diff --git a/.pipelines/v2/templates/job-build-project.yml b/.pipelines/v2/templates/job-build-project.yml
index cad18fc37f..44fe131e92 100644
--- a/.pipelines/v2/templates/job-build-project.yml
+++ b/.pipelines/v2/templates/job-build-project.yml
@@ -128,11 +128,12 @@ jobs:
     ${{ else }}:
       MSBuildMainBuildTargets: Build
     ${{ insert }}: ${{ parameters.variables }}
-    RestoreAdditionalProjectSourcesArg: ''
-    CompatibilityTestMsBuildArgs: ''
     ${{ if eq(parameters.useLatestWinAppSDK, true) }}:
       RestoreAdditionalProjectSourcesArg: '/p:RestoreAdditionalProjectSources="$(Build.SourcesDirectory)\localpackages\NugetPackages"'
       CompatibilityTestMsBuildArgs: '/p:IsCompatibilityTest=true'
+    ${{ else }}:
+      RestoreAdditionalProjectSourcesArg: ''
+      CompatibilityTestMsBuildArgs: ''
   displayName: Build
   timeoutInMinutes: ${{ parameters.timeoutInMinutes }}
   cancelTimeoutInMinutes: ${{ parameters.cancelTimeoutInMinutes }}
diff --git a/src/modules/cmdpal/ExtensionTemplate/TemplateCmdPalExtension/Directory.Packages.props b/src/modules/cmdpal/ExtensionTemplate/TemplateCmdPalExtension/Directory.Packages.props
index 4722a0974e..ce7a7bae64 100644
--- a/src/modules/cmdpal/ExtensionTemplate/TemplateCmdPalExtension/Directory.Packages.props
+++ b/src/modules/cmdpal/ExtensionTemplate/TemplateCmdPalExtension/Directory.Packages.props
@@ -5,12 +5,12 @@
   <ItemGroup>
     <PackageVersion Include="Microsoft.CommandPalette.Extensions" Version="0.5.250829002" />
     <PackageVersion Include="Microsoft.CodeAnalysis.NetAnalyzers" Version="9.0.0-preview.24508.2" />
-    <PackageVersion Include="Microsoft.Web.WebView2" Version="1.0.2903.40" />
+    <PackageVersion Include="Microsoft.Web.WebView2" Version="1.0.3405.78" />
     <PackageVersion Include="Microsoft.Windows.CsWin32" Version="0.3.183" />
     <PackageVersion Include="Microsoft.Windows.CsWinRT" Version="2.2.0" />
-    <PackageVersion Include="Microsoft.Windows.SDK.BuildTools" Version="10.0.26100.4188" />
+    <PackageVersion Include="Microsoft.Windows.SDK.BuildTools" Version="10.0.26100.6901" />
     <PackageVersion Include="Microsoft.Windows.SDK.BuildTools.MSIX" Version="1.7.20250829.1" />
-    <PackageVersion Include="Microsoft.WindowsAppSDK" Version="1.8.250907003" />
+    <PackageVersion Include="Microsoft.WindowsAppSDK" Version="2.0.251217001-experimental" />
     <PackageVersion Include="Shmuelie.WinRTServer" Version="2.1.1" />
     <PackageVersion Include="StyleCop.Analyzers" Version="1.2.0-beta.556" />
     <PackageVersion Include="System.Text.Json" Version="9.0.8" />