Check out example codes for "CLI configuration File in terraform ?". It will help you in understanding the concepts better.
Code Example 1
Location of the CLI Configuration File:-> Windows ---> the file must be named <terraform.rc> and placed in the relevant user's <%APPDATA%> directory. All other systems ---> the file must be named <.terraformrc> placed directly in the home directory of the relevant user. Environment Variable ---> <TF_CLI_CONFIG_FILE environment variable.>
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