overlay: opt-in build-time preprocessing of overlay files

src/commands/ext/build.rs

@@ -21,6 +21,8 @@ use crate::utils::tui::{TaskId, TuiGuard};
 struct OverlayConfig {
     dir: String,
     mode: OverlayMode,
+    /// Opt-in `{{ }}` preprocessing of overlay file contents.
+    preprocess: crate::utils::overlay_preprocess::PreprocessSpec,
 }
 
 #[derive(Debug, Clone, PartialEq)]
@@ -554,12 +556,14 @@ impl ExtBuildCommand {
             })?;
 
         // Get overlay configuration
-        let overlay_config = ext_config.get("overlay").map(|v| {
+        let mut overlay_config = ext_config.get("overlay").map(|v| {
+            use crate::utils::overlay_preprocess::PreprocessSpec;
             if let Some(dir_str) = v.as_str() {
                 // Simple string format: overlay = "directory"
                 OverlayConfig {
                     dir: dir_str.to_string(),
                     mode: OverlayMode::Merge, // Default to merge mode
+                    preprocess: PreprocessSpec::None,
                 }
             } else if let Some(table) = v.as_mapping() {
                 // Table format: overlay = {dir = "directory", mode = "opaque"}
@@ -574,12 +578,17 @@ impl ExtBuildCommand {
                     _ => OverlayMode::Merge, // Default to merge mode
                 };
 
-                OverlayConfig { dir, mode }
+                OverlayConfig {
+                    dir,
+                    mode,
+                    preprocess: PreprocessSpec::from_overlay_value(v),
+                }
             } else {
                 // Fallback for invalid format
                 OverlayConfig {
                     dir: "overlay".to_string(),
                     mode: OverlayMode::Merge,
+                    preprocess: PreprocessSpec::None,
                 }
             }
         });
@@ -616,6 +625,58 @@ impl ExtBuildCommand {
             ExtensionLocation::Local { .. } => "/opt/src".to_string(),
         };
 
+        // Opt-in overlay preprocessing (local extensions only). Materialize an
+        // interpolated copy of the overlay on the host under
+        // `.avocado/overlay-staging/` and redirect the in-container copy to it,
+        // so `{{ ... }}` in overlay files is substituted without mutating the
+        // working tree. Remote-extension overlays live in the SDK volume (not on
+        // the host), so they can't be preprocessed here — warn and skip.
+        if let Some(oc) = overlay_config.as_mut() {
+            if oc.preprocess.is_enabled() {
+                match &extension_location {
+                    ExtensionLocation::Local { .. } => {
+                        let project_root = config.project_root(&self.config_path);
+                        let context = crate::utils::interpolation::AvocadoContext::from_main_config(
+                            parsed,
+                            Some(target.as_str()),
+                        );
+                        let label = format!(
+                            "ext-{}",
+                            self.extension
+                                .chars()
+                                .map(|c| if c.is_alphanumeric() || c == '-' || c == '_' {
+                                    c
+                                } else {
+                                    '_'
+                                })
+                                .collect::<String>()
+                        );
+                        if let Some(staging_rel_dir) =
+                            crate::utils::overlay_preprocess::materialize_preprocessed_overlay(
+                                &project_root,
+                                &oc.dir,
+                                &label,
+                                &oc.preprocess,
+                                parsed,
+                                &context,
+                            )?
+                        {
+                            oc.dir = staging_rel_dir;
+                        }
+                    }
+                    ExtensionLocation::Remote { name, .. } => {
+                        print_warning(
+                            &format!(
+                                "Overlay preprocessing is not supported for remote extension \
+                                 '{name}'; copying overlay verbatim."
+                            ),
+                            OutputLevel::Normal,
+                        );
+                    }
+                }
+            }
+        }
+
         // Run the post_build hook before sealing any .raw images. By this
         // point the ext sysroot has been populated by `avocado install` and
         // any compile-dep install scripts above, so the hook can freely
@@ -1913,6 +1974,7 @@ mod tests {
         let overlay_config = OverlayConfig {
             dir: "peridio".to_string(),
             mode: OverlayMode::Merge,
+            preprocess: crate::utils::overlay_preprocess::PreprocessSpec::None,
         };
         let script = cmd.create_sysext_build_script(
             "1.0",
@@ -1955,6 +2017,7 @@ mod tests {
         let overlay_config = OverlayConfig {
             dir: "peridio".to_string(),
             mode: OverlayMode::Merge,
+            preprocess: crate::utils::overlay_preprocess::PreprocessSpec::None,
         };
         let script = cmd.create_confext_build_script(
             "1.0",
@@ -1997,6 +2060,7 @@ mod tests {
         let overlay_config = OverlayConfig {
             dir: "peridio".to_string(),
             mode: OverlayMode::Opaque,
+            preprocess: crate::utils::overlay_preprocess::PreprocessSpec::None,
         };
         let script = cmd.create_sysext_build_script(
             "1.0",
@@ -2040,6 +2104,7 @@ mod tests {
         let overlay_config = OverlayConfig {
             dir: "peridio".to_string(),
             mode: OverlayMode::Opaque,
+            preprocess: crate::utils::overlay_preprocess::PreprocessSpec::None,
         };
         let script = cmd.create_confext_build_script(
             "1.0",

