERRAFORM_VERSION}
-ENV TERRAFORM_PROVIDER_SOURCE ${TERRAFORM_PROVIDER_SOURCE}
-ENV TERRAFORM_PROVIDER_VERSION ${TERRAFORM_PROVIDER_VERSION}
-ENV TERRAFORM_NATIVE_PROVIDER_PATH ${PLUGIN_DIR}/${TERRAFORM_PROVIDER_DOWNLOAD_NAME}_v${TERRAFORM_PROVIDER_VERSION}_x5
-
-RUN apk --no-cache add ca-certificates bash
-
 USER ${USER_ID}
 EXPOSE 8080
 
-ADD terraformrc.hcl ${TF_CLI_CONFIG_FILE}
-COPY --from=builder /tmp/terraform /usr/local/bin/
-COPY --from=builder /tmp/native/* ${PLUGIN_DIR}/
-
-ENTRYPOINT ["provider"]
+ENTRYPOINT ["provider"]
\ No newline at end of file
diff --git a/cluster/images/provider-azure/Makefile b/cluster/images/provider-azure/Makefile
index 17d5ad99f..28962c2c2 100755
--- a/cluster/images/provider-azure/Makefile
+++ b/cluster/images/provider-azure/Makefile
@@ -36,14 +36,8 @@ img.build:
 
 img.build.shared:
 	@cp Dockerfile $(IMAGE_TEMP_DIR) || $(FAIL)
-	@cp terraformrc.hcl $(IMAGE_TEMP_DIR) || $(FAIL)
 	@docker buildx build $(BUILD_ARGS) \
 		--platform $(IMAGE_PLATFORMS) \
-		--build-arg TERRAFORM_VERSION=$(TERRAFORM_VERSION) \
-		--build-arg TERRAFORM_PROVIDER_SOURCE=$(TERRAFORM_PROVIDER_SOURCE) \
-		--build-arg TERRAFORM_PROVIDER_VERSION=$(TERRAFORM_PROVIDER_VERSION) \
-		--build-arg TERRAFORM_PROVIDER_DOWNLOAD_NAME=$(TERRAFORM_PROVIDER_DOWNLOAD_NAME) \
-		--build-arg TERRAFORM_PROVIDER_DOWNLOAD_URL_PREFIX=$(TERRAFORM_PROVIDER_DOWNLOAD_URL_PREFIX) \
 		--build-arg CROSSPLANE_PROVIDER_VERSION=$(VERSION) \
 		-t $(IMAGE) \
 		$(IMAGE_TEMP_DIR) || $(FAIL)
diff --git a/cluster/images/provider-azure/terraformrc.hcl b/cluster/images/provider-azure/terraformrc.hcl
deleted file mode 100644
index 022203c4d..000000000
--- a/cluster/images/provider-azure/terraformrc.hcl
+++ /dev/null
@@ -1,9 +0,0 @@
-provider_installation {
-  filesystem_mirror {
-    path    = "/terraform/provider-mirror"
-    include = ["*/*"]
-  }
-  direct {
-    exclude = ["*/*"]
-  }
-}
diff --git a/cmd/provider/alertsmanagement/zz_main.go b/cmd/provider/alertsmanagement/zz_main.go
index 63d38505b..a5bc8a7cf 100644
--- a/cmd/provider/alertsmanagement/zz_main.go
+++ b/cmd/provider/alertsmanagement/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/analysisservices/zz_main.go b/cmd/provider/analysisservices/zz_main.go
index 4b0ebf8e5..ae05dc7f3 100644
--- a/cmd/provider/analysisservices/zz_main.go
+++ b/cmd/provider/analysisservices/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/apimanagement/zz_main.go b/cmd/provider/apimanagement/zz_main.go
index fd60a4d29..24c1b47a6 100644
--- a/cmd/provider/apimanagement/zz_main.go
+++ b/cmd/provider/apimanagement/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/appconfiguration/zz_main.go b/cmd/provider/appconfiguration/zz_main.go
index 730390de6..38b9740f6 100644
--- a/cmd/provider/appconfiguration/zz_main.go
+++ b/cmd/provider/appconfiguration/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/appplatform/zz_main.go b/cmd/provider/appplatform/zz_main.go
index 6a63d5909..9366bd381 100644
--- a/cmd/provider/appplatform/zz_main.go
+++ b/cmd/provider/appplatform/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/attestation/zz_main.go b/cmd/provider/attestation/zz_main.go
index 5c4bf726c..ff5232cb6 100644
--- a/cmd/provider/attestation/zz_main.go
+++ b/cmd/provider/attestation/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/authorization/zz_main.go b/cmd/provider/authorization/zz_main.go
index 241548da1..a68a03164 100644
--- a/cmd/provider/authorization/zz_main.go
+++ b/cmd/provider/authorization/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/automation/zz_main.go b/cmd/provider/automation/zz_main.go
index 54fc3c75f..7d03c86ec 100644
--- a/cmd/provider/automation/zz_main.go
+++ b/cmd/provider/automation/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/azure/zz_main.go b/cmd/provider/azure/zz_main.go
index c255d5a19..2e9e27baf 100644
--- a/cmd/provider/azure/zz_main.go
+++ b/cmd/provider/azure/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/azurestackhci/zz_main.go b/cmd/provider/azurestackhci/zz_main.go
