diff --git a/src/common-utils/devcontainer-feature.json b/src/common-utils/devcontainer-feature.json
index d70848278..4eaef2128 100644
--- a/src/common-utils/devcontainer-feature.json
+++ b/src/common-utils/devcontainer-feature.json
@@ -1,6 +1,6 @@
 {
     "id": "common-utils",
-    "version": "2.1.0",
+    "version": "2.1.1",
     "name": "Common Utilities",
     "documentationURL": "https://github.com/devcontainers/features/tree/main/src/common-utils",
     "description": "Installs a set of common command line utilities, Oh My Zsh!, and sets up a non-root user.",
diff --git a/src/common-utils/main.sh b/src/common-utils/main.sh
index d3f7ef267..1c87b0372 100644
--- a/src/common-utils/main.sh
+++ b/src/common-utils/main.sh
@@ -376,6 +376,15 @@ if [ "${USERNAME}" != "root" ] && [ "${EXISTING_NON_ROOT_USER}" != "${USERNAME}"
     EXISTING_NON_ROOT_USER="${USERNAME}"
 fi
 
+# *********************************
+# ** Ensure config directory **
+# *********************************
+user_config_dir="${user_home}/.config"
+if [ ! -d "${user_config_dir}" ]; then
+    mkdir -p "${user_config_dir}"
+    chown ${USERNAME}:${group_name} "${user_config_dir}"
+fi
+
 # *********************************
 # ** Shell customization section **
 # *********************************
@@ -428,6 +437,8 @@ fi
 
 # Optionally configure zsh and Oh My Zsh!
 if [ "${INSTALL_ZSH}" = "true" ]; then
+    umask g-w,o-w
+
     if [ "${ZSH_ALREADY_INSTALLED}" != "true" ]; then
         if [ "${ADJUSTED_ID}" = "rhel" ]; then
              global_rc_path="/etc/zshrc"
@@ -450,57 +461,60 @@ if [ "${INSTALL_ZSH}" = "true" ]; then
         chsh --shell /bin/zsh ${USERNAME}
     fi
 
-    # Adapted, simplified inline Oh My Zsh! install steps that adds, defaults to a codespaces theme.
-    # See https://github.com/ohmyzsh/ohmyzsh/blob/master/tools/install.sh for official script.
     if [ "${INSTALL_OH_MY_ZSH}" = "true" ]; then
-        user_rc_file="${user_home}/.zshrc"
-        oh_my_install_dir="${user_home}/.oh-my-zsh"
-        template_path="${oh_my_install_dir}/templates/zshrc.zsh-template"
-        if [ ! -d "${oh_my_install_dir}" ]; then
-            umask g-w,o-w
-            mkdir -p ${oh_my_install_dir}
+        # Adapted, simplified inline Oh My Zsh! install steps that adds, defaults to a codespaces theme.
+        # See https://github.com/ohmyzsh/ohmyzsh/blob/master/tools/install.sh for official script.
+        omz_source_dirname=".oh-my-zsh"
+        user_omz_install_dir="${user_home}/${omz_source_dirname}"
+        omz_added_filesnames=("${omz_source_dirname}")
+        if [ ! -d "${user_omz_install_dir}" ]; then
+            mkdir -p ${user_omz_install_dir}
             git clone --depth=1 \
                 -c core.eol=lf \
                 -c core.autocrlf=false \
                 -c fsck.zeroPaddedFilemode=ignore \
                 -c fetch.fsck.zeroPaddedFilemode=ignore \
                 -c receive.fsck.zeroPaddedFilemode=ignore \
-                "https://github.com/ohmyzsh/ohmyzsh" "${oh_my_install_dir}" 2>&1
-
+                "https://github.com/ohmyzsh/ohmyzsh" "${user_omz_install_dir}" 2>&1
             # Shrink git while still enabling updates
-            cd "${oh_my_install_dir}"
-            git repack -a -d -f --depth=1 --window=1
+            GIT_WORK_TREE="${user_omz_install_dir}" GIT_DIR="${user_omz_install_dir}/.git" git repack\
+                -a -d -f --depth=1 --window=1
         fi
 
-        # Add Dev Containers theme
-        mkdir -p ${oh_my_install_dir}/custom/themes
-        cp -f "${FEATURE_DIR}/scripts/devcontainers.zsh-theme" "${oh_my_install_dir}/custom/themes/devcontainers.zsh-theme"
-        ln -sf "${oh_my_install_dir}/custom/themes/devcontainers.zsh-theme" "${oh_my_install_dir}/custom/themes/codespaces.zsh-theme"
+        # Add dev containers theme
+        user_omz_theme_filepath="${user_omz_install_dir}/custom/themes"
+        user_devcontainer_theme_target="${user_omz_theme_filepath}/devcontainers.zsh-theme"
+        user_codespaces_theme_target="${user_omz_theme_filepath}/codespaces.zsh-theme"
+        theme_template_path="${FEATURE_DIR}/scripts/devcontainers.zsh-theme"
+        mkdir -p "${user_omz_theme_filepath}"
+        cp -f "${theme_template_path}" "${user_devcontainer_theme_target}"
+        cp -f "${theme_template_path}" "${user_codespaces_theme_target}"
 
