diff --git a/code/addons/a11y/src/postinstall.ts b/code/addons/a11y/src/postinstall.ts
index d8cd0bf18b04..6fff2274b5ef 100644
--- a/code/addons/a11y/src/postinstall.ts
+++ b/code/addons/a11y/src/postinstall.ts
@@ -1,9 +1,13 @@
-import { JsPackageManagerFactory } from 'storybook/internal/common';
+import { JsPackageManagerFactory, versions } from 'storybook/internal/common';
 
 import type { PostinstallOptions } from '../../../lib/cli-storybook/src/add';
 
 export default async function postinstall(options: PostinstallOptions) {
-  const args = ['storybook', 'automigrate', 'addon-a11y-addon-test'];
+  const args = [
+    options.skipInstall ? `storybook@${versions.storybook}` : `storybook`,
+    'automigrate',
+    'addon-a11y-addon-test',
+  ];
 
   args.push('--loglevel', 'silent');
   args.push('--skip-doctor');
@@ -25,5 +29,5 @@ export default async function postinstall(options: PostinstallOptions) {
     configDir: options.configDir,
   });
 
-  await jsPackageManager.runPackageCommand({ args });
+  await jsPackageManager.runPackageCommand({ args, useRemotePkg: !!options.skipInstall });
 }
diff --git a/code/addons/vitest/src/postinstall.ts b/code/addons/vitest/src/postinstall.ts
index 37abe7af4560..85a178ff3aa7 100644
--- a/code/addons/vitest/src/postinstall.ts
+++ b/code/addons/vitest/src/postinstall.ts
@@ -9,6 +9,7 @@ import {
   formatFileContent,
   getProjectRoot,
   getStorybookInfo,
+  versions,
 } from 'storybook/internal/common';
 import { CLI_COLORS } from 'storybook/internal/node-logger';
 import type { StorybookError } from 'storybook/internal/server-errors';
@@ -161,6 +162,7 @@ export default async function postInstall(options: PostinstallOptions) {
     if (!options.skipInstall) {
       await addonVitestService.installPlaywright({
         yes: options.yes,
+        useRemotePkg: !!options.skipInstall,
       });
     } else {
       logger.warn(dedent`
@@ -229,11 +231,11 @@ export default async function postInstall(options: PostinstallOptions) {
 
   const getTemplateName = () => {
     if (isVitest4OrNewer) {
-      return 'vitest.config.4.template.ts';
+      return 'vitest.config.4.template';
     } else if (isVitest3_2To4) {
-      return 'vitest.config.3.2.template.ts';
+      return 'vitest.config.3.2.template';
     }
-    return 'vitest.config.template.ts';
+    return 'vitest.config.template';
   };
 
   // If there's an existing workspace file, we update that file to include the Storybook Addon Vitest plugin.
@@ -249,7 +251,7 @@ export default async function postInstall(options: PostinstallOptions) {
       return;
     }
 
-    const workspaceTemplate = await loadTemplate('vitest.workspace.template.ts', {
+    const workspaceTemplate = await loadTemplate('vitest.workspace.template', {
       EXTENDS_WORKSPACE: viteConfigFile
         ? relative(dirname(vitestWorkspaceFile), viteConfigFile)
         : '',
@@ -358,7 +360,7 @@ export default async function postInstall(options: PostinstallOptions) {
   if (a11yAddon) {
     try {
       const command = [
-        'storybook',
+        options.skipInstall ? `storybook@${versions.storybook}` : `storybook`,
         'automigrate',
         'addon-a11y-addon-test',
         '--loglevel',
@@ -381,7 +383,12 @@ export default async function postInstall(options: PostinstallOptions) {
 
       await prompt.executeTask(
         // TODO: Remove stdio: 'ignore' once we have a way to log the output of the command properly
-        () => packageManager.runPackageCommand({ args: command, stdio: 'ignore' }),
+        () =>
+          packageManager.runPackageCommand({
+            args: command,
+            stdio: 'ignore',
+            useRemotePkg: !!options.skipInstall,
+          }),
         {
           intro: 'Setting up a11y addon for @storybook/addon-vitest',
           error: 'Failed to setup a11y addon for @storybook/addon-vitest',
diff --git a/code/addons/vitest/src/typings.d.ts b/code/addons/vitest/src/typings.d.ts
index 235b6170bdd9..2a7a0f8e7a27 100644
--- a/code/addons/vitest/src/typings.d.ts
+++ b/code/addons/vitest/src/typings.d.ts
@@ -8,3 +8,8 @@ interface ImportMetaEnv {
 interface ImportMeta {
   readonly env: ImportMetaEnv;
 }
+
+declare module '*?raw' {
+  const content: string;
+  export default content;
+}
diff --git a/code/addons/vitest/src/updateVitestFile.test.ts b/code/addons/vitest/src/updateVitestFile.test.ts
index 89cfe368a6c1..309672f856d4 100644
--- a/code/addons/vitest/src/updateVitestFile.test.ts
+++ b/code/addons/vitest/src/updateVitestFile.test.ts
@@ -22,7 +22,7 @@ vi.mock('../../../core/src/shared/utils/module', () => ({
 describe('updateConfigFile', () => {
   it('updates vite config file', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -102,7 +102,7 @@ describe('updateConfigFile', () => {
 
