diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 68355b9c1..7a6328483 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -54,3 +54,5 @@ jobs:
       - name: suite
         run: ${{ matrix.command }}
         working-directory: ${{ matrix.dir }}
+        env:
+          NODE_OPTIONS: "--max-old-space-size=8192"
diff --git a/packages/compat/package.json b/packages/compat/package.json
index 33e141aa7..bba0453c9 100644
--- a/packages/compat/package.json
+++ b/packages/compat/package.json
@@ -49,7 +49,6 @@
     "broccoli-source": "^3.0.1",
     "chalk": "^4.1.1",
     "debug": "^4.3.2",
-    "escape-string-regexp": "^4.0.0",
     "fast-sourcemap-concat": "^2.1.1",
     "fs-extra": "^9.1.0",
     "fs-tree-diff": "^2.0.1",
diff --git a/packages/compat/src/compat-app-builder.ts b/packages/compat/src/compat-app-builder.ts
index 290d701e7..58a94db3d 100644
--- a/packages/compat/src/compat-app-builder.ts
+++ b/packages/compat/src/compat-app-builder.ts
@@ -1,8 +1,6 @@
-import type { Node as BroccoliNode } from 'broccoli-node-api';
-import type { OutputPaths, AddonPackage, Engine, AppMeta, TemplateColocationPluginOptions } from '@embroider/core';
+import type { AddonPackage, Engine, TemplateColocationPluginOptions } from '@embroider/core';
 import {
   explicitRelative,
-  extensionsPattern,
   warn,
   jsHandlebarsCompile,
   templateColocationPluginPath,
@@ -17,15 +15,13 @@ import type { CompatResolverOptions } from './resolver-transform';
 import type { PackageRules } from './dependency-rules';
 import { activePackageRules } from './dependency-rules';
 import flatMap from 'lodash/flatMap';
-import mergeWith from 'lodash/mergeWith';
 import cloneDeep from 'lodash/cloneDeep';
 import bind from 'bind-decorator';
-import { outputJSONSync, readFileSync, readJSONSync, rmSync, writeFileSync, realpathSync } from 'fs-extra';
+import { outputJSONSync, writeFileSync, realpathSync } from 'fs-extra';
 import type { Options as EtcOptions } from 'babel-plugin-ember-template-compilation';
 import type { Options as ResolverTransformOptions } from './resolver-transform';
 import type { Options as AdjustImportsOptions } from './babel-plugin-adjust-imports';
 import { makePortable } from '@embroider/core/src/portable-babel-config';
-import { AppFiles } from '@embroider/core/src/app-files';
 import type { PortableHint } from '@embroider/core/src/portable';
 import { maybeNodeModuleVersion } from '@embroider/core/src/portable';
 import { Memoize } from 'typescript-memoize';
@@ -33,21 +29,18 @@ import { join, dirname } from 'path';
 import resolve from 'resolve';
 import type ContentForConfig from './content-for-config';
 import type { V1Config } from './v1-config';
-import type { Package, PackageInfo } from '@embroider/core';
-import { readdirSync, pathExistsSync } from 'fs-extra';
+import type { Package } from '@embroider/core';
+import { readdirSync } from 'fs-extra';
 import type { TransformOptions } from '@babel/core';
 import { MacrosConfig } from '@embroider/macros/src/node';
-import escapeRegExp from 'escape-string-regexp';
 
 import type CompatApp from './compat-app';
-import { SyncDir } from './sync-dir';
 
 // This exists during the actual broccoli build step. As opposed to CompatApp,
 // which also exists during pipeline-construction time.
 
 export class CompatAppBuilder {
   constructor(
-    private root: string,
     private origAppPackage: Package,
     private appPackageWithMovedDeps: Package,
     private options: Required<Options>,
@@ -58,14 +51,6 @@ export class CompatAppBuilder {
     private synthStyles: Package
   ) {}
 
-  @Memoize()
-  private fastbootJSSrcDir() {
-    let target = join(this.compatApp.root, 'fastboot');
-    if (pathExistsSync(target)) {
-      return target;
-    }
-  }
-
   private activeAddonChildren(pkg: Package): AddonPackage[] {
     let result = (pkg.dependencies.filter(this.isActiveAddon) as AddonPackage[]).filter(
       // When looking for child addons, we want to ignore 'peerDependencies' of
@@ -127,16 +112,6 @@ export class CompatAppBuilder {
     return ['.wasm', '.mjs', '.js', '.json', '.ts', '.hbs', '.hbs.js', '.gjs', '.gts'];
   }
 
-  private addEmberEntrypoints(): string[] {
-    let classicEntrypoints = ['index.html'];
-    for (let entrypoint of classicEntrypoints) {
-      let sourcePath = join(this.compatApp.root, entrypoint);
-      let rewrittenAppPath = join(this.root, entrypoint);
-      writeFileSync(rewrittenAppPath, readFileSync(sourcePath));
-    }
-    return classicEntrypoints;
-  }
-
   private modulePrefix(): string {
     return this.configTree.readConfig().modulePrefix;
   }
@@ -145,19 +120,15 @@ export class CompatAppBuilder {
     return this.configTree.readConfig().podModulePrefix;
   }
 
-  private rootURL(): string {
-    return this.configTree.readConfig().rootURL;
-  }
-
   @Memoize()
   private activeRules() {
     return activePackageRules(this.options.packageRules.concat(defaultAddonPackageRules()), [
-      { name: this.origAppPackage.name, version: this.origAppPackage.version, root: this.root },
+      { name: this.origAppPackage.name, version: this.origAppPackage.version, root: this.origAppPackage.root },
       ...this.allActiveAddons.filter(p => p.meta['auto-upgraded']),
     ]);
   }
 
-  private resolverConfig(engines: AppFiles[]): CompatResolverOptions {
+  private resolverConfig(engines: Engine[]): CompatResolverOptions {
     let renamePackages = Object.assign({}, ...this.allActiveAddons.map(dep => dep.meta['renamed-packages']));
     let renameModules = Object.assign({}, ...this.allActiveAddons.map(dep => dep.meta['renamed-modules']));
 
@@ -174,13 +145,12 @@ export class CompatAppBuilder {
       renamePackages,
       resolvableExtensions: this.resolvableExtensions(),
       appRoot: this.origAppPackage.root,
-      engines: engines.map((appFiles, index) => ({
-        packageName: appFiles.engine.package.name,
-        // first engine is the app, which has been relocated to this.root
+      engines: engines.map(engine => ({
+        packageName: engine.package.name,
         // we need to use the real path here because webpack requests always use the real path i.e. follow symlinks
-        root: realpathSync(index === 0 ? this.root : appFiles.engine.package.root),
-        fastbootFiles: appFiles.fastbootFiles,
-        activeAddons: [...appFiles.engine.addons]
+        root: realpathSync(engine.package.root),
+        fastbootFiles: {},
+        activeAddons: [...engine.addons]
           .map(([addon, canResolveFromFile]) => ({
             name: addon.name,
             root: addon.root,
@@ -190,7 +160,7 @@ export class CompatAppBuilder {
           // that the last one wins. Our resolver's order is the order to
           // search, so first one wins.
           .reverse(),
-        isLazy: appFiles.engine.package.isLazyEngine(),
+        isLazy: engine.package.isLazyEngine(),
       })),
       amdCompatibility: this.options.amdCompatibility,
 
@@ -208,11 +178,6 @@ export class CompatAppBuilder {
     return config;
   }
 
-  @Memoize()
-  private get resolvableExtensionsPattern(): RegExp {
-    return extensionsPattern(this.resolvableExtensions());
-  }
-
   @Memoize()
   private async babelConfig(resolverConfig: CompatResolverOptions) {
     let babel = cloneDeep(this.compatApp.babelConfig());
@@ -286,7 +251,7 @@ export class CompatAppBuilder {
       { absoluteRuntime: __dirname, useESModules: true, regenerator: false },
     ]);
 
-    const portable = makePortable(babel, { basedir: this.root }, this.portableHints);
+    const portable = makePortable(babel, { basedir: this.origAppPackage.root }, this.portableHints);
     addCachablePlugin(portable.config);
     return portable;
   }
@@ -300,15 +265,7 @@ export class CompatAppBuilder {
       if (!child.isEngine()) {
         this.findActiveAddons(child, engine, true);
       }
-      let canResolveFrom: string;
-      if (pkg === this.appPackageWithMovedDeps) {
-        // we want canResolveFrom to always be a rewritten package path, and our
-        // app's package is not rewritten yet here.
-        canResolveFrom = resolvePath(this.root, 'package.json');
-      } else {
-        // whereas our addons are already moved
-        canResolveFrom = resolvePath(pkg.root, 'package.json');
-      }
+      let canResolveFrom = resolvePath(pkg.root, 'package.json');
       engine.addons.set(child, canResolveFrom);
     }
     // ensure addons are applied in the correct order, if set (via @embroider/compat/v1-addon)
@@ -347,7 +304,7 @@ export class CompatAppBuilder {
             addons: new Map(),
             isApp: !current,
             modulePrefix: addon.name,
-            appRelativePath: explicitRelative(this.root, addon.root),
+            appRelativePath: explicitRelative(this.origAppPackage.root, addon.root),
           });
         }
       }
@@ -356,11 +313,6 @@ export class CompatAppBuilder {
     return done;
   }
 
-  @Memoize()
-  private get activeFastboot() {
-    return this.activeAddonChildren(this.appPackageWithMovedDeps).find(a => a.name === 'ember-cli-fastboot');
-  }
-
   private emberVersion() {
     let pkg = this.activeAddonChildren(this.appPackageWithMovedDeps).find(a => a.name === 'ember-source');
     if (!pkg) {
@@ -369,108 +321,18 @@ export class CompatAppBuilder {
     return pkg.version;
   }
 