index 31ebdb458..396b87814 100644
--- a/cmd/provider/azurestackhci/zz_main.go
+++ b/cmd/provider/azurestackhci/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/botservice/zz_main.go b/cmd/provider/botservice/zz_main.go
index a4b053ee7..ec3f98fa3 100644
--- a/cmd/provider/botservice/zz_main.go
+++ b/cmd/provider/botservice/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/cache/zz_main.go b/cmd/provider/cache/zz_main.go
index 7a51fa272..101cc253c 100644
--- a/cmd/provider/cache/zz_main.go
+++ b/cmd/provider/cache/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/cdn/zz_main.go b/cmd/provider/cdn/zz_main.go
index 0bdd68935..411a6562a 100644
--- a/cmd/provider/cdn/zz_main.go
+++ b/cmd/provider/cdn/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/certificateregistration/zz_main.go b/cmd/provider/certificateregistration/zz_main.go
index e611d1837..30120a553 100644
--- a/cmd/provider/certificateregistration/zz_main.go
+++ b/cmd/provider/certificateregistration/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/cognitiveservices/zz_main.go b/cmd/provider/cognitiveservices/zz_main.go
index 9b6746d76..50c470f64 100644
--- a/cmd/provider/cognitiveservices/zz_main.go
+++ b/cmd/provider/cognitiveservices/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/communication/zz_main.go b/cmd/provider/communication/zz_main.go
index 822a997e3..140837704 100644
--- a/cmd/provider/communication/zz_main.go
+++ b/cmd/provider/communication/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/compute/zz_main.go b/cmd/provider/compute/zz_main.go
index aca6df0db..837344afa 100644
--- a/cmd/provider/compute/zz_main.go
+++ b/cmd/provider/compute/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/confidentialledger/zz_main.go b/cmd/provider/confidentialledger/zz_main.go
index 3734e0d5e..755c723e7 100644
--- a/cmd/provider/confidentialledger/zz_main.go
+++ b/cmd/provider/confidentialledger/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/config/zz_main.go b/cmd/provider/config/zz_main.go
index 292e122a9..c9087e46b 100644
--- a/cmd/provider/config/zz_main.go
+++ b/cmd/provider/config/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/consumption/zz_main.go b/cmd/provider/consumption/zz_main.go
index df03e4720..6e3821222 100644
--- a/cmd/provider/consumption/zz_main.go
+++ b/cmd/provider/consumption/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/containerapp/zz_main.go b/cmd/provider/containerapp/zz_main.go
index 775893f79..474269194 100644
--- a/cmd/provider/containerapp/zz_main.go
+++ b/cmd/provider/containerapp/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/containerregistry/zz_main.go b/cmd/provider/containerregistry/zz_main.go
index c53348db7..bd741d2ac 100644
--- a/cmd/provider/containerregistry/zz_main.go
+++ b/cmd/provider/containerregistry/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/containerservice/zz_main.go b/cmd/provider/containerservice/zz_main.go
index 1abc4d9ef..b74467a1c 100644
--- a/cmd/provider/containerservice/zz_main.go
+++ b/cmd/provider/containerservice/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/cosmosdb/zz_main.go b/cmd/provider/cosmosdb/zz_main.go
index cfa52446c..8e300e817 100644
--- a/cmd/provider/cosmosdb/zz_main.go
+++ b/cmd/provider/cosmosdb/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/costmanagement/zz_main.go b/cmd/provider/costmanagement/zz_main.go
index 6995ee66a..f5e3d35cd 100644
--- a/cmd/provider/costmanagement/zz_main.go
+++ b/cmd/provider/costmanagement/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/customproviders/zz_main.go b/cmd/provider/customproviders/zz_main.go
index d83c654ab..f74de67e8 100644
--- a/cmd/provider/customproviders/zz_main.go
+++ b/cmd/provider/customproviders/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/databoxedge/zz_main.go b/cmd/provider/databoxedge/zz_main.go
index 1b278a2c2..ed4fa92c2 100644
--- a/cmd/provider/databoxedge/zz_main.go
+++ b/cmd/provider/databoxedge/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/databricks/zz_main.go b/cmd/provider/databricks/zz_main.go