   it('supports object notation without defineConfig', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -182,7 +182,7 @@ describe('updateConfigFile', () => {
 
   it('does not support function notation', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -214,7 +214,7 @@ describe('updateConfigFile', () => {
 
   it('adds projects property to test config', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.3.2.template.ts', {
+      await loadTemplate('vitest.config.3.2.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -293,7 +293,7 @@ describe('updateConfigFile', () => {
 
   it('edits projects property of test config', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.3.2.template.ts', {
+      await loadTemplate('vitest.config.3.2.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -373,7 +373,7 @@ describe('updateConfigFile', () => {
 
   it('adds workspace property to test config', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -452,7 +452,7 @@ describe('updateConfigFile', () => {
 
   it('adds test property to vite config', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -527,7 +527,7 @@ describe('updateConfigFile', () => {
 
   it('supports mergeConfig with multiple defineConfig calls, finding the one with test', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -613,7 +613,7 @@ describe('updateConfigFile', () => {
   });
   it('supports mergeConfig without defineConfig calls', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -696,7 +696,7 @@ describe('updateConfigFile', () => {
 
   it('supports mergeConfig without config containing test property', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -772,7 +772,7 @@ describe('updateConfigFile', () => {
 
   it('supports mergeConfig with defineConfig pattern using projects (Vitest 3.2+)', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.3.2.template.ts', {
+      await loadTemplate('vitest.config.3.2.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -856,7 +856,7 @@ describe('updateConfigFile', () => {
 
   it('appends storybook project to existing test.projects array (no double nesting)', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.3.2.template.ts', {
+      await loadTemplate('vitest.config.3.2.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -945,7 +945,7 @@ describe('updateConfigFile', () => {
 
   it('extracts coverage config and keeps it at top level when using workspace', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.template.ts', {
+      await loadTemplate('vitest.config.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -1044,7 +1044,7 @@ describe('updateConfigFile', () => {
 
   it('extracts coverage config and keeps it at top level when using projects', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.config.3.2.template.ts', {
+      await loadTemplate('vitest.config.3.2.template', {
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
         SETUP_FILE: '../.storybook/vitest.setup.ts',
@@ -1145,7 +1145,7 @@ describe('updateConfigFile', () => {
 describe('updateWorkspaceFile', () => {
   it('updates vitest workspace file using array syntax', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.workspace.template.ts', {
+      await loadTemplate('vitest.workspace.template', {
         EXTENDS_WORKSPACE: '',
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
@@ -1201,7 +1201,7 @@ describe('updateWorkspaceFile', () => {
 
   it('updates vitest workspace file using defineWorkspace syntax', async () => {
     const source = babel.babelParse(
-      await loadTemplate('vitest.workspace.template.ts', {
+      await loadTemplate('vitest.workspace.template', {
         EXTENDS_WORKSPACE: '',
         CONFIG_DIR: '.storybook',
         BROWSER_CONFIG: "{ provider: 'playwright' }",
@@ -1264,7 +1264,7 @@ describe('loadTemplate', () => {
     // Windows-style path with backslashes (need to escape them in JS strings)
     const windowsPath = '.\\apps\\frontend-storybook\\.storybook';
 
-    const result = await loadTemplate('vitest.config.template.ts', {
+    const result = await loadTemplate('vitest.config.template', {
       CONFIG_DIR: windowsPath,
       SETUP_FILE: '.\\apps\\frontend-storybook\\.storybook\\vitest.setup.ts',
     });
@@ -1278,7 +1278,7 @@ describe('loadTemplate', () => {
     // Unix-style path with forward slashes
     const unixPath = './apps/frontend-storybook/.storybook';
 
-    const result = await loadTemplate('vitest.config.template.ts', {
+    const result = await loadTemplate('vitest.config.template', {
       CONFIG_DIR: unixPath,
       SETUP_FILE: './apps/frontend-storybook/.storybook/vitest.setup.ts',
     });
diff --git a/code/addons/vitest/src/updateVitestFile.ts b/code/addons/vitest/src/updateVitestFile.ts
index 46661c099849..f8c7a3646da8 100644
--- a/code/addons/vitest/src/updateVitestFile.ts
+++ b/code/addons/vitest/src/updateVitestFile.ts
@@ -1,16 +1,30 @@
-import * as fs from 'node:fs/promises';
-
 import type { BabelFile, types as t } from 'storybook/internal/babel';
 
-import { join, normalize } from 'pathe';
+import { normalize } from 'pathe';
 
