Fix CTE insertion position when the model uses WITH RECURSIVE (#7350) (#7414)

.changes/unreleased/Fixes-20230420-123221.yaml

@@ -0,0 +1,6 @@
+kind: Fixes
+body: Fix CTE insertion position when the model uses WITH RECURSIVE
+time: 2023-04-20T12:32:21.432848+12:00
+custom:
+  Author: willbryant
+  Issue: "7350"

core/dbt/compilation.py

@@ -340,6 +340,10 @@ class Compiler:
         for token in parsed.tokens:
             if token.is_keyword and token.normalized == "WITH":
                 with_stmt = token
+            elif token.is_keyword and token.normalized == "RECURSIVE" and with_stmt is not None:
+                with_stmt = token
+                break
+            elif not token.is_whitespace and with_stmt is not None:
                 break
 
         if with_stmt is None:

tests/functional/compile/fixtures.py

@@ -32,6 +32,16 @@ select {{
 }} as fun
 """
 
+with_recursive_model_sql = """
+{{ config(materialized = 'ephemeral') }}
+with recursive t(n) as (
+    select * from {{ ref('first_ephemeral_model') }}
+  union all
+    select n+1 from t where n < 100
+)
+select sum(n) from t;
+"""
+
 schema_yml = """
 version: 2
 

tests/functional/compile/test_compile.py

@@ -11,6 +11,7 @@ from tests.functional.compile.fixtures import (
     first_ephemeral_model_sql,
     second_ephemeral_model_sql,
     third_ephemeral_model_sql,
+    with_recursive_model_sql,
     schema_yml,
     model_multiline_jinja,
 )
@@ -56,6 +57,7 @@ class TestEphemeralModels:
             "first_ephemeral_model.sql": first_ephemeral_model_sql,
             "second_ephemeral_model.sql": second_ephemeral_model_sql,
             "third_ephemeral_model.sql": third_ephemeral_model_sql,
+            "with_recursive_model.sql": with_recursive_model_sql,
         }
 
     def test_first_selector(self, project):
@@ -104,6 +106,20 @@ class TestEphemeralModels:
             "select 2 as fun",
         ]
 
+    def test_with_recursive_cte(self, project):
+        run_dbt(["compile"])
+
+        assert get_lines("with_recursive_model") == [
+            "with recursive  __dbt__cte__first_ephemeral_model as (",
+            "select 1 as fun",
+            "),t(n) as (",
+            "    select * from __dbt__cte__first_ephemeral_model",
+            "  union all",
+            "    select n+1 from t where n < 100",
+            ")",
+            "select sum(n) from t;",
+        ]
+
 
 class TestCompile:
     @pytest.fixture(scope="class")

third-party-stubs/sqlparse/sql.pyi

@@ -3,6 +3,7 @@ from typing import Tuple, Iterable
 class Token:
     def __init__(self, ttype, value): ...
     is_keyword: bool
+    is_whitespace: bool
     normalized: str
 
 class TokenList(Token):