diff --git a/avm/utilities/tools/helper/Set-ModuleFileAndFolderSetup.ps1 b/avm/utilities/tools/helper/Set-ModuleFileAndFolderSetup.ps1
index ff345c8e04..f9ead6bfb2 100644
--- a/avm/utilities/tools/helper/Set-ModuleFileAndFolderSetup.ps1
+++ b/avm/utilities/tools/helper/Set-ModuleFileAndFolderSetup.ps1
@@ -46,17 +46,14 @@ function Set-ModuleFileAndFolderSetup {
     )
 
     if ([String]::IsNullOrEmpty($CurrentLevelFolderPath)) {
-        # Extract resource type identifier
-        $resourceTypeIdentifier = ($FullModuleFolderPath -split '[\/|\\]{1}avm[\/|\\]{1}(res|ptn)[\/|\\]{1}')[2] # <provider>\<resourceType>
+        # Extract path elements
+        $repoRoot, $moduleType, $resourceTypeIdentifier = $FullModuleFolderPath -split '[\/|\\]{1}avm[\/|\\]{1}(res|ptn)[\/|\\]{1}' # .*/bicep-registry-modules, res|ptn, <provider>/<resourceType>
 
         # Split resource type identifier into components
-        $providerNamespace, $resourceType, $childResourceType = $resourceTypeIdentifier -split '[\/|\\]', 3
-
-        # Construct the root module path up to the providerNamespace (excluding resourceType and childResourceType)
-        $avmModuleRoot = ($FullModuleFolderPath -split [regex]::Escape("\$providerNamespace\$resourceType"))[0] + "\$providerNamespace"
+        $providerNamespace, $resourceType, $childResourceType = $resourceTypeIdentifier -split '[\/|\\]', 3 # <provider>, <resourceType>, <childResourceType>
 
         # Join the required path to get up to the resource type folder
-        $CurrentLevelFolderPath = Join-Path -Path $avmModuleRoot -ChildPath $resourceType
+        $CurrentLevelFolderPath = Join-Path $repoRoot 'avm' $moduleType $providerNamespace $resourceType
     }
 
     # Collect data