[REG 1.1.9 -> 1.2.0] Module is incompatible with count, for_each, and depends_on

[orgads]

Terraform Version

Terraform v1.2.0
on windows_amd64

Terraform Configuration Files

a/a.tf:

output "value" { value = "foo" }

b/b.tf:

terraform {
  required_providers {
    restapi = {
      source  = "fmontezuma/restapi"
      version = ">=1.14.1"
    }
  }
}

provider "restapi" {
  alias = "test"
  uri   = "https://example.com/api/v1"
}

variable "v" {}

main.tf:

terraform {
  required_providers {
    restapi = {
      source  = "fmontezuma/restapi"
      version = ">=1.14.1"
    }
  }
}

module "a" {
  count = 1
  source = "./a"
}

module "b" {
  source = "./b"
  v = module.a[0].value
}

Debug Output

https://gist.github.com/orgads/cd268112f253363f9f58f19dad306111

Expected Behavior

It should work

Actual Behavior

I'm getting a wrong error message. Module a does not have a provider, and module b doesn't have for_each, count or depends_on. This worked correctly with Terraform 1.1.9.

$ terraform init
Initializing modules...
There are some problems with the configuration, described below.

The Terraform configuration must be valid before initialization so that
Terraform can determine which modules and providers need to be installed.
╷
│ Error: Module is incompatible with count, for_each, and depends_on
│
│   on main.tf line 11, in module "a":
│   11:   count = 1
│
│ The module at module.b is a legacy module which contains its own local provider configurations, and so calls to it may not use the count, for_each, or depends_on arguments.
│
│ If you also control the module "./b", consider updating this module to instead expect provider configurations to be passed by its caller.
╵

Steps to Reproduce

terraform init

[kmoe]

This is a duplicate of #31081, which is fixed in v1.2.1.

[orgads]

Thank you.

[github-actions]

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