-  @Memoize()
-  private get fastbootConfig():
-    | { packageJSON: PackageInfo; extraAppFiles: string[]; extraVendorFiles: string[] }
-    | undefined {
-    if (this.activeFastboot) {
-      // this is relying on work done in stage1 by @embroider/compat/src/compat-adapters/ember-cli-fastboot.ts
-      let packageJSON = readJSONSync(join(this.activeFastboot.root, '_fastboot_', 'package.json'));
-      let { extraAppFiles, extraVendorFiles } = packageJSON['embroider-fastboot'];
-      delete packageJSON['embroider-fastboot'];
-      extraVendorFiles.push('assets/embroider_macros_fastboot_init.js');
-      return { packageJSON, extraAppFiles, extraVendorFiles };
-    }
-  }
-
-  private engines: { engine: Engine; appSync: SyncDir; fastbootSync: SyncDir | undefined }[] | undefined;
-
-  private updateAppJS(appJSPath: string): AppFiles[] {
-    if (!this.engines) {
-      this.engines = this.partitionEngines().map(engine => {
-        if (engine.isApp) {
-          // this is the app. We have more to do for the app than for other
-          // engines.
-          let fastbootSync: SyncDir | undefined;
-          if (this.activeFastboot) {
-            let fastbootDir = this.fastbootJSSrcDir();
-            if (fastbootDir) {
-              fastbootSync = new SyncDir(fastbootDir, resolvePath(this.root, '_fastboot_'));
-            }
-          }
-          return {
-            engine,
-            appSync: new SyncDir(appJSPath, this.root),
-            fastbootSync,
-          };
-        } else {
-          // this is not the app, so it's some other engine. Engines are already
-          // built by stage1 like all other addons, so we only need to observe
-          // their files, not doing any actual copying or building.
-          return {
-            engine,
-            appSync: new SyncDir(engine.package.root, undefined),
-
-            // AFAIK, we've never supported a fastboot overlay directory in an
-            // engine. But if we do need that, it would go here.
-            fastbootSync: undefined,
-          };
-        }
-      });
-    }
-
-    for (let engine of this.engines) {
-      engine.appSync.update();
-      engine.fastbootSync?.update();
-    }
-
-    return this.engines.map(
-      ({ engine, appSync, fastbootSync }) =>
-        new AppFiles(
-          engine,
-          appSync.files,
-          fastbootSync?.files ?? new Set(),
-          this.resolvableExtensionsPattern,
-          this.staticAppPathsPattern,
-          this.podModulePrefix()
-        )
-    );
-  }
-
-  @Memoize()
-  private get staticAppPathsPattern(): RegExp | undefined {
-    if (this.options.staticAppPaths.length > 0) {
-      return new RegExp(
-        '^(?:' + this.options.staticAppPaths.map(staticAppPath => escapeRegExp(staticAppPath)).join('|') + ')(?:$|/)'
-      );
-    }
-  }
-
-  private firstBuild = true;
+  private engines: Engine[] | undefined;
 
-  async build(inputPaths: OutputPaths<TreeNames>) {
+  async build() {
     // on the first build, we lock down the macros config. on subsequent builds,
     // this doesn't do anything anyway because it's idempotent.
     this.compatApp.macrosConfig.finalize();
 
-    // on first build, clear the output directory completely
-    if (this.firstBuild) {
-      rmSync(this.root, { recursive: true, force: true });
-      this.firstBuild = false;
-    }
-
-    let appFiles = this.updateAppJS(inputPaths.appJS);
-    let assetPaths = this.addEmberEntrypoints();
-
-    if (this.activeFastboot) {
-      // when using fastboot, our own package.json needs to be in the output so fastboot can read it.
-      assetPaths.push('package.json');
+    if (!this.engines) {
+      this.engines = this.partitionEngines();
     }
 
-    let pkg = this.combinePackageJSON(assetPaths);
-    writeFileSync(join(this.root, 'package.json'), JSON.stringify(pkg, null, 2), 'utf8');
-
-    let resolverConfig = this.resolverConfig(appFiles);
+    let resolverConfig = this.resolverConfig(this.engines);
     let config = this.configTree.readConfig();
     let contentForConfig = this.contentForTree.readContents();
 
@@ -483,43 +345,6 @@ export class CompatAppBuilder {
     this.addMacrosConfig(this.compatApp.macrosConfig.babelPluginConfig()[0]);
   }
 
-  private combinePackageJSON(assetPaths: string[]): object {
-    let pkgLayers: any[] = [this.origAppPackage.packageJSON];
-    let fastbootConfig = this.fastbootConfig;
-    if (fastbootConfig) {
-      // fastboot-specific package.json output is allowed to add to our original package.json
-      pkgLayers.push(fastbootConfig.packageJSON);
-    }
-
-    let meta: AppMeta = {
-      type: 'app',
-      version: 2,
-      assets: assetPaths,
-      babel: {
-        filename: '_babel_config_.js',
-        isParallelSafe: true, // TODO
-        majorVersion: this.compatApp.babelMajorVersion(),
-        fileFilter: '_babel_filter_.js',
-      },
-      'root-url': this.rootURL(),
-    };
-
-    if ((this.origAppPackage.packageJSON['ember-addon']?.version ?? 0) < 2) {
-      meta['auto-upgraded'] = true;
-      // our rewriting keeps app in app directory, etc.
-      pkgLayers.push({
-        exports: {
-          './*': './app/*',
-          './tests/*': './tests/*',
-        },
-      });
-    }
-
-    pkgLayers.push({ 'ember-addon': meta });
-
-    return combinePackageJSON(...pkgLayers);
-  }
-
   private async etcOptions(resolverConfig: CompatResolverOptions): Promise<EtcOptions> {
     let transforms = this.compatApp.htmlbarsPlugins;
 
@@ -545,10 +370,10 @@ export class CompatAppBuilder {
     let resolver = new Resolver(resolverConfig);
     let resolution = await resolver.nodeResolve(
       'ember-source/vendor/ember/ember-template-compiler',
-      resolvePath(this.root, 'package.json')
+      resolvePath(this.origAppPackage.root, 'package.json')
     );
     if (resolution.type !== 'real') {
-      throw new Error(`bug: unable to resolve ember-template-compiler from ${this.root}`);
+      throw new Error(`bug: unable to resolve ember-template-compiler from ${this.origAppPackage.root}`);
     }
 
     return {
@@ -698,17 +523,6 @@ const { babelFilter } = require(${JSON.stringify(require.resolve('@embroider/cor
 module.exports = babelFilter({{json-stringify skipBabel}}, "{{js-string-escape appRoot}}");
 `) as (params: { skipBabel: Options['skipBabel']; appRoot: string }) => string;
 
-function combinePackageJSON(...layers: object[]) {
-  function custom(objValue: any, srcValue: any, key: string, _object: any, _source: any, stack: { size: number }) {
-    if (key === 'keywords' && stack.size === 0) {
-      if (Array.isArray(objValue)) {
-        return objValue.concat(srcValue);
-      }
-    }
-  }
-  return mergeWith({}, ...layers, custom);
-}
-
 function addCachablePlugin(babelConfig: TransformOptions) {
   if (Array.isArray(babelConfig.plugins) && babelConfig.plugins.length > 0) {
     const plugins = Object.create(null);
@@ -735,9 +549,3 @@ function addCachablePlugin(babelConfig: TransformOptions) {
     ]);
   }
 }
-
-interface TreeNames {
-  appJS: BroccoliNode;
-  publicTree: BroccoliNode | undefined;
-  configTree: BroccoliNode;
-}
diff --git a/packages/compat/src/compat-app.ts b/packages/compat/src/compat-app.ts
index 32459e261..7b01dda28 100644
--- a/packages/compat/src/compat-app.ts
+++ b/packages/compat/src/compat-app.ts
@@ -542,25 +542,6 @@ export default class CompatApp {
     return './' + asset;
   }
 
-  private preprocessJS(tree: BroccoliNode): BroccoliNode {
-    // we're saving all our babel compilation for the final stage packager
-    this.legacyEmberAppInstance.registry.remove('js', 'ember-cli-babel');
-
-    // auto-import is supported natively so we don't need it here
-    this.legacyEmberAppInstance.registry.remove('js', 'ember-auto-import-analyzer');
-
-    tree = buildFunnel(tree, { destDir: this.name });
-
-    tree = this.preprocessors.preprocessJs(tree, `/`, '/', {
-      annotation: 'v1-app-preprocess-js',
-      registry: this.legacyEmberAppInstance.registry,
-    });
-
-    tree = buildFunnel(tree, { srcDir: this.name });
-
-    return tree;
-  }
-
   get htmlbarsPlugins(): Transform[] {
     let plugins = loadAstPlugins(this.legacyEmberAppInstance.registry);
     // even if the app was using @embroider/macros, we drop it from the config
@@ -569,33 +550,6 @@ export default class CompatApp {
     return plugins;
   }
 
-  // our own appTree. Not to be confused with the one that combines the app js
-  // from all addons too.
-  private get appTree(): BroccoliNode {
-    return this.preprocessJS(
-      buildFunnel(this.legacyEmberAppInstance.trees.app, {
-        exclude: ['styles/**', '*.html'],
-        destDir: 'app',
-      })
-    );
-  }
-
-  private get testsTree(): BroccoliNode | undefined {
-    if (this.shouldBuildTests && this.legacyEmberAppInstance.trees.tests) {
-      return this.preprocessJS(
-        buildFunnel(this.legacyEmberAppInstance.trees.tests, {
-          destDir: 'tests',
-        })
-      );
-    }
-  }
-
-  private get lintTree(): BroccoliNode | undefined {
-    if (this.shouldBuildTests) {
-      return this.legacyEmberAppInstance.getLintTests();
-    }
-  }
-
   private get vendorTree(): BroccoliNode | undefined {
     return this.ensureTree(this.legacyEmberAppInstance.trees.vendor);
   }
@@ -622,29 +576,6 @@ export default class CompatApp {
     return this.requireFromEmberCLI('ember-cli-preprocess-registry/preprocessors');
   }
 
-  private get publicTree(): BroccoliNode | undefined {
-    return this.ensureTree(this.legacyEmberAppInstance.trees.public);
-  }
-
-  private processAppJS(): { appJS: BroccoliNode } {
-    let appTree = this.appTree;
-    let testsTree = this.testsTree;
-    let lintTree = this.lintTree;
-
-    let trees: BroccoliNode[] = [];
-    trees.push(appTree);
-
-    if (testsTree) {
-      trees.push(testsTree);
-    }
-    if (lintTree) {
-      trees.push(lintTree);
-    }
-    return {
-      appJS: mergeTrees(trees, { overwrite: true }),
-    };
-  }
-
   readonly macrosConfig: MacrosConfig;
 
   constructor(readonly legacyEmberAppInstance: EmberAppInstance, _options?: Options) {
@@ -674,17 +605,10 @@ export default class CompatApp {
   }
 
   private inTrees(prevStageTree: BroccoliNode) {
-    let publicTree = this.publicTree;
     let configTree = this.config;
     let contentForTree = this.contentFor;
 
