diff --git a/.agents/rules/testing.md b/.agents/rules/testing.md
index b8ac81ad23d..ae6248d2d1b 100644
--- a/.agents/rules/testing.md
+++ b/.agents/rules/testing.md
@@ -66,7 +66,7 @@ The whole `Cloud*` family lives inside an `if isRunningOnCloud` branch in `getSk
 
 Exception: mass string replacement when the change is predictable and much cheaper than re-running the test suite.
 
-**RULE: All `EnvMatrix` variants MUST produce identical output files.** Filenames containing `$DATABRICKS_BUNDLE_ENGINE` (e.g. `output.direct.txt`) are the only per-engine exception.
+**RULE: All `EnvMatrix` variants MUST produce identical output files.** The only exception is a test that sets `EnvVaryOutput`, whose files named after the variant value (e.g. `out.deploy.<value>.txt`) are per-variant.
 
 **RULE: Do not run `-update` while a divergent variant exists.** It is destructive: it overwrites with the last variant and breaks the others. To debug: run a single variant you consider correct with `-update`, then debug the other variant to find why it diverges.
 
@@ -95,13 +95,9 @@ acceptance/cmd/fs/cp/file-to-dir/
   output.txt
 ```
 
-**RULE: When output genuinely diverges between engines (terraform vs direct), split only the diverging file into per-engine variants.** Keep the rest of the output unified. Files named `output.$DATABRICKS_BUNDLE_ENGINE.txt` or `out.requests.$DATABRICKS_BUNDLE_ENGINE.json` are the allowed per-engine form.
-
-If the only reason for divergence is a server-side default that one engine sets and the other doesn't, set the field explicitly in `databricks.yml` so both engines produce identical output. Don't paper over it with per-engine files.
-
 **RULE: On Windows, Git Bash auto-converts a leading-`/` path argument (e.g. `/api/2.0/...`) into a Windows path, so `$CLI` sees the wrong path and the testserver 404s.** Set `Env.MSYS_NO_PATHCONV = "1"` in the test directory's `test.toml`. Quoting the argument in bash does NOT help — the conversion is done by the Windows binary's argument processing. Precedent: `acceptance/cmd/workspace/export-dir-*/test.toml`.
 
-**RULE: `EnvMatrix.<VAR> = []` removes that variable from the inherited matrix** (see `ExpandEnvMatrix` in `acceptance/internal/config.go`). The root `test.toml` matrixes `DATABRICKS_BUNDLE_ENGINE = [terraform, direct]`, so a non-bundle test opts out of both engine runs with `EnvMatrix.DATABRICKS_BUNDLE_ENGINE = []`. The `out.test.toml` snapshot of inherited values is generated and committed by design.
+**RULE: `EnvMatrix.<VAR> = []` removes that variable from the inherited matrix** (see `ExpandEnvMatrix` in `acceptance/internal/config.go`). For example, `acceptance/bundle/test.toml` matrixes `DMS = ["", "true"]`, so a bundle test opts out of the DMS run with `EnvMatrix.DMS = []`. The `out.test.toml` snapshot of inherited values is generated and committed by design.
 
 **RULE: Write every map-valued setting in dotted form at the top of `test.toml`, never under a table header.** This covers `Env`, `EnvMatrix`, `EnvMatrixExclude`, `EnvRepl`, `GOOS` and `CloudEnvs` — e.g. `Env.MSYS_NO_PATHCONV = "1"`, `GOOS.windows = false`. In TOML every key after a `[EnvMatrix]` header belongs to that table until the next header — a blank line does not end it. So a top-level key like `Ignore` placed below `[EnvMatrix]` is silently parsed as `EnvMatrix.Ignore` (a bogus matrix variable) instead of the real top-level field, and the test runs with the field unset. Dotted form keeps each key's table explicit and is immune to ordering.
 
@@ -110,7 +106,7 @@ If the only reason for divergence is a server-side default that one engine sets
 GOOD:
 
 ```toml
-EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"]
+EnvMatrix.READPLAN = ["", "1"]
 Ignore = ["databricks.yml"]
 ```
 
@@ -118,7 +114,7 @@ BAD:
 
 ```toml
 [EnvMatrix]
-DATABRICKS_BUNDLE_ENGINE = ["direct"]
+READPLAN = ["", "1"]
 
 Ignore = ["databricks.yml"]   # parsed as EnvMatrix.Ignore, not top-level Ignore
 ```
@@ -132,7 +128,7 @@ Ignore = ["databricks.yml"]   # parsed as EnvMatrix.Ignore, not top-level Ignore
 - Source files: `test.toml`, `script`, `script.prepare`, `databricks.yml`, etc.
 - Tests are configured via `test.toml`. Config schema and explanation is in `acceptance/internal/config.go`. Certain options are also dumped to `out.test.toml` so that inherited values are visible on PRs.
 - Run a single test: `go test ./acceptance -run TestAccept/bundle/<path>/<to>/<folder>`
-- Run a specific variant by appending `EnvMatrix` values to the test name: `go test ./acceptance -run 'TestAccept/.../DATABRICKS_BUNDLE_ENGINE=direct'`. When there are multiple `EnvMatrix` variables, they appear in alphabetical order.
+- Run a specific variant by appending `EnvMatrix` values to the test name: `go test ./acceptance -run 'TestAccept/.../DMS=true'`. When there are multiple `EnvMatrix` variables, they appear in alphabetical order.
 - Useful flags: `-v` for verbose output, `-tail` to follow test output (requires `-v`), `-logrequests` to log all HTTP requests/responses (requires `-v`).
 - Run tests on cloud: `deco env run -i -n aws-prod-ucws -- <go test command>` (requires `deco` tool and access to test env). This is an *additional* pass over the same test directories, restricted to those with `Cloud = true` set; it does not replace the local run.
 - `script.prepare` files from parent directories are concatenated into the test script. Use them for shared bash helpers.
@@ -183,7 +179,7 @@ Available on `PATH` during test execution (from `acceptance/bin/`):
 - `update_file.py FILENAME OLD NEW`: replace all occurrences of OLD with NEW in FILENAME. Errors if OLD is not found. Cannot be used on `output.txt`.
 - `find.py REGEX [--expect N]`: find files matching regex in current directory. `--expect N` asserts an exact count.
 - `diff.py DIR1 DIR2` or `diff.py FILE1 FILE2`: recursive diff with test replacements applied.
-- `print_state.py [-t TARGET] [--backup]`: print deployment state (terraform or direct).
+- `print_state.py [-t TARGET] [--backup]`: print deployment state (`resources.json`, or a terraform state left by an older CLI).
 - `edit_resource.py TYPE ID < script.py`: fetch resource by ID, execute Python on it (resource in `r`), then update it. TYPE is `jobs` or `pipelines`.
 - `gron.py`: flatten JSON into greppable discrete assignments (simpler than `jq` for searching JSON).
 - `jq` is also available for JSON processing.
diff --git a/acceptance/acceptance_test.go b/acceptance/acceptance_test.go
index 2aec664dedf..647e10d05a7 100644
--- a/acceptance/acceptance_test.go
+++ b/acceptance/acceptance_test.go
@@ -187,7 +187,7 @@ func TestInprocessMode(t *testing.T) {
 	// selftest/server too, which meant a second setup after StartDefaultServer had
 	// pointed HOME at an empty temp dir, so building yamlfmt there re-downloaded the
 	// entire module cache: 44s on Linux CI, 140s on Windows. Tool builds are skipped
-	// for the same reason - selftest/basic uses neither terraform, the wheel, nor yamlfmt.
+	// for the same reason - selftest/basic uses neither the wheel nor yamlfmt.
 	require.Equal(t, 1, testAccept(t, true, []string{"selftest/basic"}, true))
 }
 
@@ -205,29 +205,8 @@ func setReplsForTestEnvVars(t *testing.T, repls *testdiff.ReplacementsContext) {
 	}
 }
 
-// helperScriptUsesEngineCache caches whether a _script helper in a given directory
-// (or any of its ancestors) references $DATABRICKS_BUNDLE_ENGINE.
