What does the terraform destroy command do?

The terraform destroy command is used to remove all the infrastructure that has been created and is tracked by the Terraform state file. When this command is executed, Terraform goes through the resources defined in the configuration files and destroys each resource in the order that is specified in the state file, effectively cleaning up all the deployed resources.

This action is significant because it allows users to manage the lifecycle of infrastructure efficiently. By ensuring that all components of the deployed infrastructure can be removed, it helps maintain a clean and manageable environment. Proper utilization of this command is crucial during development and testing scenarios where resources may need to be frequently created and destroyed.

The other options relate to different aspects of Terraform but do not describe the primary functionality of the destroy command. Removing local configurations or deleting modules does not affect the state of the infrastructure deployed by Terraform. Similarly, rolling back to the last stable configuration addresses versioning and state management rather than the destruction of infrastructure.