Exam Terraform-Associate-003 Topic 1 Question 4 Discussion

A Terraform output that sets the "sensitive" argument to true will store that value in the state file. The purpose of setting sensitive = true is to prevent the value from being displayed in the CLI output during terraform plan and terraform apply, and to mask it in the Terraform UI. However, it does not affect the storage of the value in the state file. Sensitive outputs are still written to the state file to ensure that Terraform can manage resources correctly during subsequent operations.
Reference:
Terraform documentation on sensitive outputs: Terraform Output Values