diff --git a/src/PackageIdentity/AppxManifest.xml b/src/PackageIdentity/AppxManifest.xml
index 822daae8bc..502cc33ff0 100644
--- a/src/PackageIdentity/AppxManifest.xml
+++ b/src/PackageIdentity/AppxManifest.xml
@@ -10,7 +10,8 @@
   xmlns:desktop="http://schemas.microsoft.com/appx/manifest/desktop/windows10"
   xmlns:uap10="http://schemas.microsoft.com/appx/manifest/uap/windows10/10"
   xmlns:systemai="http://schemas.microsoft.com/appx/manifest/systemai/windows10"
-  IgnorableNamespaces="uap uap2 uap3 rescap desktop uap10 systemai">
+  xmlns:com="http://schemas.microsoft.com/appx/manifest/com/windows10"
+  IgnorableNamespaces="uap uap2 uap3 rescap desktop uap10 systemai com">
   <Identity
     Name="Microsoft.PowerToys.SparseApp"
     Publisher="CN=Microsoft Corporation, O=Microsoft Corporation, L=Redmond, S=Washington, C=US"
@@ -30,6 +31,7 @@
     <TargetDeviceFamily Name="Windows.Desktop" MinVersion="10.0.19000.0" MaxVersionTested="10.0.26226.0" />
   </Dependencies>
   <Capabilities>
+    <Capability Name="internetClient" />
     <rescap:Capability Name="runFullTrust" />
     <systemai:Capability Name="systemAIModels"/>
     <rescap:Capability Name="unvirtualizedResources"/>
@@ -66,5 +68,42 @@
         AppListEntry="none">
       </uap:VisualElements>
     </Application>
+    <Application Id="PowerToys.CmdPalExtension" Executable="Microsoft.CmdPal.Ext.PowerToys.exe" EntryPoint="Windows.FullTrustApplication">
+      <uap:VisualElements
+        DisplayName="PowerToys.CommandPaletteExtension"
+        Description="PowerToys Command Palette Extension"
+        BackgroundColor="transparent"
+        Square150x150Logo="Images\Square150x150Logo.png"
+        Square44x44Logo="Images\Square44x44Logo.png"
+        AppListEntry="none">
+      </uap:VisualElements>
+      <Extensions>
+        <com:Extension Category="windows.comServer">
+          <com:ComServer>
+            <com:ExeServer Executable="Microsoft.CmdPal.Ext.PowerToys.exe" Arguments="-RegisterProcessAsComServer" DisplayName="PowerToys Command Palette Extension">
+              <com:Class Id="7EC02C7D-8F98-4A2E-9F23-B58C2C2F2B17" DisplayName="PowerToys Command Palette Extension" />
+            </com:ExeServer>
+          </com:ComServer>
+        </com:Extension>
+        <uap3:Extension Category="windows.appExtension">
+          <uap3:AppExtension Name="com.microsoft.commandpalette"
+            Id="PowerToys"
+            PublicFolder="Public"
+            DisplayName="PowerToys"
+            Description="Surface PowerToys commands inside Command Palette">
+            <uap3:Properties>
+              <CmdPalProvider>
+                <Activation>
+                  <CreateInstance ClassId="7EC02C7D-8F98-4A2E-9F23-B58C2C2F2B17" />
+                </Activation>
+                <SupportedInterfaces>
+                  <Commands/>
+                </SupportedInterfaces>
+              </CmdPalProvider>
+            </uap3:Properties>
+          </uap3:AppExtension>
+        </uap3:Extension>
+      </Extensions>
+    </Application>
   </Applications>
-</Package>
\ No newline at end of file
+</Package>
diff --git a/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/Microsoft.CmdPal.Ext.PowerToys.csproj b/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/Microsoft.CmdPal.Ext.PowerToys.csproj
index 59ef3600b2..3e63da2e70 100644
--- a/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/Microsoft.CmdPal.Ext.PowerToys.csproj
+++ b/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/Microsoft.CmdPal.Ext.PowerToys.csproj
@@ -8,8 +8,10 @@
