Unable to init using remote backend and Terraform v1.1.0

[dflook]

Terraform v1.1.0 will not initialize using a remote backend if there is no existing workspaces.

Terraform Version

Terraform v1.1.0
on darwin_amd64

Terraform Configuration Files

terraform {
  backend "remote" {
    organization = "xxxx"

    workspaces {
      prefix = "hello-"
    }
  }
}

Debug Output

$ terraform init

Initializing the backend...
╷
│ Error: No existing workspaces.
│ 
│ Use the "terraform workspace" command to create and select a new workspace.
│ If the backend already contains existing workspaces, you may need to update
│ the backend configuration.
│ 
│ 
╵

$ terraform workspace new hello
╷
│ Error: Backend initialization required, please run "terraform init"
│ 
│ Reason: Initial configuration of the requested backend "remote"
│ 
│ The "backend" is the interface that Terraform uses to store state,
│ perform operations, etc. If this message is showing up, it means that the
│ Terraform configuration you're using is using a custom configuration for
│ the Terraform backend.
│ 
│ Changes to backend configurations require reinitialization. This allows
│ Terraform to set up the new configuration, copy existing state, etc. Please run
│ "terraform init" with either the "-reconfigure" or "-migrate-state" flags to
│ use the current configuration.
│ 
│ If the change reason above is incorrect, please verify your configuration
│ hasn't changed and try again. At this point, no changes to your existing
│ configuration or state have been made.
╵

https://gist.github.com/dflook/b43b0c303f3d8940eeab5dcafa1f7faa

Expected Behavior

Terraform should have initialized such that I can create a workspace

Steps to Reproduce

1. terraform init

Additional Context

These commands are run by CI typically with -input=false, but that doesn't seem to make a difference.
Some workspaces are created for the duration of a build, some are created for the duration of a PR.

The error message appears with terraform <v1.1.0 but the backend would be successfully configured, so it could be easily ignored and a workspace created.

[github-actions]

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