index ffa607199..f5de21fc2 100644
--- a/cmd/provider/databricks/zz_main.go
+++ b/cmd/provider/databricks/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/datafactory/zz_main.go b/cmd/provider/datafactory/zz_main.go
index f889e04cd..c9c04dd2f 100644
--- a/cmd/provider/datafactory/zz_main.go
+++ b/cmd/provider/datafactory/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/datamigration/zz_main.go b/cmd/provider/datamigration/zz_main.go
index beb67ea18..7aeee622e 100644
--- a/cmd/provider/datamigration/zz_main.go
+++ b/cmd/provider/datamigration/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/dataprotection/zz_main.go b/cmd/provider/dataprotection/zz_main.go
index 1b8fa760c..d4479051e 100644
--- a/cmd/provider/dataprotection/zz_main.go
+++ b/cmd/provider/dataprotection/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/datashare/zz_main.go b/cmd/provider/datashare/zz_main.go
index 1ed878de9..e3c612f1c 100644
--- a/cmd/provider/datashare/zz_main.go
+++ b/cmd/provider/datashare/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/dbformariadb/zz_main.go b/cmd/provider/dbformariadb/zz_main.go
index 8c4423b9a..248fab9dc 100644
--- a/cmd/provider/dbformariadb/zz_main.go
+++ b/cmd/provider/dbformariadb/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/dbformysql/zz_main.go b/cmd/provider/dbformysql/zz_main.go
index 7987470a0..3a1d19e1d 100644
--- a/cmd/provider/dbformysql/zz_main.go
+++ b/cmd/provider/dbformysql/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/dbforpostgresql/zz_main.go b/cmd/provider/dbforpostgresql/zz_main.go
index 0de9dcb4c..70c4fad90 100644
--- a/cmd/provider/dbforpostgresql/zz_main.go
+++ b/cmd/provider/dbforpostgresql/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/devices/zz_main.go b/cmd/provider/devices/zz_main.go
index a8887a3fe..f068c68f2 100644
--- a/cmd/provider/devices/zz_main.go
+++ b/cmd/provider/devices/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/deviceupdate/zz_main.go b/cmd/provider/deviceupdate/zz_main.go
index a582df41e..037fde8d2 100644
--- a/cmd/provider/deviceupdate/zz_main.go
+++ b/cmd/provider/deviceupdate/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/devtestlab/zz_main.go b/cmd/provider/devtestlab/zz_main.go
index 854e1fa9b..a5669b4a5 100644
--- a/cmd/provider/devtestlab/zz_main.go
+++ b/cmd/provider/devtestlab/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/digitaltwins/zz_main.go b/cmd/provider/digitaltwins/zz_main.go
index 80bab9978..f27582f35 100644
--- a/cmd/provider/digitaltwins/zz_main.go
+++ b/cmd/provider/digitaltwins/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/elastic/zz_main.go b/cmd/provider/elastic/zz_main.go
index 9084b4fbc..5112bd0b2 100644
--- a/cmd/provider/elastic/zz_main.go
+++ b/cmd/provider/elastic/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/eventgrid/zz_main.go b/cmd/provider/eventgrid/zz_main.go
index 4f8e94787..aaa5f9196 100644
--- a/cmd/provider/eventgrid/zz_main.go
+++ b/cmd/provider/eventgrid/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/eventhub/zz_main.go b/cmd/provider/eventhub/zz_main.go
index 760484a9e..087a72e2c 100644
--- a/cmd/provider/eventhub/zz_main.go
+++ b/cmd/provider/eventhub/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/fluidrelay/zz_main.go b/cmd/provider/fluidrelay/zz_main.go
index 902a24e6f..51d29a0a1 100644
--- a/cmd/provider/fluidrelay/zz_main.go
+++ b/cmd/provider/fluidrelay/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/guestconfiguration/zz_main.go b/cmd/provider/guestconfiguration/zz_main.go
index 25936674a..379ca0b9d 100644
--- a/cmd/provider/guestconfiguration/zz_main.go
+++ b/cmd/provider/guestconfiguration/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/hdinsight/zz_main.go b/cmd/provider/hdinsight/zz_main.go
index 9d950ff05..b30d68371 100644
--- a/cmd/provider/hdinsight/zz_main.go
+++ b/cmd/provider/hdinsight/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/healthbot/zz_main.go b/cmd/provider/healthbot/zz_main.go
index dc1e3b8a6..790a369a3 100644
