diff --git a/e2e/tests-dfx/assetscanister.bash b/e2e/tests-dfx/assetscanister.bash
index 93e78bab35..d5af8d162f 100644
--- a/e2e/tests-dfx/assetscanister.bash
+++ b/e2e/tests-dfx/assetscanister.bash
@@ -91,6 +91,7 @@ check_permission_failure() {
   PREPARE_PRINCIPAL=$(dfx identity get-principal --identity prepare)
   COMMIT_PRINCIPAL=$(dfx identity get-principal --identity commit)
 
+  rm src/e2e_project_frontend/assets/.ic-assets.json5
   install_asset assetscanister
   # Prep for a DeleteAsset operation
   echo "to-be-deleted" >src/e2e_project_frontend/assets/to-be-deleted.txt
@@ -196,6 +197,7 @@ check_permission_failure() {
   PREPARE_PRINCIPAL=$(dfx identity get-principal --identity prepare)
   COMMIT_PRINCIPAL=$(dfx identity get-principal --identity commit)
 
+  rm src/e2e_project_frontend/assets/.ic-assets.json5
   install_asset assetscanister
   dfx_start
   mkdir tmp
@@ -1622,6 +1624,7 @@ WARN: {
 }
 
 @test "asset configuration via .ic-assets.json5 - pretty printing when deploying" {
+  rm src/e2e_project_frontend/assets/.ic-assets.json5
   install_asset assetscanister
 
   dfx_start
@@ -1664,6 +1667,7 @@ WARN: {
 }
 
 @test "syncs asset properties when redeploying" {
+  rm src/e2e_project_frontend/assets/.ic-assets.json5
   install_asset assetscanister
   dfx_start
   assert_command dfx deploy
diff --git a/e2e/tests-dfx/error_diagnosis.bash b/e2e/tests-dfx/error_diagnosis.bash
index 92f76177f7..cf3bf1ce8d 100644
--- a/e2e/tests-dfx/error_diagnosis.bash
+++ b/e2e/tests-dfx/error_diagnosis.bash
@@ -12,20 +12,6 @@ teardown() {
   standard_teardown
 }
 
-@test "Duplicate assets in dist/ from src/" {
-  dfx_new_frontend hello
-  install_asset greet
-  dfx_start
-  assert_command dfx deploy
-
-  # simulate previous deploy with CopyPlugin step
-  cp src/hello_frontend/assets/* src/hello_frontend/dist
-
-  assert_command_fail dfx deploy
-  assert_contains "Remove the CopyPlugin step from webpack.config.js"
-  assert_contains "Delete all files from the dist/ directory"
-}
-
 @test "HTTP 403 has a full diagnosis" {
   dfx_new hello
   install_asset greet
diff --git a/e2e/tests-dfx/frontend.bash b/e2e/tests-dfx/frontend.bash
index a4cf0c601d..e50a510997 100644
--- a/e2e/tests-dfx/frontend.bash
+++ b/e2e/tests-dfx/frontend.bash
@@ -65,8 +65,8 @@ teardown() {
   assert_match "Connection refused"
 }
 
-@test "dfx uses .ic-assets.json file provided in src/__project_name__frontend/src" {
-  echo '[{"match": "*", "headers": {"x-key": "x-value"}}]' > src/e2e_project_frontend/src/.ic-assets.json
+@test "dfx uses .ic-assets.json file provided in src/__project_name__frontend/assets" {
+  echo '[{"match": "*", "headers": {"x-key": "x-value"}}]' > src/e2e_project_frontend/assets/.ic-assets.json5
 
   dfx_start
   dfx canister create --all
@@ -77,14 +77,14 @@ teardown() {
   PORT=$(get_webserver_port)
   assert_command curl -vv http://localhost:"$PORT"/?canisterId="$ID"
   assert_match "< x-key: x-value"
-  assert_command curl -vv http://localhost:"$PORT"/index.js?canisterId="$ID"
+  assert_command curl -vv http://localhost:"$PORT"/favicon.ico?canisterId="$ID"
   assert_match "< x-key: x-value"
 }
 
 @test "dfx uses a custom build command if one is provided" {
-  jq '.canisters.e2e_project_frontend.source = ["dist/e2e_project_frontend/"]' dfx.json | sponge dfx.json
-  jq '.canisters.e2e_project_frontend.build = ["npm run custom-build"]' dfx.json | sponge dfx.json
-  jq '.scripts["custom-build"] = "mkdir -p ./dist/e2e_project_frontend/assets/ && cp -r ./src/e2e_project_frontend/assets/* ./dist/e2e_project_frontend"' package.json | sponge package.json
+  jq '.canisters.e2e_project_frontend.source = ["src/e2e_project_frontend/dist2"]' dfx.json | sponge dfx.json
+  jq '.canisters.e2e_project_frontend.build = ["npm run custom-build --workspace e2e_project_frontend"]' dfx.json | sponge dfx.json
+  jq '.scripts["custom-build"] = "npm run build && mkdir -p ./dist2/ && cp -r ./dist/* ./dist2"' src/e2e_project_frontend/package.json | sponge src/e2e_project_frontend/package.json
 
   dfx_start
   dfx canister create --all
@@ -94,6 +94,6 @@ teardown() {
   ID=$(dfx canister id e2e_project_frontend)
   PORT=$(get_webserver_port)
 
