diff --git a/packages/compat/src/audit.ts b/packages/compat/src/audit.ts
index 76a8c73d6..b3545f7d6 100644
--- a/packages/compat/src/audit.ts
+++ b/packages/compat/src/audit.ts
@@ -1,4 +1,4 @@
-import { readFileSync, readJSONSync } from 'fs-extra';
+import { existsSync, readFileSync, readJSONSync } from 'fs-extra';
 import { join, resolve as resolvePath, dirname } from 'path';
 import type { AppMeta, ResolverOptions } from '@embroider/core';
 import { explicitRelative, hbsToJS, locateEmbroiderWorkingDir, Resolver, RewrittenPackageCache } from '@embroider/core';
@@ -153,8 +153,14 @@ export class Audit {
 
   @Memoize()
   private get babelConfig() {
-    // eslint-disable-next-line @typescript-eslint/no-require-imports
-    let config = require(join(this.movedAppRoot, this.meta.babel.filename));
+    // Depending on how the app builds, the babel config is not at the same location
+    let embroiderLocation = join(locateEmbroiderWorkingDir(this.originAppRoot), '_babel_config_.js');
+    let config = existsSync(embroiderLocation)
+      ? // eslint-disable-next-line @typescript-eslint/no-require-imports
+        require(embroiderLocation)
+      : // eslint-disable-next-line @typescript-eslint/no-require-imports
+        require(join(this.movedAppRoot, this.meta.babel.filename));
+
     config = Object.assign({}, config);
     config.plugins = config.plugins.filter((p: any) => !isMacrosPlugin(p));
 
diff --git a/packages/compat/src/compat-app-builder.ts b/packages/compat/src/compat-app-builder.ts
index cf6e8a58f..e522184f2 100644
--- a/packages/compat/src/compat-app-builder.ts
+++ b/packages/compat/src/compat-app-builder.ts
@@ -488,10 +488,7 @@ export class CompatAppBuilder {
     this.addAppBoot(this.compatApp.appBoot.readAppBoot());
     let babelConfig = await this.babelConfig(resolverConfig);
     this.addBabelConfig(babelConfig);
-    writeFileSync(
-      join(this.root, 'macros-config.json'),
-      JSON.stringify(this.compatApp.macrosConfig.babelPluginConfig()[0], null, 2)
-    );
+    this.addMacrosConfig(this.compatApp.macrosConfig.babelPluginConfig()[0]);
   }
 
   private combinePackageJSON(meta: AppMeta): object {
@@ -568,7 +565,7 @@ export class CompatAppBuilder {
       warn('Your build is slower because some babel plugins are non-serializable');
     }
     writeFileSync(
-      join(this.root, '_babel_config_.js'),
+      join(locateEmbroiderWorkingDir(this.compatApp.root), '_babel_config_.js'),
       `module.exports = ${JSON.stringify(pconfig.config, null, 2)}`,
       'utf8'
     );
@@ -595,6 +592,12 @@ export class CompatAppBuilder {
     });
   }
 
+  private addMacrosConfig(macrosConfig: any) {
+    outputJSONSync(join(locateEmbroiderWorkingDir(this.compatApp.root), 'macros-config.json'), macrosConfig, {
+      spaces: 2,
+    });
+  }
+
   private addAppBoot(appBoot?: string) {
     writeFileSync(join(locateEmbroiderWorkingDir(this.compatApp.root), 'ember-app-boot.js'), appBoot ?? '');
   }
diff --git a/packages/core/src/virtual-entrypoint.ts b/packages/core/src/virtual-entrypoint.ts
index 9d6492b46..4aa7ead0e 100644
--- a/packages/core/src/virtual-entrypoint.ts
+++ b/packages/core/src/virtual-entrypoint.ts
@@ -349,7 +349,7 @@ function shouldSplitRoute(routeName: string, splitAtRoutes: (RegExp | string)[]
 