--- a/cmd/provider/healthbot/zz_main.go
+++ b/cmd/provider/healthbot/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/healthcareapis/zz_main.go b/cmd/provider/healthcareapis/zz_main.go
index 52c68668f..9f99b1cc4 100644
--- a/cmd/provider/healthcareapis/zz_main.go
+++ b/cmd/provider/healthcareapis/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/insights/zz_main.go b/cmd/provider/insights/zz_main.go
index 287f04f27..f81fecbbe 100644
--- a/cmd/provider/insights/zz_main.go
+++ b/cmd/provider/insights/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/iotcentral/zz_main.go b/cmd/provider/iotcentral/zz_main.go
index 4b069fe8c..f5edacb48 100644
--- a/cmd/provider/iotcentral/zz_main.go
+++ b/cmd/provider/iotcentral/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/keyvault/zz_main.go b/cmd/provider/keyvault/zz_main.go
index f6b503919..8310aa684 100644
--- a/cmd/provider/keyvault/zz_main.go
+++ b/cmd/provider/keyvault/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/kusto/zz_main.go b/cmd/provider/kusto/zz_main.go
index 3adb8e364..29f22b738 100644
--- a/cmd/provider/kusto/zz_main.go
+++ b/cmd/provider/kusto/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/labservices/zz_main.go b/cmd/provider/labservices/zz_main.go
index 471a677c7..c778e4f5e 100644
--- a/cmd/provider/labservices/zz_main.go
+++ b/cmd/provider/labservices/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/loadtestservice/zz_main.go b/cmd/provider/loadtestservice/zz_main.go
index fc0c63dff..6b126335e 100644
--- a/cmd/provider/loadtestservice/zz_main.go
+++ b/cmd/provider/loadtestservice/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/logic/zz_main.go b/cmd/provider/logic/zz_main.go
index 45467b92d..0f3380a32 100644
--- a/cmd/provider/logic/zz_main.go
+++ b/cmd/provider/logic/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/logz/zz_main.go b/cmd/provider/logz/zz_main.go
index 62ab37903..040653b54 100644
--- a/cmd/provider/logz/zz_main.go
+++ b/cmd/provider/logz/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/machinelearningservices/zz_main.go b/cmd/provider/machinelearningservices/zz_main.go
index 11ae1a733..38b656d21 100644
--- a/cmd/provider/machinelearningservices/zz_main.go
+++ b/cmd/provider/machinelearningservices/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/maintenance/zz_main.go b/cmd/provider/maintenance/zz_main.go
index 29ab62983..03d581fa3 100644
--- a/cmd/provider/maintenance/zz_main.go
+++ b/cmd/provider/maintenance/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/managedidentity/zz_main.go b/cmd/provider/managedidentity/zz_main.go
index e106c1959..987cf5034 100644
--- a/cmd/provider/managedidentity/zz_main.go
+++ b/cmd/provider/managedidentity/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/management/zz_main.go b/cmd/provider/management/zz_main.go
index 9139554a2..e2b1e8f6d 100644
--- a/cmd/provider/management/zz_main.go
+++ b/cmd/provider/management/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/maps/zz_main.go b/cmd/provider/maps/zz_main.go
index 8ff0f002b..4833eab8b 100644
--- a/cmd/provider/maps/zz_main.go
+++ b/cmd/provider/maps/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/marketplaceordering/zz_main.go b/cmd/provider/marketplaceordering/zz_main.go
index e0d6b16fa..479cb99d4 100644
--- a/cmd/provider/marketplaceordering/zz_main.go
+++ b/cmd/provider/marketplaceordering/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/media/zz_main.go b/cmd/provider/media/zz_main.go
index 97e008061..5d58c21fa 100644
--- a/cmd/provider/media/zz_main.go
+++ b/cmd/provider/media/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/mixedreality/zz_main.go b/cmd/provider/mixedreality/zz_main.go
index c2c69c7ce..9163188c9 100644
--- a/cmd/provider/mixedreality/zz_main.go
+++ b/cmd/provider/mixedreality/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/monolith/zz_main.go b/cmd/provider/monolith/zz_main.go
index 32e6eefc0..c39aa9b52 100644
--- a/cmd/provider/monolith/zz_main.go
