diff --git a/eng/Version.Details.props b/eng/Version.Details.props
index da29dbb7652..ac8e2db33de 100644
--- a/eng/Version.Details.props
+++ b/eng/Version.Details.props
@@ -5,7 +5,12 @@ This file should be imported by eng/Versions.props
 -->
 <Project>
   <PropertyGroup>
-    <!-- dotnet/runtime dependencies -->
+    <!-- dotnet-arcade dependencies -->
+    <MicrosoftDotNetArcadeSdkPackageVersion>10.0.0-beta.26153.3</MicrosoftDotNetArcadeSdkPackageVersion>
+    <MicrosoftDotNetXUnitExtensionsPackageVersion>10.0.0-beta.26153.3</MicrosoftDotNetXUnitExtensionsPackageVersion>
+    <!-- dotnet-roslyn dependencies -->
+    <MicrosoftNetCompilersToolsetPackageVersion>5.6.0-2.26151.2</MicrosoftNetCompilersToolsetPackageVersion>
+    <!-- dotnet-runtime dependencies -->
     <SystemCodeDomPackageVersion>10.0.2</SystemCodeDomPackageVersion>
     <SystemCollectionsImmutablePackageVersion>10.0.2</SystemCollectionsImmutablePackageVersion>
     <SystemConfigurationConfigurationManagerPackageVersion>10.0.2</SystemConfigurationConfigurationManagerPackageVersion>
@@ -23,17 +28,17 @@ This file should be imported by eng/Versions.props
     <SystemTextJsonPackageVersion>10.0.2</SystemTextJsonPackageVersion>
     <SystemThreadingChannelsPackageVersion>10.0.2</SystemThreadingChannelsPackageVersion>
     <SystemThreadingTasksDataflowPackageVersion>10.0.2</SystemThreadingTasksDataflowPackageVersion>
-    <!-- dotnet/arcade dependencies -->
-    <MicrosoftDotNetArcadeSdkPackageVersion>10.0.0-beta.26153.3</MicrosoftDotNetArcadeSdkPackageVersion>
-    <MicrosoftDotNetXUnitExtensionsPackageVersion>10.0.0-beta.26153.3</MicrosoftDotNetXUnitExtensionsPackageVersion>
-    <!-- nuget/nuget.client dependencies -->
+    <!-- nuget-nuget.client dependencies -->
     <NuGetBuildTasksPackageVersion>7.5.0-rc.36</NuGetBuildTasksPackageVersion>
-    <!-- dotnet/roslyn dependencies -->
-    <MicrosoftNetCompilersToolsetPackageVersion>5.6.0-2.26151.2</MicrosoftNetCompilersToolsetPackageVersion>
   </PropertyGroup>
   <!--Property group for alternate package version names-->
   <PropertyGroup>
-    <!-- dotnet/runtime dependencies -->
+    <!-- dotnet-arcade dependencies -->
+    <MicrosoftDotNetArcadeSdkVersion>$(MicrosoftDotNetArcadeSdkPackageVersion)</MicrosoftDotNetArcadeSdkVersion>
+    <MicrosoftDotNetXUnitExtensionsVersion>$(MicrosoftDotNetXUnitExtensionsPackageVersion)</MicrosoftDotNetXUnitExtensionsVersion>
+    <!-- dotnet-roslyn dependencies -->
+    <MicrosoftNetCompilersToolsetVersion>$(MicrosoftNetCompilersToolsetPackageVersion)</MicrosoftNetCompilersToolsetVersion>
+    <!-- dotnet-runtime dependencies -->
     <SystemCodeDomVersion>$(SystemCodeDomPackageVersion)</SystemCodeDomVersion>
     <SystemCollectionsImmutableVersion>$(SystemCollectionsImmutablePackageVersion)</SystemCollectionsImmutableVersion>
     <SystemConfigurationConfigurationManagerVersion>$(SystemConfigurationConfigurationManagerPackageVersion)</SystemConfigurationConfigurationManagerVersion>
@@ -51,12 +56,7 @@ This file should be imported by eng/Versions.props
     <SystemTextJsonVersion>$(SystemTextJsonPackageVersion)</SystemTextJsonVersion>
     <SystemThreadingChannelsVersion>$(SystemThreadingChannelsPackageVersion)</SystemThreadingChannelsVersion>
     <SystemThreadingTasksDataflowVersion>$(SystemThreadingTasksDataflowPackageVersion)</SystemThreadingTasksDataflowVersion>
-    <!-- dotnet/arcade dependencies -->
-    <MicrosoftDotNetArcadeSdkVersion>$(MicrosoftDotNetArcadeSdkPackageVersion)</MicrosoftDotNetArcadeSdkVersion>
-    <MicrosoftDotNetXUnitExtensionsVersion>$(MicrosoftDotNetXUnitExtensionsPackageVersion)</MicrosoftDotNetXUnitExtensionsVersion>
-    <!-- nuget/nuget.client dependencies -->
+    <!-- nuget-nuget.client dependencies -->
     <NuGetBuildTasksVersion>$(NuGetBuildTasksPackageVersion)</NuGetBuildTasksVersion>
-    <!-- dotnet/roslyn dependencies -->
-    <MicrosoftNetCompilersToolsetVersion>$(MicrosoftNetCompilersToolsetPackageVersion)</MicrosoftNetCompilersToolsetVersion>
   </PropertyGroup>
 </Project>
diff --git a/eng/Version.Details.xml b/eng/Version.Details.xml
index 84fb21b2c1a..4cf53fc07a2 100644
--- a/eng/Version.Details.xml
+++ b/eng/Version.Details.xml
@@ -1,6 +1,6 @@
 <?xml version="1.0" encoding="utf-8"?>
 <Dependencies>
-  <Source Uri="https://github.com/dotnet/dotnet" Mapping="msbuild" Sha="4c0aa722933ea491006247bbc0a484fa3c28cd14" BarId="302348" />
+  <Source Uri="https://github.com/dotnet/dotnet" Mapping="msbuild" Sha="5121846aac455d48f990a10e569c90e3ab1e359a" BarId="305296" />
   <ProductDependencies>
     <!-- Necessary for source-build. This allows the live version of the package to be used by source-build. -->
     <Dependency Name="System.CodeDom" Version="10.0.2">
diff --git a/src/Directory.Build.targets b/src/Directory.Build.targets
index a58a4bc167c..1f60b1bd2a5 100644
--- a/src/Directory.Build.targets
+++ b/src/Directory.Build.targets
@@ -118,18 +118,24 @@
     </ItemGroup>
   </Target>
 