-    if (this.options.extraPublicTrees.length > 0) {
-      publicTree = mergeTrees([publicTree, ...this.options.extraPublicTrees].filter(Boolean) as BroccoliNode[]);
-    }
-
     return {
-      appJS: this.processAppJS().appJS,
-      publicTree,
       configTree,
       contentForTree,
       prevStageTree,
@@ -708,7 +632,6 @@ export default class CompatApp {
   }
 
   private async instantiate(
-    root: string,
     packageCache: RewrittenPackageCache,
     configTree: V1Config,
     contentForTree: ContentForConfig
@@ -717,7 +640,6 @@ export default class CompatApp {
     let movedAppPkg = packageCache.withRewrittenDeps(origAppPkg);
     let workingDir = locateEmbroiderWorkingDir(this.root);
     return new CompatAppBuilder(
-      root,
       origAppPkg,
       movedAppPkg,
       this.options,
@@ -735,14 +657,14 @@ export default class CompatApp {
 
     let tree = () => {
       let inTrees = this.inTrees(prevStage.tree);
-      return new WaitForTrees(inTrees, this.annotation, async treePaths => {
+      return new WaitForTrees(inTrees, this.annotation, async _treePaths => {
         if (!this.active) {
           let { outputPath } = await prevStage.ready();
           let packageCache = RewrittenPackageCache.shared('embroider', this.root);
-          this.active = await this.instantiate(outputPath, packageCache, inTrees.configTree, inTrees.contentForTree);
+          this.active = await this.instantiate(packageCache, inTrees.configTree, inTrees.contentForTree);
           resolve({ outputPath });
         }
-        await this.active.build(treePaths);
+        await this.active.build();
       });
     };
 
diff --git a/packages/compat/src/http-audit.ts b/packages/compat/src/http-audit.ts
index 062503c54..417986182 100644
--- a/packages/compat/src/http-audit.ts
+++ b/packages/compat/src/http-audit.ts
@@ -17,8 +17,24 @@ export async function httpAudit(
     return new URL(specifier, fromFile).href;
   }
 
+  async function fetchWithRetry(id: string, options: HTTPAuditOptions) {
+    let remainingTries = 5;
+    let backoffMS = 666;
+
+    for (;;) {
+      try {
+        return await (options.fetch ?? globalThis.fetch)(id);
+      } catch (err) {
+        if (remainingTries-- > 0) {
+          backoffMS *= 1.5;
+          await new Promise(r => setTimeout(r, backoffMS));
+        }
+      }
+    }
+  }
+
   async function load(id: string): Promise<{ content: string | Buffer; type: ContentType }> {
-    let response = await (options.fetch ?? globalThis.fetch)(id);
+    let response = await fetchWithRetry(id, options);
     let content = await response.text();
     let type: ContentType;
     if (response.status !== 200) {
diff --git a/packages/compat/src/options.ts b/packages/compat/src/options.ts
index afb86ce8c..3590b0599 100644
--- a/packages/compat/src/options.ts
+++ b/packages/compat/src/options.ts
@@ -1,5 +1,4 @@
 import type { V1AddonConstructor } from './v1-addon';
-import type { Node } from 'broccoli-node-api';
 import type { Options as CoreOptions } from '@embroider/core';
 import { optionsWithDefaults as coreWithDefaults } from '@embroider/core';
 import type { PackageRules } from './dependency-rules';
@@ -71,11 +70,6 @@ export default interface Options extends CoreOptions {
   // setting your own value here (including null to completely disable it).
   compatAdapters?: Map<string, V1AddonConstructor | null>;
 
-  // optional list of additional broccoli trees that should be incorporated into
-  // the final build. This exists because the classic `app.toTree()` method
-  // accepts an optional tree argument that has the same purpose.
-  extraPublicTrees?: Node[];
-
   // Allows you to tell Embroider about otherwise dynamic dependencies within
   // your app and addons that it can't figure out on its own. These are combined
   // with the default rules that ship with Embroider. Your own rules take
diff --git a/packages/compat/src/standalone-addon-build.ts b/packages/compat/src/standalone-addon-build.ts
index e58ac564d..d6a2ca089 100644
--- a/packages/compat/src/standalone-addon-build.ts
+++ b/packages/compat/src/standalone-addon-build.ts
@@ -42,7 +42,7 @@ ${summarizePeerDepViolations(violations)}
   }
 
   let v1Addons = findV1Addons(appPackage);
-  let index = buildAddonIndex(compatApp, appPackage, v1Addons);
+  let index = buildAddonIndex(appPackage, v1Addons);
 
   let interiorTrees: Node[] = [];
   let exteriorTrees = [...v1Addons].map(pkg => {
@@ -73,7 +73,7 @@ ${summarizePeerDepViolations(violations)}
   ]);
 }
 
-function buildAddonIndex(compatApp: CompatApp, appPackage: Package, packages: Set<Package>): RewrittenPackageIndex {
+function buildAddonIndex(appPackage: Package, packages: Set<Package>): RewrittenPackageIndex {
   let content: RewrittenPackageIndex = {
     packages: {},
     extraResolutions: {},
@@ -87,23 +87,11 @@ function buildAddonIndex(compatApp: CompatApp, appPackage: Package, packages: Se
     }
   }
 
-  // adding an entry for the app itself to have a place in the
-  // rewritten-packages, even though this stage hasn't actually put it there
-  // yet. This directory lives outside our rewritten-pacakges directory because
-  // it's produced by a separate build stage, and it's easier to have them
-  // writing into separate directories.
-  content.packages[compatApp.root] = join('..', '..', '..', 'tmp', 'rewritten-app');
-
   let nonResolvableDeps = appPackage.nonResolvableDeps;
   if (nonResolvableDeps) {
     let extraRoots = [...nonResolvableDeps.values()].map(v => v.root);
-
-    // the app gets extraResolutions support just like every addon does
-    content.extraResolutions[join('..', '..', '..', 'tmp', 'rewritten-app')] = extraRoots;
-
-    // but it also gets extraResolutions registered against its *original*
-    // location, because the app is unique because stage2 needs a Package
-    // representing the *unmoved* app but seeing *moved* deps.
+    // the app gets extraResolutions registered against its *original*
+    // location
     content.extraResolutions[appPackage.root] = extraRoots;
   }
 
diff --git a/packages/compat/src/sync-dir.ts b/packages/compat/src/sync-dir.ts
deleted file mode 100644
index d33a5bb50..000000000
--- a/packages/compat/src/sync-dir.ts
+++ /dev/null
@@ -1,60 +0,0 @@
-import assertNever from 'assert-never';
-import FSTree from 'fs-tree-diff';
-import walkSync from 'walk-sync';
-import { resolve } from 'path';
-import { copySync, mkdirpSync, removeSync, rmdirSync, unlinkSync } from 'fs-extra';
-
-// mirrors the changes in the src dir to the dest dir, while tracking the
-// current set of files present. If dest is undefined, it only tracks the set of
-// files without mirroring the changes to anywhere
-export class SyncDir {
-  private prev: FSTree = new FSTree();
-  readonly files: Set<string> = new Set();
-
-  constructor(private src: string, private dest: string | undefined) {}
-
-  update(): void {
-    let next = new FSTree({
-      entries: walkSync.entries(this.src),
-    });
-    for (let [operation, relativePath] of this.prev.calculatePatch(next)) {
-      let outputPath: string | undefined;
-      if (this.dest) {
-        outputPath = resolve(this.dest, relativePath);
-      }
-      switch (operation) {
-        case 'unlink':
-          if (outputPath) {
-            unlinkSync(outputPath);
-          }
-          this.files.delete(relativePath);
-          break;
-        case 'rmdir':
-          if (outputPath) {
-            rmdirSync(outputPath);
-          }
-          break;
-        case 'mkdir':
-          if (outputPath) {
-            mkdirpSync(outputPath);
-          }
-          break;
-        case 'change':
-          if (outputPath) {
-            removeSync(outputPath);
-            copySync(resolve(this.src, relativePath), outputPath, { dereference: true });
-          }
-          break;
-        case 'create':
-          if (outputPath) {
-            copySync(resolve(this.src, relativePath), outputPath, { dereference: true });
-          }
-          this.files.add(relativePath);
-          break;
-        default:
-          assertNever(operation);
-      }
-      this.prev = next;
-    }
-  }
-}
diff --git a/packages/test-setup/src/index.ts b/packages/test-setup/src/index.ts
index a88ee633c..ac75e2f18 100644
--- a/packages/test-setup/src/index.ts
+++ b/packages/test-setup/src/index.ts
@@ -25,7 +25,7 @@ const embroiderDevDeps = {
 */
 export function maybeEmbroider(app: any, opts: PipelineOptions<EmberWebpackOptions> = {}) {
   if (!shouldUseEmbroider(app)) {
-    return app.toTree(opts?.extraPublicTrees);
+    return app.toTree();
   }
 
   // we're using `require` here on purpose because
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 1a3a9a596..fc1cc294f 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -250,9 +250,6 @@ importers:
       debug:
         specifier: ^4.3.2
         version: 4.3.6(supports-color@8.1.1)
-      escape-string-regexp:
-        specifier: ^4.0.0
-        version: 4.0.0
       fast-sourcemap-concat:
         specifier: ^2.1.1
         version: 2.1.1
@@ -1664,8 +1661,8 @@ importers:
         specifier: ^3.23.0
         version: 3.29.4
       scenario-tester:
-        specifier: ^4.1.0
-        version: 4.1.0
+        specifier: ^4.1.1
+        version: 4.1.1
       semver:
         specifier: ^7.3.8
         version: 7.6.3
@@ -23187,8 +23184,8 @@ packages:
       yargs: 16.2.0
     dev: true
 
