From 03cb4f5552f33241c4f07b55de41e7f43fc31ce8 Mon Sep 17 00:00:00 2001
From: Chris Rericha <chris@tobikodata.com>
Date: Tue, 7 Oct 2025 15:28:44 -0400
Subject: [PATCH] Fix: Normalize canonical names and use in circular ref
 workaround

---
 sqlmesh/dbt/basemodel.py         |  6 ++++--
 sqlmesh/dbt/context.py           | 14 ++++++++------
 sqlmesh/dbt/source.py            |  5 ++++-
 tests/dbt/test_transformation.py | 10 +++++-----
 4 files changed, 21 insertions(+), 14 deletions(-)

diff --git a/sqlmesh/dbt/basemodel.py b/sqlmesh/dbt/basemodel.py
index 0c719ebb88..68e350eb3c 100644
--- a/sqlmesh/dbt/basemodel.py
+++ b/sqlmesh/dbt/basemodel.py
@@ -222,7 +222,9 @@ def canonical_name(self, context: DbtContext) -> str:
             )
             if relation.database == context.target.database:
                 relation = relation.include(database=False)
-            self._canonical_name = relation.render()
+            self._canonical_name = d.normalize_model_name(
+                relation.render(), context.target.database, context.default_dialect
+            )
         return self._canonical_name
 
     @property
@@ -334,7 +336,7 @@ def sqlmesh_model_kwargs(
                 {
                     source.canonical_name(context)
                     for source in model_context.sources.values()
-                    if source.fqn not in context.model_fqns
+                    if source.canonical_name(context) not in context.model_canonical_names
                     # Allow dbt projects to reference a model as a source without causing a cycle
                 },
             ),
diff --git a/sqlmesh/dbt/context.py b/sqlmesh/dbt/context.py
index bcdae8f97a..1c347f54ff 100644
--- a/sqlmesh/dbt/context.py
+++ b/sqlmesh/dbt/context.py
@@ -51,7 +51,7 @@ class DbtContext:
     _project_name: t.Optional[str] = None
     _variables: t.Dict[str, t.Any] = field(default_factory=dict)
     _models: t.Dict[str, ModelConfig] = field(default_factory=dict)
-    _model_fqns: t.Set[str] = field(default_factory=set)
+    _model_canonical_names: t.Set[str] = field(default_factory=set)
     _seeds: t.Dict[str, SeedConfig] = field(default_factory=dict)
     _sources: t.Dict[str, SourceConfig] = field(default_factory=dict)
     _refs: t.Dict[str, t.Union[ModelConfig, SeedConfig]] = field(default_factory=dict)
@@ -145,7 +145,7 @@ def models(self) -> t.Dict[str, ModelConfig]:
     def models(self, models: t.Dict[str, ModelConfig]) -> None:
         self._models = {}
         self._refs = {}
-        self._model_fqns = set()
+        self._model_canonical_names = set()
         self.add_models(models)
 
     def add_models(self, models: t.Dict[str, ModelConfig]) -> None:
@@ -154,10 +154,12 @@ def add_models(self, models: t.Dict[str, ModelConfig]) -> None:
         self._jinja_environment = None
 
     @property
-    def model_fqns(self) -> t.Set[str]:
-        if not self._model_fqns:
-            self._model_fqns = {model.fqn for model in self._models.values()}
-        return self._model_fqns
+    def model_canonical_names(self) -> t.Set[str]:
+        if not self._model_canonical_names:
+            self._model_canonical_names = {
+                model.canonical_name(self) for model in self._models.values()
+            }
+        return self._model_canonical_names
 
     @property
     def seeds(self) -> t.Dict[str, SeedConfig]:
diff --git a/sqlmesh/dbt/source.py b/sqlmesh/dbt/source.py
index efafbf1642..60f6136852 100644
--- a/sqlmesh/dbt/source.py
+++ b/sqlmesh/dbt/source.py
@@ -4,6 +4,7 @@
 
 from pydantic import Field
 
+from sqlmesh.core import dialect as d
 from sqlmesh.core.config.base import UpdateStrategy
 from sqlmesh.dbt.column import ColumnConfig
 from sqlmesh.dbt.common import GeneralConfig
@@ -89,7 +90,9 @@ def canonical_name(self, context: DbtContext) -> str:
             )
             if relation.database == context.target.database:
                 relation = relation.include(database=False)
-            self._canonical_name = relation.render()
+            self._canonical_name = d.normalize_model_name(
+                relation.render(), context.target.database, context.default_dialect
+            )
         return self._canonical_name
 
     @property
diff --git a/tests/dbt/test_transformation.py b/tests/dbt/test_transformation.py
index dd69f46200..bb0ce3d93b 100644
--- a/tests/dbt/test_transformation.py
+++ b/tests/dbt/test_transformation.py
@@ -2687,23 +2687,23 @@ def test_ignore_source_depends_on_when_also_model(dbt_dummy_postgres_config: Pos
 
     source_a = SourceConfig(
         name="source_a",
-        fqn=["package", "schema", "model_a"],
     )
-    source_a._canonical_name = "schema.source_a"
+    source_a._canonical_name = "schema.model_a"
     source_b = SourceConfig(
         name="source_b",
-        fqn=["package", "schema", "source_b"],
     )
     source_b._canonical_name = "schema.source_b"
     context.sources = {"source_a": source_a, "source_b": source_b}
 
     model = ModelConfig(
         dependencies=Dependencies(sources={"source_a", "source_b"}),
-        fqn=["package", "schema", "test_model"],
     )
+    model._canonical_name = "schema.test_model"
+    model_a = ModelConfig(name="model_a")
+    model_a._canonical_name = "schema.model_a"
     context.models = {
         "test_model": model,
-        "model_a": ModelConfig(name="model_a", fqn=["package", "schema", "model_a"]),
+        "model_a": model_a,
     }
 
     assert model.sqlmesh_model_kwargs(context)["depends_on"] == {"schema.source_b"}