src/commands/rootfs/install.rs

@@ -656,21 +656,46 @@ pub async fn install_sysroot(params: &mut SysrootInstallParams<'_>) -> Result<()
 
     // Build optional overlay snippet — appended to the install command so it
     // runs in the same container invocation immediately after DNF finishes.
-    let overlay_snippet = params
-        .parsed
-        .and_then(|parsed| {
+    let overlay_snippet = {
+        let overlay_value = params.parsed.and_then(|parsed| {
             let key = match params.sysroot_type {
                 SysrootType::Rootfs => "rootfs",
                 SysrootType::Initramfs => "initramfs",
                 _ => return None,
             };
-            parsed.get(key)?.get("overlay")
-        })
-        .map(|v| {
-            let (dir, opaque) = parse_overlay_config(v);
-            build_overlay_script(&dir, opaque, sysroot_dir)
-        })
-        .unwrap_or_default();
+            parsed.get(key)?.get("overlay").cloned()
+        });
+        if let (Some(v), Some(parsed)) = (overlay_value, params.parsed) {
+            let (dir, opaque) = parse_overlay_config(&v);
+            // Opt-in preprocessing: materialize an interpolated copy of the
+            // overlay on the host under `.avocado/overlay-staging/` and copy
+            // from there, so `{{ ... }}` in overlay files is substituted without
+            // mutating the working tree.
+            let spec = crate::utils::overlay_preprocess::PreprocessSpec::from_overlay_value(&v);
+            let effective_dir = if spec.is_enabled() {
+                let context = crate::utils::interpolation::AvocadoContext::from_main_config(
+                    parsed,
+                    Some(params.target),
+                );
+                match crate::utils::overlay_preprocess::materialize_preprocessed_overlay(
+                    params.src_dir,
+                    &dir,
+                    sysroot_dir,
+                    &spec,
+                    parsed,
+                    &context,
+                )? {
+                    Some(staging_rel_dir) => staging_rel_dir,
+                    None => dir,
+                }
+            } else {
+                dir
+            };
+            build_overlay_script(&effective_dir, opaque, sysroot_dir)
+        } else {
+            String::new()
+        }
+    };
 
     let exclude_str = if off_kernel_excludes.is_empty() {
         String::new()

src/utils/interpolation/mod.rs

@@ -194,6 +194,29 @@ pub fn interpolate_config_with_context(
     Ok(())
 }
 
+/// Preprocess `{{ ... }}` templates inside arbitrary file contents (e.g. an
+/// overlay file), using the same `env.`/`config.`/`avocado.` resolution as the
+/// YAML interpolator.
+///
+/// `root` is the composed config tree (for `{{ config.* }}`); `context` carries
+/// the resolved target/board/distro values (for `{{ avocado.* }}`). Missing
+/// `env.*` variables warn and resolve to an empty string, identical to
+/// `avocado.yaml` interpolation. Input that contains no templates is returned
+/// unchanged.
+pub fn preprocess_text(input: &str, root: &Value, context: &AvocadoContext) -> Result<String> {
+    let mut resolving_stack = HashSet::new();
+    let path: Vec<String> = Vec::new();
+    Ok(interpolate_string(
+        input,
+        root,
+        context,
+        &mut resolving_stack,
+        &path,
+        &YamlLocation::Value,
+    )?
+    .unwrap_or_else(|| input.to_string()))
+}
+
 /// Represents where in the YAML structure a template was found.
 #[derive(Clone, Debug)]
 enum YamlLocation {

src/utils/mod.rs

@@ -16,6 +16,7 @@ pub mod lockfile;
 pub mod nfs_server;
 pub mod output;
 pub mod output_format;
+pub mod overlay_preprocess;
 pub mod permissions;
 pub mod pkcs11_devices;
 pub mod prerequisites;