Files in cache not being served to clients. releases.hashicorp.com download URL's still being used

[circa10a]

Once the mirror is initialized with several terraform init's done to populate the cache, I modified my /etc/hosts to disable connectivity to registry.terraform.io and releases.hashicorp.com. Once I did that and deleted my local .terraform/ directory containing providers, re-ran terraform init I received the following error from Terraform:

│ Error while installing hashicorp/aws
│ v5.67.0: releases.hashicorp.com: Get
│ "https://releases.hashicorp.com/terraform-provider-aws/5.67.0/terraform-provider-aws_5.67.0_darwin_amd64.zip":
│ remote error: tls: internal error

It appears all of the provider .zip files are download into my OS's temp directory, but those files are not being served as download URL's are not being replaced with path's to the files cached on the file system. I guess my question is, is this expected? This behavior defeats the purpose of having a mirror.

[dmnord]

I can confirm the same behavior since I decided to reproduce this way.