.terraform directory with local execution

HashiCorp Cloud Platform (HCP)
1

Hello,
I’ve been using cloud based workspaces with local execution for a while now.
The repo is structured in a following way :
repo:

── Clients
│   ├── Client#1
│   │   ├── comp
│   │   │   ├── backend.tf
│   │   │   ├── ec2.tf
│   │   │   ├── terraform.tfvars
│   │   │   ├── user_data
│   │   │   └── vars.tf
│   │   ├── config
│   │   │   ├── backend.tf
│   │   │   ├── ec2_profile.tf
│   │   │   ├── keys
│   │   │   ├── keys.tf
│   │   │   ├── terraform.tfvars
│   │   │   └── var.tf
│   │   └── sam
│   │       └── VMAlert
│   ├── Client#2
...

Each backend.tf points to the client specific workspace and stack. For example, the Client#1/comp will look like:

terraform {
  cloud  {
    organization = "XXX"
    workspaces {
      name = "CLIENT#1_COMP"
    }
  }
  required_providers {
    aws = {
      source  = "hashicorp/aws"
      version = ">= 3.65.0"
    }
  ... 
  }
}
provider "aws" {
  profile = "xxx-iac"
  region  = "us-east-1"
  assume_role {
    role_arn = "arn:aws:iam::xxxxxxx:role/xxx"
  }
  default_tags {
    tags = {
     .....
     }
   }
}

workspaces configured for “local” runs. This leads to generation of “.terraform” directory under each stack. With the number of clients and complexity of their environments growing, the space occupied by .terraform directories grows geometrically.
The env is not accessible over a public network and installing TF agents to do the work is not something i’d like to invest effort into.

What options are available to eliminate the duplication of .terraform directories?

Thank you and Happy New Year.