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The move from RKE1 to RKE2 is non-trivial, so I can't address that, but check out this module for deploying a production ready cluster in AWS: https://github.com/rancher/terraform-aws-rke2

thanks for sharing the reference link. do we have anything for on-prem on vmware using tf and ansible?

sorry, I don't have anything for vmware yet, it is on my roadmap though