diff --git a/Source/src/WixSharp.Samples/Support/testpad/setup.cs b/Source/src/WixSharp.Samples/Support/testpad/setup.cs
index bdebac65..c822e480 100644
--- a/Source/src/WixSharp.Samples/Support/testpad/setup.cs
+++ b/Source/src/WixSharp.Samples/Support/testpad/setup.cs
@@ -54,6 +54,7 @@ static void Issue_298()
             GUID = new Guid("6fe30b47-2577-43ad-9095-1861ba25889b")
         };
 
+        project.AddRegValue(new RegValue(RegistryHive.LocalMachine, @"Software\test", "foo_value", "bar") { Win64 = true });
         project.AddRegValue(new RegValue(RegistryHive.LocalMachine, @"Software\test", "foo_value", "bar") { Win64 = false });
 
         // Compiler.LightOptions += " -sice:ICE80";
diff --git a/Source/src/WixSharp.Samples/Wix# Samples/Extensions/setup.cs b/Source/src/WixSharp.Samples/Wix# Samples/Extensions/setup.cs
index a6143418..6278abc9 100644
--- a/Source/src/WixSharp.Samples/Wix# Samples/Extensions/setup.cs	
+++ b/Source/src/WixSharp.Samples/Wix# Samples/Extensions/setup.cs	
@@ -76,8 +76,8 @@ public class RemoveFolderEx : WixEntity, IGenericEntity
     [Xml]
     public new string Id
     {
-        get => base.Id;
-        set => base.Id = value;
+        get { return base.Id; }
+        set { base.Id = value; }
     }
 
     /// <summary>
diff --git a/Source/src/WixSharp.Samples/Wix# Samples/External_UI/Msi/MyProduct.msi b/Source/src/WixSharp.Samples/Wix# Samples/External_UI/Msi/MyProduct.msi
index 6ac50a2f..ce333cf4 100644
Binary files a/Source/src/WixSharp.Samples/Wix# Samples/External_UI/Msi/MyProduct.msi and b/Source/src/WixSharp.Samples/Wix# Samples/External_UI/Msi/MyProduct.msi differ
diff --git a/Source/src/WixSharp.Samples/Wix# Samples/Managed Setup/CustomUIDialog/setup.cs b/Source/src/WixSharp.Samples/Wix# Samples/Managed Setup/CustomUIDialog/setup.cs
index eaa9b6b8..42d8bf49 100644
--- a/Source/src/WixSharp.Samples/Wix# Samples/Managed Setup/CustomUIDialog/setup.cs	
+++ b/Source/src/WixSharp.Samples/Wix# Samples/Managed Setup/CustomUIDialog/setup.cs	
@@ -26,8 +26,6 @@ static public void Main(string[] args)
 
         //Note if the property 'PASSWORD' is not preserved as deferred then it will not be available
         //from the Project_AfterInstall, which is a deferred custom action.
-        AutoElements.LagacyDummyDirAlgorithm = true;
-
         var project = new ManagedProject("ManagedSetup",
                           new User
                           {
diff --git a/Source/src/WixSharp.Samples/WixSharp.xml b/Source/src/WixSharp.Samples/WixSharp.xml
index 57678935..db55e3e5 100644
--- a/Source/src/WixSharp.Samples/WixSharp.xml
+++ b/Source/src/WixSharp.Samples/WixSharp.xml
@@ -1375,6 +1375,19 @@
             Forces all <see cref="T:WixSharp.Condition"/> values to be always encoded as CDATA.
             </summary>
         </member>
+        <member name="F:WixSharp.AutoElements.LegacyDummyDirAlgorithm">
+            <summary>
+            Flag indicating if the legacy algorithm should be used for handling setups with no directories
+            to be installed but only non-file system components (e.g. RegKey, User, Firewall exceptions).
+            <para>The algorithm used in early versions of WixSharp (legacy algorithm) injects a dummy
+            directory into the setup definition so it satisfies the MSI constraint that every component must
+            belong to a directory. As many other rules this one has no practical value and rather reflection
+            of the outdated (~20 years ago) deployment approaches.</para>
+            <para>The current algorithm also ensures the that there is a XML directory to host the components.
+            However instead of custom (dummy) directory it inserts 'ProgramFilesFolder'. This way MSI constraint
+            is satisfied and yet there is no impact on the target file system.</para>
+            </summary>
+        </member>
         <member name="F:WixSharp.AutoElements.DisableAutoUserProfileRegistry">
             <summary>
             Disables automatic insertion of user profile registry elements.
diff --git a/Source/src/WixSharp/AutoElements.cs b/Source/src/WixSharp/AutoElements.cs
index 0adbe6c4..ac09c780 100644
--- a/Source/src/WixSharp/AutoElements.cs
+++ b/Source/src/WixSharp/AutoElements.cs
@@ -132,7 +132,18 @@ public static class AutoElements
         /// </summary>
         public static bool ForceCDataForConditions = false;
 
-        public static bool LagacyDummyDirAlgorithm = false;
+        /// <summary>
+        /// Flag indicating if the legacy algorithm should be used for handling setups with no directories
+        /// to be installed but only non-file system components (e.g. RegKey, User, Firewall exceptions).
+        /// <para>The algorithm used in early versions of WixSharp (legacy algorithm) injects a dummy
+        /// directory into the setup definition so it satisfies the MSI constraint that every component must
+        /// belong to a directory. As many other rules this one has no practical value and rather reflection
+        /// of the outdated (~20 years ago) deployment approaches.</para>
+        /// <para>The current algorithm also ensures the that there is a XML directory to host the components.
+        /// However instead of custom (dummy) directory it inserts 'ProgramFilesFolder'. This way MSI constraint
+        /// is satisfied and yet there is no impact on the target file system.</para>
+        /// </summary>
+        public static bool LegacyDummyDirAlgorithm = false;
 