+++ b/cmd/provider/monolith/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/netapp/zz_main.go b/cmd/provider/netapp/zz_main.go
index 3285d1859..d2032c0aa 100644
--- a/cmd/provider/netapp/zz_main.go
+++ b/cmd/provider/netapp/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/network/zz_main.go b/cmd/provider/network/zz_main.go
index 98554d117..5b18fab84 100644
--- a/cmd/provider/network/zz_main.go
+++ b/cmd/provider/network/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/notificationhubs/zz_main.go b/cmd/provider/notificationhubs/zz_main.go
index f779e1f7a..17eec1896 100644
--- a/cmd/provider/notificationhubs/zz_main.go
+++ b/cmd/provider/notificationhubs/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/operationalinsights/zz_main.go b/cmd/provider/operationalinsights/zz_main.go
index 46a0d8be3..db1cd0924 100644
--- a/cmd/provider/operationalinsights/zz_main.go
+++ b/cmd/provider/operationalinsights/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/operationsmanagement/zz_main.go b/cmd/provider/operationsmanagement/zz_main.go
index 248c8aead..f447df162 100644
--- a/cmd/provider/operationsmanagement/zz_main.go
+++ b/cmd/provider/operationsmanagement/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/orbital/zz_main.go b/cmd/provider/orbital/zz_main.go
index 9c82c0433..44f7b804b 100644
--- a/cmd/provider/orbital/zz_main.go
+++ b/cmd/provider/orbital/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/policyinsights/zz_main.go b/cmd/provider/policyinsights/zz_main.go
index 2372e13a6..8a21b8c4c 100644
--- a/cmd/provider/policyinsights/zz_main.go
+++ b/cmd/provider/policyinsights/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/portal/zz_main.go b/cmd/provider/portal/zz_main.go
index b61d2dd81..71c81434a 100644
--- a/cmd/provider/portal/zz_main.go
+++ b/cmd/provider/portal/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/powerbidedicated/zz_main.go b/cmd/provider/powerbidedicated/zz_main.go
index a40ccb39b..64f418214 100644
--- a/cmd/provider/powerbidedicated/zz_main.go
+++ b/cmd/provider/powerbidedicated/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/purview/zz_main.go b/cmd/provider/purview/zz_main.go
index cd5e4a473..f397b38bc 100644
--- a/cmd/provider/purview/zz_main.go
+++ b/cmd/provider/purview/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/recoveryservices/zz_main.go b/cmd/provider/recoveryservices/zz_main.go
index 5ddc7e468..cc843a730 100644
--- a/cmd/provider/recoveryservices/zz_main.go
+++ b/cmd/provider/recoveryservices/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/relay/zz_main.go b/cmd/provider/relay/zz_main.go
index 165ddae2f..ad1a0be09 100644
--- a/cmd/provider/relay/zz_main.go
+++ b/cmd/provider/relay/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/resources/zz_main.go b/cmd/provider/resources/zz_main.go
index fd036c769..ea04b6999 100644
--- a/cmd/provider/resources/zz_main.go
+++ b/cmd/provider/resources/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/search/zz_main.go b/cmd/provider/search/zz_main.go
index 869cddce6..3a86fe2b7 100644
--- a/cmd/provider/search/zz_main.go
+++ b/cmd/provider/search/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/security/zz_main.go b/cmd/provider/security/zz_main.go
index 453399b03..176fb31b2 100644
--- a/cmd/provider/security/zz_main.go
+++ b/cmd/provider/security/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/securityinsights/zz_main.go b/cmd/provider/securityinsights/zz_main.go
index 0f3a9af66..a5e33253a 100644
--- a/cmd/provider/securityinsights/zz_main.go
+++ b/cmd/provider/securityinsights/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/servicebus/zz_main.go b/cmd/provider/servicebus/zz_main.go
index 4d27512ee..7e8133911 100644
--- a/cmd/provider/servicebus/zz_main.go
+++ b/cmd/provider/servicebus/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/servicefabric/zz_main.go b/cmd/provider/servicefabric/zz_main.go
index b92ce1fa9..ab7b3b5c6 100644
--- a/cmd/provider/servicefabric/zz_main.go
+++ b/cmd/provider/servicefabric/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/servicelinker/zz_main.go b/cmd/provider/servicelinker/zz_main.go
