Not that I'm aware of. I've solved it substituting the resources folder string from databricks.yml in the cicd configuration. Definitely not great.

Would you be able to share how to use the variable in the include? I can't seem to work it out

Again, this is not what I would recommend, and it's temporary, but this is how it looks like in databricks.yml :

include:
  - ./$asset_folder/*.yml

- script: |
    sed -i 's/\$asset_folder/resources_training/g' databricks.yml
  workingDirectory: $(workingDirectory)
  displayName: Define assets to be included in the bundle

Is there any update from databricks about this?

Experiencing the same issue. Solved partially by placing high level targets in the job yml file, but this only works if the job has to go only one environment. If this is for two environments, but not the third, there is no way to avoid duplicating this job. This is really inconvenient. Targets should have high level includes.

I'm experiencing the same problem. Are there any updates/solutions to this?

One solution can be you can create separate databricks.yml file for each target such as

qa/databricks.yml

prod/databricks.yml

qa,prod are folders named after target environment
Hope this helps..