-// Since _script helpers are shared across many tests, caching avoids redundant reads.
-var helperScriptUsesEngineCache sync.Map
-
-// anyHelperScriptUsesEngine returns true if any _script helper in dir or its ancestors
-// contains $DATABRICKS_BUNDLE_ENGINE.
-func anyHelperScriptUsesEngine(dir string) bool {
-	if dir == "" || dir == "." {
-		return false
-	}
-	if v, ok := helperScriptUsesEngineCache.Load(dir); ok {
-		return v.(bool)
-	}
-	content, err := os.ReadFile(filepath.Join(dir, "_script"))
-	result := (err == nil && strings.Contains(string(content), "$DATABRICKS_BUNDLE_ENGINE")) ||
-		anyHelperScriptUsesEngine(filepath.Dir(dir))
-	helperScriptUsesEngineCache.Store(dir, result)
-	return result
-}
-
 // hasRunFilter returns true if the -run flag contains '=', indicating a specific
-// EnvMatrix variant was requested (e.g. DATABRICKS_BUNDLE_ENGINE=direct).
+// EnvMatrix variant was requested (e.g. DMS=true).
 func hasRunFilter() bool {
 	f := flag.Lookup("test.run")
 	return f != nil && strings.Contains(f.Value.String(), "=")
@@ -264,7 +243,7 @@ func requirePrerequisites(t *testing.T) bool {
 
 // selectedTests, when non-empty, limits the run to those test directories.
 // skipToolBuilds skips building the tools that the selected tests do not use
-// (terraform, the databricks-bundles wheel, yamlfmt); it must stay false for a
+// (the databricks-bundles wheel, yamlfmt); it must stay false for a
 // full run.
 func testAccept(t *testing.T, inprocessMode bool, selectedTests []string, skipToolBuilds bool) int {
 	if testdiff.OverwriteMode && !hasRunFilter() {
@@ -654,10 +633,7 @@ func testAccept(t *testing.T, inprocessMode bool, selectedTests []string, skipTo
 
 			expanded := internal.ExpandEnvMatrix(config.EnvMatrix, config.EnvMatrixExclude, extraVars)
 			if Subset {
-				scriptContent, _ := os.ReadFile(filepath.Join(dir, EntryPointScript))
-				scriptUsesEngine := strings.Contains(string(scriptContent), "$DATABRICKS_BUNDLE_ENGINE") ||
-					anyHelperScriptUsesEngine(dir)
-				expanded = internal.SubsetExpanded(expanded, dir, scriptUsesEngine)
+				expanded = internal.SubsetExpanded(expanded, dir)
 			}
 
 			// If the matrix expands to a single empty envset, run the test directly
@@ -1073,10 +1049,6 @@ func runTest(t *testing.T,
 		// (kill_after.py, callserver.py, …) would route their requests through
 		// the blocking proxy. NO_PROXY exempts them.
 		cmd.Env = append(cmd.Env, "NO_PROXY=127.0.0.1,localhost")
-		// Terraform phones home to checkpoint-api.hashicorp.com on every run to
-		// check for updates. Disable it so these CONNECT requests don't reach the
-		// blocking proxy and fail every terraform-engine test.
-		cmd.Env = append(cmd.Env, "CHECKPOINT_DISABLE=1")
 	}
 	// Run from outputDir so the entry-point script isn't a bundle source; the script
 	// cd's into tmpDir (the bundle dir) as its first line.
@@ -2063,8 +2035,8 @@ func loadScriptReplacements(t *testing.T, repls *testdiff.ReplacementsContext, r
 
 type pathFilter struct {
 	// contains substrings from the variants other than current.
-	// E.g. if EnvVaryOutput is DATABRICKS_BUNDLE_ENGINE and current test running DATABRICKS_BUNDLE_ENGINE="terraform" then
-	// notSelected contains ".direct." meaning if filename contains that (e.g. out.deploy.direct.txt) then we ignore it here.
+	// E.g. if EnvVaryOutput is MODE = ["a", "b"] and current test running MODE="a" then
+	// notSelected contains ".b." meaning if filename contains that (e.g. out.deploy.b.txt) then we ignore it here.
 	notSelected []string
 }
 
diff --git a/acceptance/bin/print_state.py b/acceptance/bin/print_state.py
index 7eb9ea89c79..d40adbca178 100755
--- a/acceptance/bin/print_state.py
+++ b/acceptance/bin/print_state.py
@@ -220,10 +220,9 @@ def main():
     for filename in get_state_files(args.target, args.backup):
         if not os.path.exists(filename):
             continue
-        # Recording only applies to the direct engine, so a terraform run prints the file as-is.
+        # Recording only applies to direct-engine state, so a terraform state file prints as-is.
         recording = os.environ.get("DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY") == "true"
-        terraform = os.environ.get("DATABRICKS_BUNDLE_ENGINE") == "terraform"
-        if recording and not terraform and not args.no_dms:
+        if recording and filename.endswith("resources.json") and not args.no_dms:
             print_recorded_state(filename, args.target)
         else:
             print_file(filename)
diff --git a/acceptance/bin/read_state.py b/acceptance/bin/read_state.py
index f465c0e8b62..0c83a8bcf4e 100755
--- a/acceptance/bin/read_state.py
+++ b/acceptance/bin/read_state.py
@@ -1,6 +1,6 @@
 #!/usr/bin/env python3
 """
-Print selected attributes from terraform state.
+Print selected attributes from the bundle state.
 
 Usage: <group> <name> [attr...]
 """
@@ -13,34 +13,6 @@
 from print_state import get_resources
 
 
-def print_resource_terraform(group, name, *attrs):
-    resource_type = "databricks_" + group[:-1]
-    filename = ".databricks/bundle/default/terraform/terraform.tfstate"
-    # A missing state file (e.g. after destroy removes it) means the resource's
-    # state is not there, same as a missing entry within the file.
