diff --git a/src/Common.Dotnet.CsWinRT.props b/src/Common.Dotnet.CsWinRT.props
index e4731ce2fd9b..cde2ce69ce1f 100644
--- a/src/Common.Dotnet.CsWinRT.props
+++ b/src/Common.Dotnet.CsWinRT.props
@@ -1,6 +1,8 @@
 <?xml version="1.0" encoding="utf-8"?>
 <!-- Some items may be set in Directory.Build.props in root -->
 <Project ToolsVersion="4.0" xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
+  <Import Project=".\Common.Dotnet.PrepareGeneratedFolder.targets" />
+
   <PropertyGroup>
     <WindowsSdkPackageVersion>10.0.22621.57</WindowsSdkPackageVersion>
     <TargetFramework>net9.0-windows10.0.22621.0</TargetFramework>
diff --git a/src/Common.Dotnet.PrepareGeneratedFolder.targets b/src/Common.Dotnet.PrepareGeneratedFolder.targets
new file mode 100644
index 000000000000..d0175900645d
--- /dev/null
+++ b/src/Common.Dotnet.PrepareGeneratedFolder.targets
@@ -0,0 +1,16 @@
+<Project xmlns="http://schemas.microsoft.com/developer/msbuild/2003">
+
+  <Target Name="EnsureGeneratedBaseFolder" BeforeTargets="XamlPreCompile">
+    <PropertyGroup>
+      <!-- Only create the base 'generated' folder -->
+      <CompilerGeneratedFilesOutputPath>$(ProjectDir)obj\g</CompilerGeneratedFilesOutputPath>
+    </PropertyGroup>
+
+    <!-- Create 'generated' folder if missing -->
+    <MakeDir Directories="$(CompilerGeneratedFilesOutputPath)" />
+
+    <!-- Optional logging for debugging -->
+    <Message Text="Ensured: $(GeneratedBasePath)" Importance="Low" />
+  </Target>
+
+</Project>
\ No newline at end of file
diff --git a/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj b/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj
index 24820b7d8305..3973f8d2eb76 100644
--- a/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj
+++ b/src/modules/EnvironmentVariables/EnvironmentVariablesUILib/EnvironmentVariablesUILib.csproj
@@ -15,8 +15,6 @@
     <ProjectPriFileName>PowerToys.EnvironmentVariablesUILib.pri</ProjectPriFileName>
     <GenerateLibraryLayout>true</GenerateLibraryLayout>
     <IsPackable>true</IsPackable>
-    <!-- The default generated file path exceeds the length limit 260 on the build agent. Using a shorter path as a workaround. -->
-    <CompilerGeneratedFilesOutputPath>$(ProjectDir)obj\g</CompilerGeneratedFilesOutputPath>
   </PropertyGroup>
 
   <PropertyGroup>
@@ -56,7 +54,4 @@
     <Manifest Include="$(ApplicationManifest)" />
   </ItemGroup>
 
-  <Target Name="EnsureCompilerGeneratedFilesOutputPathExists" BeforeTargets="XamlPreCompile">
-    <MakeDir Directories="$(CompilerGeneratedFilesOutputPath)" />
-  </Target>
 </Project>