         /// <summary>
         /// Disables automatic insertion of user profile registry elements.
@@ -549,7 +560,7 @@ internal static void HandleEmptyDirectories(XDocument doc)
                         //'EMPTY DIRECTORY' support processing section
                         foreach (XElement item in componentsWithNoFiles)
                         {
-                            // Ridiculous MSI constrains:
+                            // Ridiculous MSI constraints:
                             //  * you cannot install install empty folders
                             //    - workaround is to insert empty component with CreateFolder element
                             //  * if Component+CreateFolder element is inserted the folder will not be removed on uninstall
diff --git a/Source/src/WixSharp/CommonTasks.cs b/Source/src/WixSharp/CommonTasks.cs
index 19be607f..a4e3a69b 100644
--- a/Source/src/WixSharp/CommonTasks.cs
+++ b/Source/src/WixSharp/CommonTasks.cs
@@ -1285,6 +1285,20 @@ static public XElement CreateParentComponent(this WixEntity entity)
             return new XElement("Component").AddAttributes($@"Id={entity.Id}; Guid={WixGuid.NewGuid(entity.Id)}");
         }
 
+        static public XElement FistProgramFilesDir(this XElement element)
+        {
+            XElement dir = element.FindFirst("Directory");
+            while (dir != null)
+            {
+                if (dir.HasAttribute("Name", x => x.StartsWith("ProgramFiles") && x.EndsWith("Folder")))
+                    return dir;
+
+                dir = dir.Elements("Directory").FirstOrDefault();
+            }
+
+            return null;
+        }
+
         /// <summary>
         /// Installs the windows service. It uses InstallUtil.exe to complete the actual installation/uninstallation.
         /// During the run for the InstallUtil.exe console window is hidden.
diff --git a/Source/src/WixSharp/Compiler.cs b/Source/src/WixSharp/Compiler.cs
index 7c919d91..48d3813c 100644
--- a/Source/src/WixSharp/Compiler.cs
+++ b/Source/src/WixSharp/Compiler.cs
@@ -1406,7 +1406,7 @@ public static XDocument GenerateWixProj(Project project)
             if (!project.LicenceFile.IsEmpty())
             {
                 if (!AllowNonRtfLicense && !project.LicenceFile.EndsWith(".rtf", StringComparison.OrdinalIgnoreCase))
-                    throw new ApplicationException("License file must have 'rtf' file extension. Specify 'Compiler.AllowNonRtfLicense=true' to overcome this constrain.");
+                    throw new ApplicationException("License file must have 'rtf' file extension. Specify 'Compiler.AllowNonRtfLicense=true' to overcome this constraint.");
 
                 product.Add(
                        new XElement("WixVariable",
@@ -1450,7 +1450,7 @@ static string AutoAssignInstallDirId(Dir[] wDirs, string dirId)
                         Compiler.OutputWriteLine($"WARNING: Special folder directory ID '{firstDirWithItems.Id}' has been reset to '{dirId}'.\n" +
                                                   "If it was not intended disable auto assignment by setting 'Compiler.AutoGeneration.InstallDirDefaultId' to null.\n" +
                                                   "Or set  'Dir.IsInstallDir = true' for the installation directory.\r" +
-                                                  "Or use instead of 'new Dir(...' use 'new InstallDir(...' for the installation directory.");
+                                                  "Or instead of 'new Dir(...' use 'new InstallDir(...' for the installation directory.");
 
                     firstDirWithItems.Id = dirId;
                     return logicalPath;
@@ -1709,7 +1709,7 @@ static void ProcessDirectory(Dir wDir, Project wProject, Dictionary<Feature, Lis
             {
                 var existingCompElement = dirItem.Elements("Component");
 
-                if (existingCompElement.Count() == 0 && AutoElements.LagacyDummyDirAlgorithm)
+                if (existingCompElement.Count() == 0 && AutoElements.LegacyDummyDirAlgorithm)
                 {
                     string compId = wDir.Id + ".EmptyDirectory";
 
@@ -2193,7 +2193,7 @@ static void ProcessDirectories(Project wProject, Dictionary<Feature, List<string
                 //WIX/MSI does not like no-directory deployments thus create fake one
                 string dummyDir = @"%ProgramFiles%";
 
-                if (AutoElements.LagacyDummyDirAlgorithm)
+                if (AutoElements.LegacyDummyDirAlgorithm)
                     dummyDir = @"%ProgramFiles%\WixSharp\DummyDir";
 
                 if (wProject.Platform == Platform.x64)
diff --git a/Source/src/WixSharp/User.cs b/Source/src/WixSharp/User.cs
index 926dffd1..f6870a69 100644
--- a/Source/src/WixSharp/User.cs
+++ b/Source/src/WixSharp/User.cs
@@ -262,7 +262,11 @@ public void Process(ProcessingContext context)
 
                 XElement component = this.CreateParentComponent();
                 component.Add(this.ToXElement(WixExtension.Util, "User"));
-                context.XParent.FindFirst("Component").Parent?.Add(component);
+
+                XElement bestParent = context.XParent.FindFirst("Component")?.Parent ??
+                                      context.XParent.FistProgramFilesDir();
+
+                bestParent.Add(component);
 
                 MapComponentToFeatures(component.Attr("Id"), ActualFeatures, context);
             }