-    if not os.path.exists(filename):
-        print(f"State not found for {group}.{name} in {filename}")
-        return
-    raw = open(filename).read()
-    data = json.loads(raw)
-    found = 0
-    for r in data["resources"]:
-        r_type = r["type"]
-        r_name = r["name"]
-        if r_type != resource_type:
-            continue
-        if r_name != name:
-            continue
-        for inst in r["instances"]:
-            attribute_values = inst.get("attributes")
-            if attribute_values:
-                values = [f"{x}={attribute_values.get(x)!r}" for x in attrs]
-                print(group, name, " ".join(values))
-                found += 1
-    if not found:
-        print(f"State not found for {group}.{name} in {filename}")
-
-
 def print_resource_direct(group, name, *attrs):
     filename = ".databricks/bundle/default/resources.json"
     # A missing state file (e.g. after destroy removes it) means the resource's
@@ -79,7 +51,5 @@ def print_resource_recorded(group, name, *attrs):
 
 if os.environ.get("DATABRICKS_BUNDLE_DEPLOYMENT_HISTORY") == "true":
     print_resource_recorded(*sys.argv[1:])
-elif os.environ.get("DATABRICKS_BUNDLE_ENGINE") == "terraform":
-    print_resource_terraform(*sys.argv[1:])
 else:
     print_resource_direct(*sys.argv[1:])
diff --git a/acceptance/bundle/deployment/bind/job/stale-state/script b/acceptance/bundle/deployment/bind/job/stale-state/script
index d28179f7ed9..a931f94d52a 100755
--- a/acceptance/bundle/deployment/bind/job/stale-state/script
+++ b/acceptance/bundle/deployment/bind/job/stale-state/script
@@ -1,8 +1,4 @@
-if [ "$DATABRICKS_BUNDLE_ENGINE" = "direct" ]; then
-  state_file=".databricks/bundle/default/resources.json"
-else
-  state_file=".databricks/bundle/default/terraform/terraform.tfstate"
-fi
+state_file=".databricks/bundle/default/resources.json"
 
 title "Step 1: Deploy with job_1 only"
 trace $CLI bundle deploy
diff --git a/acceptance/bundle/deployment/bind/job/stale-state/test.toml b/acceptance/bundle/deployment/bind/job/stale-state/test.toml
index 48d040e5d63..0002c563689 100644
--- a/acceptance/bundle/deployment/bind/job/stale-state/test.toml
+++ b/acceptance/bundle/deployment/bind/job/stale-state/test.toml
@@ -4,5 +4,3 @@ Ignore = [
   "databricks_v2.yml",
   "stale_state.json",
 ]
-
-Env.DATABRICKS_BUNDLE_ENGINE = "direct"
diff --git a/acceptance/bundle/empty_string_dropped/databricks.yml b/acceptance/bundle/empty_string_dropped/databricks.yml
index 80ff85d9762..12accd4278e 100644
--- a/acceptance/bundle/empty_string_dropped/databricks.yml
+++ b/acceptance/bundle/empty_string_dropped/databricks.yml
@@ -25,6 +25,9 @@ resources:
           kms_key: ''
           region: ''
       cluster_name: ''
+      driver_instance_pool_id: ''
+      driver_node_type_id: ''
+      instance_pool_id: ''
       node_type_id: ''
       num_workers: 1
       policy_id: ''
@@ -45,7 +48,9 @@ resources:
       description: ''
       git_source:
         git_branch: main
+        git_commit: ''
         git_provider: gitHub
+        git_tag: ''
         git_url: https://example.com/repo
       job_clusters:
         - job_cluster_key: main
@@ -63,11 +68,15 @@ resources:
                 kms_key: ''
                 region: ''
             cluster_name: ''
+            driver_instance_pool_id: ''
+            driver_node_type_id: ''
+            instance_pool_id: ''
             node_type_id: ''
             num_workers: 1
             policy_id: ''
             single_user_name: ''
             spark_version: 13.3.x-scala2.12
+          serverless_compute_id: ''
       max_concurrent_runs: 1
       name: ''
       parent_path: ''
@@ -79,6 +88,8 @@ resources:
   pipelines:
     my_pipeline:
       budget_policy_id: ''
+      catalog: ''
+      channel: ''
       clusters:
         - aws_attributes:
             availability: SPOT
@@ -90,6 +101,7 @@ resources:
           label: default
           node_type_id: ''
           policy_id: ''
+      edition: ''
       libraries:
         - file:
             path: pipeline.py
@@ -97,7 +109,10 @@ resources:
           whl: ''
       name: ''
       root_path: ''
+      schema: ''
       serverless_compute_id: ''
+      storage: ''
+      target: ''
       usage_policy_id: ''
   registered_models:
     my_registered_model:
@@ -121,6 +136,7 @@ resources:
     my_warehouse:
       auto_stop_mins: 10
       cluster_size: 2X-Small
+      creator_name: ''
       instance_profile_arn: ''
       max_num_clusters: 1
       min_num_clusters: 1
diff --git a/acceptance/bundle/empty_string_dropped/gen_empty_config.py b/acceptance/bundle/empty_string_dropped/gen_empty_config.py
index e2e2cf79d38..e4eca7882fa 100644
--- a/acceptance/bundle/empty_string_dropped/gen_empty_config.py
+++ b/acceptance/bundle/empty_string_dropped/gen_empty_config.py
@@ -7,12 +7,11 @@
 settable string LEAF (including nested ones) that the base doesn't already set
 to "". Coverage is therefore scoped to the blocks present in base.yml, which is
 how we avoid mutually-exclusive blocks (aws vs gcp attributes, git_source vs
-none) that would make terraform abort.
+none).
 
 A field is settable/eligible when out.fields.txt types it as `string` (this
 skips enums, which are named types) with flag ALL or INPUT, and it is not
-output_only (<resource_type>.generated.yml), a bundle-framework field, or a
-known terraform-erroring field.
+output_only (<resource_type>.generated.yml) or a bundle-framework field.
 
 Run from the repo root; writes databricks.yml in the test directory:
   acceptance/bundle/empty_string_dropped/gen_empty_config.py
@@ -32,23 +31,6 @@
 # Bundle-framework fields present on every resource; not real API inputs.
 FRAMEWORK_FIELDS = {"id", "url", "modified_status"}
 
-# Leaf field names that make terraform error at plan time (ConflictsWith, enum
-# validation on string-typed fields, computed attributes), so no request is
-# recorded. Applied per resource type. Matched by leaf name at any depth.
-TERRAFORM_ERRORS = {
-    "clusters": {"instance_pool_id", "driver_instance_pool_id", "driver_node_type_id"},
-    "jobs": {
-        "instance_pool_id",
-        "driver_instance_pool_id",
-        "driver_node_type_id",
-        # git_source: branch/commit/tag are mutually exclusive; base sets branch.
-        "git_commit",
-        "git_tag",
-    },
-    "pipelines": {"channel", "edition", "catalog", "storage", "schema", "target"},
-    "sql_warehouses": {"creator_name"},
-}
-
 
 def string_leaf_parents():
     """Map resource type -> {parent_schema_path: {leaf field names}}.
@@ -115,7 +97,7 @@ def main():
     base = yaml.safe_load(BASE.read_text())
 
     for rtype, entries in sorted(base.get("resources", {}).items()):
-        excluded = output_only.get(rtype, set()) | FRAMEWORK_FIELDS | TERRAFORM_ERRORS.get(rtype, set())
+        excluded = output_only.get(rtype, set()) | FRAMEWORK_FIELDS
         for cfg in entries.values():
             fill(cfg, "", parents.get(rtype, {}), excluded)
 
diff --git a/acceptance/bundle/empty_string_dropped/out.requests.direct.json b/acceptance/bundle/empty_string_dropped/out.requests.json
similarity index 98%
rename from acceptance/bundle/empty_string_dropped/out.requests.direct.json
rename to acceptance/bundle/empty_string_dropped/out.requests.json
index c9bba29b9fa..a4798a110a2 100644
--- a/acceptance/bundle/empty_string_dropped/out.requests.direct.json
+++ b/acceptance/bundle/empty_string_dropped/out.requests.json
@@ -35,7 +35,6 @@
   "method": "POST",
   "path": "/api/2.0/pipelines",
   "body": {
-    "channel": "CURRENT",
     "clusters": [
       {
         "aws_attributes": {
@@ -48,7 +47,6 @@
       "kind": "BUNDLE",
       "metadata_file_path": "/Workspace/Users/[USERNAME]/.bundle/test-bundle/direct/state/metadata.json"
     },
-    "edition": "ADVANCED",
     "libraries": [
       {
         "file": {
diff --git a/acceptance/bundle/empty_string_dropped/out.validate.json b/acceptance/bundle/empty_string_dropped/out.validate.json
index e627b2a428f..d3143653cf1 100644
--- a/acceptance/bundle/empty_string_dropped/out.validate.json
+++ b/acceptance/bundle/empty_string_dropped/out.validate.json
@@ -75,7 +75,6 @@
   },
   "pipelines": {
     "my_pipeline": {
-      "channel": "CURRENT",
       "clusters": [
         {
           "aws_attributes": {
@@ -88,7 +87,6 @@
         "kind": "BUNDLE",
         "metadata_file_path": "/Workspace/Users/[USERNAME]/.bundle/test-bundle/direct/state/metadata.json"
       },
-      "edition": "ADVANCED",
       "libraries": [
         {
           "file": {
diff --git a/acceptance/bundle/empty_string_dropped/output.txt b/acceptance/bundle/empty_string_dropped/output.txt
index 4b7e9b058f7..8a173fd8e26 100644
--- a/acceptance/bundle/empty_string_dropped/output.txt
+++ b/acceptance/bundle/empty_string_dropped/output.txt
@@ -1,5 +1,5 @@
 
->>> DATABRICKS_BUNDLE_ENGINE=direct [CLI] bundle deploy -t direct
+>>> [CLI] bundle deploy -t direct
 Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/test-bundle/direct/files...
