Symlink support for module on windows is not working anymore since 1.10.0 version

[AlainLeconte]

Terraform Version

terraform -v    
Terraform v1.10.0
on windows_amd64
+ provider registry.terraform.io/cloudflare/cloudflare v4.52.0
+ provider registry.terraform.io/hashicorp/aws v5.87.0
+ provider registry.terraform.io/hashicorp/helm v2.17.0
+ provider registry.terraform.io/hashicorp/http v3.4.5
+ provider registry.terraform.io/hashicorp/kubernetes v2.35.1
+ provider registry.terraform.io/hashicorp/local v2.5.2
+ provider registry.terraform.io/hashicorp/null v3.2.3

Your version of Terraform is out of date! The latest version
is 1.10.5. You can update by downloading from https://www.terraform.io/downloads.html

Terraform Configuration Files

C:/
├── Modules.project/
│ └── modules/
│ └── service/
│ └── maint.tf
│ └── etc.tf...
│ └── ....

C:/
├── Main.project/
│ └── .github/
│ └── action => SYMLINK to local Modules.project folder
│ └── terraform/
│ └── service/
│ └── main.tf
main.tf
module "service" {
source = "../../.github/actions/modules/service"

Debug Output

Initializing the backend...

Successfully configured the backend "s3"! Terraform will automatically
use this backend unless the backend configuration changes.
Upgrading modules...

• service in
  ╷
  │ Error: Unreadable module directory
  │
  │ Unable to evaluate directory symlink: The system cannot find the path specified.
  ╵
  ╷
  │ Error: Unreadable module directory
  │
  │ The directory could not be read for module "service" at main.tf:1.
  ╵

### Expected Behavior

Working as expected with Terraform 1.9.8 ...
Upgrading modules...
- service in C:\Module.project\modules\service
Downloading registry.terraform.io/terraform-aws-modules/iam/aws 5.52.2 for service.irsa_role...
- service.irsa_role in .terraform\modules\service.irsa_role\modules\iam-role-for-service-accounts-eks
Initializing provider plugins...
- Finding hashicorp/local versions matching "~> 2.0"...
- Finding hashicorp/null versions matching "~> 3.0"...
- Finding latest version of hashicorp/http...


### Actual Behavior

 Error: Unreadable module directory

### Steps to Reproduce

terraform -init -upgrade

### Additional Context

_No response_

### References

_No response_

### Generative AI / LLM assisted development?

_No response_

[AlainLeconte]

Got an error above, the right one is ... (action is a symlink in the .github folder and service is a subfolder of terraform)

C:/
├── Main.project/
│.└── .github/
│ ......... └─ action => SYMLINK Junction to local Modules.project folder
│ └── terraform/
│...........└─ service/
│ ................└─ main.tf

[jbardin]

Hi @AlainLeconte,

IIRC, a junction is not a symlink, though it behaves similarly in many cases. I also recall seeing some issues on other projects where treating a junction as a symlinks caused bugs of a different sort, so this may be a result of fixing the symlink evaluation code on Windows in general.