diff --git a/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets b/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets
index d22adceb6e27..7fc4a675cc11 100644
--- a/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets
+++ b/src/Uno.Sdk/targets/Uno.Common.WinAppSdk.targets
@@ -5,7 +5,10 @@
 		<SupportedOSPlatformVersion Condition=" $(SupportedOSPlatformVersion) == '' ">$(TargetPlatformMinVersion)</SupportedOSPlatformVersion>
 		<RuntimeIdentifiers Condition=" $(RuntimeIdentifiers) == '' ">win-x86;win-x64;win-arm64</RuntimeIdentifiers>
 		<EnableCoreMrtTooling Condition=" $(EnableCoreMrtTooling) == '' AND '$(BuildingInsideVisualStudio)' != 'true' ">false</EnableCoreMrtTooling>
-		<EnableMsixTooling Condition=" $(EnableMsixTooling) == '' ">true</EnableMsixTooling>
+
+		<!-- Set EnableMsixTooling to true only for executables - setting this on class libraries prevents assets from being correctly copied to windows target -->
+		<EnableMsixTooling Condition=" $(EnableMsixTooling) == '' AND ('$(OutputType)' == 'WinExe' OR '$(OutputType)' == 'Exe') ">true</EnableMsixTooling>
+
 		<EnableWindowsTargeting Condition=" $(EnableWindowsTargeting) == '' ">true</EnableWindowsTargeting>
 	</PropertyGroup>
 
diff --git a/src/Uno.Sdk/targets/winappsdk-workaround.targets b/src/Uno.Sdk/targets/winappsdk-workaround.targets
index a773a27fbe1d..46715ef96fa1 100644
--- a/src/Uno.Sdk/targets/winappsdk-workaround.targets
+++ b/src/Uno.Sdk/targets/winappsdk-workaround.targets
@@ -1,6 +1,8 @@
 <Project>
 	<!-- Workaround to avoid including Project XBFs in the PRI file: https://github.com/microsoft/microsoft-ui-xaml/issues/8857 -->
-	<Target Name="WinUI8857_AdjustGetPackagingOutput1" AfterTargets="GetMrtPackagingOutputs">
+	<Target Name="WinUI8857_AdjustGetPackagingOutput1"
+			AfterTargets="GetMrtPackagingOutputs"
+			Condition="'$(OutputType)' != 'WinExe'">
 		<Message Importance="high" Text="Applying NuGet packaging workaround for dependent PRI files exclusion" />
 		<ItemGroup>
 			<_OtherPriFiles Include="@(PackagingOutputs)" Condition="'%(Extension)' == '.pri' and ('%(PackagingOutputs.ReferenceSourceTarget)' == 'ProjectReference' or '%(PackagingOutputs.NugetSourceType)'=='Package')" />
@@ -8,7 +10,9 @@
 		</ItemGroup>
 	</Target>
 	
-	<Target Name="WinUI8857_AdjustGetPackagingOutput2" BeforeTargets="AddPriPayloadFilesToCopyToOutputDirectoryItems">
+	<Target Name="WinUI8857_AdjustGetPackagingOutput2"
+			BeforeTargets="AddPriPayloadFilesToCopyToOutputDirectoryItems"
+			Condition="'$(OutputType)' != 'WinExe'">
 		<Message Importance="high" Text="Applying NuGet packaging workaround for dependent PRI files exclusion" />
 		<ItemGroup>
 			<_OtherPriFiles1 Include="@(_ReferenceRelatedPaths)" Condition="'%(Extension)' == '.pri' and ('%(_ReferenceRelatedPaths.ReferenceSourceTarget)' == 'ProjectReference' or '%(_ReferenceRelatedPaths.NugetSourceType)'=='Package')" />