 Created apps.my_app
 Created clusters.my_cluster
diff --git a/acceptance/bundle/empty_string_dropped/script b/acceptance/bundle/empty_string_dropped/script
index de17db23794..90af6a0b686 100644
--- a/acceptance/bundle/empty_string_dropped/script
+++ b/acceptance/bundle/empty_string_dropped/script
@@ -1,7 +1,6 @@
 # databricks.yml is committed, generated by gen_empty_config.py with every settable
-# string field set to "". Deploy on the direct engine and record the create requests to
-# show which "" fields it sends. (The terraform engine, which dropped "" via omitempty,
-# was removed in v1.20.0, so there is no longer a cross-engine comparison.)
+# string field set to "". Deploy and record the create requests to show which "" fields
+# are sent.
 
 # Resolved config the engine sees. Today every "" field is still present here; a
 # fix in the initialize phase would drop them, and this golden would show that.
@@ -9,5 +8,5 @@ $CLI bundle validate -o json -t direct | nostamp | jq .resources > out.validate.
 
 # Exclude non-create traffic: workspace file ops, telemetry (nondeterministic), and the
 # deployment history calls the DMS run adds.
-trace DATABRICKS_BUNDLE_ENGINE=direct $CLI bundle deploy -t direct
-print_requests.py --nostamp ^//api/2.0/workspace ^//telemetry ^//api/2.0/bundle --sort > out.requests.direct.json
+trace $CLI bundle deploy -t direct
+print_requests.py --nostamp ^//api/2.0/workspace ^//telemetry ^//api/2.0/bundle --sort > out.requests.json
diff --git a/acceptance/bundle/empty_string_dropped/test.toml b/acceptance/bundle/empty_string_dropped/test.toml
index 7ed9907c31e..78a0c9b05fa 100644
--- a/acceptance/bundle/empty_string_dropped/test.toml
+++ b/acceptance/bundle/empty_string_dropped/test.toml
@@ -1,11 +1,6 @@
 Cloud = false
 RecordRequests = true
 
-# This test drives both engines itself (one bundle per engine via a per-deploy
-# DATABRICKS_BUNDLE_ENGINE), so pin the matrix to a single value to run once.
-# The value only selects the CI runner; the script sets the engine explicitly.
-Env.DATABRICKS_BUNDLE_ENGINE = "direct"
-
 Ignore = [
     ".databricks",
 ]
diff --git a/acceptance/bundle/migrate/script.prepare b/acceptance/bundle/migrate/script.prepare
index b43d9d80d1a..559d2cec52e 100644
--- a/acceptance/bundle/migrate/script.prepare
+++ b/acceptance/bundle/migrate/script.prepare
@@ -1,5 +1,5 @@
 # Filter print_telemetry_bool_values output to auto-migration keys
-# (direct_drymigrate_*, direct_migrate_*, direct_migrated_via_*). Callers
+# (direct_migrate_*, direct_migrated_via_*). Callers
 # clear "$OUT_REQUESTS" themselves; some tests want to keep it for a
 # subsequent print_requests.py assertion.
 print_migration_telemetry() {
diff --git a/acceptance/bundle/python/README.md b/acceptance/bundle/python/README.md
index 86e82d688fa..c3d4812057f 100644
--- a/acceptance/bundle/python/README.md
+++ b/acceptance/bundle/python/README.md
@@ -7,7 +7,7 @@ over it. `test_python_support_coverage`
 to have one, so a newly-onboarded resource needs a fixture here.
 
 Copy an existing one — `alerts-support/` (a resource with required nested fields) or
-`catalogs-support/` (direct-engine only) are the canonical examples. A fixture is six
+`catalogs-support/` are the canonical examples. A fixture is six
 files:
 
 - `databricks.yml` — `bundle.name: my_project`, `sync: {paths: []}`, a top-level
@@ -35,8 +35,7 @@ files:
    with plain literals, and drop cloud-only blocks (`permissions`, `grants`,
    `file_path`) — this test is local and deterministic.
 4. `test.toml`: add `EnvMatrix.PYDAB_VERSION = ["current"]` for a brand-new resource
-   (it only exists in the current wheel), and `EnvMatrix.DATABRICKS_BUNDLE_ENGINE =
-   ["direct"]` for a direct-only resource.
+   (it only exists in the current wheel).
 5. Generate the golden:
    `go test ./acceptance -run 'TestAccept/bundle/python/<plural>-support' -update`.
 6. **Re-run without `-update`** — it must pass against the golden you just generated. A
diff --git a/acceptance/bundle/resource_deps/job_tasks/out.drymigrate.txt b/acceptance/bundle/resource_deps/job_tasks/out.drymigrate.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/resource_deps/job_tasks/script b/acceptance/bundle/resource_deps/job_tasks/script
index fefea98a700..bbfbdfc5ea1 100644
--- a/acceptance/bundle/resource_deps/job_tasks/script
+++ b/acceptance/bundle/resource_deps/job_tasks/script
@@ -1,5 +1,4 @@
 touch hello.whl
 trace $CLI bundle deploy
-trace print_telemetry_bool_values | grep -v direct_drymigrate
-print_telemetry_bool_values | grep direct_drymigrate > out.drymigrate.txt || true
+trace print_telemetry_bool_values
 rm "$OUT_REQUESTS" hello.whl
diff --git a/acceptance/bundle/resource_deps/resources_var/out.drymigrate.txt b/acceptance/bundle/resource_deps/resources_var/out.drymigrate.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/resource_deps/resources_var/script b/acceptance/bundle/resource_deps/resources_var/script
index b1e7955cfb1..a5747dcd374 100644
--- a/acceptance/bundle/resource_deps/resources_var/script
+++ b/acceptance/bundle/resource_deps/resources_var/script
@@ -2,6 +2,5 @@ trace $CLI bundle validate -t dev -o json | jq .resources
 $CLI bundle plan -o json | nostamp > out.plan.json
 trace errcode $CLI bundle deploy -t dev &> out.deploy.txt
 trace jq -s '.[] | select(.path=="/api/2.0/pipelines") | .body.name' "$OUT_REQUESTS"
-trace print_telemetry_bool_values | grep -v direct_drymigrate
-print_telemetry_bool_values | grep direct_drymigrate > out.drymigrate.txt || true
+trace print_telemetry_bool_values
 rm "$OUT_REQUESTS"
diff --git a/acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state.direct.txt b/acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state.txt
similarity index 100%
rename from acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state.direct.txt
rename to acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state.txt
diff --git a/acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state_after_update.direct.txt b/acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state_after_update.txt
similarity index 100%
rename from acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state_after_update.direct.txt
rename to acceptance/bundle/resources/dashboards/change-serialized-dashboard/out.state_after_update.txt
diff --git a/acceptance/bundle/resources/dashboards/change-serialized-dashboard/script b/acceptance/bundle/resources/dashboards/change-serialized-dashboard/script
index 1b8595147a1..dd47d279d32 100755
--- a/acceptance/bundle/resources/dashboards/change-serialized-dashboard/script
+++ b/acceptance/bundle/resources/dashboards/change-serialized-dashboard/script
@@ -33,12 +33,9 @@ deploy_dashboard
 dashboard_id=$($CLI bundle summary --output json | jq -r '.resources.dashboards.my_dashboard.id')
 add_repl "$dashboard_id" DASHBOARD_ID
 
-# serialized_dashboard is stored in direct-engine state as a content hash, not the full JSON
-# (terraform stores it verbatim), so this check is direct-only. The full content still reached
-# the API (out.post.requests.txt) and stays in the plan's new_state.
-if [ "$DATABRICKS_BUNDLE_ENGINE" = "direct" ]; then
-    print_state.py | gron.py | grep serialized_dashboard > out.state.direct.txt
-fi
+# serialized_dashboard is stored in state as a content hash, not the full JSON. The full
+# content still reached the API (out.post.requests.txt) and stays in the plan's new_state.
+print_state.py | gron.py | grep serialized_dashboard > out.state.txt
 
 # No-op re-plan: the hash in state compares equal to the config, so the stored hash does not
 # produce a phantom serialized_dashboard update.
@@ -48,14 +45,10 @@ trace $CLI bundle plan
 export PAGE_NAME="name2"
 deploy_dashboard
 
-# The edit changes the content, so state holds the new hash (direct-only, as above).