-  <!-- This target creates a type library for the assemblies in a package. It requires desktop msbuild to locate the tooling
-       Type libraries are still needed by Visual Studio in some cases, like the legacy C# project system.
-       It calls into msbuild via COM, and needs the type library to do so. -->
-  <Target Name="CreateTypeLib" BeforeTargets="AfterBuild" Inputs="$(TargetPath)" Outputs="$(TargetDir)$(TargetName).tlb;$(TargetDir)x64\$(TargetName).tlb" Condition="'$(BuildingInsideVisualStudio)' != 'true' and '$(CreateTlb)' == 'true' and $([MSBuild]::IsOSPlatform('windows')) and '$(TargetFrameworkIdentifier)' == '.NETFramework' and '$(MSBuildRuntimeType)' != 'Core'">
+  <!-- This target creates type libraries (.tlb) for COM interop scenarios.
+       The .tlb is shipped in both Visual Studio and the .NET SDK (Windows only).
+       Runs against the net472 build output using tlbexp.exe from the .NET Framework SDK. -->
+  <Target Name="CreateTypeLib" BeforeTargets="AfterBuild" Inputs="$(TargetPath)" Outputs="$(TargetDir)$(TargetName).tlb"
+          Condition="'$(BuildingInsideVisualStudio)' != 'true' and '$(CreateTlb)' == 'true' and $([MSBuild]::IsOSPlatform('windows')) and '$(TargetFrameworkIdentifier)' == '.NETFramework'">
     <PropertyGroup>
+      <!-- Resolve tlbexp.exe from the .NET Framework SDK via registry, with a hardcoded fallback -->
+      <_NetFxToolsDir>$([MSBuild]::GetRegistryValueFromView('HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\Microsoft SDKs\NETFXSDK\4.8\WinSDK-NetFx40Tools', 'InstallationFolder', null, RegistryView.Registry32))</_NetFxToolsDir>
+      <_NetFxToolsDir Condition="'$(_NetFxToolsDir)' == ''">$(MSBuildProgramFiles32)\Microsoft SDKs\Windows\v10.0A\bin\NETFX 4.8 Tools\</_NetFxToolsDir>
       <TlbExpPath>$([Microsoft.Build.Utilities.ToolLocationHelper]::GetPathToDotNetFrameworkSdkFile('tlbexp.exe'))</TlbExpPath>
-      <!-- Provide a mechanism for turning on verbose TlbExp output for diagnosing issues -->
+      <TlbExpPath Condition="'$(TlbExpPath)' == ''">$(_NetFxToolsDir)TlbExp.exe</TlbExpPath>
       <TlbExpVerbosity Condition="'$(VerboseTlbExp)' == 'true'">/verbose</TlbExpVerbosity>
       <TlbExpVerbosity Condition="'$(VerboseTlbExp)' != 'true'">/silent</TlbExpVerbosity>
     </PropertyGroup>
 