index 40ed48f3d..47714fe91 100644
--- a/cmd/provider/servicelinker/zz_main.go
+++ b/cmd/provider/servicelinker/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/signalrservice/zz_main.go b/cmd/provider/signalrservice/zz_main.go
index d32c3eb68..2c2c751be 100644
--- a/cmd/provider/signalrservice/zz_main.go
+++ b/cmd/provider/signalrservice/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/solutions/zz_main.go b/cmd/provider/solutions/zz_main.go
index da4732f98..dd765fd2c 100644
--- a/cmd/provider/solutions/zz_main.go
+++ b/cmd/provider/solutions/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/spring/zz_main.go b/cmd/provider/spring/zz_main.go
index 792f35344..cec3b7830 100644
--- a/cmd/provider/spring/zz_main.go
+++ b/cmd/provider/spring/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/sql/zz_main.go b/cmd/provider/sql/zz_main.go
index f42ef4925..cecf36073 100644
--- a/cmd/provider/sql/zz_main.go
+++ b/cmd/provider/sql/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/storage/zz_main.go b/cmd/provider/storage/zz_main.go
index 2a0f9de8a..5af6b501b 100644
--- a/cmd/provider/storage/zz_main.go
+++ b/cmd/provider/storage/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/storagecache/zz_main.go b/cmd/provider/storagecache/zz_main.go
index 9ca4a9232..b646a603c 100644
--- a/cmd/provider/storagecache/zz_main.go
+++ b/cmd/provider/storagecache/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/storagepool/zz_main.go b/cmd/provider/storagepool/zz_main.go
index c338b42b9..e0b4612ae 100644
--- a/cmd/provider/storagepool/zz_main.go
+++ b/cmd/provider/storagepool/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/storagesync/zz_main.go b/cmd/provider/storagesync/zz_main.go
index 822d22c03..381fce537 100644
--- a/cmd/provider/storagesync/zz_main.go
+++ b/cmd/provider/storagesync/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/streamanalytics/zz_main.go b/cmd/provider/streamanalytics/zz_main.go
index 4cf66329e..2e47062b9 100644
--- a/cmd/provider/streamanalytics/zz_main.go
+++ b/cmd/provider/streamanalytics/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/synapse/zz_main.go b/cmd/provider/synapse/zz_main.go
index 52d0bc6b0..620704d4d 100644
--- a/cmd/provider/synapse/zz_main.go
+++ b/cmd/provider/synapse/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/timeseriesinsights/zz_main.go b/cmd/provider/timeseriesinsights/zz_main.go
index d253328e8..a12429238 100644
--- a/cmd/provider/timeseriesinsights/zz_main.go
+++ b/cmd/provider/timeseriesinsights/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/cmd/provider/web/zz_main.go b/cmd/provider/web/zz_main.go
index 2b2dcc18c..035604a12 100644
--- a/cmd/provider/web/zz_main.go
+++ b/cmd/provider/web/zz_main.go
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/hack/main.go.tmpl b/hack/main.go.tmpl
index db6faae65..3c7be2cff 100644
--- a/hack/main.go.tmpl
+++ b/hack/main.go.tmpl
@@ -18,18 +18,11 @@ package main
 
 import (
 	"context"
+	"fmt"
 	"os"
 	"path/filepath"
 	"time"
 
-	"gopkg.in/alecthomas/kingpin.v2"
-	kerrors "k8s.io/apimachinery/pkg/api/errors"
-	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
-	"k8s.io/client-go/tools/leaderelection/resourcelock"
-	ctrl "sigs.k8s.io/controller-runtime"
-	"sigs.k8s.io/controller-runtime/pkg/cache"
-	"sigs.k8s.io/controller-runtime/pkg/log/zap"
-
 	xpv1 "github.com/crossplane/crossplane-runtime/apis/common/v1"
 	"github.com/crossplane/crossplane-runtime/pkg/certificates"
 	xpcontroller "github.com/crossplane/crossplane-runtime/pkg/controller"
@@ -38,7 +31,13 @@ import (
 	"github.com/crossplane/crossplane-runtime/pkg/ratelimiter"
 	"github.com/crossplane/crossplane-runtime/pkg/resource"
 	tjcontroller "github.com/crossplane/upjet/pkg/controller"
-	"github.com/crossplane/upjet/pkg/terraform"
+	"gopkg.in/alecthomas/kingpin.v2"
+	kerrors "k8s.io/apimachinery/pkg/api/errors"
+	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
+	"k8s.io/client-go/tools/leaderelection/resourcelock"
