Fix: Make sure diags from attempting to create the default workspace are returned

Author: SarahFrench

internal/command/meta_backend.go

@@ -1677,7 +1677,7 @@ func (m *Meta) stateStore_C_s(c *configs.StateStore, cHash int, backendSMgr *cli
 			case ws == backend.DefaultStateName:
 				// Users control if the default workspace is created through the -create-default-workspace flag (defaults to true)
 				if opts.CreateDefaultWorkspace {
-					m.createDefaultWorkspace(c, b)
+					diags = diags.Append(m.createDefaultWorkspace(c, b))
 				} else {
 					diags = diags.Append(&hcl.Diagnostic{
 						Severity: hcl.DiagWarning,