DBT RUN - Getting Database Error using VS Code BUT Not Getting Database Error using DBT Cloud - dbt

Question

I'm using DBT connected to Snowflake. I use DBT Cloud, but we are moving to using VS Code for our DBT project work.
I have an incremental DBT model that compiles and works without error when I issue the DBT RUN command in DBT Cloud. Yet when I attempt to run the exact same model from the same git branch using the DBT RUN command from the terminal in VS Code I get the following error:
Database Error in model dim_cifs (models\core_data_warehouse\dim_cifs.sql)
16:45:31 040050 (22000): SQL compilation error: cannot change column LOAN_MGMT_SYS from type VARCHAR(7) to VARCHAR(3) because reducing the byte-length of a varchar is not supported.
The table in Snowflake defines this column as VARCHAR(50). I have no idea why DBT is attempting to change the data length or why it only happens when the command is run from VS Code Terminal. There is no need to make this DDL change to the table.
When I view the compiled SQL in the Target folder there is nothing that indicates a DDL change.
When I look in the logs I find the following, but don't understand what is triggering the DDL change:
describe table "DEVELOPMENT_DW"."DBT_XXXXXXXX"."DIM_CIFS"
16:45:31.354314 [debug] [Thread-9 (]: SQL status: SUCCESS 36 in 0.09 seconds
16:45:31.378864 [debug] [Thread-9 (]:
In "DEVELOPMENT_DW"."DBT_XXXXXXXX"."DIM_CIFS":
Schema changed: True
Source columns not in target: []
Target columns not in source: []
New column types: [{'column_name': 'LOAN_MGMT_SYS', 'new_type': 'character varying(3)'}]
16:45:31.391828 [debug] [Thread-9 (]: Using snowflake connection "model.xxxxxxxxxx.dim_cifs"
16:45:31.391828 [debug] [Thread-9 (]: On model.xxxxxxxxxx.dim_cifs: /* {"app": "dbt", "dbt_version": "1.1.1", "profile_name": "xxxxxxxxxx", "target_name": "dev", "node_id": "model.xxxxxxxxxx.dim_cifs"} */
alter table "DEVELOPMENT_DW"."DBT_XXXXXXXX"."DIM_CIFS" alter "LOAN_MGMT_SYS" set data type character varying(3);
16:45:31.546962 [debug] [Thread-9 (]: Snowflake adapter: Snowflake query id: 01a5bc8d-0404-c9c1-0000-91b5178ac72a
16:45:31.548895 [debug] [Thread-9 (]: Snowflake adapter: Snowflake error: 040050 (22000): SQL compilation error: cannot change column LOAN_MGMT_SYS from type VARCHAR(7) to VARCHAR(3) because reducing the byte-length of a varchar is not supported.
Any help is greatly appreciated.