-import { resolvePackageDir } from '../../../core/src/shared/utils/module';
+/**
+ * Each template is imported separately to allow the build system to process the template as raw
+ * text. A mix of globs and the "?raw" string query is not supported in esbuild
+ */
+async function getTemplatePath(name: string) {
+  switch (name) {
+    case 'vitest.config.template':
+      return import('../templates/vitest.config.template?raw');
+    case 'vitest.config.4.template':
+      return import('../templates/vitest.config.4.template?raw');
+    case 'vitest.config.3.2.template':
+      return import('../templates/vitest.config.3.2.template?raw');
+    case 'vitest.workspace.template':
+      return import('../templates/vitest.workspace.template?raw');
+    default:
+      throw new Error(`Unknown template: ${name}`);
+  }
+}
 
 export const loadTemplate = async (name: string, replacements: Record<string, string>) => {
-  let template = await fs.readFile(
-    join(resolvePackageDir('@storybook/addon-vitest'), 'templates', name),
-    'utf8'
-  );
+  // Dynamically import the template file as plain text
+  const templateModule = await getTemplatePath(name);
+  let template = templateModule.default;
   // Normalize Windows paths (backslashes) to forward slashes for JavaScript string compatibility
   Object.entries(replacements).forEach(
     ([key, value]) => (template = template.replace(key, normalize(value)))
diff --git a/code/core/src/cli/AddonVitestService.ts b/code/core/src/cli/AddonVitestService.ts
index a9771ca53438..d959c843c718 100644
--- a/code/core/src/cli/AddonVitestService.ts
+++ b/code/core/src/cli/AddonVitestService.ts
@@ -115,7 +115,11 @@ export class AddonVitestService {
    * @returns Array of error messages if installation fails
    */
   async installPlaywright(
-    options: { yes?: boolean } = {}
+    options: {
+      yes?: boolean;
+      /** Is set to true if Storybook didn't install the dependencies yet */
+      useRemotePkg?: boolean;
+    } = {}
   ): Promise<{ errors: string[]; result: 'installed' | 'skipped' | 'aborted' | 'failed' }> {
     const errors: string[] = [];
 
@@ -148,6 +152,7 @@ export class AddonVitestService {
           (signal) =>
             this.packageManager.runPackageCommand({
               args: playwrightCommand,
+              useRemotePkg: options.useRemotePkg,
               stdio: ['inherit', 'pipe', 'pipe'],
               signal,
             }),
diff --git a/code/core/src/common/js-package-manager/JsPackageManager.ts b/code/core/src/common/js-package-manager/JsPackageManager.ts
index 7221aa4c08d6..53be2316dbca 100644
--- a/code/core/src/common/js-package-manager/JsPackageManager.ts
+++ b/code/core/src/common/js-package-manager/JsPackageManager.ts
@@ -624,7 +624,7 @@ export abstract class JsPackageManager {
     stdio?: 'inherit' | 'pipe' | 'ignore'
   ): ResultPromise;
   public abstract runPackageCommand(
-    options: Omit<ExecuteCommandOptions, 'command'> & { args: string[] }
+    options: Omit<ExecuteCommandOptions, 'command'> & { args: string[]; useRemotePkg?: boolean }
   ): ResultPromise;
   public abstract findInstallations(pattern?: string[]): Promise<InstallationMetadata | undefined>;
   public abstract findInstallations(
diff --git a/code/core/src/common/js-package-manager/PNPMProxy.ts b/code/core/src/common/js-package-manager/PNPMProxy.ts
index 9d442f31e4d1..1a6bb6839124 100644
--- a/code/core/src/common/js-package-manager/PNPMProxy.ts
+++ b/code/core/src/common/js-package-manager/PNPMProxy.ts
@@ -79,11 +79,15 @@ export class PNPMProxy extends JsPackageManager {
 
   public runPackageCommand({
     args,
+    useRemotePkg = false,
     ...options
-  }: Omit<ExecuteCommandOptions, 'command'> & { args: string[] }): ResultPromise {
+  }: Omit<ExecuteCommandOptions, 'command'> & {
+    args: string[];
+    useRemotePkg?: boolean;
+  }): ResultPromise {
     return executeCommand({
       command: 'pnpm',
-      args: ['exec', ...args],
+      args: [useRemotePkg ? 'dlx' : 'exec', ...args],
       ...options,
     });
   }
diff --git a/code/lib/cli-storybook/src/automigrate/index.ts b/code/lib/cli-storybook/src/automigrate/index.ts
index c7a2a5b21a12..1b3820e9176b 100644
--- a/code/lib/cli-storybook/src/automigrate/index.ts
+++ b/code/lib/cli-storybook/src/automigrate/index.ts
@@ -1,4 +1,5 @@
 import { type JsPackageManager } from 'storybook/internal/common';
+import { versions } from 'storybook/internal/common';
 import { logTracker, logger, prompt } from 'storybook/internal/node-logger';
 import { AutomigrateError } from 'storybook/internal/server-errors';
 import type { StorybookConfigRaw } from 'storybook/internal/types';
@@ -56,10 +57,6 @@ export const doAutomigrate = async (options: AutofixOptionsFromCLI) => {
     packageManagerName: options.packageManager,
   });
 