     <ItemGroup>
+      <!-- Assembly probe paths for tlbexp dependency resolution.
+           TargetDir has the built assembly; TargetFrameworkDirectory has .NET Framework BCL (System.dll etc.) -->
       <_TlbExpAssemblyPaths Include="$(TargetDir);$(TargetFrameworkDirectory)" />
       <_TlbExpAssemblyPaths>
         <SlashlessPath>$([System.String]::Copy('%(Identity)').TrimEnd('\'))</SlashlessPath>
@@ -137,10 +143,12 @@
       <TlbExpAssemblyPaths Include="@(_TlbExpAssemblyPaths->'%(SlashlessPath)')" />
     </ItemGroup>
 
-    <Error Condition=" '$(TlbExpPath)' == '' "
-           Text="TlbExp was not found. Ensure that you have installed everything from .vsconfig. If you have, please report a bug to MSBuild." />
+    <Error Condition="!Exists('$(TlbExpPath)')"
+           Text="TlbExp was not found at '$(TlbExpPath)'. Ensure the .NET Framework SDK tools are installed." />
 
+    <!-- Generate x86 type library -->
     <Exec Command="&quot;$(TlbExpPath)&quot; $(TlbExpVerbosity) /NOLOGO @(TlbExpAssemblyPaths->'/asmpath:&quot;%(Identity)&quot;', ' ') &quot;$(TargetPath)&quot; /out:&quot;$(TargetDir)$(TargetName).tlb&quot;" />
+    <!-- Generate x64 type library -->
     <Exec Command="&quot;$(TlbExpPath)&quot; $(TlbExpVerbosity) /NOLOGO @(TlbExpAssemblyPaths->'/asmpath:&quot;%(Identity)&quot;', ' ') &quot;$(TargetPath)&quot; /out:&quot;$(TargetDir)x64\$(TargetName).tlb&quot; /win64" />
   </Target>
 
diff --git a/src/Framework/Microsoft.Build.Framework.csproj b/src/Framework/Microsoft.Build.Framework.csproj
index 8397124ae9f..b7e9b9343ac 100644
--- a/src/Framework/Microsoft.Build.Framework.csproj
+++ b/src/Framework/Microsoft.Build.Framework.csproj
@@ -3,9 +3,9 @@
     <TargetFrameworks>$(LibraryTargetFrameworks)</TargetFrameworks>
     <AllowUnsafeBlocks>true</AllowUnsafeBlocks>
     <GenerateReferenceAssemblySource>true</GenerateReferenceAssemblySource>
-    <!-- Do not create Tlbs when building in .NET product mode. The packages are not shipped to VS,
-         only their contents redisted within the SDK. -->
-    <CreateTlb Condition="'$(DotNetBuild)' != 'true'">true</CreateTlb>
+    <!-- Do not create Tlbs when building in source-build mode (no net472 TFM available).
+         In VMR Windows builds and VS builds, generate the .tlb from the net472 output. -->
+    <CreateTlb Condition="'$(DotNetBuildSourceOnly)' != 'true' and $([MSBuild]::IsOSPlatform('windows'))">true</CreateTlb>
     <IsPackable>true</IsPackable>
     <PackageDescription>This package contains the $(MSBuildProjectName) assembly which is a common assembly used by other MSBuild assemblies.</PackageDescription>
     <IncludeSatelliteOutputInPack>false</IncludeSatelliteOutputInPack>
@@ -16,6 +16,15 @@
     <GenerateResxSourceEmitFormatMethods>true</GenerateResxSourceEmitFormatMethods>
   </PropertyGroup>
 
+  <!-- The .tlb is generated by CreateTypeLib target during the net472 build.
+       Place it under tools/ in the NuGet package so it doesn't appear as a library reference. -->
+  <Target Name="IncludeTlbInPackage" BeforeTargets="_GetPackageFiles" Condition="'$(CreateTlb)' == 'true'">
+    <ItemGroup>
+      <_PackageFiles Include="$(ArtifactsBinDir)Microsoft.Build.Framework\$(Configuration)\net472\Microsoft.Build.Framework.tlb"
+                     PackagePath="tools/net472" />
+    </ItemGroup>
+  </Target>
+
   <ItemGroup>
     <PackageReference Include="Microsoft.CodeAnalysis.Contracts" PrivateAssets="all" />