Action setup-terraform fails with Error: Client network socket disconnected before secure TLS connection was established when trying to run behind corp proxy

[mvuddaraju]

Problem description and environment:

I am trying to use Action setup-terraform@v1 in one of my deployments. My self-hosted runner is a windows server and runs behind a corporate proxy.
I have set the proxy variables at the system level(https_proxy and http_proxy). However, I get the following error when trying to use the action
Error: Error: Client network socket disconnected before secure TLS connection was established

Code-snippet:

jobs:
  terraform:
    runs-on: [ self-hosted,Windows ]  
    env: 
      DOTNET_SYSTEM_NET_HTTP_USESOCKETSHTTPHANDLER: 0
      DOTNET_SYSTEM_NET_HTTP_DEFAULTHTTP2: 0 
      HTTP_PROXY: ****
      HTTPS_PROXY: ****

    defaults:
      run:
        shell: powershell 


      - name: Setup Terraform
        uses: hashicorp/setup-terraform@v1     

Error:

##[debug]Evaluating condition for step: 'Setup Terraform'
##[debug]Evaluating: success()
##[debug]Evaluating success:
##[debug]=> true
##[debug]Result: true
##[debug]Starting: Setup Terraform
##[debug]Loading inputs
##[debug]Loading env
Run hashicorp/setup-terraform@v1
  with:
    cli_config_credentials_hostname: app.terraform.io
    terraform_version: latest
    terraform_wrapper: true
  env:
    v1: dev
    TF_VAR_env: dev
    tf_dir: terraform
    DOTNET_SYSTEM_NET_HTTP_USESOCKETSHTTPHANDLER: 0
    DOTNET_SYSTEM_NET_HTTP_DEFAULTHTTP2: 0
    HTTP_PROXY: ****
    HTTPS_PROXY: ****
##[debug]Finding releases for Terraform version latest
##[debug]Enhanced Annotations not enabled on the server. The 'title', 'end_line', and 'end_column' fields are unsupported.
Error: Error: Client network socket disconnected before secure TLS connection was established
##[debug]Enhanced Annotations not enabled on the server. The 'title', 'end_line', and 'end_column' fields are unsupported.
Error: Client network socket disconnected before secure TLS connection was established
##[debug]Node Action run completed with exit code 1
##[debug]Finishing: Setup Terraform		

Additional info

Setup job where it actually downloads this particular action seems to run fine.

##[debug]Starting: Set up job
Current runner version: '2.279.0'
Runner name: 'vm-deploy-***'
Runner group name: 'Default'
Machine name: '****'
GITHUB_TOKEN Permissions
##[debug]Primary repository: dev/adf-terraform
Runner is running behind proxy server '****' for all HTTP requests.
Runner is running behind proxy server '***' for all HTTPS requests.
Prepare workflow directory
##[debug]Update context data
##[debug]Evaluating job-level environment variables
##[debug]Evaluating job container
##[debug]Evaluating job service containers
##[debug]Evaluating job defaults
Prepare all required actions
Getting action download info
Download action repository 'hashicorp/setup-terraform@v1'
##[debug]Download 'https://api.github.com/repos/hashicorp/setup-terraform/zipball/3d8debd658c92063839bc97da5c2427100420dec' to 'C:\actions-runner\_work\_actions\_temp_2ead0beb-2b13-44f1-ae18-f47c0a9e2511\7746aaaf-5e9a-45c0-be43-58653913496f.zip'
##[debug]Unwrap 'hashicorp-setup-terraform-3d8debd' to 'C:\actions-runner\_work\_actions\hashicorp\setup-terraform\v1'
##[debug]Archive 'C:\actions-runner\_work\_actions\_temp_2ead0beb-2b13-44f1-ae18-f47c0a9e2511\7746aaaf-5e9a-45c0-be43-58653913496f.zip' has been unzipped into 'C:\actions-runner\_work\_actions\hashicorp\setup-terraform\v1'.
Download action repository 'actions/upload-artifact@v2'
##[debug]Download 'https:///api/v3/repos/actions/upload-artifact/zipball/27121b0bdffd731efa15d66772be8dc71245d074' to 'C:\actions-runner\_work\_actions\_temp_2e2c7542-bd6d-476c-ae45-1522455b3ff9\f0dc9770-d3e9-47c7-9527-4ec4f2565b19.zip'
##[debug]Unwrap 'actions-upload-artifact-27121b0' to 'C:\actions-runner\_work\_actions\actions\upload-artifact\v2'
##[debug]Archive 'C:\actions-runner\_work\_actions\_temp_2e2c7542-bd6d-476c-ae45-1522455b3ff9\f0dc9770-d3e9-47c7-9527-4ec4f2565b19.zip' has been unzipped into 'C:\actions-runner\_work\_actions\actions\upload-artifact\v2'.
##[debug]Action 'actions/upload-artifact@v2' already downloaded at 'C:\actions-runner\_work\_actions\actions\upload-artifact\v2'.
Download action repository 'actions/github-script@v5.0.0'
##[debug]Download 'https:///api/v3/repos/actions/github-script/zipball/441359b1a30438de65712c2fbca0abe4816fa667' to 'C:\actions-runner\_work\_actions\_temp_4451a054-91a3-474a-b5ef-7fc95dc9e4ce\1524d45e-533e-4d27-ace8-0e862473d168.zip'
##[debug]Unwrap 'actions-github-script-441359b' to 'C:\actions-runner\_work\_actions\actions\github-script\v5.0.0'
##[debug]Archive 'C:\actions-runner\_work\_actions\_temp_4451a054-91a3-474a-b5ef-7fc95dc9e4ce\1524d45e-533e-4d27-ace8-0e862473d168.zip' has been unzipped into 'C:\actions-runner\_work\_actions\actions\github-script\v5.0.0'.
##[debug]action.yml for action: 'C:\actions-runner\_work\_actions\hashicorp\setup-terraform\v1\action.yml'.
##[debug]action.yml for action: 'C:\actions-runner\_work\_actions\actions\upload-artifact\v2\action.yml'.
##[debug]action.yml for action: 'C:\actions-runner\_work\_actions\actions\upload-artifact\v2\action.yml'.
##[debug]action.yml for action: 'C:\actions-runner\_work\_actions\actions\github-script\v5.0.0\action.yml'.
##[debug]Set step 'hashicorpsetup-terraform' display name to: 'Setup Terraform'
##[debug]Set step 'run1' display name to: 'Set variables for terraform'
##[debug]Set step 'run2' display name to: 'az login'
##[debug]Set step 'run3' display name to: 'Terraform Format'
##[debug]Set step 'run4' display name to: 'Terraform Init'
##[debug]Set step 'run5' display name to: 'Terraform Validate'
##[debug]Set step 'run6' display name to: 'Terraform Plan'
##[debug]Set step 'actionsupload-artifact1' display name to: 'Publish artifact'
##[debug]Set step 'run7' display name to: 'Terraform Show'
##[debug]Set step 'run8' display name to: 'Terraform Show'
##[debug]Set step 'actionsupload-artifact2' display name to: 'Publish artifact Text'
##[debug]Set step 'actionsgithub-script' display name to: 'Update Pull Request'
##[debug]Set step 'run9' display name to: 'Terraform Plan Status'
##[debug]Collect running processes for tracking orphan processes.
##[debug]Finishing: Set up job

Please let me know if there is a known workaround to get this piece of code working.