fix: ensure envtest binaries are installed in project-specific bin di…

…rectory

- Redirects envtest binaries to be installed in the project's ./bin/envtest-binaries directory.
- Avoids using global paths, preventing permission issues for contributors and reducing risk of conflicts with other projects.
- Centralizes all project binaries in ./bin for consistency, making it easier to configure and debug tests in IDEs.

This change enforces a local installation path for envtest binaries to address permission issues some contributors faced with global installs. By centralizing binaries in the project-specific ./bin directory, we also prevent interference with other projects that might rely on different versions or setups.

This setup supports seamless IDE configuration for running and debugging tests locally.

Makefile

@@ -29,14 +29,6 @@ export WAIT_TIMEOUT := 60s
 # Install default ClusterCatalogs
 export INSTALL_DEFAULT_CATALOGS := true
 
-# By default setup-envtest will write to $XDG_DATA_HOME, or $HOME/.local/share if that is not defined.
-# If $HOME is not set, we need to specify a binary directory to prevent an error in setup-envtest.
-# Useful for some CI/CD environments that set neither $XDG_DATA_HOME nor $HOME.
-SETUP_ENVTEST_BIN_DIR_OVERRIDE=
-ifeq ($(shell [[ $$HOME == "" || $$HOME == "/" ]] && [[ $$XDG_DATA_HOME == "" ]] && echo true ), true)
-	SETUP_ENVTEST_BIN_DIR_OVERRIDE += --bin-dir /tmp/envtest-binaries
-endif
-
 # bingo manages consistent tooling versions for things like kind, kustomize, etc.
 include .bingo/Variables.mk
 
@@ -151,21 +143,47 @@ test-ext-dev-e2e: $(OPERATOR_SDK) $(KUSTOMIZE) $(KIND) #HELP Run extension creat
 	test/extension-developer-e2e/setup.sh $(OPERATOR_SDK) $(CONTAINER_RUNTIME) $(KUSTOMIZE) $(KIND) $(KIND_CLUSTER_NAME) $(E2E_REGISTRY_NAMESPACE)
 	go test -count=1 -v ./test/extension-developer-e2e/...
 
-.PHONY: test-unit
-# Define CGO_ENABLED based on the OS
+# Define directories and versions
+LOCALBIN := $(PWD)/bin
+SETUP_ENVTEST := $(LOCALBIN)/setup-envtest
+ENVTEST_VERSION := $(shell go list -m k8s.io/client-go | cut -d" " -f2 | sed 's/^v0\.\([[:digit:]]\{1,\}\)\.[[:digit:]]\{1,\}$$/1.\1.x/')
 CGO_ENABLED_VAL := $(if $(filter Linux, $(shell uname)),1,0)
+UNIT_TEST_DIRS := $(shell go list ./... | grep -v /test/)
+COVERAGE_UNIT_DIR := $(ROOT_DIR)/coverage/unit
+
+.PHONY: setup-envtest test-unit
+
+# Define directories and paths
+LOCALBIN := $(PWD)/bin
+SETUP_ENVTEST := $(LOCALBIN)/setup-envtest
+SETUP_ENVTEST_BIN_DIR := $(LOCALBIN)/envtest-binaries
 ENVTEST_VERSION := $(shell go list -m k8s.io/client-go | cut -d" " -f2 | sed 's/^v0\.\([[:digit:]]\{1,\}\)\.[[:digit:]]\{1,\}$$/1.\1.x/')
+CGO_ENABLED_VAL := $(if $(filter Linux, $(shell uname)),1,0)
 UNIT_TEST_DIRS := $(shell go list ./... | grep -v /test/)
 COVERAGE_UNIT_DIR := $(ROOT_DIR)/coverage/unit
-test-unit: $(SETUP_ENVTEST) #HELP Run the unit tests
+
+# Force the envtest binaries to be in ./bin/envtest-binaries
+SETUP_ENVTEST_BIN_DIR_OVERRIDE := --bin-dir $(SETUP_ENVTEST_BIN_DIR)
+
+# Ensure bin directory and install setup-envtest if not available
+$(SETUP_ENVTEST): | $(LOCALBIN)
+	mkdir -p $(LOCALBIN)
+	GOBIN=$(LOCALBIN) go install sigs.k8s.io/controller-runtime/tools/setup-envtest@latest
+
+.PHONY: setup-envtest #HELP Install setup-envtest binary in the bin directory.
+setup-envtest: $(SETUP_ENVTEST)
+	$(SETUP_ENVTEST) use -p env $(ENVTEST_VERSION) $(SETUP_ENVTEST_BIN_DIR_OVERRIDE)
+
+.PHONY: test-unit
+test-unit: setup-envtest #HELP Run the unit tests
 	rm -rf $(COVERAGE_UNIT_DIR) && mkdir -p $(COVERAGE_UNIT_DIR)
-	eval $$($(SETUP_ENVTEST) use -p env $(ENVTEST_VERSION) $(SETUP_ENVTEST_BIN_DIR_OVERRIDE)) && \
-            CGO_ENABLED=$(CGO_ENABLED_VAL) go test \
-                -tags '$(GO_BUILD_TAGS)' \
-                -cover -coverprofile ${ROOT_DIR}/coverage/unit.out \
-                -count=1 -race -short \
-                $(UNIT_TEST_DIRS) \
-                -test.gocoverdir=$(ROOT_DIR)/coverage/unit
+	KUBEBUILDER_ASSETS="$(shell $(SETUP_ENVTEST) use -p path $(ENVTEST_VERSION) $(SETUP_ENVTEST_BIN_DIR_OVERRIDE))" \
+	CGO_ENABLED=$(CGO_ENABLED_VAL) go test \
+		-tags '$(GO_BUILD_TAGS)' \
+		-cover -coverprofile ${ROOT_DIR}/coverage/unit.out \
+		-count=1 -race -short \
+		$(UNIT_TEST_DIRS) \
+		-test.gocoverdir=$(ROOT_DIR)/coverage/unit
 
 .PHONY: image-registry
 E2E_REGISTRY_IMAGE=localhost/e2e-test-registry:devel