-  /scenario-tester@4.1.0:
-    resolution: {integrity: sha512-kaEL+iG3snSoXRnxUNXmyoKMpcGinnmqjacy44qNFKKoJSAkrb3QbgpgUcBu/DjuA5DH9dZeEQvSq6wDa5Ql2g==}
+  /scenario-tester@4.1.1:
+    resolution: {integrity: sha512-wJ6u1TqnvRsPgLKOA8RRAePKFrduxuynE2uZo98PPuWc9BzqQuEMQmNPKS2sFbhHwgY88VstqpDSjWoxdtkONw==}
     hasBin: true
     dependencies:
       fixturify-project: 7.1.2
diff --git a/tests/addon-template/vite.config.mjs b/tests/addon-template/vite.config.mjs
index e0d1511f4..4121500ba 100644
--- a/tests/addon-template/vite.config.mjs
+++ b/tests/addon-template/vite.config.mjs
@@ -12,13 +12,8 @@ import {
 import { resolve } from "path";
 import { babel } from "@rollup/plugin-babel";
 
-const root = "tmp/rewritten-app";
-
 export default defineConfig(({ mode }) => {
   return {
-    root,
-    // esbuild in vite does not support decorators
-    esbuild: false,
     cacheDir: resolve("node_modules", ".vite"),
     resolve: {
       extensions: [
@@ -61,14 +56,14 @@ export default defineConfig(({ mode }) => {
     // If the "app" is a classic addon dummy app, the public directory is tests/dummy/public,
     // any public directory at the root would rather contain the assets provided by the addon,
     // which are managed by the assets plugin.
-    publicDir: resolve(process.cwd(), "tests/dummy/public"),
+    publicDir: "tests/dummy/public",
     build: {
-      outDir: resolve(process.cwd(), "dist"),
+      outDir: "dist",
       rollupOptions: {
         input: {
-          main: resolve(root, "index.html"),
+          main: "index.html",
           ...(shouldBuildTests(mode)
-            ? { tests: resolve(root, "tests/index.html") }
+            ? { tests: "tests/index.html" }
             : undefined),
         },
       },
diff --git a/tests/app-template/ember-cli-build.js b/tests/app-template/ember-cli-build.js
index ab01aed3e..ebb76e53a 100644
--- a/tests/app-template/ember-cli-build.js
+++ b/tests/app-template/ember-cli-build.js
@@ -6,11 +6,5 @@ const { maybeEmbroider } = require('@embroider/test-setup');
 module.exports = function (defaults) {
   let app = new EmberApp(defaults, {});
 
-  return maybeEmbroider(app, {
-    skipBabel: [
-      {
-        package: 'qunit',
-      },
-    ],
-  });
+  return maybeEmbroider(app);
 };
diff --git a/tests/app-template/testem.js b/tests/app-template/testem.js
index ed2f37124..b4b6691fd 100644
--- a/tests/app-template/testem.js
+++ b/tests/app-template/testem.js
@@ -1,23 +1,25 @@
 'use strict';
 
-module.exports = {
-  test_page: 'tests/index.html?hidepassed',
-  disable_watching: true,
-  launch_in_ci: ['Chrome'],
-  launch_in_dev: ['Chrome'],
-  browser_start_timeout: 120,
-  browser_args: {
-    Chrome: {
-      ci: [
-        // --no-sandbox is needed when running Chrome inside a container
-        process.env.CI ? '--no-sandbox' : null,
-        '--headless',
-        '--disable-dev-shm-usage',
-        '--disable-software-rasterizer',
-        '--mute-audio',
-        '--remote-debugging-port=0',
-        '--window-size=1440,900',
-      ].filter(Boolean),
+if (typeof module !== 'undefined') {
+  module.exports = {
+    test_page: 'tests/index.html?hidepassed',
+    disable_watching: true,
+    launch_in_ci: ['Chrome'],
+    launch_in_dev: ['Chrome'],
+    browser_start_timeout: 120,
+    browser_args: {
+      Chrome: {
+        ci: [
+          // --no-sandbox is needed when running Chrome inside a container
+          process.env.CI ? '--no-sandbox' : null,
+          '--headless',
+          '--disable-dev-shm-usage',
+          '--disable-software-rasterizer',
+          '--mute-audio',
+          '--remote-debugging-port=0',
+          '--window-size=1440,900',
+        ].filter(Boolean),
+      },
     },
-  },
-};
+  };
+}
diff --git a/tests/app-template/vite.config.mjs b/tests/app-template/vite.config.mjs
index 9298c30e8..283be3c43 100644
--- a/tests/app-template/vite.config.mjs
+++ b/tests/app-template/vite.config.mjs
@@ -12,11 +12,8 @@ import {
 import { resolve } from "path";
 import { babel } from "@rollup/plugin-babel";
 
-const root = "tmp/rewritten-app";
-
 export default defineConfig(({ mode }) => {
   return {
-    root,
     cacheDir: resolve("node_modules", ".vite"),
     resolve: {
       extensions: [
@@ -50,20 +47,16 @@ export default defineConfig(({ mode }) => {
       }),
     ],
     optimizeDeps: optimizeDeps(),
-    publicDir: resolve(process.cwd(), "public"),
     server: {
       port: 4200,
-      watch: {
-        ignored: ["!**/tmp/**"],
-      },
     },
     build: {
-      outDir: resolve(process.cwd(), "dist"),
+      outDir: "dist",
       rollupOptions: {
         input: {
-          main: resolve(root, "index.html"),
+          main: "index.html",
           ...(shouldBuildTests(mode)
-            ? { tests: resolve(root, "tests/index.html") }
+            ? { tests: "tests/index.html" }
             : undefined),
         },
       },
diff --git a/tests/scenarios/compat-app-html-attributes-test.ts b/tests/scenarios/compat-app-html-attributes-test.ts
deleted file mode 100644
index ec04b0a28..000000000
--- a/tests/scenarios/compat-app-html-attributes-test.ts
+++ /dev/null
@@ -1,72 +0,0 @@
-import type { ExpectFile } from '@embroider/test-support/file-assertions/qunit';
-import { expectFilesAt } from '@embroider/test-support/file-assertions/qunit';
-import { appScenarios } from './scenarios';
-import QUnit from 'qunit';
-import { join } from 'path';
-
-const { module: Qmodule, test } = QUnit;
-
-appScenarios
-  .map('compat-app-script-attributes', app => {
-    let indexHtml = app.files['index.html'];
-
-    if (typeof indexHtml !== 'string') {
-      throw new Error('index.html unexpectedly missing');
-    }
-
-    // <link ... href=".../app-template.css"> => <link ... href=".../app-template.css" data-original-filename="app-template.css">
-    indexHtml = indexHtml.replace('vendor.css">', 'vendor.css" data-original-filename="vendor.css">');
-    indexHtml = indexHtml.replace('app-template.css">', 'app-template.css" data-original-filename="app-template.css">');
-
-    // <link integrity="" rel="stylesheet" => <link integrity="" rel="stylesheet prefetch"
-    indexHtml = indexHtml.replace(
-      /<link integrity="" rel="stylesheet"/g,
-      '<link integrity="" rel="stylesheet prefetch"'
-    );
-
-    // <script ... src=".../vendor.js"> => <script ... src=".../vendor.js" data-original-filename="vendor.js">
-    indexHtml = indexHtml.replace('vendor.js">', 'vendor.js" data-original-filename="vendor.js">');
-    indexHtml = indexHtml.replace(' type="module">', ' data-original-filename="entrypoint" type="module">');
-
-    // <script ... => <script defer ...
-    indexHtml = indexHtml.replace(/<script /g, '<script defer ');
-
-    app.mergeFiles({
-      'index.html': indexHtml,
-    });
-  })
-  .forEachScenario(scenario => {
-    let expectFile: ExpectFile;
-
-    Qmodule(scenario.name, function (hooks) {
-      hooks.beforeEach(async assert => {
-        let app = await scenario.prepare();
-        let result = await app.execute('ember build', { env: { EMBROIDER_PREBUILD: 'true' } });
-        assert.equal(result.exitCode, 0, result.output);
-        expectFile = expectFilesAt(join(app.dir, 'tmp', 'rewritten-app'), { qunit: assert });
-      });
-
-      test('custom HTML attributes are passed through', () => {
-        expectFile('./index.html').matches('<link integrity="" rel="stylesheet prefetch"', 'has the prefetch script');
-        expectFile('./index.html').doesNotMatch('rel="stylesheet"', 'does not have rel=stylesheet');
-        expectFile('./index.html').matches('<script defer', 'has script defer');
-        expectFile('./index.html').doesNotMatch('<script src', 'does not have script src');
-        expectFile('./index.html').matches(
-          'data-original-filename="vendor.css">',
-          'has data-original-filename vendor.css'
-        );
-        expectFile('./index.html').matches(
-          '" data-original-filename="app-template.css">',
-          'has data-original-filename app-template.css'
-        );
-        expectFile('./index.html').matches(
-          '" data-original-filename="vendor.js">',
-          'has data-original-filename vendor.js'
-        );
-        expectFile('./index.html').matches(
-          ' data-original-filename="entrypoint" type="module">',
-          'has data-original-filename entrypoint'
-        );
-      });
-    });
-  });
diff --git a/tests/scenarios/compat-dummy-app-test.ts b/tests/scenarios/compat-dummy-app-test.ts
index 29c798a5a..502fd7f1c 100644
--- a/tests/scenarios/compat-dummy-app-test.ts
+++ b/tests/scenarios/compat-dummy-app-test.ts
@@ -14,6 +14,7 @@ import { dummyAppScenarios } from './scenarios';
 import CommandWatcher from './helpers/command-watcher';
 
 dummyAppScenarios
+  .skip()
   .map('compat-dummy-app-tests', project => {
     merge(project.files, {
       addon: {
diff --git a/tests/scenarios/compat-exclude-dot-files-test.ts b/tests/scenarios/compat-exclude-dot-files-test.ts
index 270e4c508..aabd18c44 100644
--- a/tests/scenarios/compat-exclude-dot-files-test.ts
+++ b/tests/scenarios/compat-exclude-dot-files-test.ts
@@ -32,9 +32,9 @@ appScenarios
       };
       `,
       app: {
-        '.foobar.js': `// foobar content`,
-        '.barbaz.js': `// barbaz content`,
-        'bizbiz.js': `// bizbiz content`,
+        '.foobar.js': `// foobar content\nexport {}`,
+        '.barbaz.js': `// barbaz content\nexport {}`,
+        'bizbiz.js': `// bizbiz content\nexport {}`,
       },
     });
 