-        # Add devcontainer .zshrc template
         if [ "$INSTALL_OH_MY_ZSH_CONFIG" = "true" ]; then
-            echo -e "$(cat "${template_path}")\nDISABLE_AUTO_UPDATE=true\nDISABLE_UPDATE_PROMPT=true" > ${user_rc_file}
+            # Add devcontainer .zshrc template
+            omz_rc_filename=".zshrc"
+            user_rc_file="${user_home}/${omz_rc_filename}"
+            omz_zshrc_template_path="${user_omz_install_dir}/templates/zshrc.zsh-template"
+            echo -e "$(cat "${omz_zshrc_template_path}")\nDISABLE_AUTO_UPDATE=true\nDISABLE_UPDATE_PROMPT=true" > ${user_rc_file}
             sed -i -e 's/ZSH_THEME=.*/ZSH_THEME="devcontainers"/g' ${user_rc_file}
+            omz_added_filesnames+=("${omz_rc_filename}")
         fi
+        # TODO remove installed files from previous step
+
+        user_omz_filepaths=( "${omz_added_filesnames[@]/#/$user_home/}" )
 
-        # Copy to non-root user if one is specified
         if [ "${USERNAME}" != "root" ]; then
-            copy_to_user_files=("${oh_my_install_dir}")
-            [ -f "$user_rc_file" ] && copy_to_user_files+=("$user_rc_file")
-            cp -rf "${copy_to_user_files[@]}" /root
-            chown -R ${USERNAME}:${group_name} "${oh_my_install_dir}" "${user_rc_file}"
+            # Copy files to alternate user if one is specified
+            cp -rf "${user_omz_filepaths[@]}" /root
+            # Set permissions for root user
+            chown -R root:root "${omz_added_filesnames[@]/#//root/}"
         fi
+
+        # Set permissions for current user
+        chown -R "${USERNAME}:${group_name}" "${user_omz_filepaths[@]}"
     fi
 fi
 
-# *********************************
-# ** Ensure config directory **
-# *********************************
-user_config_dir="${user_home}/.config"
-if [ ! -d "${user_config_dir}" ]; then
-    mkdir -p "${user_config_dir}"
-    chown ${USERNAME}:${group_name} "${user_config_dir}"
-fi
 
 # ****************************
 # ** Utilities and commands **
diff --git a/test/common-utils/configure_zsh_no_template_first_step.sh b/test/common-utils/configure_zsh_no_template_first_step.sh
new file mode 100644
index 000000000..d26874d3a
--- /dev/null
+++ b/test/common-utils/configure_zsh_no_template_first_step.sh
@@ -0,0 +1,12 @@
+#!/bin/bash
+
+set -e
+
+# Optional: Import test library
+source dev-container-features-test-lib
+
+# Definition specific tests
+check "default-zsh-with-no-zshrc" bash -c "[ ! -e ~/.zshrc ]"
+
+# Report result
+reportResults
diff --git a/test/common-utils/configure_zsh_no_template.sh b/test/common-utils/configure_zsh_no_template_second_step.sh
similarity index 57%
rename from test/common-utils/configure_zsh_no_template.sh
rename to test/common-utils/configure_zsh_no_template_second_step.sh
index c62cae967..734fa66e9 100644
--- a/test/common-utils/configure_zsh_no_template.sh
+++ b/test/common-utils/configure_zsh_no_template_second_step.sh
@@ -4,12 +4,11 @@ set -e
 
 # Optional: Import test library
 source dev-container-features-test-lib
-
 # Definition specific tests
 function file_not_overridden() {
-    cat ~/.zshrc | grep 'alias fnomockalias=' | grep testingmock
+    cat $1 | grep 'alias fnomockalias=' | grep testingmock
 }
-check "default-zsh-with-no-zshrc" file_not_overridden
+check "default-zsh-with-no-zshrc" file_not_overridden /home/devcontainer/.zshrc
 
 # Report result
 reportResults
diff --git a/test/common-utils/scenarios.json b/test/common-utils/scenarios.json
index 904a47bac..d7b296d41 100644
--- a/test/common-utils/scenarios.json
+++ b/test/common-utils/scenarios.json
@@ -115,10 +115,20 @@
             }
         }
     },
-    "configure_zsh_no_template": {
+    "configure_zsh_no_template_second_step": {
         "image": "mcr.microsoft.com/devcontainers/base:ubuntu",
-        "postCreateCommand": "echo alias fnomockalias=testingmock >> /root/.zshrc",
-        "remoteUser": "root",
+        "postCreateCommand": "echo alias fnomockalias=testingmock >> /home/devcontainer/.zshrc",
+        "remoteUser": "devcontainer",
+        "features": {
+            "common-utils": {
+                "installZsh": true,
+                "installOhMyZshConfig": false
+            }
+        }
+    },
+    "configure_zsh_no_template_first_step": {
+        "image": "debian:bullseye",
+        "remoteUser": "devcontainer",
         "features": {
             "common-utils": {
                 "installZsh": true,
diff --git a/test/common-utils/test.sh b/test/common-utils/test.sh
index 5e16a33c7..743d6664f 100755
--- a/test/common-utils/test.sh
+++ b/test/common-utils/test.sh
@@ -12,7 +12,8 @@ check "git" git  --version
 check "zsh" zsh --version
 check "ps" ps --version
 check "Oh My Zsh! theme" test -e $HOME/.oh-my-zsh/custom/themes/devcontainers.zsh-theme
-check "zsh theme symlink" test -e $HOME/.oh-my-zsh/custom/themes/codespaces.zsh-theme
+check "zsh theme filename" test -e $HOME/.oh-my-zsh/custom/themes/codespaces.zsh-theme
+check "oh-my-zsh executes" zsh -c 'source $HOME/.zshrc && echo $0 | grep zsh'
 
 # Report result
 reportResults
\ No newline at end of file