diff --git a/bundle/generated/jsonschema.json b/bundle/generated/jsonschema.json
index a0173bb26f..3f1fa2efc8 100644
--- a/bundle/generated/jsonschema.json
+++ b/bundle/generated/jsonschema.json
@@ -634,6 +634,29 @@
                   }
                 ]
               },
+              "variable.TargetVariable": {
+                "anyOf": [
+                  {
+                    "type": "object",
+                    "properties": {
+                      "default": {
+                        "$ref": "#/$defs/interface"
+                      },
+                      "description": {
+                        "$ref": "#/$defs/string"
+                      },
+                      "lookup": {
+                        "$ref": "#/$defs/github.com/databricks/cli/bundle/config/variable.Lookup"
+                      },
+                      "type": {
+                        "$ref": "#/$defs/github.com/databricks/cli/bundle/config/variable.VariableType"
+                      }
+                    },
+                    "additionalProperties": false
+                  },
+                  {}
+                ]
+              },
               "variable.Variable": {
                 "type": "object",
                 "properties": {
@@ -987,7 +1010,7 @@
                       "$ref": "#/$defs/github.com/databricks/cli/bundle/config.Sync"
                     },
                     "variables": {
-                      "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config.TargetVariable"
+                      "$ref": "#/$defs/map/github.com/databricks/cli/bundle/config/variable.TargetVariable"
                     },
                     "workspace": {
                       "$ref": "#/$defs/github.com/databricks/cli/bundle/config.Workspace"
@@ -1001,40 +1024,6 @@
                 }
               ]
             },
-            "config.TargetVariable": {
-              "anyOf": [
-                {
-                  "type": "object",
-                  "properties": {
-                    "default": {
-                      "$ref": "#/$defs/interface"
-                    },
-                    "description": {
-                      "$ref": "#/$defs/string"
-                    },
-                    "lookup": {
-                      "$ref": "#/$defs/github.com/databricks/cli/bundle/config/variable.Lookup"
-                    },
-                    "type": {
-                      "$ref": "#/$defs/github.com/databricks/cli/bundle/config/variable.VariableType"
-                    }
-                  },
-                  "additionalProperties": false
-                },
-                {
-                  "type": "string"
-                },
-                {
-                  "type": "boolean"
-                },
-                {
-                  "type": "integer"
-                },
-                {
-                  "type": "number"
-                }
-              ]
-            },
             "config.Workspace": {
               "anyOf": [
                 {
@@ -5004,6 +4993,20 @@
                     }
                   ]
                 },
+                "variable.TargetVariable": {
+                  "anyOf": [
+                    {
+                      "type": "object",
+                      "additionalProperties": {
+                        "$ref": "#/$defs/github.com/databricks/cli/bundle/config/variable.TargetVariable"
+                      }
+                    },
+                    {
+                      "type": "string",
+                      "pattern": "\\$\\{(var(\\.[a-zA-Z]+([-_]?[a-zA-Z0-9]+)*(\\[[0-9]+\\])*)*(\\[[0-9]+\\])*)\\}"
+                    }
+                  ]
+                },
                 "variable.Variable": {
                   "anyOf": [
                     {
@@ -5060,20 +5063,6 @@
                     "pattern": "\\$\\{(var(\\.[a-zA-Z]+([-_]?[a-zA-Z0-9]+)*(\\[[0-9]+\\])*)*(\\[[0-9]+\\])*)\\}"
                   }
                 ]
-              },
-              "config.TargetVariable": {
-                "anyOf": [
-                  {
-                    "type": "object",
-                    "additionalProperties": {
-                      "$ref": "#/$defs/github.com/databricks/cli/bundle/config.TargetVariable"
-                    }
-                  },
-                  {
-                    "type": "string",
-                    "pattern": "\\$\\{(var(\\.[a-zA-Z]+([-_]?[a-zA-Z0-9]+)*(\\[[0-9]+\\])*)*(\\[[0-9]+\\])*)\\}"
-                  }
-                ]
               }
             }
           }
diff --git a/bundle/internal/schema/main.go b/bundle/internal/schema/main.go
index 46c9a87c46..62dc628006 100644
--- a/bundle/internal/schema/main.go
+++ b/bundle/internal/schema/main.go
@@ -22,14 +22,17 @@ func addInterpolationPatterns(typ reflect.Type, s jsonschema.Schema) jsonschema.
 	}
 
 	// The variables block in a target override allows for directly specifying
-	// the value if it is a primitive type.
+	// the value of the variable.
 	if typ == reflect.TypeOf(variable.TargetVariable{}) {
 		return jsonschema.Schema{
-			AnyOf: []jsonschema.Schema{s,
-				{Type: jsonschema.StringType},
-				{Type: jsonschema.BooleanType},
-				{Type: jsonschema.IntegerType},
-				{Type: jsonschema.NumberType},
+			AnyOf: []jsonschema.Schema{
+				// We keep the original schema so that autocomplete suggestions
+				// continue to work.
+				s,
+				// All values are valid for a variable value, be it primitive types
+				// like string/bool or complex ones like objects/arrays. Thus we override
+				// the schema to allow all valid JSON values.
+				{},
 			},
 		}
 	}
@@ -38,16 +41,19 @@ func addInterpolationPatterns(typ reflect.Type, s jsonschema.Schema) jsonschema.
 	case jsonschema.ArrayType, jsonschema.ObjectType:
 		// arrays and objects can have complex variable values specified.
 		return jsonschema.Schema{
-			AnyOf: []jsonschema.Schema{s, {
-				Type:    jsonschema.StringType,
-				Pattern: interpolationPattern("var"),
-			}},
+			AnyOf: []jsonschema.Schema{
+				s,
+				{
+					Type:    jsonschema.StringType,
+					Pattern: interpolationPattern("var"),
+				}},
 		}
 	case jsonschema.IntegerType, jsonschema.NumberType, jsonschema.BooleanType:
 		// primitives can have variable values, or references like ${bundle.xyz}
 		// or ${workspace.xyz}
 		return jsonschema.Schema{
-			AnyOf: []jsonschema.Schema{s,
+			AnyOf: []jsonschema.Schema{
+				s,
 				{Type: jsonschema.StringType, Pattern: interpolationPattern("resources")},
 				{Type: jsonschema.StringType, Pattern: interpolationPattern("bundle")},
 				{Type: jsonschema.StringType, Pattern: interpolationPattern("workspace")},