In Databricks Asset Bundles , the databricks.yml file located at the repository root serves as the single authoritative configuration file for the entire project. This file defines key elements such as the bundle name, deployment targets (for example, dev, test, prod), workspace configurations, permissions, and resource definitions including jobs and pipelines. Databricks documentation specifies that there must be one primary databricks.yml file at the root , ensuring consistency and simplifying deployment processes. However, to support modularity and maintainability, this root configuration file can reference additional YAML files using the include mapping. This allows teams to organize configurations across directories while still maintaining a single source of truth. Option A is incorrect because multiple root-level configuration files are not supported as independent authorities. Option C is invalid since configuration files are not restricted to hidden directories. Option D introduces ambiguity and contradicts the requirement for a single authoritative configuration. Therefore, using one root-level configuration file with optional includes is the correct and recommended approach.