@@ -42,8 +42,8 @@ appScenarios
     addon.pkg.name = 'my-addon';
     merge(addon.files, {
       addon: {
-        '.fooaddon.js': `// fooaddon content`,
-        'baraddon.js': `// bizbiz content`,
+        '.fooaddon.js': `// fooaddon content\nexport {}`,
+        'baraddon.js': `// bizbiz content\nexport {}`,
       },
     });
     app.addDevDependency(addon);
diff --git a/tests/scenarios/compat-plugin-hints-test.ts b/tests/scenarios/compat-plugin-hints-test.ts
deleted file mode 100644
index 503a533de..000000000
--- a/tests/scenarios/compat-plugin-hints-test.ts
+++ /dev/null
@@ -1,71 +0,0 @@
-import type { ExpectFile } from '@embroider/test-support/file-assertions/qunit';
-import { expectFilesAt } from '@embroider/test-support/file-assertions/qunit';
-import { throwOnWarnings } from '@embroider/core';
-import type { PreparedApp } from 'scenario-tester';
-import { appScenarios } from './scenarios';
-import { readFileSync } from 'fs';
-import { join } from 'path';
-import QUnit from 'qunit';
-const { module: Qmodule, test } = QUnit;
-
-export function samplePlugin() {
-  return { visitor: {} };
-}
-
-appScenarios
-  .map('compat-plugin-hints', app => {
-    app.files['ember-cli-build.js'] = `
-      'use strict';
-
-      const EmberApp = require('ember-cli/lib/broccoli/ember-app');
-      const { maybeEmbroider } = require('@embroider/test-setup');
-
-      module.exports = function (defaults) {
-        let app = new EmberApp(defaults, {
-          babel: {
-            plugins: [
-              // deliberately non-serializable form
-              require("${__filename.replace(/\\/g, '/').replace(/\.ts$/, '.js')}").samplePlugin
-            ]
-          }
-        });
-
-        return maybeEmbroider(app, {
-          skipBabel: [
-            {
-              package: 'qunit',
-            },
-          ],
-          pluginHints: [
-            {
-              resolve: ["${__filename.replace(/\\/g, '/').replace(/\.ts$/, '.js')}"],
-              useMethod: 'samplePlugin',
-            },
-          ],
-        });
-      };
-      `;
-  })
-  .forEachScenario(scenario => {
-    Qmodule(scenario.name, function (hooks) {
-      throwOnWarnings(hooks);
-
-      let app: PreparedApp;
-
-      let expectFile: ExpectFile;
-
-      hooks.before(async assert => {
-        app = await scenario.prepare();
-        let result = await app.execute('ember build', { env: { EMBROIDER_PREBUILD: 'true' } });
-        assert.equal(result.exitCode, 0, result.output);
-      });
-
-      hooks.beforeEach(assert => {
-        expectFile = expectFilesAt(readFileSync(join(app.dir, 'dist/.stage2-output'), 'utf8'), { qunit: assert });
-      });
-
-      test('is parallel safe', function () {
-        expectFile('./package.json').json().get('ember-addon.babel.isParallelSafe').equals(true);
-      });
-    });
-  });
diff --git a/tests/scenarios/compat-preprocessors-test.ts b/tests/scenarios/compat-preprocessors-test.ts
index 0a607db83..22d540851 100644
--- a/tests/scenarios/compat-preprocessors-test.ts
+++ b/tests/scenarios/compat-preprocessors-test.ts
@@ -7,7 +7,11 @@ import merge from 'lodash/merge';
 import QUnit from 'qunit';
 const { module: Qmodule, test } = QUnit;
 
+// skipping this entire test suite. As of inversion-of-control, we don't have
+// support for custom JS preprocessors applied to app code. We may choose to
+// reimplement in the future.
 appScenarios
+  .skip()
   .map('compat-preprocessors', app => {
     function makePreprocessor() {
       let addonPreprocessor = baseAddon();
diff --git a/tests/scenarios/compat-stage2-test.ts b/tests/scenarios/compat-stage2-test.ts
index 8663049b3..1ae156e8e 100644
--- a/tests/scenarios/compat-stage2-test.ts
+++ b/tests/scenarios/compat-stage2-test.ts
@@ -1,4 +1,3 @@
-import type { Options } from '@embroider/compat';
 import type { PreparedApp, Project } from 'scenario-tester';
 import { appScenarios, baseAddon, dummyAppScenarios, renameApp } from './scenarios';
 import { resolve, join } from 'path';
@@ -7,10 +6,7 @@ import type { ExpectFile } from '@embroider/test-support/file-assertions/qunit';
 import { expectRewrittenFilesAt } from '@embroider/test-support/file-assertions/qunit';
 import { throwOnWarnings } from '@embroider/core';
 import merge from 'lodash/merge';
-import fetch from 'node-fetch';
 import QUnit from 'qunit';
-import { setupAuditTest } from '@embroider/test-support/audit-assertions';
-import CommandWatcher from './helpers/command-watcher';
 import { readJsonSync, writeJsonSync } from 'fs-extra';
 
 const { module: Qmodule, test } = QUnit;
@@ -19,17 +15,6 @@ let stage2Scenarios = appScenarios.map('compat-stage2-build', app => {
   renameApp(app, 'my-app');
 });
 
-function resolveEntryPoint(expectAudit: ReturnType<typeof setupAuditTest>) {
-  return expectAudit
-    .module('./index.html')
-    .resolves(/\/index.html.*/) // in-html app-boot script
-    .toModule()
-    .resolves(/\/app\/app\.js.*/)
-    .toModule()
-    .resolves(/.*\/-embroider-entrypoint.js/)
-    .toModule();
-}
-
 stage2Scenarios
   .map('in-repo-addons-of-addons', app => {
     app.mergeFiles({
@@ -291,568 +276,8 @@ stage2Scenarios
     });
   });
 
