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Assuming you have some requirements that demands your lambda to access secrets, the extension approach is much, much better then a direct aws api call to the secrets client.
Moreover the extensions has got environments variables that support caching: https://docs.aws.amazon.com/secretsmanager/latest/userguide/retrieving-secrets_lambda.html#retrieving-secrets_lambda_env-var
You probably should evaluate lambda with powertools to assess different approaches.
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I was hoping that AWS would have done this and could have shared the results with us ;)