-  assert_command curl -vv http://localhost:"$PORT"/sample-asset.txt?canisterId="$ID"
-  assert_match "This is a sample asset!"
+  assert_command curl -vv http://localhost:"$PORT"/index.html?canisterId="$ID"
+  assert_match "IC Hello Starter"
 }
diff --git a/e2e/tests-icx-asset/icx-asset.bash b/e2e/tests-icx-asset/icx-asset.bash
index 786887aea2..f06b1d20b6 100644
--- a/e2e/tests-icx-asset/icx-asset.bash
+++ b/e2e/tests-icx-asset/icx-asset.bash
@@ -11,7 +11,7 @@ setup() {
 
   standard_setup
 
-  dfx_new_frontend
+  dfx_new_assets
   dfx_start
 
   assert_command dfx deploy
diff --git a/src/dfx/assets/project_templates/svelte/src/__project_name___frontend/src/app.html b/src/dfx/assets/project_templates/svelte/src/__project_name___frontend/src/app.html
index 6a8aed0e25..dfae06cc73 100644
--- a/src/dfx/assets/project_templates/svelte/src/__project_name___frontend/src/app.html
+++ b/src/dfx/assets/project_templates/svelte/src/__project_name___frontend/src/app.html
@@ -5,6 +5,7 @@
 	<meta charset="utf-8" />
 	<link rel="icon" href="%sveltekit.assets%/favicon.ico" />
 	<meta name="viewport" content="width=device-width" />
+	<title>IC Hello Starter</title>
 	%sveltekit.head%
 </head>
 
diff --git a/src/dfx/assets/project_templates/vanilla_js/src/__project_name___frontend/index.html b/src/dfx/assets/project_templates/vanilla_js/src/__project_name___frontend/index.html
index 03d5d91e4b..6c1db68a54 100644
--- a/src/dfx/assets/project_templates/vanilla_js/src/__project_name___frontend/index.html
+++ b/src/dfx/assets/project_templates/vanilla_js/src/__project_name___frontend/index.html
@@ -5,7 +5,7 @@
   <meta charset="UTF-8" />
   <link rel="icon" type="image/svg+xml" href="/favicon.ico" />
   <meta name="viewport" content="width=device-width, initial-scale=1.0" />
-  <title>Vite + JS + Motoko</title>
+  <title>IC Hello Starter</title>
 </head>
 
 <body>
diff --git a/src/dfx/assets/project_templates/vanilla_js_tests/src/__project_name___frontend/vite.config.js.patch b/src/dfx/assets/project_templates/vanilla_js_tests/src/__project_name___frontend/vite.config.js.patch
index 71bbe6e1ca..dce9050f78 100644
--- a/src/dfx/assets/project_templates/vanilla_js_tests/src/__project_name___frontend/vite.config.js.patch
+++ b/src/dfx/assets/project_templates/vanilla_js_tests/src/__project_name___frontend/vite.config.js.patch
@@ -3,9 +3,9 @@
 @@ -1,1 +1,2 @@
 +/// <reference types="vitest" />
  import { defineConfig } from 'vite';
-@@ -34,1 +34,5 @@
+@@ -32,1 +32,5 @@
 +  test: {
 +    environment: 'jsdom',
-+    setupFiles: 'setupTests.js',
++    setupFiles: 'src/setupTests.js',
 +  },
    resolve: {
diff --git a/src/dfx/assets/project_templates/vue/src/__project_name___frontend/index.html b/src/dfx/assets/project_templates/vue/src/__project_name___frontend/index.html
index afa1fecbba..6e80f94528 100644
--- a/src/dfx/assets/project_templates/vue/src/__project_name___frontend/index.html
+++ b/src/dfx/assets/project_templates/vue/src/__project_name___frontend/index.html
@@ -6,7 +6,7 @@
   <meta http-equiv="X-UA-Compatible" content="IE=edge" />
   <meta name="viewport" content="width=device-width,initial-scale=1.0" />
   <link rel="icon" href="/favicon.ico" />
-  <title>Vue Hello IC</title>
+  <title>IC Hello Starter</title>
 </head>
 
 <body>