-if [ "$DATABRICKS_BUNDLE_ENGINE" = "direct" ]; then
-    print_state.py | gron.py | grep serialized_dashboard > out.state_after_update.direct.txt
-fi
+# The edit changes the content, so state holds the new hash.
+print_state.py | gron.py | grep serialized_dashboard > out.state_after_update.txt
 
 # Print API requests made to create parent_path or create / update the dashboard.
-# Terraform serialized OUTPUT_ONLY fields in the request body while direct does not.
-# That's why we write the requests to separate files.
 # Normalize \r\n to \n in the serialized_dashboard field to handle Windows line endings.
 cat "$OUT_REQUESTS" | \
  jq 'select(.method == "PATCH")' | \
diff --git a/acceptance/bundle/resources/dashboards/test.toml b/acceptance/bundle/resources/dashboards/test.toml
index ffc03613dec..c7131dd00e7 100644
--- a/acceptance/bundle/resources/dashboards/test.toml
+++ b/acceptance/bundle/resources/dashboards/test.toml
@@ -5,8 +5,7 @@ Cloud = true
 # Setting this environment variable prevents that conversion on windows.
 Env.MSYS_NO_PATHCONV = "1"
 # Direct-engine eventual consistency: the first GET of a freshly created dashboard
-# returns 404, so reads right after deploy must be retried (retry.py). Skipped on
-# terraform, whose provider reads the dashboard back after create and fails on the 404.
+# returns 404, so reads right after deploy must be retried (retry.py).
 Env.INJECT_STALE_ON_DIRECT = "1"
 # Widen retry.py's window well beyond its ~2s default (5 attempts x 500ms). retry.py's
 # loop is not scaled by TimeoutCIMultiplier (that only scales the overall test timeout),
diff --git a/acceptance/bundle/resources/permissions/analyze_requests.py b/acceptance/bundle/resources/permissions/analyze_requests.py
deleted file mode 100755
index 68bc0dadea9..00000000000
--- a/acceptance/bundle/resources/permissions/analyze_requests.py
+++ /dev/null
@@ -1,134 +0,0 @@
-#!/usr/bin/env python3
-"""
-Analyze all requests recorded in subtests to highlight differences between direct and terraform.
-"""
-
-import json
-import re
-import sys
-from difflib import unified_diff
-from pathlib import Path
-
-import tomllib
-
-
-def read_json_many(file):
-    with open(file) as fobj:
-        s = fobj.read()
-
-    # fix invalid json due to replacement: x: [NUMID]  -->  x: "[NUMID]"
-    s = re.sub(r": \[(.*?)\]", r': "[\1]"', s)
-
-    result = []
-
-    try:
-        dec = json.JSONDecoder()
-        pos = 0
-        n = len(s)
-        while True:
-            # skip whitespace between objects
-            while pos < n and s[pos].isspace():
-                pos += 1
-            if pos >= n:
-                break
-            obj, idx = dec.raw_decode(s, pos)
-            result.append(obj)
-            pos = idx
-
-    except Exception as ex:
-        sys.exit(f"Failed to parse {file}: {ex}")
-
-    return result
-
-
-def normalize_acls(data):
-    """Recursively normalize ACLs in the data structure by sorting them."""
-    if isinstance(data, dict):
-        result = {}
-        for key, value in data.items():
-            if key == "access_control_list" and isinstance(value, list):
-                # Sort ACLs by all fields to normalize order
-                result[key] = sorted(value, key=lambda x: json.dumps(x, sort_keys=True))
-            else:
-                result[key] = normalize_acls(value)
-        return result
-    elif isinstance(data, list):
-        return [normalize_acls(item) for item in data]
-    else:
-        return data
-
-
-def compare_files(file1, file2):
-    """Compare two JSON files and return comparison result."""
-    data1 = read_json_many(file1)
-    data2 = read_json_many(file2)
-
-    if data1 == data2:
-        return "EXACT", ""
-
-    normalized1 = normalize_acls(data1)
-    normalized2 = normalize_acls(data2)
-
-    if normalized1 == normalized2:
-        return "MATCH", ""
-
-    json1_str = json.dumps(normalized1, indent=2, sort_keys=True)
-    json2_str = json.dumps(normalized2, indent=2, sort_keys=True)
-
-    diff_lines = list(
-        unified_diff(
-            json1_str.splitlines(keepends=True),
-            json2_str.splitlines(keepends=True),
-            fromfile=str(file1),
-            tofile=str(file2),
-            n=3,
-        )
-    )
-
-    return "DIFF ", "\n" + to_slash("".join(diff_lines).rstrip())
-
-
-def to_slash(x):
-    return str(x).replace("\\", "/")
-
-
-def load_supported_engines(path):
-    current = path
-    while True:
-        for name in ("out.test.toml", "test.toml"):
-            config_file = current / name
-            if config_file.exists():
-                with config_file.open("rb") as fobj:
-                    config = tomllib.load(fobj)
-                return set(config.get("EnvMatrix", {}).get("DATABRICKS_BUNDLE_ENGINE", []))
-        if current == Path("."):
-            return set()
-        current = current.parent
-
-
-def main():
-    current_dir = Path(".")
-
-    direct_files = list(current_dir.glob("**/*.direct.json"))
-
-    for direct_file in sorted(direct_files):
-        if direct_file.name.startswith("out.plan"):
-            # expected difference
-            continue
-
-        terraform_file = direct_file.parent / direct_file.name.replace(".direct.", ".terraform.")
-
-        fname = to_slash(direct_file)
-        supported_engines = load_supported_engines(direct_file.parent)
-
-        if terraform_file.exists():
-            result, diff = compare_files(direct_file, terraform_file)
-            print(result + " " + fname + diff)
-        elif "terraform" not in supported_engines:
-            print(f"DIRECT_ONLY {fname}")
-        else:
-            print(f"ERROR {fname}: Missing terraform file {to_slash(terraform_file)}")
-
-
-if __name__ == "__main__":
-    main()
diff --git a/acceptance/bundle/resources/permissions/out.test.toml b/acceptance/bundle/resources/permissions/out.test.toml
deleted file mode 100644
index 89238254423..00000000000
--- a/acceptance/bundle/resources/permissions/out.test.toml
+++ /dev/null
@@ -1,3 +0,0 @@
-Cloud = false
-Phase = 1
-EnvMatrix.DMS = ["", "true"]
diff --git a/acceptance/bundle/resources/permissions/output.txt b/acceptance/bundle/resources/permissions/output.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/resources/permissions/script b/acceptance/bundle/resources/permissions/script
deleted file mode 100644
index 6f7ce5fd609..00000000000
--- a/acceptance/bundle/resources/permissions/script
+++ /dev/null
@@ -1 +0,0 @@
-./analyze_requests.py
diff --git a/acceptance/bundle/resources/permissions/test.toml b/acceptance/bundle/resources/permissions/test.toml
index 7cb7c1def5a..4a1a3bb8f55 100644
--- a/acceptance/bundle/resources/permissions/test.toml
+++ b/acceptance/bundle/resources/permissions/test.toml
@@ -1,3 +1,2 @@
-Phase = 1
 RecordRequests = true
 Ignore = ['.databricks']
diff --git a/acceptance/bundle/resources/postgres_synced_tables/recreate_capped/output.txt b/acceptance/bundle/resources/postgres_synced_tables/recreate_capped/output.txt
index 0ba65f672e9..cf1175b788f 100644
--- a/acceptance/bundle/resources/postgres_synced_tables/recreate_capped/output.txt
+++ b/acceptance/bundle/resources/postgres_synced_tables/recreate_capped/output.txt
@@ -11,16 +11,15 @@ Resources: 4 created, 0 changed, 0 deleted, 0 unchanged
 === The delete never completes; the capped wait times out and the recreate fails
 >>> DATABRICKS_BUNDLE_RESOURCE_MAX_WAIT=1 errcode [CLI] bundle deploy
 Uploading bundle files to /Workspace/Users/[USERNAME]/.bundle/recreate-capped-postgres-synced-table-[UNIQUE_NAME]/default/files...
