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I've always used the output&lt;string&gt; directly and let pulumi handle providing the value. there is documentation page on inputs / output and lifting. I don't think you need to do what you are doing, we pass in the output to calls as needed and that is replaced by the value;

Side note, any time you want to use an output inside of a template string, you'll need to use `pulumi.interpolate`output``

Not _need_. You can also use `apply()`. interpolate is sugar around apply.
In order to get a string "out" of an _Output&lt;string&gt;_, you need to put your "out" code _inside_ the interpolate or apply. That is, you _cannot_ get at the string at the same level of code where you have the Output. You _must_ be inside a code black or string interpolation _inside_ the apply (or interpolate).