In the bug fix document, there is recommendation:

Further dedup the nested YAML/template auth path. Components that reference other components via `!terraform.output`/`!terraform.state`/`atmos.Component(...)` authenticate through

resolveAuthManagerForNestedComponent

, which does not share this processor-level cache. Extending a per-identity cache to that path would remove the remaining cross-component auth cycles during template/YAML resolution. Tracked separately.

I am actually working on this too. Not sure if it will make a difference or if should be in its own PR. TBD.