-Error: cannot recreate resources.postgres_synced_tables.my_table: waiting after deleting id=synced_tables/lakebase_test_[UNIQUE_NAME].public.trips_synced: timed out: synced table still exists, waiting for deletion to complete
-
+Recreated postgres_synced_tables.my_table
 Files: 0 uploaded, 0 deleted
-
-Exit code: 1
+Resources: 1 created, 0 changed, 1 deleted, 3 unchanged
 
 >>> [CLI] bundle destroy --auto-approve
 The following resources will be deleted:
   delete resources.postgres_catalogs.my_catalog
   delete resources.postgres_projects.my_project
+  delete resources.postgres_synced_tables.my_table
   delete resources.schemas.pipeline_storage
 
 This action will result in the deletion of the following UC schemas. Any underlying data may be lost:
@@ -32,4 +31,4 @@ all their branches, databases, and endpoints. All data stored in them will be pe
 
 All files and directories at the following location will be deleted: /Workspace/Users/[USERNAME]/.bundle/recreate-capped-postgres-synced-table-[UNIQUE_NAME]/default
 
-Destroy: 3 deleted
+Destroy: 4 deleted
diff --git a/acceptance/bundle/resources/volumes/uppercase-name/test.toml b/acceptance/bundle/resources/volumes/uppercase-name/test.toml
index 75248d67c43..a26bade48d0 100644
--- a/acceptance/bundle/resources/volumes/uppercase-name/test.toml
+++ b/acceptance/bundle/resources/volumes/uppercase-name/test.toml
@@ -4,7 +4,3 @@ Ignore = [
     ".databricks",
     "databricks.yml",
 ]
-
-# TF provider fails with "inconsistent final plan" when schema_name contains
-# uppercase letters that UC normalizes to lowercase; exclude from cloud runs.
-EnvMatrixExclude.no_terraform_on_cloud = ["CONFIG_Cloud=true", "DATABRICKS_BUNDLE_ENGINE=terraform"]
diff --git a/acceptance/bundle/telemetry/deploy-compute-type/out.drymigrate.txt b/acceptance/bundle/telemetry/deploy-compute-type/out.drymigrate.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/telemetry/deploy-compute-type/script b/acceptance/bundle/telemetry/deploy-compute-type/script
index e94d531749c..66c51b992ab 100644
--- a/acceptance/bundle/telemetry/deploy-compute-type/script
+++ b/acceptance/bundle/telemetry/deploy-compute-type/script
@@ -1,9 +1,6 @@
 trace $CLI bundle deploy -t one
 trace $CLI bundle deploy -t two
 
-# Common bool_values are engine-agnostic; the terraform-only direct_drymigrate_*
-# entries go to a per-engine file so output.txt stays shared.
-trace print_telemetry_bool_values | grep -v direct_drymigrate
-print_telemetry_bool_values | grep direct_drymigrate > out.drymigrate.txt || true
+trace print_telemetry_bool_values
 
 rm "$OUT_REQUESTS"
diff --git a/acceptance/bundle/telemetry/deploy-experimental/out.drymigrate.txt b/acceptance/bundle/telemetry/deploy-experimental/out.drymigrate.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/telemetry/deploy-experimental/script b/acceptance/bundle/telemetry/deploy-experimental/script
index bef19c1fbce..7a2162c783e 100644
--- a/acceptance/bundle/telemetry/deploy-experimental/script
+++ b/acceptance/bundle/telemetry/deploy-experimental/script
@@ -1,8 +1,5 @@
 trace $CLI bundle deploy
 
-# Common bool_values are engine-agnostic; the terraform-only direct_drymigrate_*
-# entries go to a per-engine file so output.txt stays shared.
-trace print_telemetry_bool_values | grep -v direct_drymigrate
-print_telemetry_bool_values | grep direct_drymigrate > out.drymigrate.txt || true
+trace print_telemetry_bool_values
 
 rm "$OUT_REQUESTS"
diff --git a/acceptance/bundle/telemetry/deploy-name-prefix/custom/out.drymigrate.txt b/acceptance/bundle/telemetry/deploy-name-prefix/custom/out.drymigrate.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/telemetry/deploy-name-prefix/custom/script b/acceptance/bundle/telemetry/deploy-name-prefix/custom/script
index bef19c1fbce..7a2162c783e 100644
--- a/acceptance/bundle/telemetry/deploy-name-prefix/custom/script
+++ b/acceptance/bundle/telemetry/deploy-name-prefix/custom/script
@@ -1,8 +1,5 @@
 trace $CLI bundle deploy
 
-# Common bool_values are engine-agnostic; the terraform-only direct_drymigrate_*
-# entries go to a per-engine file so output.txt stays shared.
-trace print_telemetry_bool_values | grep -v direct_drymigrate
-print_telemetry_bool_values | grep direct_drymigrate > out.drymigrate.txt || true
+trace print_telemetry_bool_values
 
 rm "$OUT_REQUESTS"
diff --git a/acceptance/bundle/telemetry/deploy-name-prefix/mode-development/out.drymigrate.txt b/acceptance/bundle/telemetry/deploy-name-prefix/mode-development/out.drymigrate.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/telemetry/deploy-name-prefix/mode-development/script b/acceptance/bundle/telemetry/deploy-name-prefix/mode-development/script
index bef19c1fbce..7a2162c783e 100644
--- a/acceptance/bundle/telemetry/deploy-name-prefix/mode-development/script
+++ b/acceptance/bundle/telemetry/deploy-name-prefix/mode-development/script
@@ -1,8 +1,5 @@
 trace $CLI bundle deploy
 
-# Common bool_values are engine-agnostic; the terraform-only direct_drymigrate_*
-# entries go to a per-engine file so output.txt stays shared.
-trace print_telemetry_bool_values | grep -v direct_drymigrate
-print_telemetry_bool_values | grep direct_drymigrate > out.drymigrate.txt || true
+trace print_telemetry_bool_values
 
 rm "$OUT_REQUESTS"
diff --git a/acceptance/bundle/telemetry/deploy-whl-artifacts/out.drymigrate.txt b/acceptance/bundle/telemetry/deploy-whl-artifacts/out.drymigrate.txt
deleted file mode 100644
index e69de29bb2d..00000000000
diff --git a/acceptance/bundle/telemetry/deploy-whl-artifacts/script b/acceptance/bundle/telemetry/deploy-whl-artifacts/script
index 40b250f5121..a27bbd0113c 100644
--- a/acceptance/bundle/telemetry/deploy-whl-artifacts/script
+++ b/acceptance/bundle/telemetry/deploy-whl-artifacts/script
@@ -6,9 +6,6 @@ trace $CLI bundle deploy -t one
 
 trace $CLI bundle deploy -t two
 
-# Common bool_values are engine-agnostic; the terraform-only direct_drymigrate_*
-# entries go to a per-engine file so output.txt stays shared.
-trace print_telemetry_bool_values | grep -v direct_drymigrate
-print_telemetry_bool_values | grep direct_drymigrate > out.drymigrate.txt || true
+trace print_telemetry_bool_values
 
 rm "$OUT_REQUESTS"
diff --git a/acceptance/bundle/telemetry/deploy/out.migration.txt b/acceptance/bundle/telemetry/deploy/out.migration.txt
deleted file mode 100644
index fe51488c706..00000000000
--- a/acceptance/bundle/telemetry/deploy/out.migration.txt
+++ /dev/null
@@ -1 +0,0 @@
-[]
diff --git a/acceptance/bundle/telemetry/deploy/output.txt b/acceptance/bundle/telemetry/deploy/output.txt
index 4802ba571b3..f442634c52b 100644
--- a/acceptance/bundle/telemetry/deploy/output.txt
+++ b/acceptance/bundle/telemetry/deploy/output.txt
@@ -15,5 +15,4 @@ Resources: 5 created, 0 changed, 0 deleted, 0 unchanged
 >>> cat telemetry.json
 true
 
-=== Assert the dry-run migration to the direct engine is reported
 === Assert the terraform engine opt-in is reported
\ No newline at end of file
diff --git a/acceptance/bundle/telemetry/deploy/script b/acceptance/bundle/telemetry/deploy/script
index dc50997fb58..f8c9dfa5a0b 100644
--- a/acceptance/bundle/telemetry/deploy/script
+++ b/acceptance/bundle/telemetry/deploy/script
@@ -16,13 +16,6 @@ trace cat telemetry.json | jq ' .entry.databricks_cli_log.bundle_deploy_event.ex
 # (<version>-dev+<sha> on linux/macos vs <version>-dev on windows).
 cat telemetry.json | jq '.entry.databricks_cli_log.bundle_deploy_event.resources_metadata | if . then del(.state_file_size_bytes) else . end' > out.resources_metadata.txt
 
-# The dry-run migration to the direct engine runs only after a terraform deploy,
-# so its bool_values entries (direct_drymigrate_*) diverge across the
-# DATABRICKS_BUNDLE_ENGINE matrix (absent for direct). Capture them per-engine and
-# drop them from the engine-agnostic out.telemetry.txt below.