-stage2Scenarios
-  .map('static-with-rules', app => {
-    app.addDependency('some-library', '1.0.0');
-    app.linkDependency('@embroider/sample-transforms', { baseDir: __dirname });
-
-    let options: Options = {
-      staticAddonTrees: false,
-      amdCompatibility: {
-        es: [['not-a-resolvable-package', ['default']]],
-      },
-      skipBabel: [
-        {
-          package: 'babel-filter-test1',
-        },
-        {
-          package: 'babel-filter-test2',
-          semverRange: '^4.0.0',
-        },
-        {
-          package: 'babel-filter-test3',
-          semverRange: '^2.0.0',
-        },
-      ],
-      staticAppPaths: ['static-dir', 'top-level-static.js'],
-      packageRules: [
-        {
-          package: 'my-addon',
-          components: {
-            '{{hello-world}}': {
-              acceptsComponentArguments: [
-                {
-                  name: 'useDynamic',
-                  becomes: 'dynamicComponentName',
-                },
-              ],
-              layout: {
-                addonPath: 'templates/components/hello-world.hbs',
-              },
-            },
-          },
-          addonModules: {
-            'components/hello-world.js': {
-              dependsOnModules: ['../synthetic-import-1'],
-              dependsOnComponents: ['{{second-choice}}'],
-            },
-          },
-          addonTemplates: {
-            'templates/addon-example.hbs': {
-              invokes: {
-                'this.stuff': ['<SyntheticImport2 />'],
-              },
-            },
-          },
-          appModules: {
-            'components/hello-world.js': {
-              dependsOnModules: ['my-addon/synthetic-import-1'],
-            },
-          },
-          appTemplates: {
-            'templates/app-example.hbs': {
-              invokes: {
-                'this.stuff': ['<SyntheticImport2 />'],
-              },
-            },
-          },
-        },
-      ],
-    };
-
-    merge(app.files, {
-      'ember-cli-build.js': `
-        'use strict';
-        const EmberApp = require('ember-cli/lib/broccoli/ember-app');
-        const { prebuild } = require('@embroider/compat');
-        let opts = ${JSON.stringify(options)};
-        module.exports = function (defaults) {
-          let app = new EmberApp(defaults, {
-            babel: {
-              plugins: [require.resolve('ember-auto-import/babel-plugin')]
-            }
-          });
-
-          return prebuild(app, {
-            skipBabel: [
-              {
-                package: 'qunit',
-              },
-            ],
-            ...opts
-          });
-        };
-        `,
-      app: {
-        templates: {
-          'index.hbs': `
-          <HelloWorld @useDynamic="first-choice" />
-          <HelloWorld @useDynamic={{"second-choice"}} />
-          <HelloWorld @useDynamic={{component "third-choice"}} />
-          <DirectTemplateReexport />
-        `,
-          'curly.hbs': `
-          {{hello-world useDynamic="first-choice" }}
-          {{hello-world useDynamic=(component "third-choice") }}
-        `,
-          components: {
-            'first-choice.hbs': 'first',
-            'second-choice.hbs': 'second',
-            'third-choice.hbs': 'third',
-            'module-name-check': {
-              'index.hbs': '<div class={{embroider-sample-transforms-module}}>hello world</div>',
-            },
-          },
-        },
-        components: {
-          'uses-inline-template.js': `
-          import hbs from "htmlbars-inline-precompile";
-          export default Component.extend({
-            layout: hbs${'`'}<FirstChoice/>${'`'}
-          })
-          `,
-        },
-        'use-deep-addon.js': `import thing from 'deep-addon'`,
-        'custom-babel-needed.js': `console.log('embroider-sample-transforms-target');`,
-        'does-dynamic-import.js': `
-          export default function() {
-            return import('some-library');
-          }
-        `,
-        helpers: {
-          'embroider-sample-transforms-module.js': 'export default function() {}',
-        },
-        'static-dir': {
-          'my-library.js': '',
-        },
-        'static-dir-not-really': {
-          'something.js': '',
-        },
-        'non-static-dir': {
-          'pull-some-things-into-the-build.js': `
-            import '../components/uses-inline-template.js';
-          `,
-          'another-library.js': '',
-        },
-        'top-level-static.js': '',
-      },
-      public: {
-        'public-file-1.txt': `initial state`,
-      },
-    });
-
-    let addon = addAddon(app, 'my-addon');
-    merge(addon.files, {
-      addon: {
-        components: {
-          'hello-world.js': `
-            import Component from '@ember/component';
-            import layout from '../templates/components/hello-world';
-            import computed from '@ember/object/computed';
-            import somethingExternal from 'not-a-resolvable-package';
-            export default Component.extend({
-              dynamicComponentName: computed('useDynamic', function() {
-                return this.useDynamic || 'default-dynamic';
-              }),
-              layout
-            });
-          `,
-          'has-relative-template.js': `
-            import Component from '@ember/component';
-            import layout from './t';
-            export default Component.extend({
-              layout
-            });
-          `,
-          't.hbs': ``,
-          'uses-amd-require.js': `
-            export default function() {
-              require('some-package');
-            }
-          `,
-        },
-        'synthetic-import-1.js': '',
-        templates: {
-          'addon-example.hbs': '{{component this.stuff}}',
-          components: {
-            'hello-world.hbs': `
-              {{component dynamicComponentName}}
-            `,
-          },
-        },
-      },
-      app: {
-        components: {
-          'hello-world.js': `export { default } from 'my-addon/components/hello-world'`,
-          'synthetic-import2.js': `export default function() {}`,
-        },
-        templates: {
-          'app-example.hbs': `{{component this.stuff}}`,
-          components: {
-            'direct-template-reexport.js': `export { default } from 'my-addon/templates/components/hello-world';`,
-          },
-        },
-      },
-      public: {
-        'package.json': JSON.stringify({ customStuff: { fromMyAddon: true }, name: 'should-be-overridden' }),
-      },
-    });
-
-    let deepAddon = addAddon(addon, 'deep-addon');
-    merge(deepAddon.files, {
-      addon: {
-        'index.js': 'export default function() {}',
-      },
-    });
-
-    app.addDependency('babel-filter-test1', '1.2.3').files = {
-      'index.js': '',
-    };
-
-    app.addDependency('babel-filter-test2', '4.5.6').files = {
-      'index.js': '',
-    };
-
-    app.addDependency('babel-filter-test3', '1.0.0').files = {
-      'index.js': '',
-    };
-
-    app.addDependency('babel-filter-test4', '1.0.0').files = {
-      'index.js': `
-          module.exports = function() {
-            return require('some-package');
-          }
-        `,
-    };
-  })
-  .forEachScenario(scenario => {
-    Qmodule(scenario.name, function (hooks) {
-      throwOnWarnings(hooks);
-
-      let app: PreparedApp;
-      let server: CommandWatcher;
-      let appURL: string;
-      let expectFile: ExpectFile;
-      let build: Transpiler;
-
-      hooks.before(async () => {
-        app = await scenario.prepare();
-        server = CommandWatcher.launch('vite', ['--clearScreen', 'false'], { cwd: app.dir });
-        [, appURL] = await server.waitFor(/Local:\s+(https?:\/\/.*)\//g);
-      });
-
-      hooks.beforeEach(assert => {
-        expectFile = expectRewrittenFilesAt(app.dir, { qunit: assert });
-        build = new Transpiler(app.dir);
-      });
-
-      hooks.after(async () => {
-        await server?.shutdown();
-      });
-
-      let expectAudit = setupAuditTest(hooks, () => ({
-        appURL,
-        startingFrom: ['index.html'],
-        fetch: fetch as unknown as typeof globalThis.fetch,
-      }));
-
-      test('no audit issues', function () {
-        // among other things, this is asserting that dynamicComponent in
-        // hello-world.hbs is not an error because the rules covered it
-        expectAudit.hasNoFindings();
-      });
-
-      test('index.hbs', function (assert) {
-        let expectModule = expectAudit.module('./app/templates/index.hbs');
-
-        // explicit dependency
-        expectModule
-          .resolves(/my-addon\/_app_\/components\/hello-world/)
-          .toModule()
-          .codeContains('');
-
-        // static component helper dependency
-        expectModule
-          .resolves(/\/components\/third-choice.hbs\/-embroider-pair-component/)
-          .toModule()
-          .withContents(contents => {
-            assert.ok(
-              /setComponentTemplate\(template, templateOnlyComponent\(undefined, "third-choice"\)\);/.test(contents)
-            );
-            return true;
-          });
-
-        // rule-driven string attribute
-        expectModule
-          .resolves(/\/components\/first-choice.hbs\/-embroider-pair-component/)
-          .toModule()
-          .withContents(contents => {
-            assert.ok(
-              /setComponentTemplate\(template, templateOnlyComponent\(undefined, "first-choice"\)\);/.test(contents)
-            );
-            return true;
-          });
-
-        // rule-driven mustache string literal
-        expectModule
-          .resolves(/\/components\/second-choice.hbs\/-embroider-pair-component/)
-          .toModule()
-          .withContents(contents => {
-            assert.ok(
-              /setComponentTemplate\(template, templateOnlyComponent\(undefined, "second-choice"\)\);/.test(contents)
-            );
-            return true;
-          });
-      });
-
-      test('curly.hbs', function (assert) {
-        let expectModule = expectAudit.module('./app/templates/curly.hbs');
-        expectModule
-          .resolves(/my-addon\/_app_\/components\/hello-world/)
-          .toModule()
-          .codeContains('');
-
-        expectModule
-          .resolves(/\/components\/third-choice.hbs\/-embroider-pair-component/)
-          .toModule()
-          .withContents(contents => {
-            assert.ok(
-              /setComponentTemplate\(template, templateOnlyComponent\(undefined, "third-choice"\)\);/.test(contents)
-            );
-            return true;
-          });
-
-        expectModule
-          .resolves(/\/components\/first-choice.hbs\/-embroider-pair-component/)
-          .toModule()
-          .withContents(contents => {
-            assert.ok(
-              /setComponentTemplate\(template, templateOnlyComponent\(undefined, "first-choice"\)\);/.test(contents)
-            );
-            return true;
-          });
-      });
-
-      test('app/hello-world.js', function (assert) {
-        expectAudit
-          .module('./app/templates/index.hbs')
-          .resolves(/my-addon\/_app_\/components\/hello-world/)
-          .toModule()
-          .withContents(contents => {
-            const [, importCompat] =
-              /import (.*) from ".*@embroider\/macros\/src\/addon\/es-compat2.js.*";/.exec(contents) ?? [];
-            const [, importName] =
-              /import \* as (\w+) from ".*\/my-addon\/synthetic-import-1.js.*";/.exec(contents) ?? [];
-            assert.ok(
-              contents.includes(
-                `window.define("my-addon/synthetic-import-1", function () {\n  return ${importCompat}(${importName});\n});`
-              )
-            );
-            assert.ok(/export { default } from ".*my-addon\/components\/hello-world.js.*"/.test(contents));
-            return true;
-          });
-      });
-
-      test('addon/hello-world.js', function (assert) {
-        const expectModule = expectAudit
-          .module('./app/templates/index.hbs')
-          .resolves(/my-addon\/_app_\/components\/hello-world/)
-          .toModule()
-          .resolves(/my-addon\/components\/hello-world\.js/) // remapped to precise copy of my-addon
-          .toModule();
-
-        expectModule.codeContains(`
-          export default Component.extend({
-            dynamicComponentName: computed('useDynamic', function () {
-              return this.useDynamic || 'default-dynamic';
-            }),
-            layout
-          });
-        `);
-        expectModule.withContents(contents => {
-          const [, importCompat] =
-            /import (.*) from ".*@embroider\/macros\/src\/addon\/es-compat2.js.*";/.exec(contents) ?? [];
-          let [, importName] =
-            /import \* as (\w+) from ".*\/components\/second-choice.hbs\/-embroider-pair-component";/.exec(contents) ??
-            [];
-          assert.ok(
-            contents.includes(
-              `window.define("my-app/components/second-choice", function () {\n  return ${importCompat}(${importName});\n});`
-            )
-          );
-          [, importName] = /import \* as (\w+) from ".*\/my-addon\/synthetic-import-1.js.*";/.exec(contents) ?? [];
-          assert.ok(
-            contents.includes(
-              `window.define("my-addon/synthetic-import-1", function () {\n  return ${importCompat}(${importName});\n});`
-            )
-          );
-          return true;
-        });
-      });
-
-      test('app/templates/components/direct-template-reexport.js', function (assert) {
-        expectAudit
-          .module('./app/templates/index.hbs')
-          .resolves(/my-addon\/_app_\/templates\/components\/direct-template-reexport\.js\/-embroider-pair-component/)
-          .toModule()
-          .resolves(/my-addon\/_app_\/templates\/components\/direct-template-reexport\.js/)
-          .toModule()
-          .withContents(contents => {
-            assert.ok(
-              /export { default } from ".*\/my-addon\/templates\/components\/hello-world.hbs.*";/.test(contents)
-            );
-            return true;
-          });
-      });
-
-      test('uses-inline-template.js', function (assert) {
-        expectAudit
-          .module('./app/components/uses-inline-template.js')
-          .resolves(/\/components\/first-choice.hbs\/-embroider-pair-component/)
-          .toModule()
-          .withContents(contents => {
-            assert.ok(
-              /setComponentTemplate\(template, templateOnlyComponent\(undefined, "first-choice"\)\);/.test(contents)
-            );
-            return true;
-          });
-      });
-
-      test('component with relative import of arbitrarily placed template', function () {
-        expectAudit
-          .module(/\/app\/app\.js.*/)
-          .resolves(/.*\/-embroider-entrypoint\.js/)
-          .toModule()
-          .resolves(/.*\/-embroider-implicit-modules\.js/)
-          .toModule()
-          .resolves(/my-addon\/components\/has-relative-template\.js/)
-          .toModule()
-          .resolves(/my-addon\/components\/t.js/)
-          .toModule()
-          .codeContains(`/* import __COLOCATED_TEMPLATE__ from './t.hbs'; */`);
-      });
-
-      test('app can import a deep addon', function () {
-        expectAudit
-          .module('./app/use-deep-addon.js')
-          .resolves(/deep-addon\/index.js/)
-          .toModule()
-          .codeContains('export default function () {}');
-      });
-
-      test('amd require in an addon gets rewritten to window.require', function () {
-        let assertFile = expectFile('node_modules/my-addon/components/uses-amd-require.js').transform(build.transpile);
-        assertFile.matches(/window\.require\(['"]some-package['"]\)/, 'should find window.require');
-      });
-
-      test('cjs require in non-ember package does not get rewritten to window.require', function () {
-        let assertFile = expectFile('node_modules/babel-filter-test4/index.js').transform(build.transpile);
-        assertFile.matches(/return require\(['"]some-package['"]\)/, 'should find plain cjs require');
-      });
-
-      test('transpilation runs for ember addons', async function (assert) {
-        assert.ok(build.shouldTranspile('node_modules/my-addon/components/has-relative-template.js'));
-      });
-
-      test('transpilation is skipped when package matches skipBabel', async function (assert) {
-        assert.ok(!build.shouldTranspile('node_modules/babel-filter-test1/index.js'));
-      });
-
-      test('transpilation is skipped when package and version match skipBabel', async function (assert) {
-        assert.ok(!build.shouldTranspile('node_modules/babel-filter-test2/index.js'));
-      });
-
-      test('transpilation runs when package version does not match skipBabel', async function (assert) {
-        assert.ok(build.shouldTranspile('node_modules/babel-filter-test3/index.js'));
-      });
-
-      test('transpilation runs for non-ember package that is not explicitly skipped', async function (assert) {
-        assert.ok(build.shouldTranspile('node_modules/babel-filter-test4/index.js'));
-      });
-
-      test(`app's babel plugins ran`, async function () {
-        let assertFile = expectFile('app/custom-babel-needed.js').transform(build.transpile);
-        assertFile.matches(/console\.log\(['"]embroider-sample-transforms-result['"]\)/);
-      });
-
-      test('dynamic import is preserved', function () {
-        expectFile('./app/does-dynamic-import.js')
-          .transform(build.transpile)
-          .matches(/return import\(['"]some-library['"]\)/);
-      });
-
-      test('hbs transform sees expected module name', function () {
-        let assertFile = expectFile('app/templates/components/module-name-check/index.hbs').transform(build.transpile);
-        assertFile.matches(
-          '"my-app/app/templates/components/module-name-check/index.hbs"',
-          'our sample transform injected the expected moduleName into the compiled template'
-        );
-      });
-
-      test('non-static other paths are included in the entrypoint', function (assert) {
-        resolveEntryPoint(expectAudit).withContents(contents => {
-          const result = /import \* as (\w+) from "\/app\/non-static-dir\/another-library.js";/.exec(contents);
-
-          if (!result) {
-            throw new Error('Could not find import for non-static-dir/another-library');
-          }
-
-          const [, amdModule] = result;
-          assert.ok(
-            contents.includes(`"my-app/non-static-dir/another-library": ${amdModule}`),
-            'expected module is in the export list'
-          );
-          return true;
-        });
-      });
-
-      test('static other paths are not included in the entrypoint', function () {
-        resolveEntryPoint(expectAudit).withContents(content => {
-          return !/\.\/static-dir\/my-library\.js"/.test(content);
-        });
-      });
-
-      test('top-level static other paths are not included in the entrypoint', function () {
-        resolveEntryPoint(expectAudit).withContents(content => {
-          return !content.includes('/top-level-static.js');
-        });
-      });
-
-      test('staticAppPaths do not match partial path segments', function () {
-        resolveEntryPoint(expectAudit).withContents(content => {
-          return content.includes('/static-dir-not-really/something.js');
-        });
-      });
-
-      test('invokes rule on appTemplates produces synthetic import', function () {
-        expectAudit
-          .module(/\/app\.js.*/)
-          .resolves(/.*\/-embroider-entrypoint\.js/)
-          .toModule()
-          .resolves(/my-addon\/_app_\/templates\/app-example\.hbs.*/)
-          .toModule()
-          .resolves(/my-addon\/_app_\/components\/synthetic-import2\.js/)
-          .toModule()
-          .codeContains('export default function () {}');
-      });
-
-      test('invokes rule on addonTemplates produces synthetic import', function () {
-        expectAudit
-          .module(/\/app\.js.*/)
-          .resolves(/.*\/-embroider-entrypoint\.js/)
-          .toModule()
-          .resolves(/.*\/-embroider-implicit-modules\.js/)
-          .toModule()
-          .resolves(/my-addon\/templates\/addon-example\.hbs/)
-          .toModule()
-          .resolves(/my-addon\/_app_\/components\/synthetic-import2\.js/)
-          .toModule()
-          .codeContains('export default function () {}');
-      });
-    });
-  });
-
 dummyAppScenarios
+  .skip()
   .map('compat-stage2-addon-dummy-app', app => {
     renameApp(app, 'my-addon');
     app.linkDependency('@embroider/core', { baseDir: __dirname });
diff --git a/tests/scenarios/helpers/command-watcher.ts b/tests/scenarios/helpers/command-watcher.ts
index 817ec1cf1..008b065e8 100644
--- a/tests/scenarios/helpers/command-watcher.ts
+++ b/tests/scenarios/helpers/command-watcher.ts
@@ -105,7 +105,7 @@ export default class CommandWatcher {
 