 		<RootNamespace>PowerToysExtension</RootNamespace>
 		<ApplicationManifest>app.manifest</ApplicationManifest>
 		<PublishProfile>win-$(Platform).pubxml</PublishProfile>
-		<EnableMsixTooling>true</EnableMsixTooling>
-		<OutputPath>$(SolutionDir)$(Platform)\$(Configuration)\WinUI3Apps\CmdPalExtensions\$(MSBuildProjectName)\</OutputPath>
+		<EnableMsixTooling>false</EnableMsixTooling>
+		<WindowsPackageType>None</WindowsPackageType>
+		<GenerateAppxPackageOnBuild>false</GenerateAppxPackageOnBuild>
+		<OutputPath>$(SolutionDir)$(Platform)\$(Configuration)\</OutputPath>
 		<AppendTargetFrameworkToOutputPath>false</AppendTargetFrameworkToOutputPath>
 		<AppendRuntimeIdentifierToOutputPath>false</AppendRuntimeIdentifierToOutputPath>
 		<Nullable>enable</Nullable>
@@ -22,22 +24,33 @@
 		<RuntimeIdentifier Condition="'$(RuntimeIdentifier)' == '' and '$(Platform)' == 'x64'">win-x64</RuntimeIdentifier>
 	</PropertyGroup>
 
-	<PropertyGroup>
-		<GenerateAppxPackageOnBuild>true</GenerateAppxPackageOnBuild>
-		<AppxBundle>Never</AppxBundle>
-		<AppxPackageTestDir>$(OutputPath)\AppPackages\$(MSBuildProjectName)_$(Version)_Test\</AppxPackageTestDir>
-	</PropertyGroup>
 	<ItemGroup>
-		<Content Include="Assets\SplashScreen.scale-200.png" />
-		<Content Include="Assets\LockScreenLogo.scale-200.png" />
-		<Content Include="Assets\Square150x150Logo.scale-200.png" />
-		<Content Include="Assets\Square44x44Logo.scale-200.png" />
-		<Content Include="Assets\Square44x44Logo.targetsize-24_altform-unplated.png" />
-		<Content Include="Assets\StoreLogo.png" />
-		<Content Include="Assets\Wide310x150Logo.scale-200.png" />
-		<Content Include="Assets\FileLocksmith.png" />
+		<Content Update="Assets\SplashScreen.scale-200.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
+		<Content Update="Assets\LockScreenLogo.scale-200.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
+		<Content Update="Assets\Square150x150Logo.scale-200.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
+		<Content Update="Assets\Square44x44Logo.scale-200.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
+		<Content Update="Assets\Square44x44Logo.targetsize-24_altform-unplated.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
+		<Content Update="Assets\StoreLogo.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
+		<Content Update="Assets\Wide310x150Logo.scale-200.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
+		<Content Update="Assets\FileLocksmith.png">
+			<CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+		</Content>
 	</ItemGroup>
-
+	
 	<ItemGroup>
 		<PackageReference Include="Microsoft.WindowsAppSDK" />
 		<PackageReference Include="Microsoft.Windows.CsWin32">
diff --git a/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/Package.appxmanifest b/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/Package.appxmanifest
deleted file mode 100644
index 33b852dd8a..0000000000
--- a/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/Package.appxmanifest
+++ /dev/null
@@ -1,78 +0,0 @@
-<?xml version="1.0" encoding="utf-8"?>
-
-<Package
-  xmlns="http://schemas.microsoft.com/appx/manifest/foundation/windows10"
-  xmlns:uap="http://schemas.microsoft.com/appx/manifest/uap/windows10"
-  xmlns:uap3="http://schemas.microsoft.com/appx/manifest/uap/windows10/3"
-  xmlns:com="http://schemas.microsoft.com/appx/manifest/com/windows10"
-  xmlns:rescap="http://schemas.microsoft.com/appx/manifest/foundation/windows10/restrictedcapabilities"
-  IgnorableNamespaces="uap uap3 rescap">
-
-  <Identity
-    Name="Microsoft.CmdPal.Ext.PowerToys"