-  if (!versionInstalled) {
-    throw new Error('Could not determine Storybook version');
-  }
-
   if (!mainConfigPath) {
     throw new Error('Could not determine main config path');
   }
@@ -67,7 +64,7 @@ export const doAutomigrate = async (options: AutofixOptionsFromCLI) => {
   const outcome = await automigrate({
     ...options,
     packageManager,
-    storybookVersion: versionInstalled,
+    storybookVersion: versionInstalled || versions.storybook,
     mainConfigPath,
     mainConfig,
     previewConfigPath,
diff --git a/code/lib/create-storybook/src/commands/AddonConfigurationCommand.test.ts b/code/lib/create-storybook/src/commands/AddonConfigurationCommand.test.ts
index f852a85fa2e7..2df6ed0ca21a 100644
--- a/code/lib/create-storybook/src/commands/AddonConfigurationCommand.test.ts
+++ b/code/lib/create-storybook/src/commands/AddonConfigurationCommand.test.ts
@@ -1,164 +1,346 @@
 import { beforeEach, describe, expect, it, vi } from 'vitest';
 
-import { type JsPackageManager } from 'storybook/internal/common';
+import type { AddonVitestService } from 'storybook/internal/cli';
+import { type JsPackageManager, PackageManagerName } from 'storybook/internal/common';
 import { logger, prompt } from 'storybook/internal/node-logger';
+import { ErrorCollector } from 'storybook/internal/telemetry';
 
-import { TelemetryService } from '../services/TelemetryService';
-import { VersionService } from '../services/VersionService';
-import { AddonConfigurationCommand } from './AddonConfigurationCommand';
+import addonA11yPostinstall from '../../../../addons/a11y/src/postinstall';
+import addonVitestPostinstall from '../../../../addons/vitest/src/postinstall';
+import type { TelemetryService } from '../services';
+import { AddonConfigurationCommand, executeAddonConfiguration } from './AddonConfigurationCommand';
 
-vi.mock('storybook/internal/cli', { spy: true });
 vi.mock('storybook/internal/node-logger', { spy: true });
-vi.mock('../../../cli-storybook/src/postinstallAddon', { spy: true });
-vi.mock('../services/TelemetryService', { spy: true });
-vi.mock('../services/VersionService', { spy: true });
+vi.mock('storybook/internal/telemetry', { spy: true });
+vi.mock('../../../../addons/a11y/src/postinstall', { spy: true });
+vi.mock('../../../../addons/vitest/src/postinstall', { spy: true });
+vi.mock('../../../cli-storybook/src/postinstallAddon', () => ({
+  postinstallAddon: vi.fn().mockResolvedValue(undefined),
+}));
 
 describe('AddonConfigurationCommand', () => {
   let command: AddonConfigurationCommand;
-  const mockPackageManager = {
-    type: 'npm',
-    getVersionedPackages: vi.fn(),
-    executeCommand: vi.fn().mockResolvedValue({ stdout: '', stderr: '', exitCode: 0 }),
-  } as Partial<JsPackageManager> as JsPackageManager;
-  let mockTask: {
-    success: ReturnType<typeof vi.fn>;
-    error: ReturnType<typeof vi.fn>;
-    message: ReturnType<typeof vi.fn>;
-    group: ReturnType<typeof vi.fn>;
-  };
-  let mockPostinstallAddon: ReturnType<typeof vi.fn>;
-  let mockAddonVitestService: ReturnType<typeof vi.fn>;
-
-  beforeEach(async () => {
-    const { postinstallAddon } = await import('../../../cli-storybook/src/postinstallAddon');
-    mockPostinstallAddon = vi.mocked(postinstallAddon);
-    mockPostinstallAddon.mockResolvedValue(undefined);
-
-    // Mock the AddonVitestService
-    const { AddonVitestService } = await import('storybook/internal/cli');
-    mockAddonVitestService = vi.mocked(AddonVitestService);
-    const mockInstance = {
-      installPlaywright: vi.fn().mockResolvedValue({ errors: [] }),
-    };
-    mockAddonVitestService.mockImplementation(() => mockInstance as any);
-
-    vi.mocked(VersionService).mockImplementation(() => ({}));
-
-    vi.mocked(TelemetryService).mockImplementation((disableTelemetry: boolean = false) => {
-      return {
-        disableTelemetry,
-        versionService: new VersionService(),
-      };
-    });
-
-    const mockAddonVitestServiceInstance = {
-      installPlaywright: vi.fn().mockResolvedValue({ errors: [] }),
-    };
-    const mockTelemetryServiceInstance = {
-      trackPlaywrightPromptDecision: vi.fn(),
-    };
+  let mockPackageManager: JsPackageManager;
+  let mockAddonVitestService: AddonVitestService;
+  let mockTelemetryService: TelemetryService;
+  let mockTaskLog: ReturnType<typeof prompt.taskLog>;
 
-    command = new AddonConfigurationCommand(
-      mockPackageManager,
-      {
-        yes: true,
-        disableTelemetry: true,
-      } as any,
-      mockAddonVitestServiceInstance as any,
-      mockTelemetryServiceInstance as any
-    );
+  beforeEach(() => {
+    mockPackageManager = {
+      type: 'npm',
+    } as Partial<JsPackageManager> as JsPackageManager;
 
