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`export const subdomain = config.get('subdomain') || 'm2';`
Without the last part it's just undefined (unless I define it in the `Pulumi.foo.yaml`)

This is only used as part of templates (note it's in the `template` section).  `pulumi new` when processing a template that includes a `Pulumi.yaml` like this will present the default value as the default in the wizard.  But this section will be removed from the actually created project.

Adding support for declarative config (which might be what you were expecting this to do) is being tracked in <https://github.com/pulumi/pulumi/issues/1052>.