Terragrunt output dependency variables not being picked up

I'm trying to create secret manager and trying to understand how to work with terragrunt output dependencies, I'm working gcp secret manager and secret version as examples My root module looks like this secret_manager_secret.tf

resource "google_secret_manager_secret" "iap_client_secret" {
  secret_id = var.secret_id
  replication {
    automatic = true
  }
  project = var.project
}

output "name" {
value = google_secret_manager_secret.iap_client_secret.name
}

variable "secret_id" {  
}
variable "project" {  
}

secret_version.tf

resource "google_secret_manager_secret_version" "iap_secret_version" {
  secret      = var.secret
  secret_data = var.secret_data
}
variable "secret" {
    type = any 
}

variable "secret_data" {
    type = any
    default = "secret-data"
}

Terragrunt code is as follows secret_manager/terragrunt.hcl

include "root" {
  path = find_in_parent_folders()
}

terraform {
  source = "../../../modules/secret_manager_secret/"
}
locals {
 root_vars   = read_terragrunt_config(find_in_parent_folders())
 common_vars = read_terragrunt_config(find_in_parent_folders("env.hcl"))
  vars        = read_terragrunt_config("vars.hcl")
}

inputs = merge(
  local.root_vars.inputs,
  local.common_vars.inputs,
  local.vars.inputs
)

vars.hcl

inputs = { 
secret_id = "test_secret"
project = "check-terragrunt-sb"
}

secret_version\terragrunt.hcl

include "root" {
  path = find_in_parent_folders()
}

terraform {
  source = "../../../modules/secret_version/"
}

dependencies {
  paths = ["../secret_manager"]
}

dependency "id" {
  config_path = "../secret_manager"
}

inputs =  {
    secret = dependency.id.outputs.name
  }

I get the following error when I run terragrunt apply-all even though i point to the right output dependency, Why is that?

Terraform used the selected providers to generate the following execution
plan. Resource actions are indicated with the following symbols:
  + create

Terraform will perform the following actions:

  # google_secret_manager_secret.iap_client_secret will be created
  + resource "google_secret_manager_secret" "iap_client_secret" {
      + create_time = (known after apply)
      + expire_time = (known after apply)
      + id          = (known after apply)
      + name        = (known after apply)
      + project     = "check-terragrunt-sb"
      + secret_id   = "test_secret"

      + replication {
          + automatic = true
        }
    }

Plan: 1 to add, 0 to change, 0 to destroy.

Changes to Outputs:
  + name = (known after apply)
google_secret_manager_secret.iap_client_secret: Creating...
google_secret_manager_secret.iap_client_secret: Creation complete after 1s [id=projects/check-terragrunt-sb/secrets/test_secret]

Apply complete! Resources: 1 added, 0 changed, 0 destroyed.

Outputs:

name = "projects/1079975224630/secrets/test_secret"
time=2022-09-22T19:53:44-07:00 level=warning msg=No double-slash (//) found in source URL C:/Users/adeq/gitlab/test-sb/modules/secret_manager_secret. Relative paths in downloaded Terraform code may not work. prefix=[C:\Users\adeq\gitlab\test-sb\env\nonprod\secret_manager]
time=2022-09-22T19:53:45-07:00 level=warning msg=No double-slash (//) found in source URL C:/Users/adeq/gitlab/test-sb/modules/secret_version. Relative paths in downloaded Terraform code may not work. prefix=[C:\Users\adeq\gitlab\test-sb\env\nonprod\secret_version]
╷
│ Error: Variables not allowed
│
│   on <value for var.secret> line 1:
│   (source code not available)
│
│ Variables may not be used here.
╵
╷
│ Error: Variables not allowed
│
│   on <value for var.secret> line 1:
│   (source code not available)
│
│ Variables may not be used here.
╵
╷
│ Error: Variables not allowed
│
│   on <value for var.secret> line 1:
│   (source code not available)
│
│ Variables may not be used here.
╵
time=2022-09-22T19:53:47-07:00 level=error msg=Terraform invocation failed in C:/Users/adeq/gitlab/test-sb/env/nonprod/secret_version/.terragrunt-cache/Vl655K1EQewJgpYmZ8BrHkexS-A/ZVMG9s8fVMArIGo1N_gjjktQPpw prefix=[C:\Users\adeq\gitlab\test-sb\env\nonprod\secret_version]
time=2022-09-22T19:53:47-07:00 level=error msg=Module C:/Users/adeq/gitlab/test-sb/env/nonprod/secret_version has finished with an error: 1 error occurred:
        * exit status 1

 prefix=[C:\Users\adeq\gitlab\test-sb\env\nonprod\secret_version]
time=2022-09-22T19:53:47-07:00 level=error msg=1 error occurred:
        * exit status 1