-    mockTask = {
+    mockAddonVitestService = {
+      installPlaywright: vi.fn().mockResolvedValue({ errors: [], result: 'installed' }),
+    } as Partial<AddonVitestService> as AddonVitestService;
+
+    mockTelemetryService = {
+      trackPlaywrightPromptDecision: vi.fn().mockResolvedValue(undefined),
+    } as Partial<TelemetryService> as TelemetryService;
+
+    mockTaskLog = {
+      message: vi.fn(),
       success: vi.fn(),
       error: vi.fn(),
-      message: vi.fn(),
-      group: vi.fn(),
-    };
+    } as unknown as ReturnType<typeof prompt.taskLog>;
 
-    vi.mocked(prompt.taskLog).mockReturnValue(mockTask as any);
+    vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+    vi.mocked(logger.warn).mockImplementation(() => {});
+    vi.mocked(logger.error).mockImplementation(() => {});
+    vi.mocked(logger.debug).mockImplementation(() => {});
     vi.mocked(logger.log).mockImplementation(() => {});
+    vi.mocked(ErrorCollector.addError).mockImplementation(() => {});
+    vi.mocked(addonA11yPostinstall).mockResolvedValue(undefined);
+    vi.mocked(addonVitestPostinstall).mockResolvedValue(undefined);
+
+    command = new AddonConfigurationCommand(
+      mockPackageManager,
+      { packageManager: PackageManagerName.NPM, yes: false, disableTelemetry: false },
+      mockAddonVitestService,
+      mockTelemetryService
+    );
 
     vi.clearAllMocks();
   });
 
   describe('execute', () => {
-    it('should skip configuration when no addons are provided', async () => {
-      const addons: string[] = [];
+    it('should return success when no configDir is provided', async () => {
+      const result = await command.execute({
+        addons: ['@storybook/addon-vitest'],
+        configDir: undefined,
+      });
+
+      expect(result).toEqual({ status: 'success' });
+      expect(prompt.taskLog).not.toHaveBeenCalled();
+    });
 
+    it('should return success when addons array is empty', async () => {
       const result = await command.execute({
-        dependencyInstallationResult: { status: 'success' },
-        addons,
+        addons: [],
         configDir: '.storybook',
       });
 
-      expect(result.status).toBe('success');
+      expect(result).toEqual({ status: 'success' });
       expect(prompt.taskLog).not.toHaveBeenCalled();
-      expect(mockPackageManager.getVersionedPackages).not.toHaveBeenCalled();
     });
 
-    it('should configure test addons when test feature is enabled', async () => {
-      const addons = ['@storybook/addon-a11y', '@storybook/addon-vitest'];
+    it('should configure vitest addon successfully', async () => {
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
 
       const result = await command.execute({
-        dependencyInstallationResult: { status: 'success' },
-        addons,
+        addons: ['@storybook/addon-vitest'],
         configDir: '.storybook',
       });
 
-      expect(result.status).toBe('success');
-      expect(prompt.taskLog).toHaveBeenCalledWith({
-        id: 'configure-addons',
-        title: 'Configuring addons...',
+      expect(result).toEqual({ status: 'success' });
+      expect(addonVitestPostinstall).toHaveBeenCalledWith({
+        packageManager: 'npm',
+        configDir: '.storybook',
+        yes: false,
+        skipInstall: true,
+        skipDependencyManagement: true,
+        logger,
+        prompt,
       });
+      expect(mockAddonVitestService.installPlaywright).toHaveBeenCalledWith({
+        yes: false,
+        useRemotePkg: false,
+      });
+      expect(mockTelemetryService.trackPlaywrightPromptDecision).toHaveBeenCalledWith('installed');
+      expect(mockTaskLog.success).toHaveBeenCalledWith('Addons configured successfully');
     });
 
-    it('should handle configuration errors gracefully', async () => {
-      const addons = ['@storybook/addon-a11y', '@storybook/addon-vitest'];
-      const error = new Error('Configuration failed');
-
-      mockPostinstallAddon.mockRejectedValue(error);
+    it('should configure a11y addon successfully', async () => {
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
 
       const result = await command.execute({
-        dependencyInstallationResult: { status: 'success' },
-        addons,
+        addons: ['@storybook/addon-a11y'],
         configDir: '.storybook',
       });
 
-      expect(result.status).toBe('failed');
-      expect(mockTask.error).toHaveBeenCalledWith(
-        expect.stringContaining('Failed to configure addons')
-      );
+      expect(result).toEqual({ status: 'success' });
+      expect(addonA11yPostinstall).toHaveBeenCalledWith({
+        packageManager: 'npm',
+        configDir: '.storybook',
+        yes: false,
+        skipInstall: true,
+        skipDependencyManagement: true,
+        logger,
+        prompt,
+      });
+      expect(mockTaskLog.success).toHaveBeenCalledWith('Addons configured successfully');
     });
 