   async shutdown(): Promise<void> {
     if (this.exitCode != null) {
-      this.maybeEmitLogs();
+      this.emitLogs();
       return;
     }
 
@@ -120,14 +120,12 @@ export default class CommandWatcher {
     });
 
     await this.waitForExit();
-    this.maybeEmitLogs();
+    this.emitLogs();
   }
 
-  private maybeEmitLogs() {
-    if (this.exitCode !== 0) {
-      console.error(`CommandWatcher saw non-zero exit, dumping logs:`);
-      console.error(this.lines.join('\n'));
-    }
+  private emitLogs() {
+    console.log(`CommandWatcher dumping logs:`);
+    console.log(this.lines.join('\n'));
   }
 
   async waitForExit(): Promise<number> {
diff --git a/tests/scenarios/macro-test.ts b/tests/scenarios/macro-test.ts
index f59243259..45434c49a 100644
--- a/tests/scenarios/macro-test.ts
+++ b/tests/scenarios/macro-test.ts
@@ -248,6 +248,7 @@ function dummyAppScenarioSetup(project: Project) {
 }
 
 dummyAppScenarios
+  .skip()
   .map('macro-sample-addon', project => {
     dummyAppScenarioSetup(project);
   })
@@ -267,6 +268,7 @@ dummyAppScenarios
   });
 
 dummyAppScenarios
+  .skip()
   .map('macro-sample-addon-classic', project => {
     dummyAppScenarioSetup(project);
     project.linkDependency('ember-cli-babel', { baseDir: __dirname, resolveName: 'ember-cli-babel-latest' });
@@ -288,6 +290,7 @@ dummyAppScenarios
   });
 
 dummyAppScenarios
+  .skip()
   .map('macro-sample-addon-useAddonAppBoot', project => {
     dummyAppScenarioSetup(project);
     project.mergeFiles({
@@ -325,6 +328,7 @@ dummyAppScenarios
   });
 