-    Publisher="CN=Microsoft Corporation, O=Microsoft Corporation, L=Redmond, S=Washington, C=US"
-    Version="0.0.1.0" />
-
-  <Properties>
-    <DisplayName>PowerToys Command Palette Extension</DisplayName>
-    <PublisherDisplayName>Microsoft Corporation</PublisherDisplayName>
-    <Logo>Assets\StoreLogo.png</Logo>
-  </Properties>
-
-  <Dependencies>
-    <TargetDeviceFamily Name="Windows.Universal" MinVersion="10.0.19041.0" MaxVersionTested="10.0.19041.0" />
-    <TargetDeviceFamily Name="Windows.Desktop" MinVersion="10.0.19041.0" MaxVersionTested="10.0.19041.0" />
-  </Dependencies>
-
-  <Resources>
-    <Resource Language="x-generate"/>
-  </Resources>
-
-  <Applications>
-    <Application Id="App"
-      Executable="$targetnametoken$.exe"
-      EntryPoint="$targetentrypoint$">
-      <uap:VisualElements
-        DisplayName="PowerToys Command Palette Extension"
-        Description="Expose PowerToys commands to Windows Command Palette"
-        BackgroundColor="transparent"
-        Square150x150Logo="Assets\Square150x150Logo.scale-200.png"
-        Square44x44Logo="Assets\Square44x44Logo.scale-200.png">
-        <uap:DefaultTile Wide310x150Logo="Assets\Wide310x150Logo.scale-200.png" />
-        <uap:SplashScreen Image="Assets\SplashScreen.scale-200.png" />
-      </uap:VisualElements>
-      <Extensions>
-        <com:Extension Category="windows.comServer">
-          <com:ComServer>
-            <com:ExeServer Executable="Microsoft.CmdPal.Ext.PowerToys.exe" Arguments="-RegisterProcessAsComServer" DisplayName="PowerToys Command Palette Extension">
-              <com:Class Id="7EC02C7D-8F98-4A2E-9F23-B58C2C2F2B17" DisplayName="PowerToys Command Palette Extension" />
-            </com:ExeServer>
-          </com:ComServer>
-        </com:Extension>
-        <uap3:Extension Category="windows.appExtension">
-          <uap3:AppExtension Name="com.microsoft.commandpalette"
-            Id="PowerToys"
-            PublicFolder="Public"
-            DisplayName="PowerToys"
-            Description="Surface PowerToys commands inside Command Palette">
-            <uap3:Properties>
-              <CmdPalProvider>
-                <Activation>
-                  <CreateInstance ClassId="7EC02C7D-8F98-4A2E-9F23-B58C2C2F2B17" />
-                </Activation>
-                <SupportedInterfaces>
-                  <Commands/>
-                </SupportedInterfaces>
-              </CmdPalProvider>
-            </uap3:Properties>
-          </uap3:AppExtension>
-        </uap3:Extension>
-      </Extensions>
-    </Application>
-  </Applications>
-
-  <Capabilities>
-    <Capability Name="internetClient" />
-    <rescap:Capability Name="runFullTrust" />
-  </Capabilities>
-</Package>
diff --git a/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/app.manifest b/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/app.manifest
index 0d1318e5eb..ef01b59d23 100644
--- a/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/app.manifest
+++ b/src/modules/cmdpal/ext/Microsoft.CmdPal.Ext.PowerToys/app.manifest
@@ -1,6 +1,10 @@
 <?xml version="1.0" encoding="utf-8"?>
 <assembly manifestVersion="1.0" xmlns="urn:schemas-microsoft-com:asm.v1">
   <assemblyIdentity version="1.0.0.0" name="PowerToysExtension.app" />
+  <msix xmlns="urn:schemas-microsoft-com:msix.v1"
+        packageName="Microsoft.PowerToys.SparseApp"
+        applicationId="PowerToys.CmdPalExtension"
+        publisher="CN=PowerToys Dev, O=PowerToys, L=Redmond, S=Washington, C=US" />
 
   <compatibility xmlns="urn:schemas-microsoft-com:compatibility.v1">
     <application>