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&gt;  Who is responsible for maintaining the code? If the application code and the Pulumi code are managed by different teams, then using separate repositories may be the best approach.
Seems too quick to rule out mono-repo approaches, they have a lot of advantages

There are lots of variables; each approach has advantages and disadvantages. You could definitely consider a monorepo; in fact, the fictional company in the series started out with a mono-repo. Nothing wrong with that, if it satisfies your requirements.