diff --git a/lib/spack/spack/environment/environment.py b/lib/spack/spack/environment/environment.py
index cd7221d425..3e02847a68 100644
--- a/lib/spack/spack/environment/environment.py
+++ b/lib/spack/spack/environment/environment.py
@@ -1017,7 +1017,11 @@ def add_view(name, values):
 
     def _process_concrete_includes(self):
         """Extract and load into memory included concrete spec data."""
-        self.included_concrete_envs = self.manifest[TOP_LEVEL_KEY].get(included_concrete_name, [])
+        _included_concrete_envs = self.manifest[TOP_LEVEL_KEY].get(included_concrete_name, [])
+        # Expand config and environment variables
+        self.included_concrete_envs = [
+            spack.util.path.canonicalize_path(_env) for _env in _included_concrete_envs
+        ]
 
         if self.included_concrete_envs:
             if os.path.exists(self.lock_path):