The issue is a bit hard to explain but it is mostly relevant to large packages which produce a lot of resources. Given the default Timoni structure:

• timoni.cue
• templates/
  • config.cue
  • file1.cue
  • file2.cue

Let's say that the templates folder has grown very large (>10 files at the root). The templates package is also starting to become overcrowded. So, we introduce a new subpackage:

• timoni.cue
• templates/
  • config.cue
  • file1.cue
  • file2.cue
  • subpkg/
    • file3.cue

Now, here we run into a problem:

1. Each of the files contains structures that rely on #Config being passed in. This is normal and is used in all of the Timoni examples.
2. The #Instance structure in config.cue also relies on these individual files, as they declare the resources being generated by the module. For example, #Instance might use subpkg.#Deployment.
3. So, for example, config.cue imports timoni.sh/my_module/subpkg to access the resource structures and file3.cue imports timoni.sh/my_module/templates to access the #Config structure. This creates a cyclic dependency.

The only reason this appears to be a problem is because #Instance is included with #Config in the same package. If, for example, we moved #Instance to another package, it could have a dependency on #Config and all of the resources in the subpkg package without creating a cyclic dependency.

It's very possible I'm missing something obvious here, or there is another way to solve this issue, but my limited CUE knowledge isn't really showing me anything. From what I'm seeing, it's impossible to easily introduce additional packages containing resource structures without running into a cyclic dependency every time.