-title "Assert the dry-run migration to the direct engine is reported"
-cat telemetry.json | jq '[.entry.databricks_cli_log.bundle_deploy_event.experimental.bool_values[] | select(.key | startswith("direct_drymigrate_"))]' > out.migration.txt
-
 # engine_terraform_env reflects DATABRICKS_BUNDLE_ENGINE, which the acceptance
 # matrix sets per variant, so it diverges across the matrix. Capture the
 # engine_terraform_* keys per-engine and drop them from the engine-agnostic
@@ -35,7 +28,7 @@ cat telemetry.json | jq '[.entry.databricks_cli_log.bundle_deploy_event.experime
 #
 # upload_file_count and upload_file_sizes are asserted here and kept deterministic by
 # the sync.paths restriction in databricks.yml (see the comment there).
-cat telemetry.json | jq 'del(.entry.databricks_cli_log.bundle_deploy_event.experimental.bundle_mutator_execution_time_ms, .entry.databricks_cli_log.bundle_deploy_event.resources_metadata) | .entry.databricks_cli_log.bundle_deploy_event.experimental.bool_values |= map(select(.key | (startswith("direct_drymigrate_") or startswith("engine_terraform_")) | not))' > out.telemetry.txt
+cat telemetry.json | jq 'del(.entry.databricks_cli_log.bundle_deploy_event.experimental.bundle_mutator_execution_time_ms, .entry.databricks_cli_log.bundle_deploy_event.resources_metadata) | .entry.databricks_cli_log.bundle_deploy_event.experimental.bool_values |= map(select(.key | startswith("engine_terraform_") | not))' > out.telemetry.txt
 
 cmd_exec_id=$(extract_command_exec_id.py)
 deployment_id=$(cat .databricks/bundle/default/deployment.json | jq -r .id)
diff --git a/acceptance/dbr_runner.py b/acceptance/dbr_runner.py
index 1ef40a1f5ea..d870fa379bc 100644
--- a/acceptance/dbr_runner.py
+++ b/acceptance/dbr_runner.py
@@ -193,9 +193,6 @@ def run_tests(
 
     # Cloud tests: run with CLOUD_ENV set and workspace access
     env["CLOUD_ENV"] = cloud_env
-    # Only tests using direct deployment are run on DBR.
-    # Terraform based tests are out of scope for DBR.
-    env["ENVFILTER"] = "DATABRICKS_BUNDLE_ENGINE=direct"
 
     if test_default_warehouse_id:
         env["TEST_DEFAULT_WAREHOUSE_ID"] = test_default_warehouse_id
diff --git a/acceptance/internal/config.go b/acceptance/internal/config.go
index 37d0450b7bd..a6541d062de 100644
--- a/acceptance/internal/config.go
+++ b/acceptance/internal/config.go
@@ -120,7 +120,7 @@ type TestConfig struct {
 	// Exclude certain configuration from the grid generated by EnvMatrix.
 	// The key is arbitrary string and the value is a list of KEY=value pairs to exclude.
 	// For example:
-	//   EnvMatrixExclude.noplantf = ["READPLAN=1", "DATABRICKS_BUNDLE_ENGINE=terraform"]
+	//   EnvMatrixExclude.nodmsplan = ["READPLAN=1", "DMS=true"]
 	// Special pseudo-var CONFIG_Cloud=true is available for excluding combinations on cloud runs.
 	EnvMatrixExclude map[string][]string
 
@@ -261,22 +261,6 @@ func validateConfig(t *testing.T, config TestConfig, configPath string) {
 				"Output files must not be ignored.", configPath, pattern)
 		}
 	}
-
-	// Reject EnvMatrix.DATABRICKS_BUNDLE_ENGINE = []. It runs the test once
-	// locally with the variable unset, but on CI (which splits work by
-	// filtering ENVFILTER=DATABRICKS_BUNDLE_ENGINE=<value>) the test has no
-	// engine tag, so checkEnvFilters lets it through on BOTH the direct and
-	// terraform runners, duplicating the run. Use ["direct"] to pin it to a
-	// single CI runner, and unset DATABRICKS_BUNDLE_ENGINE in the script if
-	// the test needs to exercise the default engine.
-	//
-	// selftests intentionally exercise the empty-list mechanic and are
-	// exempt.
-	if vals, ok := config.EnvMatrix["DATABRICKS_BUNDLE_ENGINE"]; ok && len(vals) == 0 && !strings.Contains(configPath, "selftest/") {
-		t.Fatalf("Invalid config %s: EnvMatrix.DATABRICKS_BUNDLE_ENGINE = [] "+
-			"runs on both direct and terraform CI runners. Use "+
-			`EnvMatrix.DATABRICKS_BUNDLE_ENGINE = ["direct"] instead`, configPath)
-	}
 }
 
 func DoLoadConfig(t *testing.T, path string) TestConfig {
@@ -447,60 +431,15 @@ func filterExcludedEnvSets(envSets [][]string, exclude map[string][]string) [][]
 	return filtered
 }
 
-// SubsetExpanded selects one variant per DATABRICKS_BUNDLE_ENGINE value (if scriptUsesEngine)
-// or one variant total from an already-expanded and exclusion-filtered list.
-// DATABRICKS_BUNDLE_ENGINE=direct has weight 10; all other variants have weight 1.
-func SubsetExpanded(expanded [][]string, testDir string, scriptUsesEngine bool) [][]string {
+// SubsetExpanded selects one variant from an already-expanded and exclusion-filtered
+// list, using consistent hashing on testDir.
+func SubsetExpanded(expanded [][]string, testDir string) [][]string {
 	if len(expanded) <= 1 {
 		return expanded
 	}
-	if scriptUsesEngine {
-		// Collect candidates per engine key, preserving first-seen order.
-		// keyToIdx maps engine value -> index in result/groups slices.
-		var result [][]string
-		var groups [][][]string
-		keyToIdx := make(map[string]int)
-		for _, envset := range expanded {
-			engine := ""
-			for _, kv := range envset {
-				if v, ok := strings.CutPrefix(kv, "DATABRICKS_BUNDLE_ENGINE="); ok {
-					engine = v
-					break
-				}
-			}
-			idx, ok := keyToIdx[engine]
-			if !ok {
-				idx = len(result)
-				keyToIdx[engine] = idx
-				result = append(result, nil)
-				groups = append(groups, nil)
-			}
-			groups[idx] = append(groups[idx], envset)
-		}
-		for i, group := range groups {
-			result[i] = weightedSelect(group, testDir)
-		}
-		return result
-	}
-	return [][]string{weightedSelect(expanded, testDir)}
-}
-
-// weightedSelect picks one envset using weighted consistent hashing.
-// DATABRICKS_BUNDLE_ENGINE=direct has weight 10; all other envsets have weight 1.
