vsphere provider fails to create multiple nested folders

[hashibot]

This issue was originally opened by @jasonk as hashicorp/terraform#8106. It was migrated here as part of the provider split. The original body of the issue is below.

---

Terraform Version

Terraform v0.7.0

Affected Resource(s)

• vsphere_folder

Terraform Configuration Files

resource "vsphere_folder" "ci-dev" {
  path = "DevOps/CI/Development"
  datacenter = "Datacenter"
} 

resource "vsphere_folder" "ci-prod" {
  path = "DevOps/CI/Production"
  datacenter = "Datacenter"
} 

resource "vsphere_folder" "ci-test" {
  path = "DevOps/CI/Test" 
  datacenter = "Datacenter"
} 

Expected Behavior

Prior to applying this configuration, the DevOps folder already existed, and I expected that terraform would create the CI folder and then the three subfolders.

Actual Behavior

The CI folder was created, and the Test folder was created underneath it, but errors were thrown for the other two, because apparently terraform tried to create the parent folder three times:

2 error(s) occurred:

* vsphere_folder.ci-prod: Failed to create folder at DevOps/CI; ServerFaultCode: The name 'CI' already exists.
* vsphere_folder.ci-dev: Failed to create folder at DevOps/CI; ServerFaultCode: The name 'CI' already exists.

Steps to Reproduce

1. terraform apply

Important Factoids

Provisioning against vSphere 5.5, but otherwise a pretty standard setup.

[vancluever]

Creation of subfolders should work so long as you specify multiple resources as documented here.