diff --git a/packages/vscode-extension/src/project/applicationContext.ts b/packages/vscode-extension/src/project/applicationContext.ts
index 9d5022bef..98c1b3e8f 100644
--- a/packages/vscode-extension/src/project/applicationContext.ts
+++ b/packages/vscode-extension/src/project/applicationContext.ts
@@ -1,60 +1,26 @@
-import { Disposable, window } from "vscode";
-import { BuildCache, migrateOldBuildCachesToNewStorage } from "../builders/BuildCache";
+import { Disposable } from "vscode";
+import { BuildCache } from "../builders/BuildCache";
 import { DependencyManager } from "../dependency/DependencyManager";
-import { Logger } from "../Logger";
 import { LaunchConfigController } from "../panels/LaunchConfigController";
-import { findAppRootFolder } from "../utilities/extensionContext";
-import { Platform } from "../utilities/platform";
-import { setupPathEnv } from "../utilities/subprocess";
+import { disposeAll } from "../utilities/disposables";
 
 export class ApplicationContext implements Disposable {
-  public appRootFolder: string;
   public dependencyManager: DependencyManager;
   public launchConfig: LaunchConfigController;
   public buildCache: BuildCache;
   private disposables: Disposable[] = [];
 
-  constructor() {
-    const newAppRoot = findAppRootFolder();
-    if (!newAppRoot) {
-      window.showErrorMessage(
-        "Failed to determine any application root candidates, you can set it up manually in launch configuration",
-        "Dismiss"
-      );
-      Logger.error("[Project] The application root could not be found.");
-      throw Error(
-        "Couldn't find app root folder. The extension should not be activated without reachable app root."
-      );
-    }
+  constructor(public appRootFolder: string) {
+    this.dependencyManager = new DependencyManager(appRootFolder);
 
-    Logger.info(`Found app root folder: ${newAppRoot}`);
-    migrateOldBuildCachesToNewStorage(newAppRoot);
+    this.launchConfig = new LaunchConfigController(appRootFolder);
 
-    this.appRootFolder = newAppRoot;
-
-    if (Platform.OS === "macos") {
-      try {
-        setupPathEnv(newAppRoot);
-      } catch (error) {
-        window.showWarningMessage(
-          "Error when setting up PATH environment variable, RN IDE may not work correctly.",
-          "Dismiss"
-        );
-      }
-    }
-
-    this.dependencyManager = new DependencyManager(newAppRoot);
-
-    this.launchConfig = new LaunchConfigController(newAppRoot);
-
-    this.buildCache = new BuildCache(newAppRoot);
+    this.buildCache = new BuildCache(appRootFolder);
 
     this.disposables.push(this.launchConfig, this.dependencyManager);
   }
 
   public dispose() {
-    this.disposables.forEach((disposable) => {
-      disposable.dispose();
-    });
+    disposeAll(this.disposables);
   }
 }
diff --git a/packages/vscode-extension/src/project/project.ts b/packages/vscode-extension/src/project/project.ts
index 95c3da1e2..c35303081 100644
--- a/packages/vscode-extension/src/project/project.ts
+++ b/packages/vscode-extension/src/project/project.ts
@@ -47,7 +47,9 @@ import {
 import { getTelemetryReporter } from "../utilities/telemetry";
 import { ToolKey, ToolsManager } from "./tools";
 import { UtilsInterface } from "../common/utils";
-import { ApplicationContext } from "./applicationContext";
+import { ApplicationContext } from "./ApplicationContext";
+import { disposeAll } from "../utilities/disposables";
+import { findAndSetupNewAppRootFolder } from "../utilities/findAndSetupNewAppRootFolder";
 
 const DEVICE_SETTINGS_KEY = "device_settings_v4";
 
@@ -92,7 +94,8 @@ export class Project
     private readonly deviceManager: DeviceManager,
     private readonly utils: UtilsInterface
   ) {
-    this.applicationContext = new ApplicationContext();
+    const appRoot = findAndSetupNewAppRootFolder();
+    this.applicationContext = new ApplicationContext(appRoot);
 
     this.deviceSettings = extensionContext.workspaceState.get(DEVICE_SETTINGS_KEY) ?? {
       appearance: "dark",
@@ -169,8 +172,9 @@ export class Project
   }
 
   private setupAppRoot() {
+    const newAppRoot = findAndSetupNewAppRootFolder();
     const oldApplicationContext = this.applicationContext;
-    this.applicationContext = new ApplicationContext();
+    this.applicationContext = new ApplicationContext(newAppRoot);
     oldApplicationContext.dispose();
 
     this.reload("reboot");
@@ -416,9 +420,7 @@ export class Project
     this.devtools?.dispose();
     this.deviceManager.removeListener("deviceRemoved", this.removeDeviceListener);
     this.applicationContext.dispose();
-    this.disposables.forEach((disposable) => {
-      disposable.dispose();
-    });
+    disposeAll(this.disposables);
   }
 
   private async reloadMetro() {
diff --git a/packages/vscode-extension/src/utilities/extensionContext.ts b/packages/vscode-extension/src/utilities/extensionContext.ts
index 9c20f716c..45e121031 100644
--- a/packages/vscode-extension/src/utilities/extensionContext.ts
+++ b/packages/vscode-extension/src/utilities/extensionContext.ts
@@ -118,8 +118,8 @@ function searchForFilesDirectory(
       })
       .forEach((dir) => {
         searchQueue.push({
-          path: currentDir!.path + "/" + dir.name,
-          searchDepth: currentDir!.searchDepth + 1,
+          path: currentDir.path + "/" + dir.name,
+          searchDepth: currentDir.searchDepth + 1,
         });
       });
   }
diff --git a/packages/vscode-extension/src/utilities/findAndSetupNewAppRootFolder.ts b/packages/vscode-extension/src/utilities/findAndSetupNewAppRootFolder.ts
new file mode 100644
index 000000000..bc1281c02
--- /dev/null
+++ b/packages/vscode-extension/src/utilities/findAndSetupNewAppRootFolder.ts
@@ -0,0 +1,35 @@
+import { window } from "vscode";
+import { migrateOldBuildCachesToNewStorage } from "../builders/BuildCache";
+import { Logger } from "../Logger";
+import { findAppRootFolder } from "./extensionContext";
+import { Platform } from "./platform";
+import { setupPathEnv } from "./subprocess";
+
+export function findAndSetupNewAppRootFolder() {
+  const newAppRoot = findAppRootFolder();
+  if (!newAppRoot) {
+    window.showErrorMessage(
+      "Failed to determine any application root candidates, you can set it up manually in launch configuration",
+      "Dismiss"
+    );
+    Logger.error("[Project] The application root could not be found.");
+    throw Error(
+      "Couldn't find app root folder. The extension should not be activated without reachable app root."
+    );
+  }
+
+  Logger.info(`Found app root folder: ${newAppRoot}`);
+  migrateOldBuildCachesToNewStorage(newAppRoot);
+
+  if (Platform.OS === "macos") {
+    try {
+      setupPathEnv(newAppRoot);
+    } catch (error) {
+      window.showWarningMessage(
+        "Error when setting up PATH environment variable, RN IDE may not work correctly.",
+        "Dismiss"
+      );
+    }
+  }
+  return newAppRoot;
+}