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I  just got surprised by this too - I deleted all my azure resources, among them a key vault - which of course was only soft deleted (that's ok).  When I re-create everything I get a complaint from Azure about keys already existing.

which just demonstrates that this is happening for me too - no concern from my side at this stage, i've got it under control.

Not sure if it directly addresses this, but the doc page <https://www.pulumi.com/docs/intro/concepts/resources/names/|Resource Names> is pretty good.

<@U03E3P60RE3> we are fixing this in the next release, standby