Switch default environment to the one specified by -e if it exists

Switch default environment to the one specified by -e if it exists

cli/azd/cmd/up.go

@@ -130,14 +130,6 @@ func (u *upAction) Run(ctx context.Context) (*actions.ActionResult, error) {
 		u.console.Message(ctx, output.WithGrayFormat("Note: Running custom 'up' workflow from azure.yaml"))
 	}
 
-	envValue := u.flags.EnvFlag.EnvironmentName
-	for _, step := range upWorkflow.Steps {
-		if envValue != "" {
-			stepArgs := append(step.AzdCommand.Args, "-e", envValue)
-			step.AzdCommand.Args = stepArgs
-		}
-	}
-
 	if err := u.workflowRunner.Run(ctx, upWorkflow); err != nil {
 		return nil, err
 	}

cli/azd/pkg/environment/manager.go

@@ -177,6 +177,17 @@ func (m *manager) LoadOrInitInteractive(ctx context.Context, environmentName str
 		}
 	}
 
+	defaultEnvironmentName, err := m.azdContext.GetDefaultEnvironmentName()
+	if err != nil {
+		return nil, fmt.Errorf("getting default environment: %w", err)
+	}
+
+	if env.Name() != defaultEnvironmentName {
+		if err := m.azdContext.SetProjectState(azdcontext.ProjectState{DefaultEnvironment: env.Name()}); err != nil {
+			return nil, fmt.Errorf("saving default environment: %w", err)
+		}
+	}
+
 	return env, nil
 }