diff --git a/packages/angular/src/generators/application/application.ts b/packages/angular/src/generators/application/application.ts
index 226d450c1e..8707af449c 100644
--- a/packages/angular/src/generators/application/application.ts
+++ b/packages/angular/src/generators/application/application.ts
@@ -101,10 +101,7 @@ export async function applicationGenerator(
     setApplicationStrictDefault(host, false);
   }
 
-  if (
-    options.standaloneConfig ||
-    getWorkspaceLayout(host).standaloneAsDefault
-  ) {
+  if (options.standaloneConfig) {
     await convertToNxProjectGenerator(host, {
       project: options.name,
       all: false,
diff --git a/packages/angular/src/generators/application/lib/normalize-options.ts b/packages/angular/src/generators/application/lib/normalize-options.ts
index 052399f645..1a9be97922 100644
--- a/packages/angular/src/generators/application/lib/normalize-options.ts
+++ b/packages/angular/src/generators/application/lib/normalize-options.ts
@@ -10,7 +10,7 @@ export function normalizeOptions(
   host: Tree,
   options: Partial<Schema>
 ): NormalizedSchema {
-  const { appsDir, npmScope } = getWorkspaceLayout(host);
+  const { appsDir, npmScope, standaloneAsDefault } = getWorkspaceLayout(host);
 
   const appDirectory = options.directory
     ? `${names(options.directory).fileName}/${names(options.name).fileName}`
@@ -31,6 +31,8 @@ export function normalizeOptions(
 
   const defaultPrefix = npmScope;
 
+  options.standaloneConfig = options.standaloneConfig || standaloneAsDefault;
+
   // Set defaults and then overwrite with user options
   return {
     style: 'css',
diff --git a/packages/angular/src/generators/library/lib/normalize-options.ts b/packages/angular/src/generators/library/lib/normalize-options.ts
index bb7675300e..6146992954 100644
--- a/packages/angular/src/generators/library/lib/normalize-options.ts
+++ b/packages/angular/src/generators/library/lib/normalize-options.ts
@@ -27,7 +27,7 @@ export function normalizeOptions(
     ? `${names(options.directory).fileName}/${name}`
     : name;
 
-  const { libsDir, npmScope } = getWorkspaceLayout(host);
+  const { libsDir, npmScope, standaloneAsDefault } = getWorkspaceLayout(host);
 
   const projectName = projectDirectory.replace(new RegExp('/', 'g'), '-');
   const fileName = options.simpleModuleName ? name : projectName;
@@ -40,6 +40,8 @@ export function normalizeOptions(
   const modulePath = `${projectRoot}/src/lib/${fileName}.module.ts`;
   const defaultPrefix = npmScope;
 
+  options.standaloneConfig = options.standaloneConfig || standaloneAsDefault;
+
   const importPath =
     options.importPath || `@${defaultPrefix}/${projectDirectory}`;
 
diff --git a/packages/angular/src/generators/library/library.ts b/packages/angular/src/generators/library/library.ts
index a8cad399c2..55b79433cb 100644
--- a/packages/angular/src/generators/library/library.ts
+++ b/packages/angular/src/generators/library/library.ts
@@ -69,10 +69,7 @@ export async function libraryGenerator(host: Tree, schema: Partial<Schema>) {
   setStrictMode(host, options);
   await addLinting(host, options);
 
-  if (
-    options.standaloneConfig ||
-    getWorkspaceLayout(host).standaloneAsDefault
-  ) {
+  if (options.standaloneConfig) {
     await convertToNxProjectGenerator(host, {
       project: options.name,
       all: false,