 export function getAppFiles(appRoot: string): Set<string> {
   const files: string[] = walkSync(appRoot, {
-    ignore: ['_babel_config_.js', '_babel_filter_.js', 'app.js', 'assets', 'testem.js', 'node_modules'],
+    ignore: ['_babel_filter_.js', 'app.js', 'assets', 'testem.js', 'node_modules'],
   });
   return new Set(files);
 }
diff --git a/packages/vite/src/esbuild-resolver.ts b/packages/vite/src/esbuild-resolver.ts
index 094a2f059..126a8044d 100644
--- a/packages/vite/src/esbuild-resolver.ts
+++ b/packages/vite/src/esbuild-resolver.ts
@@ -75,9 +75,7 @@ export function esBuildResolver(root = process.cwd()): EsBuildPlugin {
         }
         let { src } = virtualContent(path, resolverLoader.resolver);
         if (!macrosConfig) {
-          macrosConfig = readJSONSync(
-            resolve(locateEmbroiderWorkingDir(root), 'rewritten-app', 'macros-config.json')
-          ) as PluginItem;
+          macrosConfig = readJSONSync(resolve(locateEmbroiderWorkingDir(root), 'macros-config.json')) as PluginItem;
         }
         return { contents: runMacros(src, path, macrosConfig) };
       });
@@ -120,9 +118,7 @@ export function esBuildResolver(root = process.cwd()): EsBuildPlugin {
           src = readFileSync(path, 'utf8');
         }
         if (!macrosConfig) {
-          macrosConfig = readJSONSync(
-            resolve(locateEmbroiderWorkingDir(root), 'rewritten-app', 'macros-config.json')
-          ) as PluginItem;
+          macrosConfig = readJSONSync(resolve(locateEmbroiderWorkingDir(root), 'macros-config.json')) as PluginItem;
         }
         return { contents: runMacros(src, path, macrosConfig) };
       });
diff --git a/test-packages/support/transpiler.ts b/test-packages/support/transpiler.ts
index afdf27e06..c70b64338 100644
--- a/test-packages/support/transpiler.ts
+++ b/test-packages/support/transpiler.ts
@@ -1,10 +1,10 @@
-import { readJSONSync } from 'fs-extra';
+import { readJSONSync, existsSync } from 'fs-extra';
 import { join } from 'path';
 import type { TransformOptions } from '@babel/core';
 import { transform } from '@babel/core';
 import type { BoundExpectFile } from './file-assertions';
 import type { AppMeta } from '../../packages/core/src/index';
-import { hbsToJS, RewrittenPackageCache } from '../../packages/core/src/index';
+import { hbsToJS, locateEmbroiderWorkingDir, RewrittenPackageCache } from '../../packages/core/src/index';
 import { Memoize } from 'typescript-memoize';
 import { getRewrittenLocation } from './rewritten-path';
 
@@ -53,6 +53,10 @@ export class Transpiler {
       throw new Error(`@embroider/test-support only suports babel 7`);
     }
 
-    return require(join(this.appOutputPath, this.emberMeta['babel'].filename)) as TransformOptions;
+    // Depending on how the app builds, the babel config is not at the same location
+    let embroiderLocation = join(locateEmbroiderWorkingDir(this.appDir), '_babel_config_.js');
+    return existsSync(embroiderLocation)
+      ? (require(embroiderLocation) as TransformOptions)
+      : (require(join(this.appDir, this.emberMeta['babel'].filename)) as TransformOptions);
   }
 }
diff --git a/tests/addon-template/babel.config.cjs b/tests/addon-template/babel.config.cjs
index 28a6d38b1..baf775d4b 100644
--- a/tests/addon-template/babel.config.cjs
+++ b/tests/addon-template/babel.config.cjs
@@ -13,7 +13,7 @@ if (
 ) {
   config = {};
 } else {
-  config = require("./node_modules/.embroider/rewritten-app/_babel_config_");
+  config = require("./node_modules/.embroider/_babel_config_");
 }
 
 module.exports = config;
diff --git a/tests/app-template/babel.config.cjs b/tests/app-template/babel.config.cjs
index 28a6d38b1..baf775d4b 100644
--- a/tests/app-template/babel.config.cjs
+++ b/tests/app-template/babel.config.cjs
@@ -13,7 +13,7 @@ if (
 ) {
   config = {};
 } else {
-  config = require("./node_modules/.embroider/rewritten-app/_babel_config_");
+  config = require("./node_modules/.embroider/_babel_config_");
 }
 
 module.exports = config;
diff --git a/tests/ts-app-template-classic/babel.config.cjs b/tests/ts-app-template-classic/babel.config.cjs
index f646eb68c..7637754cc 100644
--- a/tests/ts-app-template-classic/babel.config.cjs
+++ b/tests/ts-app-template-classic/babel.config.cjs
@@ -10,7 +10,7 @@ let config;
 if (process.env.EMBROIDER_PREBUILD || process.env.EMBROIDER_TEST_SETUP_FORCE === 'classic') {
   config = {};
 } else {
-  config = require('./node_modules/.embroider/rewritten-app/_babel_config_');
+  config = require('./node_modules/.embroider/_babel_config_');
 }
 
 module.exports = config;
diff --git a/tests/ts-app-template/babel.config.cjs b/tests/ts-app-template/babel.config.cjs
index f646eb68c..7637754cc 100644
--- a/tests/ts-app-template/babel.config.cjs
+++ b/tests/ts-app-template/babel.config.cjs
@@ -10,7 +10,7 @@ let config;
 if (process.env.EMBROIDER_PREBUILD || process.env.EMBROIDER_TEST_SETUP_FORCE === 'classic') {
   config = {};
 } else {
-  config = require('./node_modules/.embroider/rewritten-app/_babel_config_');
+  config = require('./node_modules/.embroider/_babel_config_');
 }
 
 module.exports = config;