-    it('should complete successfully with valid configuration', async () => {
-      const addons = ['@storybook/addon-a11y', '@storybook/addon-vitest'];
+    it('should configure generic addon via postinstallAddon', async () => {
+      const { postinstallAddon } = await import('../../../cli-storybook/src/postinstallAddon');
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
 
       const result = await command.execute({
-        dependencyInstallationResult: { status: 'success' },
-        addons,
+        addons: ['@storybook/addon-docs'],
         configDir: '.storybook',
       });
 
-      expect(result.status).toBe('success');
-      expect(mockPostinstallAddon).toHaveBeenCalledTimes(2);
-      expect(mockPostinstallAddon).toHaveBeenCalledWith('@storybook/addon-a11y', {
+      expect(result).toEqual({ status: 'success' });
+      expect(postinstallAddon).toHaveBeenCalledWith('@storybook/addon-docs', {
         packageManager: 'npm',
         configDir: '.storybook',
-        yes: true,
+        yes: false,
         skipInstall: true,
         skipDependencyManagement: true,
-        logger: expect.any(Object),
-        prompt: expect.any(Object),
+        logger,
+        prompt,
       });
-      expect(mockPostinstallAddon).toHaveBeenCalledWith('@storybook/addon-vitest', {
-        packageManager: 'npm',
+      expect(mockTaskLog.success).toHaveBeenCalledWith('Addons configured successfully');
+    });
+
+    it('should configure multiple addons', async () => {
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      const result = await command.execute({
+        addons: ['@storybook/addon-vitest', '@storybook/addon-a11y'],
+        configDir: '.storybook',
+      });
+
+      expect(result).toEqual({ status: 'success' });
+      expect(addonVitestPostinstall).toHaveBeenCalled();
+      expect(addonA11yPostinstall).toHaveBeenCalled();
+      expect(mockTaskLog.message).toHaveBeenCalledWith('Configuring @storybook/addon-vitest...');
+      expect(mockTaskLog.message).toHaveBeenCalledWith('Configuring @storybook/addon-a11y...');
+    });
+
+    it('should handle addon configuration failure gracefully', async () => {
+      const error = new Error('Configuration failed');
+      vi.mocked(addonVitestPostinstall).mockRejectedValue(error);
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      const result = await command.execute({
+        addons: ['@storybook/addon-vitest'],
+        configDir: '.storybook',
+      });
+
+      expect(result).toEqual({ status: 'failed' });
+      expect(logger.debug).toHaveBeenCalledWith(error);
+      expect(ErrorCollector.addError).toHaveBeenCalledWith(error);
+      expect(mockTaskLog.error).toHaveBeenCalledWith('Failed to configure addons');
+    });
+
+    it('should handle partial addon failures', async () => {
+      const error = new Error('Vitest configuration failed');
+      vi.mocked(addonVitestPostinstall).mockRejectedValue(error);
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      const result = await command.execute({
+        addons: ['@storybook/addon-vitest', '@storybook/addon-a11y'],
+        configDir: '.storybook',
+      });
+
+      expect(result).toEqual({ status: 'failed' });
+      expect(addonA11yPostinstall).toHaveBeenCalled();
+      expect(mockTaskLog.error).toHaveBeenCalledWith('Failed to configure addons');
+    });
+
+    it('should handle unexpected errors during execution', async () => {
+      const unexpectedError = new Error('Unexpected error');
+      vi.mocked(prompt.taskLog).mockImplementation(() => {
+        throw unexpectedError;
+      });
+
+      const result = await command.execute({
+        addons: ['@storybook/addon-vitest'],
         configDir: '.storybook',
+      });
+
+      expect(result).toEqual({ status: 'failed' });
+      expect(logger.error).toHaveBeenCalledWith('Unexpected error during addon configuration:');
+      expect(logger.error).toHaveBeenCalledWith(unexpectedError);
+    });
+
+    it('should not install Playwright when vitest addon is not configured', async () => {
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      await command.execute({
+        addons: ['@storybook/addon-a11y'],
+        configDir: '.storybook',
+      });
+
+      expect(mockAddonVitestService.installPlaywright).not.toHaveBeenCalled();
+      expect(mockTelemetryService.trackPlaywrightPromptDecision).not.toHaveBeenCalled();
+    });
+
+    it('should track skipped Playwright installation', async () => {
+      vi.mocked(mockAddonVitestService.installPlaywright).mockResolvedValue({
+        errors: [],
+        result: 'skipped',
+      });
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      await command.execute({
+        addons: ['@storybook/addon-vitest'],
+        configDir: '.storybook',
+      });
+
+      expect(mockTelemetryService.trackPlaywrightPromptDecision).toHaveBeenCalledWith('skipped');
+    });
+
+    it('should track aborted Playwright installation', async () => {
+      vi.mocked(mockAddonVitestService.installPlaywright).mockResolvedValue({
+        errors: [],
+        result: 'aborted',
+      });
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      await command.execute({
+        addons: ['@storybook/addon-vitest'],
+        configDir: '.storybook',
+      });
+
+      expect(mockTelemetryService.trackPlaywrightPromptDecision).toHaveBeenCalledWith('aborted');
+    });
+
+    it('should track failed Playwright installation', async () => {
+      vi.mocked(mockAddonVitestService.installPlaywright).mockResolvedValue({
+        errors: ['Installation error'],
+        result: 'failed',
+      });
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      await command.execute({
+        addons: ['@storybook/addon-vitest'],
+        configDir: '.storybook',
+      });
+
+      expect(mockTelemetryService.trackPlaywrightPromptDecision).toHaveBeenCalledWith('failed');
+    });
+
+    it('should pass yes option to addon postinstall functions', async () => {
+      const commandWithYes = new AddonConfigurationCommand(
+        mockPackageManager,
+        { packageManager: PackageManagerName.NPM, yes: true, disableTelemetry: false },
+        mockAddonVitestService,
+        mockTelemetryService
+      );
+      vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+
+      await commandWithYes.execute({
+        addons: ['@storybook/addon-vitest'],
+        configDir: '.storybook',
+      });
+
+      expect(addonVitestPostinstall).toHaveBeenCalledWith(expect.objectContaining({ yes: true }));
+      expect(mockAddonVitestService.installPlaywright).toHaveBeenCalledWith({
         yes: true,
-        skipInstall: true,
-        skipDependencyManagement: true,
-        logger: expect.any(Object),
-        prompt: expect.any(Object),
+        useRemotePkg: false,
       });
     });
   });
 });
+
+describe('executeAddonConfiguration', () => {
+  let mockPackageManager: JsPackageManager;
+  let mockTaskLog: ReturnType<typeof prompt.taskLog>;
+
+  beforeEach(() => {
+    mockPackageManager = {
+      type: 'npm',
+    } as Partial<JsPackageManager> as JsPackageManager;
+
+    mockTaskLog = {
+      message: vi.fn(),
+      success: vi.fn(),
+      error: vi.fn(),
+    } as unknown as ReturnType<typeof prompt.taskLog>;
+
+    vi.mocked(prompt.taskLog).mockReturnValue(mockTaskLog);
+    vi.mocked(logger.warn).mockImplementation(() => {});
+    vi.mocked(logger.error).mockImplementation(() => {});
+    vi.mocked(logger.debug).mockImplementation(() => {});
+    vi.mocked(logger.log).mockImplementation(() => {});
+    vi.mocked(addonA11yPostinstall).mockResolvedValue(undefined);
+    vi.mocked(addonVitestPostinstall).mockResolvedValue(undefined);
+
+    vi.clearAllMocks();
+  });
+
+  it('should create command and execute with provided parameters', async () => {
+    const result = await executeAddonConfiguration({
+      packageManager: mockPackageManager,
+      options: { packageManager: PackageManagerName.NPM, yes: false, disableTelemetry: true },
+      addons: [],
+      configDir: '.storybook',
+    });
+
+    expect(result).toEqual({ status: 'success' });
+  });
+
+  it('should execute addon configuration through helper function', async () => {
+    const result = await executeAddonConfiguration({
+      packageManager: mockPackageManager,
+      options: { packageManager: PackageManagerName.NPM, yes: true, disableTelemetry: false },
+      addons: ['@storybook/addon-a11y'],
+      configDir: '.storybook',
+    });
+
+    expect(result).toEqual({ status: 'success' });
+    expect(addonA11yPostinstall).toHaveBeenCalled();
+  });
+});
diff --git a/code/lib/create-storybook/src/commands/AddonConfigurationCommand.ts b/code/lib/create-storybook/src/commands/AddonConfigurationCommand.ts
index 222710d0f186..017fdb166150 100644
--- a/code/lib/create-storybook/src/commands/AddonConfigurationCommand.ts
+++ b/code/lib/create-storybook/src/commands/AddonConfigurationCommand.ts
@@ -5,6 +5,8 @@ import { ErrorCollector } from 'storybook/internal/telemetry';
 
