diff --git a/packages/create-sitecore-jss/src/initializers/angular-xmcloud/index.ts b/packages/create-sitecore-jss/src/initializers/angular-xmcloud/index.ts
index 55a3b7f551..3b3f42484e 100644
--- a/packages/create-sitecore-jss/src/initializers/angular-xmcloud/index.ts
+++ b/packages/create-sitecore-jss/src/initializers/angular-xmcloud/index.ts
@@ -30,6 +30,7 @@ export default class AngularXmCloudInitializer implements Initializer {
       yes: args.yes,
       destination: args.destination,
       proxyName: 'node-xmcloud-proxy',
+      proxyAppDestination: args.proxyAppDestination,
     };
     const proxyDetails = await inquirer.prompt<ProxyArgs>(proxyPrompts, promptArgs);
     args.proxyAppDestination = proxyDetails.proxyAppDestination;
diff --git a/packages/create-sitecore-jss/src/templates/angular-sxp/.env b/packages/create-sitecore-jss/src/templates/angular-sxp/.env
new file mode 100644
index 0000000000..147a52093e
--- /dev/null
+++ b/packages/create-sitecore-jss/src/templates/angular-sxp/.env
@@ -0,0 +1,2 @@
+# The way in which layout and dictionary data is fetched from Sitecore
+FETCH_WITH=<%- fetchWith %>
diff --git a/packages/create-sitecore-jss/src/templates/angular/.env b/packages/create-sitecore-jss/src/templates/angular/.env
index f384599d2f..77295d35c5 100644
--- a/packages/create-sitecore-jss/src/templates/angular/.env
+++ b/packages/create-sitecore-jss/src/templates/angular/.env
@@ -25,11 +25,6 @@ GRAPH_QL_ENDPOINT=
 # Uses your `package.json` config `appName` if empty.
 SITECORE_SITE_NAME=
 
-<% if (!locals.xmcloud) { -%>
-# The way in which layout and dictionary data is fetched from Sitecore
-FETCH_WITH=<%- fetchWith %>
-<% } -%>
-
 # Your default app language.
 DEFAULT_LANGUAGE=