diff --git a/eng/Packages.Data.props b/eng/Packages.Data.props
index 9bde37e0b7a2e..9f8df1bcaaa5f 100644
--- a/eng/Packages.Data.props
+++ b/eng/Packages.Data.props
@@ -301,7 +301,7 @@
   </ItemGroup>
 
   <PropertyGroup>
-    <TestProxyVersion>1.0.0-dev.20230706.1</TestProxyVersion>
+    <TestProxyVersion>1.0.0-dev.20230728.1</TestProxyVersion>
   </PropertyGroup>
 
 </Project>
diff --git a/eng/common/testproxy/transition-scripts/README.md b/eng/common/testproxy/onboarding/README.me
similarity index 100%
rename from eng/common/testproxy/transition-scripts/README.md
rename to eng/common/testproxy/onboarding/README.me
diff --git a/eng/common/testproxy/transition-scripts/generate-assets-json.ps1 b/eng/common/testproxy/onboarding/generate-assets-json.ps1
similarity index 97%
rename from eng/common/testproxy/transition-scripts/generate-assets-json.ps1
rename to eng/common/testproxy/onboarding/generate-assets-json.ps1
index 7ecd8408af016..3011a19e57aa0 100644
--- a/eng/common/testproxy/transition-scripts/generate-assets-json.ps1
+++ b/eng/common/testproxy/onboarding/generate-assets-json.ps1
@@ -308,18 +308,17 @@ Function Invoke-ProxyCommand {
 # Get the shorthash directory under PROXY_ASSETS_FOLDER
 Function Get-AssetsRoot {
   param(
-    [string] $AssetsJsonFile
+    [string] $AssetsJsonFile,
+    [string] $TestProxyExe
   )
   $repoRoot = Get-Repo-Root
   $relPath = [IO.Path]::GetRelativePath($repoRoot, $AssetsJsonFile).Replace("`\", "/")
   $assetsJsonDirectory = Split-Path $relPath
-  $breadcrumbFile = Join-Path $repoRoot ".assets" ".breadcrumb"
 
-  $breadcrumbString = Get-Content $breadcrumbFile | Where-Object { $_.StartsWith($relPath) }
-  $assetRepo = $breadcrumbString.Split(";")[1]
-  $assetsPrefix = (Get-Content $AssetsJsonFile | Out-String | ConvertFrom-Json).AssetsRepoPrefixPath
+  [array] $output = & "$TestProxyExe" config locate -a "$relPath" --storage-location="$repoRoot"
+  $assetsDirectory = $output[-1]
 
-  return Join-Path $repoRoot ".assets" $assetRepo $assetsPrefix $assetsJsonDirectory
+  return Join-Path $assetsDirectory $assetsJsonDirectory
 }
 
 Function Move-AssetsFromLangRepo {
@@ -405,7 +404,7 @@ if ($InitialPush) {
     $CommandArgs = "restore --assets-json-path $assetsJsonRelPath"
     Invoke-ProxyCommand -TestProxyExe $TestProxyExe -CommandArgs $CommandArgs -TargetDirectory $repoRoot
 
-    $assetsRoot = (Get-AssetsRoot -AssetsJsonFile $assetsJsonFile)
+    $assetsRoot = (Get-AssetsRoot -AssetsJsonFile $assetsJsonFile -TestProxyExe $TestProxyExe)
     Write-Host "assetsRoot=$assetsRoot"
 
     Move-AssetsFromLangRepo -AssetsRoot $assetsRoot
diff --git a/eng/common/testproxy/target_version.txt b/eng/common/testproxy/target_version.txt
index 6b3a646afd839..faaab72a41d3d 100644
--- a/eng/common/testproxy/target_version.txt
+++ b/eng/common/testproxy/target_version.txt
@@ -1 +1 @@
-1.0.0-dev.20230706.1
+1.0.0-dev.20230728.1
diff --git a/sdk/core/Azure.Core.TestFramework/src/TestProxy.cs b/sdk/core/Azure.Core.TestFramework/src/TestProxy.cs
index 72d77b9cc1899..4521342d35613 100644
--- a/sdk/core/Azure.Core.TestFramework/src/TestProxy.cs
+++ b/sdk/core/Azure.Core.TestFramework/src/TestProxy.cs
@@ -81,13 +81,6 @@ private TestProxy(string proxyPath, bool debugMode = false)
                 }
             };
 
-            bool.TryParse(Environment.GetEnvironmentVariable("TF_BUILD"), out bool inCI);
-
-            if (inCI)
-            {
-                testProxyProcessInfo.EnvironmentVariables["PROXY_ASSETS_FOLDER"] = Path.Combine(System.IO.Path.GetTempPath(), Guid.NewGuid().ToString());
-            }
-
             _testProxyProcess = Process.Start(testProxyProcessInfo);
 
             ProcessTracker.Add(_testProxyProcess);