+	ctrl "sigs.k8s.io/controller-runtime"
+	"sigs.k8s.io/controller-runtime/pkg/cache"
+	"sigs.k8s.io/controller-runtime/pkg/log/zap"
 
 	"github.com/upbound/provider-azure/apis"
 	"github.com/upbound/provider-azure/apis/v1alpha1"
@@ -48,24 +47,34 @@ import (
 	"github.com/upbound/provider-azure/internal/features"
 )
 
+func deprecationAction(flagName string) kingpin.Action {
+	return func(c *kingpin.ParseContext) error {
+		_, err := fmt.Fprintf(os.Stderr, "warning: Command-line flag %q is deprecated and no longer used. It will be removed in a future release. Please remove it from all of your configurations (ControllerConfigs, etc.).\n", flagName)
+		kingpin.FatalIfError(err, "Failed to print the deprecation notice.")
+		return nil
+	}
+}
+
 func main() {
 	var (
-		app                = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
-		debug              = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
-		syncInterval       = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
-		pollInterval       = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
-		leaderElection     = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
-		maxReconcileRate   = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("10").Int()
-		terraformVersion   = app.Flag("terraform-version", "Terraform version.").Required().Envar("TERRAFORM_VERSION").String()
-		providerSource     = app.Flag("terraform-provider-source", "Terraform provider source.").Required().Envar("TERRAFORM_PROVIDER_SOURCE").String()
-		providerVersion    = app.Flag("terraform-provider-version", "Terraform provider version.").Required().Envar("TERRAFORM_PROVIDER_VERSION").String()
-		nativeProviderPath = app.Flag("terraform-native-provider-path", "Terraform native provider path for shared execution.").Default("").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").String()
-		pluginProcessTTL   = app.Flag("provider-ttl", "TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Default("100").Int()
+		app              = kingpin.New(filepath.Base(os.Args[0]), "Terraform based Crossplane provider for Azure").DefaultEnvars()
+		debug            = app.Flag("debug", "Run with debug logging.").Short('d').Bool()
+		syncInterval     = app.Flag("sync", "Sync interval controls how often all resources will be double checked for drift.").Short('s').Default("1h").Duration()
+		pollInterval     = app.Flag("poll", "Poll interval controls how often an individual resource should be checked for drift.").Default("10m").Duration()
+		leaderElection   = app.Flag("leader-election", "Use leader election for the controller manager.").Short('l').Default("false").OverrideDefaultFromEnvar("LEADER_ELECTION").Bool()
+		maxReconcileRate = app.Flag("max-reconcile-rate", "The global maximum rate per second at which resources may checked for drift from the desired state.").Default("100").Int()
 
 		namespace                  = app.Flag("namespace", "Namespace used to set as default scope in default secret store config.").Default("crossplane-system").Envar("POD_NAMESPACE").String()
 		essTLSCertsPath            = app.Flag("ess-tls-cert-dir", "Path of ESS TLS certificates.").Envar("ESS_TLS_CERTS_DIR").String()
 		enableExternalSecretStores = app.Flag("enable-external-secret-stores", "Enable support for ExternalSecretStores.").Default("false").Envar("ENABLE_EXTERNAL_SECRET_STORES").Bool()
 		enableManagementPolicies   = app.Flag("enable-management-policies", "Enable support for Management Policies.").Default("true").Envar("ENABLE_MANAGEMENT_POLICIES").Bool()
+
+		// now deprecated command-line arguments with the Terraform SDK-based upjet architecture
+		_ = app.Flag("provider-ttl", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] TTL for the native plugin processes before they are replaced. Changing the default may increase memory consumption.").Hidden().Action(deprecationAction("provider-ttl")).Int()
+		_ = app.Flag("terraform-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform version.").Envar("TERRAFORM_VERSION").Hidden().Action(deprecationAction("terraform-version")).String()