 import { dedent } from 'ts-dedent';
 
+import addonA11yPostinstall from '../../../../addons/a11y/src/postinstall';
+import addonVitestPostinstall from '../../../../addons/vitest/src/postinstall';
 import type { CommandOptions } from '../generators/types';
 import { TelemetryService } from '../services';
 
@@ -16,7 +18,6 @@ const ADDON_INSTALLATION_INSTRUCTIONS = {
 type ExecuteAddonConfigurationParams = {
   addons: string[];
   configDir?: string;
-  dependencyInstallationResult: { status: 'success' | 'failed' };
 };
 
 export type ExecuteAddonConfigurationResult = {
@@ -44,16 +45,7 @@ export class AddonConfigurationCommand {
   async execute({
     addons,
     configDir,
-    dependencyInstallationResult,
   }: ExecuteAddonConfigurationParams): Promise<ExecuteAddonConfigurationResult> {
-    const areDependenciesInstalled =
-      dependencyInstallationResult.status === 'success' && !this.commandOptions.skipInstall;
-
-    if (!areDependenciesInstalled && this.getAddonsWithInstructions(addons).length > 0) {
-      this.logManualAddonInstructions(addons);
-      return { status: 'failed' };
-    }
-
     if (!configDir || addons.length === 0) {
       return { status: 'success' };
     }
@@ -64,11 +56,19 @@ export class AddonConfigurationCommand {
       if (addonResults.has('@storybook/addon-vitest')) {
         const { result } = await this.addonVitestService.installPlaywright({
           yes: this.commandOptions.yes,
+          useRemotePkg: !!this.commandOptions.skipInstall,
         });
         // Map outcome to telemetry decision
         await this.telemetryService.trackPlaywrightPromptDecision(result);
       }
 
