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Variables from dotenv files not expanding in service container variables

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Summary

We previously added service variables in this MR: gitlab-runner!3158 (closed)

In this MR, there was a test to check that variable expansion is working correctly: gitlab-runner!3158 (comment 829286124)

However, when using variables from dotenv artifacts in service container definitions (jobs.services.variables), the variables are not being expanded properly.

Steps to reproduce

  • Create a pipeline with the following configuration:
stages:
  - prepare
  - check

variables:
  MY_SERVICE_GLOBALVAR: "from-global"
  CI_DEBUG_SERVICES: "true"

prepare:
  stage: prepare
  script:
    - echo 'MY_SERVICE_IMAGE=busybox:latest' >> service.env
    - echo 'MY_SERVICE_DOTENVVAR=from-dotenv' >> service.env
  artifacts:
    reports:
      dotenv: service.env

build:
  stage: check
  needs:
    - job: prepare
      artifacts: true
  services:
    - name: $MY_SERVICE_IMAGE
      entrypoint: [ "sh", "-c", "echo $SERV_GLOBAL $SERV_DOTENV" ]
      variables:
        SERV_GLOBAL: "$MY_SERVICE_GLOBALVAR"
        SERV_DOTENV: "$MY_SERVICE_DOTENVVAR"
  script:
    - echo "hello world!"
  • Run the pipeline
  • Check the service container logs in the build job

Example Project

What is the current bug behavior?

The service container logs only show the global variable expanded, while the dotenv variable is empty:

Service container logs:
2025-08-19T02:25:35.587804448Z from-global

What is the expected correct behavior?

The service container logs should show both variables expanded correctly:

Service container logs:
2025-08-19T02:25:35.587804448Z from-global from-dotenv

Relevant logs and/or screenshots

Output of checks

This bug happens on GitLab.com

Results of GitLab environment info

Expand for output related to GitLab environment info 

(For installations with omnibus-gitlab package run and paste the output of:
`sudo gitlab-rake gitlab:env:info`)

(For installations from source run and paste the output of:
`sudo -u git -H bundle exec rake gitlab:env:info RAILS_ENV=production`)

Results of GitLab application Check

Expand for output related to the GitLab application check 
(For installations with omnibus-gitlab package run and paste the output of:
sudo gitlab-rake gitlab:check SANITIZE=true)


(For installations from source run and paste the output of:
sudo -u git -H bundle exec rake gitlab:check RAILS_ENV=production SANITIZE=true)


(we will only investigate if the tests are passing)

Possible fixes

Patch release information for backports

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Refer to the internal "Release Information" dashboard for information about the next patch release, including the targeted versions, expected release date, and current status.

High-severity bug remediation

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Edited by 🤖 GitLab Bot 🤖