+		_ = app.Flag("terraform-provider-version", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider version.").Envar("TERRAFORM_PROVIDER_VERSION").Hidden().Action(deprecationAction("terraform-provider-version")).String()
+		_ = app.Flag("terraform-native-provider-path", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform native provider path for shared execution.").Envar("TERRAFORM_NATIVE_PROVIDER_PATH").Hidden().Action(deprecationAction("terraform-native-provider-path")).String()
+		_ = app.Flag("terraform-provider-source", "[DEPRECATED: This option is no longer used and it will be removed in a future release.] Terraform provider source.").Envar("TERRAFORM_PROVIDER_SOURCE").Hidden().Action(deprecationAction("terraform-provider-source")).String()
 	)
 
 	kingpin.MustParse(app.Parse(os.Args[1:]))
@@ -100,18 +109,6 @@ func main() {
 	kingpin.FatalIfError(err, "Cannot create controller manager")
 	kingpin.FatalIfError(apis.AddToScheme(mgr.GetScheme()), "Cannot add Azure APIs to scheme")
 
-	// if the native Terraform provider plugin's path is not configured via
-	// the env. variable TERRAFORM_NATIVE_PROVIDER_PATH or
-	// the `--terraform-native-provider-path` command-line option,
-	// we do not use the shared gRPC server and default to the regular
-	// Terraform CLI behaviour (of forking a plugin process per invocation).
-	// This removes some complexity for setting up development environments.
-	var scheduler terraform.ProviderScheduler = terraform.NewNoOpProviderScheduler()
-	if len(*nativeProviderPath) != 0 {
-		scheduler = terraform.NewSharedProviderScheduler(log, *pluginProcessTTL,
-			terraform.WithSharedProviderOptions(terraform.WithNativeProviderPath(*nativeProviderPath), terraform.WithNativeProviderName("registry.terraform.io/"+*providerSource)))
-	}
-
 	ctx := context.Background()
 	provider, err := config.GetProvider(ctx, false)
 	kingpin.FatalIfError(err, "Cannot initialize the provider configuration")
@@ -124,7 +121,7 @@ func main() {
 			Features:                &feature.Flags{},
 		},
 		Provider:              provider,
-		SetupFn:               clients.TerraformSetupBuilder(*terraformVersion, *providerSource, *providerVersion, provider.TerraformProvider, scheduler),
+		SetupFn:               clients.TerraformSetupBuilder(provider.TerraformProvider),
 		PollJitter:            pollJitter,
 		OperationTrackerStore: tjcontroller.NewOperationStore(log),
 	}
@@ -134,8 +131,6 @@ func main() {
 		log.Info("Beta feature enabled", "flag", features.EnableBetaManagementPolicies)
 	}
 
-	o.WorkspaceStore = terraform.NewWorkspaceStore(log, terraform.WithDisableInit(len(*nativeProviderPath) != 0), terraform.WithProcessReportInterval(*pollInterval), terraform.WithFeatures(o.Features))
-
 	if *enableExternalSecretStores {
 		o.SecretStoreConfigGVK = &v1alpha1.StoreConfigGroupVersionKind
 		log.Info("Alpha feature enabled", "flag", features.EnableAlphaExternalSecretStores)
diff --git a/internal/clients/azure.go b/internal/clients/azure.go
index e8b390840..9296b91c7 100644
--- a/internal/clients/azure.go
+++ b/internal/clients/azure.go
@@ -65,16 +65,9 @@ var (
 // TerraformSetupBuilder returns Terraform setup with provider specific
 // configuration like provider credentials used to connect to cloud APIs in the
 // expected form of a Terraform provider.
-func TerraformSetupBuilder(version, providerSource, providerVersion string, tfProvider *schema.Provider, scheduler terraform.ProviderScheduler) terraform.SetupFn { //nolint:gocyclo
+func TerraformSetupBuilder(tfProvider *schema.Provider) terraform.SetupFn { //nolint:gocyclo
 	return func(ctx context.Context, client client.Client, mg xpresource.Managed) (terraform.Setup, error) {
-		ps := terraform.Setup{
-			Version: version,
-			Requirement: terraform.ProviderRequirement{
-				Source:  providerSource,
-				Version: providerVersion,
-			},
-			Scheduler: scheduler,
-		}
+		ps := terraform.Setup{}
 
 		configRef := mg.GetProviderConfigReference()
 		if configRef == nil {