fix: sanitize newlines in docker env dict values and v2 env rendering

src/bentoml/_internal/container/frontend/dockerfile/templates/base.j2

@@ -44,8 +44,8 @@ RUN groupadd -g $BENTO_USER_GID -o $BENTO_USER && useradd -m -u $BENTO_USER_UID
 {% block SETUP_BENTO_ENVARS %}
 {% if __options__env is not none %}
 {% for key, value in __options__env.items() -%}
-ARG {{ key }}={{ value }}
-ENV {{ key }}=${{ key }}
+ARG {{ key|normalize_line }}={{ value|normalize_line|bash_quote }}
+ENV {{ key|normalize_line }}=${{ key|normalize_line }}
 {% endfor -%}
 {% endif -%}
 

src/bentoml/_internal/container/frontend/dockerfile/templates/base_v2.j2

@@ -67,7 +67,7 @@ ENV BENTOML_CONTAINERIZED=true
 {% for env in __bento_envs__ %}
 {% set stage = env.stage | default("all") -%}
 {% if stage != "runtime" -%}
-ARG {{ env.name|normalize_line }}{% if env.value %}={{ env.value | bash_quote }}{% endif %}
+ARG {{ env.name|normalize_line }}{% if env.value %}={{ env.value | normalize_line | bash_quote }}{% endif %}
 
 ENV {{ env.name|normalize_line }}=${{ env.name|normalize_line }}
 {% endif -%}

tests/unit/_internal/container/test_generate.py

@@ -1,5 +1,8 @@
 from __future__ import annotations
 
+from _bentoml_impl.docker import generate_dockerfile as generate_v2_dockerfile
+from bentoml._internal.bento.bento import ImageInfo
+from bentoml._internal.bento.build_config import BentoEnvSchema
 from bentoml._internal.bento.build_config import CondaOptions
 from bentoml._internal.bento.build_config import DockerOptions
 from bentoml._internal.container.generate import build_environment
@@ -21,6 +24,51 @@ def test_build_environment_registers_normalize_line_filter() -> None:
     )
 
 
+def test_generate_containerfile_env_dict_collapses_newlines(tmp_path) -> None:
+    dockerfile = generate_containerfile(
+        DockerOptions(
+            distro="debian",
+            python_version="3.11",
+            env={"X": "a\nRUN echo PWNED\n"},
+        ),
+        str(tmp_path),
+        conda=CondaOptions(),
+        bento_fs=tmp_path,
+    )
+
+    # the value stays on the quoted ARG line instead of injecting an instruction
+    assert "ARG X='a RUN echo PWNED'" in dockerfile
+    assert "\nRUN echo PWNED" not in dockerfile
+
+
+def test_generate_v2_containerfile_env_collapses_newlines(tmp_path) -> None:
+    dockerfile = generate_v2_dockerfile(
+        ImageInfo(base_image="python:3.11-slim", python_version="3.11"),
+        tmp_path,
+        envs=[BentoEnvSchema(name="X", value="a\nRUN echo PWNED\n")],
+        command="true",
+    )
+
+    assert "ARG X='a RUN echo PWNED'" in dockerfile
+    assert "\nRUN echo PWNED" not in dockerfile
+
+
+def test_docker_options_env_preserves_value_whitespace() -> None:
+    options = DockerOptions(
+        env={
+            "JAVA_OPTS": "-Xmx1g  -Xms512m",
+            "PEM": "  indented value  ",
+            "TABBED": "a\tb",
+        },
+    )
+
+    assert options.env == {
+        "JAVA_OPTS": "-Xmx1g  -Xms512m",
+        "PEM": "  indented value  ",
+        "TABBED": "a\tb",
+    }
+
+
 def test_generate_containerfile_quotes_system_packages(tmp_path) -> None:
     dockerfile = generate_containerfile(
         DockerOptions(