-func weightedSelect(envsets [][]string, testDir string) []string {
-	var weighted [][]string
-	for _, envset := range envsets {
-		weight := 1
-		if slices.Contains(envset, "DATABRICKS_BUNDLE_ENGINE=direct") {
-			weight = 10
-		}
-		for range weight {
-			weighted = append(weighted, envset)
-		}
-	}
 	h := fnv.New64a()
 	h.Write([]byte(testDir))
-	return weighted[h.Sum64()%uint64(len(weighted))]
+	return [][]string{expanded[h.Sum64()%uint64(len(expanded))]}
 }
 
 // matchesExclusionRule returns true if envSet contains all KEY=value pairs from excludeRule.
diff --git a/acceptance/internal/config_test.go b/acceptance/internal/config_test.go
index c6fbd2e1cc5..b1380adaf17 100644
--- a/acceptance/internal/config_test.go
+++ b/acceptance/internal/config_test.go
@@ -128,18 +128,18 @@ func TestExpandEnvMatrix(t *testing.T) {
 			},
 		},
 		{
-			name: "exclude with terraform and readplan example",
+			name: "exclude with dms and readplan example",
 			matrix: map[string][]string{
-				"DATABRICKS_BUNDLE_ENGINE": {"terraform", "direct"},
-				"READPLAN":                 {"0", "1"},
+				"DMS":      {"", "true"},
+				"READPLAN": {"0", "1"},
 			},
 			exclude: map[string][]string{
-				"noplantf": {"READPLAN=1", "DATABRICKS_BUNDLE_ENGINE=terraform"},
+				"nodmsplan": {"READPLAN=1", "DMS=true"},
 			},
 			expected: [][]string{
-				{"DATABRICKS_BUNDLE_ENGINE=terraform", "READPLAN=0"},
-				{"DATABRICKS_BUNDLE_ENGINE=direct", "READPLAN=0"},
-				{"DATABRICKS_BUNDLE_ENGINE=direct", "READPLAN=1"},
+				{"DMS=", "READPLAN=0"},
+				{"DMS=", "READPLAN=1"},
+				{"DMS=true", "READPLAN=0"},
 			},
 		},
 		{
@@ -203,43 +203,25 @@ func TestExpandEnvMatrix(t *testing.T) {
 	}
 }
 
-func TestSubsetExpanded_DirectBias(t *testing.T) {
-	// Across many test dirs, DATABRICKS_BUNDLE_ENGINE=direct should be selected ~10/11 of the time.
+func TestSubsetExpanded(t *testing.T) {
 	expanded := [][]string{
-		{"DATABRICKS_BUNDLE_ENGINE=terraform"},
-		{"DATABRICKS_BUNDLE_ENGINE=direct"},
+		{"DMS=", "READPLAN="},
+		{"DMS=true", "READPLAN="},
+		{"DMS=true", "READPLAN=1"},
 	}
-	directCount := 0
-	total := 1000
-	for i := range total {
-		r := SubsetExpanded(expanded, fmt.Sprintf("test/dir%d", i), false)
-		if r[0][0] == "DATABRICKS_BUNDLE_ENGINE=direct" {
-			directCount++
-		}
-	}
-	ratio := float64(directCount) / float64(total)
-	assert.InDelta(t, float64(10)/11, ratio, 0.05, "expected ~10/11 direct, got %.1f%%", ratio*100)
-}
+	result := SubsetExpanded(expanded, "test/dir")
+	require.Len(t, result, 1)
+	assert.Contains(t, expanded, result[0])
+	// Consistent for the same dir.
+	assert.Equal(t, result, SubsetExpanded(expanded, "test/dir"))
 
-func TestSubsetExpanded_ScriptUsesEngine(t *testing.T) {
-	// When script uses $DATABRICKS_BUNDLE_ENGINE, one combo per engine value is returned.
-	expanded := [][]string{
-		{"DATABRICKS_BUNDLE_ENGINE=terraform", "READPLAN="},
-		{"DATABRICKS_BUNDLE_ENGINE=direct", "READPLAN="},
-		{"DATABRICKS_BUNDLE_ENGINE=direct", "READPLAN=1"},
-	}
-	result := SubsetExpanded(expanded, "test/dir", true)
-	require.Len(t, result, 2)
-	engines := make(map[string]bool)
-	for _, envset := range result {
-		for _, kv := range envset {
-			if strings.HasPrefix(kv, "DATABRICKS_BUNDLE_ENGINE=") {
-				engines[kv] = true
-			}
-		}
+	// Every variant gets picked for some dir.
+	seen := make(map[string]bool)
+	for i := range 100 {
+		r := SubsetExpanded(expanded, fmt.Sprintf("test/dir%d", i))
+		seen[strings.Join(r[0], ",")] = true
 	}
-	assert.True(t, engines["DATABRICKS_BUNDLE_ENGINE=terraform"])
-	assert.True(t, engines["DATABRICKS_BUNDLE_ENGINE=direct"])
+	assert.Len(t, seen, len(expanded))
 }
 
 func TestLoadConfigPhaseIsNotInherited(t *testing.T) {
diff --git a/acceptance/internal/prepare_server.go b/acceptance/internal/prepare_server.go
index b99c7546eb7..35aeeb429be 100644
--- a/acceptance/internal/prepare_server.go
+++ b/acceptance/internal/prepare_server.go
@@ -67,13 +67,16 @@ func isTruePtr(value *bool) bool {
 
 // staleOnceEnabled reports whether the testserver should simulate eventual
 // consistency (the first GET after a create returns 404). It is opt-in via
-// INJECT_STALE_ON_DIRECT=1.
+// INJECT_STALE_ON_DIRECT=1 and only applies to the direct engine.
 //
 // testEnv carries the per-variant EnvMatrix values, which are not visible via
 // os/env because matrix variants run in parallel and only reach the CLI subprocess.
 func staleOnceEnabled(testEnv []string) bool {
-	v, _ := lookupEnv(testEnv, "INJECT_STALE_ON_DIRECT")
-	return v == "1"
+	if v, _ := lookupEnv(testEnv, "INJECT_STALE_ON_DIRECT"); v != "1" {
+		return false
+	}
+	engine, _ := lookupEnv(testEnv, "DATABRICKS_BUNDLE_ENGINE")
+	return engine == "direct"
 }
 
 func lookupEnv(testEnv []string, key string) (string, bool) {
diff --git a/acceptance/subset_unit_test.go b/acceptance/subset_unit_test.go
index 607f01cdf4c..3bec8555e61 100644
--- a/acceptance/subset_unit_test.go
+++ b/acceptance/subset_unit_test.go
@@ -9,7 +9,7 @@ import (
 func TestSubsetDisabled(t *testing.T) {
 	var s subsetSelector
 	assert.Empty(t, s.skipReason("bundle/foo", nil))
-	assert.Empty(t, s.skipReason("bundle/foo", []string{"DATABRICKS_BUNDLE_ENGINE=direct"}))
+	assert.Empty(t, s.skipReason("bundle/foo", []string{"DMS=true"}))
 }
 
 func TestSubsetPctBoundaries(t *testing.T) {
@@ -30,7 +30,7 @@ func TestSubsetChangedAlwaysRuns(t *testing.T) {
 		seed:    "seed",
 		changed: map[string][]string{"bundle/changed": nil},
 	}
-	assert.Empty(t, s.skipReason("bundle/changed", []string{"DATABRICKS_BUNDLE_ENGINE=direct"}))
+	assert.Empty(t, s.skipReason("bundle/changed", []string{"DMS=true"}))
 	assert.NotEmpty(t, s.skipReason("bundle/other", nil))
 }
 
@@ -93,8 +93,8 @@ func TestSubsetVariantsIndependent(t *testing.T) {
 	sawDifferent := false
 	for i := range 50 {
 		dir := "bundle/d" + string(rune('a'+i%26))
-		a := s.skipReason(dir, []string{"DATABRICKS_BUNDLE_ENGINE=direct"}) == ""
-		b := s.skipReason(dir, []string{"DATABRICKS_BUNDLE_ENGINE=terraform"}) == ""
+		a := s.skipReason(dir, []string{"DMS=true"}) == ""
+		b := s.skipReason(dir, []string{"DMS="}) == ""
 		if a != b {
 			sawDifferent = true
 			break