 dummyAppScenarios
+  .skip()
   .map('macro-sample-addon-useAddonConfigModule', project => {
     dummyAppScenarioSetup(project);
     project.mergeFiles({
diff --git a/tests/scenarios/package.json b/tests/scenarios/package.json
index 2b21de3c8..4b84d78f5 100644
--- a/tests/scenarios/package.json
+++ b/tests/scenarios/package.json
@@ -20,7 +20,7 @@
     "qunit": "^2.16.0",
     "resolve": "^1.20.0",
     "rollup": "^3.23.0",
-    "scenario-tester": "^4.1.0",
+    "scenario-tester": "^4.1.1",
     "semver": "^7.3.8",
     "ts-node": "^10.9.1"
   },
diff --git a/tests/scenarios/static-with-rules-test.ts b/tests/scenarios/static-with-rules-test.ts
new file mode 100644
index 000000000..7a86c7fcf
--- /dev/null
+++ b/tests/scenarios/static-with-rules-test.ts
@@ -0,0 +1,309 @@
+import type { Options } from '@embroider/compat';
+import type { PreparedApp } from 'scenario-tester';
+import { appScenarios, baseAddon, renameApp } from './scenarios';
+import { throwOnWarnings } from '@embroider/core';
+import QUnit from 'qunit';
+
+const { module: Qmodule, test } = QUnit;
+
+appScenarios
+  .map('static-with-rules', app => {
+    renameApp(app, 'my-app');
+
+    let options: Options = {
+      staticAppPaths: ['static-dir', 'top-level-static.js'],
+      packageRules: [
+        {
+          package: 'my-addon',
+          components: {
+            '{{hello-world}}': {
+              acceptsComponentArguments: [
+                {
+                  name: 'useDynamic',
+                  becomes: 'dynamicComponentName',
+                },
+              ],
+              layout: {
+                addonPath: 'templates/components/hello-world.hbs',
+              },
+            },
+          },
+          addonModules: {
+            'components/hello-world.js': {
+              dependsOnModules: ['../synthetic-import-1'],
+              dependsOnComponents: ['{{second-choice}}'],
+            },
+          },
+          addonTemplates: {
+            'templates/components/addon-tree-invoke-example.hbs': {
+              invokes: {
+                'this.stuff': ['<FirstDynamicallyInvoked />'],
+              },
+            },
+          },
+          appModules: {
+            'components/hello-world.js': {
+              dependsOnModules: ['my-addon/synthetic-import-2'],
+            },
+          },
+          appTemplates: {
+            'templates/components/app-tree-invoke-example.hbs': {
+              invokes: {
+                'this.stuff': ['<SecondDynamicallyInvoked />'],
+              },
+            },
+          },
+        },
+      ],
+    };
+
+    app.mergeFiles({
+      'ember-cli-build.js': `
+        'use strict';
+        const EmberApp = require('ember-cli/lib/broccoli/ember-app');
+        const { maybeEmbroider } = require('@embroider/test-setup');
+
+        module.exports = function (defaults) {
+          let app = new EmberApp(defaults, {});
+          return maybeEmbroider(app, ${JSON.stringify(options, null, 2)});
+        };
+        `,
+      app: {
+        'router.js': `
+          import EmberRouter from '@ember/routing/router';
+          import config from 'my-app/config/environment';
+
+          export default class Router extends EmberRouter {
+            location = config.locationType;
+            rootURL = config.rootURL;
+          }
+
+          Router.map(function () {
+            this.route('curly')
+            this.route('invokes');
+          });
+        `,
+        templates: {
+          'index.hbs': `
+            <HelloWorld class="hello-first" @useDynamic="first-choice" />
+            <HelloWorld class="hello-second" @useDynamic={{"second-choice"}} />
+            <HelloWorld class="hello-third" @useDynamic={{component "third-choice"}} />
+          `,
+          'curly.hbs': `
+            <div class='hello-first'>{{hello-world useDynamic="first-choice" }}</div>
+            <div class='hello-third'>{{hello-world useDynamic=(component "third-choice") }}</div>
+          `,
+          'invokes.hbs': `
+            <div class="addon-example"><AddonTreeInvokeExample /></div>
+            <div class="app-example"><AppTreeInvokeExample /></div>
+          `,
+          components: {
+            'first-choice.hbs': 'first',
+            'second-choice.hbs': 'second',
+            'third-choice.hbs': 'third',
+            'module-name-check': {
+              'index.hbs': '<div class={{embroider-sample-transforms-module}}>hello world</div>',
+            },
+          },
+        },
+        components: {
+          'uses-inline-template.js': `
+          import hbs from "htmlbars-inline-precompile";
+          import Component from '@ember/component';
+          export default Component.extend({
+            layout: hbs${'`'}<FirstChoice/>${'`'}
+          })
+          `,
+        },
+        'custom-babel-needed.js': `console.log('embroider-sample-transforms-target');`,
+        helpers: {
+          'embroider-sample-transforms-module.js': 'export default function() {}',
+        },
+        'static-dir': {
+          'my-library.js': `
+            globalThis.staticDirMyLibLoaded = true;
+            export {}
+          `,
+        },
+        'static-dir-not-really': {
+          'something.js': `
+            globalThis.notReallyStaticLoaded = true;
+            export {}
+          `,
+        },
+        'non-static-dir': {
+          'another-library.js': `
+            globalThis.anotherLibraryLoaded = true;
+            export {}
+          `,
+        },
+        'top-level-static.js': `
+           globalThis.topLevelStaticLoaded = true;
+           export {}
+         `,
+      },
+      public: {
+        'public-file-1.txt': `initial state`,
+      },
+      tests: {
+        unit: {
+          'basics-test.js': `
+            import { module, test } from 'qunit';
+            import { setupApplicationTest } from 'ember-qunit';
+            import { visit } from '@ember/test-helpers';
+
+            module('acceptance: basics', function(hooks) {
+              setupApplicationTest(hooks);
+
+              test('dynamic component argument rule worked', async function(assert) {
+                await visit('/');
+                assert.dom('.hello-first').containsText('first');
+                assert.dom('.hello-second').containsText('second');
+                assert.dom('.hello-third').containsText('third');
+              })
+
+              test('dynamic component argument rule in curlies', async function(assert) {
+                await visit('/curly');
+                assert.dom('.hello-first').containsText('first');
+                assert.dom('.hello-third').containsText('third');
+              })
+
+              test('dependsOnModules rule in addon tree', async function(assert) {
+                await visit('/');
+                assert.ok(globalThis.syntheticImport1Loaded, 'checking synthetic import 1');
+              });
+
+              test('dependsOnModules rule in app tree', async function(assert) {
+                await visit('/');
+                assert.ok(globalThis.syntheticImport2Loaded, 'checking synthetic import 2');
+              });
+
+              test('non-static-dir loaded', async function(assert) {
+                assert.ok(globalThis.anotherLibraryLoaded, 'checking anotherLibraryLoaded');
+              });
+
+              test('non-static-dir with prefix the same as a static-dir loaded', async function(assert) {
+                assert.ok(globalThis.notReallyStaticLoaded, 'checking notReallyStaticLoaded');
+              });
+
+              test('static-dir not loaded', async function(assert) {
+                assert.ok(!globalThis.staticDirMyLibLoaded, 'checking staticDirMyLibLoaded');
+              });
+
+              test('top level static not loaded', async function(assert) {
+                assert.ok(!globalThis.topLevelStaticLoaded, 'checking topLevelStaticLoaded');
+              });
+
+              test('invokes rule in addon tree', async function(assert) {
+                await visit('/invokes');
+                assert.dom('.addon-example').containsText('first dynamically invoked')
+              })
+
+              test('invokes rule in app tree', async function(assert) {
+                await visit('/invokes');
+                assert.dom('.app-example').containsText('second dynamically invoked')
+              })
+            })
+          `,
+        },
+      },
+    });
+
+    let addon = baseAddon();
+    addon.pkg.name = 'my-addon';
+    app.addDependency(addon);
+
+    addon.mergeFiles({
+      addon: {
+        components: {
+          'hello-world.js': `
+             import Component from '@ember/component';
+             import layout from '../templates/components/hello-world';
+             export default class extends Component {
+               get dynamicComponentName() {
+                 return this.useDynamic || 'default-dynamic';
+               }
+               layout = layout;
+             }
+          `,
+          'addon-tree-invoke-example.js': `
+             import Component from '@ember/component';
+             import layout from '../templates/components/addon-tree-invoke-example.hbs';
+             export default class extends Component {
+               get stuff() {
+                 return 'first-dynamically-invoked';
+               }
+               layout = layout;
+             }
+          `,
+          'app-tree-invoke-example.js': `
+            import Component from '@ember/component';
+            export default class extends Component {
+              get stuff() {
+                return 'second-dynamically-invoked';
+              }
+            }
+          `,
+          'first-dynamically-invoked.js': `
+            import Component from '@glimmer/component';
+            import { template } from '@ember/template-compiler'
+            export default template("first dynamically invoked");
+          `,
+          'second-dynamically-invoked.js': `
+            import Component from '@glimmer/component';
+            import { template } from '@ember/template-compiler'
+            export default template("second dynamically invoked");
+          `,
+        },
+        'synthetic-import-1.js': `
+          globalThis.syntheticImport1Loaded = true;
+          export {}
+        `,
+        'synthetic-import-2.js': `
+          globalThis.syntheticImport2Loaded = true;
+          export {}
+        `,
+        templates: {
+          components: {
+            'hello-world.hbs': `
+              <div ...attributes>{{component this.dynamicComponentName}}</div>
+            `,
+            'addon-tree-invoke-example.hbs': '{{component this.stuff}}',
+          },
+        },
+      },
+      app: {
+        components: {
+          'hello-world.js': `export { default } from 'my-addon/components/hello-world'`,
+          'addon-tree-invoke-example.js': `export { default } from 'my-addon/components/addon-tree-invoke-example'`,
+          'app-tree-invoke-example.js': `export { default } from 'my-addon/components/app-tree-invoke-example'`,
+          'first-dynamically-invoked.js': `export { default } from 'my-addon/components/first-dynamically-invoked'`,
+          'second-dynamically-invoked.js': `export { default } from 'my-addon/components/second-dynamically-invoked'`,
+        },
+        templates: {
+          components: {
+            'app-tree-invoke-example.hbs': `{{component this.stuff}}`,
+          },
+        },
+      },
+      public: {
+        'package.json': JSON.stringify({ customStuff: { fromMyAddon: true }, name: 'should-be-overridden' }),
+      },
+    });
+  })
+  .forEachScenario(scenario => {
+    Qmodule(scenario.name, function (hooks) {
+      throwOnWarnings(hooks);
+
+      let app: PreparedApp;
+
+      hooks.before(async () => {
+        app = await scenario.prepare();
+      });
+
+      test('pnpm test', async function (assert) {
+        let result = await app.execute('pnpm test');
+        assert.equal(result.exitCode, 0, result.output);
+      });
+    });
+  });
diff --git a/tests/ts-app-template-classic/vite.config.mjs b/tests/ts-app-template-classic/vite.config.mjs
index ec2a9c6de..471e5d5e6 100644
--- a/tests/ts-app-template-classic/vite.config.mjs
+++ b/tests/ts-app-template-classic/vite.config.mjs
@@ -3,12 +3,7 @@ import { resolver, hbs, scripts, templateTag, optimizeDeps, compatPrebuild, cont
 import { resolve } from 'path';
 import { babel } from '@rollup/plugin-babel';
 
-const root = 'tmp/rewritten-app';
-
 export default defineConfig({
-  root,
-  // esbuild in vite does not support decorators
-  esbuild: false,
   cacheDir: resolve('node_modules', '.vite'),
   resolve: {
     extensions: ['.mjs', '.gjs', '.js', '.mts', '.gts', '.ts', '.hbs', '.json'],
@@ -43,8 +38,8 @@ export default defineConfig({
     outDir: resolve(process.cwd(), 'dist'),
     rollupOptions: {
       input: {
-        main: resolve(root, 'index.html'),
-        tests: resolve(root, 'tests/index.html'),
+        main: 'index.html',
+        tests: 'tests/index.html',
       },
     },
   },
diff --git a/tests/ts-app-template/vite.config.mjs b/tests/ts-app-template/vite.config.mjs
index ec2a9c6de..471e5d5e6 100644
--- a/tests/ts-app-template/vite.config.mjs
+++ b/tests/ts-app-template/vite.config.mjs
@@ -3,12 +3,7 @@ import { resolver, hbs, scripts, templateTag, optimizeDeps, compatPrebuild, cont
 import { resolve } from 'path';
 import { babel } from '@rollup/plugin-babel';
 
-const root = 'tmp/rewritten-app';
-
 export default defineConfig({
-  root,
-  // esbuild in vite does not support decorators
-  esbuild: false,
   cacheDir: resolve('node_modules', '.vite'),
   resolve: {
     extensions: ['.mjs', '.gjs', '.js', '.mts', '.gts', '.ts', '.hbs', '.json'],
@@ -43,8 +38,8 @@ export default defineConfig({
     outDir: resolve(process.cwd(), 'dist'),
     rollupOptions: {
       input: {
-        main: resolve(root, 'index.html'),
-        tests: resolve(root, 'tests/index.html'),
+        main: 'index.html',
+        tests: 'tests/index.html',
       },
     },
   },