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Is the CLI the only interface for pulumi engine? I am hoping to find an API I could use in my web application to call pulumi engine to execute my pulumi programs. How are people implementing such architectures currently if there's no API and CLI is the only way to interact with the pulumi engine?

Yes - the currently recommended approach is to script the CLI.  There is a `--json` on many operations to make this easier.

Wrapping this up inside a library is something we are definitely thinking hard about!