+      // some addons failed
+      if (hasFailures) {
+        this.logManualAddonInstructions(
+          addons.filter((addon) => addonResults.get(addon)?.result === 'failed')
+        );
+      }
+
       return { status: hasFailures ? 'failed' : 'success' };
     } catch (e) {
       logger.error('Unexpected error during addon configuration:');
@@ -123,7 +123,7 @@ export class AddonConfigurationCommand {
       try {
         task.message(`Configuring ${addon}...`);
 
-        await postinstallAddon(addon, {
+        const options = {
           packageManager: this.packageManager.type,
           configDir,
           yes: this.commandOptions.yes,
@@ -131,11 +131,20 @@ export class AddonConfigurationCommand {
           skipDependencyManagement: true,
           logger,
           prompt,
-        });
+        };
+
+        if (addon === '@storybook/addon-vitest') {
+          await addonVitestPostinstall(options);
+        } else if (addon === '@storybook/addon-a11y') {
+          await addonA11yPostinstall(options);
+        } else {
+          await postinstallAddon(addon, options);
+        }
 
         task.message(`${addon} configured\n`);
         addonResults.set(addon, null);
       } catch (e) {
+        logger.debug(e);
         ErrorCollector.addError(e);
         addonResults.set(addon, e);
       }
diff --git a/code/lib/create-storybook/src/initiate.ts b/code/lib/create-storybook/src/initiate.ts
index 96759086aa20..fafee5b90be7 100644
--- a/code/lib/create-storybook/src/initiate.ts
+++ b/code/lib/create-storybook/src/initiate.ts
@@ -98,7 +98,6 @@ export async function doInitiate(options: CommandOptions): Promise<
     packageManager,
     addons: extraAddons,
     configDir,
-    dependencyInstallationResult,
     options,
   });
 
diff --git a/scripts/build/utils/generate-bundle.ts b/scripts/build/utils/generate-bundle.ts
index 5d9c30470fcb..a35397324568 100644
--- a/scripts/build/utils/generate-bundle.ts
+++ b/scripts/build/utils/generate-bundle.ts
@@ -7,6 +7,7 @@ import * as esbuild from 'esbuild';
 import { basename, join, relative } from 'pathe';
 import picocolors from 'picocolors';
 import { dedent } from 'ts-dedent';
+import {raw as rawPlugin} from 'esbuild-raw-plugin';
 
 import { globalsModuleInfoMap } from '../../../code/core/src/manager/globals/globals-module-info';
 import {
@@ -99,6 +100,7 @@ export async function generateBundle({
       'process.env.NODE_ENV': 'process.env.NODE_ENV',
     },
     plugins: [
+      rawPlugin(),
       {
         name: 'postbuild',
         setup(build) {
diff --git a/scripts/package.json b/scripts/package.json
index 79b3a1f2ca54..46065ad6d5ef 100644
--- a/scripts/package.json
+++ b/scripts/package.json
@@ -103,6 +103,7 @@
     "empathic": "^2.0.0",
     "es-toolkit": "^1.43.0",
     "esbuild": "^0.27.0",
+    "esbuild-raw-plugin": "^0.3.1",
     "eslint": "^8.57.1",
     "eslint-config-airbnb-typescript": "^18.0.0",
     "eslint-config-prettier": "^9.1.2",
diff --git a/yarn.lock b/yarn.lock
index c007770a0eb0..4cecb506d0ee 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -8514,6 +8514,7 @@ __metadata:
     empathic: "npm:^2.0.0"
     es-toolkit: "npm:^1.43.0"
     esbuild: "npm:^0.27.0"
+    esbuild-raw-plugin: "npm:^0.3.1"
     eslint: "npm:^8.57.1"
     eslint-config-airbnb-typescript: "npm:^18.0.0"
     eslint-config-prettier: "npm:^9.1.2"
@@ -15930,6 +15931,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"esbuild-raw-plugin@npm:^0.3.1":
+  version: 0.3.1
+  resolution: "esbuild-raw-plugin@npm:0.3.1"
+  checksum: 10c0/25f8934cdddfc49bd1942a76d9d742e0abf50d85729ba506c1804475e318672143781039dc0614b47c7eb01aa1a797901245cc37fb1ce968974a038f8846b9d2
+  languageName: node
+  linkType: hard
+
 "esbuild-wasm@npm:0.25.4":
   version: 0.25.4
   resolution: "esbuild-wasm@npm:0.25.4"