Fix: Ensure azd up -e deploys resources to the specified environment, ignoring the default environment

cli/azd/cmd/container.go

@@ -180,6 +180,15 @@ func registerCommonDependencies(container *ioc.NestedContainer) {
 			envValue = ""
 		}
 
+		if envValue == "" {
+			// If no explicit environment flag was set, but one was provided
+			// in the context, use that instead.
+			// This is used in workflow execution (in `up`) to influence the environment used.
+			if envFlag, ok := cmd.Context().Value(envFlagCtxKey).(internal.EnvFlag); ok {
+				return envFlag
+			}
+		}
+
 		return internal.EnvFlag{EnvironmentName: envValue}
 	})
 

cli/azd/cmd/up.go

@@ -134,6 +134,10 @@ func (u *upAction) Run(ctx context.Context) (*actions.ActionResult, error) {
 		u.console.Message(ctx, output.WithGrayFormat("Note: Running custom 'up' workflow from azure.yaml"))
 	}
 
+	if u.flags.EnvironmentName != "" {
+		ctx = context.WithValue(ctx, envFlagCtxKey, u.flags.EnvFlag)
+	}
+
 	if err := u.workflowRunner.Run(ctx, upWorkflow); err != nil {
 		return nil, err
 	}

cli/azd/cmd/util.go

@@ -172,4 +172,9 @@ func openWithDefaultBrowser(ctx context.Context, console input.Console, url stri
 	console.Message(ctx, fmt.Sprintf("Azd was unable to open the next url. Please try it manually: %s", url))
 }
 
+type envFlagKey string
+
+// envFlagCtxKey is the context key for internal.EnvFlag
+var envFlagCtxKey envFlagKey = "envFlag"
+
 const referenceDocumentationUrl = "https://learn.microsoft.com/azure/developer/azure-developer-cli/reference#"

cli/azd/test/functional/up_test.go

@@ -22,6 +22,7 @@ import (
 	"github.com/azure/azure-dev/cli/azd/pkg/environment"
 	"github.com/azure/azure-dev/cli/azd/pkg/environment/azdcontext"
 	"github.com/azure/azure-dev/cli/azd/pkg/exec"
+	"github.com/azure/azure-dev/cli/azd/pkg/osutil"
 	"github.com/azure/azure-dev/cli/azd/test/azdcli"
 	"github.com/azure/azure-dev/cli/azd/test/recording"
 	"github.com/joho/godotenv"
@@ -505,6 +506,72 @@ func Test_CLI_Up_ResourceGroupScope(t *testing.T) {
 	require.NoError(t, err)
 }
 
+// Test_CLI_Up_EnvironmentFlags validates that the up workflow handles the --environment/-e flag
+// correctly.
+func Test_CLI_Up_EnvironmentFlags(t *testing.T) {
+	ctx, cancel := newTestContext(t)
+	defer cancel()
+
+	dir := tempDirWithDiagnostics(t)
+	t.Logf("DIR: %s", dir)
+
+	cli := azdcli.NewCLI(t)
+	cli.WorkingDirectory = dir
+
+	// set up basic project
+	err := copySample(dir, "storage")
+	require.NoError(t, err, "failed expanding sample")
+
+	// create environments
+	envNew(ctx, t, cli, "env1", false)
+	envNew(ctx, t, cli, "env2", false)
+
+	// select env1 as default
+	envSelect(ctx, t, cli, "env1")
+
+	// update up workflow
+	err = os.WriteFile(filepath.Join(dir, "azure.yaml"), []byte(`
+name: up-envflag
+workflows:
+  up:
+    steps:
+    - azd: env set CURRENT_ENV VALUE
+    - azd: env set ENV1 VALUE1 -e env1
+    - azd: env set ENV2 VALUE2 -e env2
+`), osutil.PermissionFile)
+	require.NoError(t, err)
+
+	// run with env1 selected as  implicitly default
+	_, err = cli.RunCommand(ctx, "up")
+	require.NoError(t, err)
+
+	values := envGetValues(ctx, t, cli, "-e", "env1")
+	require.Contains(t, values, "ENV1")
+	require.Contains(t, values, "CURRENT_ENV")
+	require.NotContains(t, values, "ENV2")
+
+	values = envGetValues(ctx, t, cli, "-e", "env2")
+	require.Contains(t, values, "ENV2")
+	require.NotContains(t, values, "CURRENT_ENV")
+	require.NotContains(t, values, "ENV1")
+
+	// run with env2 selected explicitly,
+	// this should newly set CURRENT_ENV on env2
+	_, err = cli.RunCommand(ctx, "up", "-e", "env2")
+	require.NoError(t, err)
+
+	values = envGetValues(ctx, t, cli, "-e", "env1")
+	require.Contains(t, values, "ENV1")
+	require.Contains(t, values, "CURRENT_ENV")
+	require.NotContains(t, values, "ENV2")
+
+	values = envGetValues(ctx, t, cli, "-e", "env2")
+	require.Contains(t, values, "ENV2")
+	require.Contains(t, values, "CURRENT_ENV")
+	require.NotContains(t, values, "ENV1")
+
+}
+
 type httpClient interface {
 	Get(url string) (*http.Response, error)
 }