diff --git a/.pipelines/templates/fetch-test-data-from-blob.yml b/.pipelines/templates/fetch-test-data-from-blob.yml
new file mode 100644
index 000000000..95e38384f
--- /dev/null
+++ b/.pipelines/templates/fetch-test-data-from-blob.yml
@@ -0,0 +1,113 @@
+# Download test model data from blob storage into a local directory.
+# Uses azcopy with AZCLI auth so the agent identity can read from storage.
+
+parameters:
+- name: destinationPath
+  type: string
+  default: '$(Build.SourcesDirectory)/test-data-shared'
+
+steps:
+- task: AzureCLI@2
+  displayName: 'Fetch test data from blob'
+  inputs:
+    azureSubscription: 'ortcibuild_readonly_mi2-ONNX Runtime-AIFoundryLocal'
+    scriptType: pscore
+    scriptLocation: inlineScript
+    inlineScript: |
+      $ErrorActionPreference = 'Stop'
+
+      $destination = '${{ parameters.destinationPath }}'
+      $storageAccount = 'foundrylocalmodels'
+      $container = 'models'
+      $prefix = 'foundrylocal/models'
+
+      if (-not (Get-Command azcopy -ErrorAction SilentlyContinue)) {
+        if ($IsMacOS) {
+          Write-Host 'azcopy not found on macOS agent. Installing via Homebrew...'
+          if (-not (Get-Command brew -ErrorAction SilentlyContinue)) {
+            throw 'Homebrew is required to install azcopy on macOS agents, but brew was not found.'
+          }
+
+          brew update --quiet
+          brew install --quiet azcopy
+        } else {
+          throw 'azcopy is not installed on this agent.'
+        }
+      }
+
+      azcopy --version
+
+      New-Item -ItemType Directory -Path $destination -Force | Out-Null
+      $publisherRoot = Join-Path $destination 'Microsoft'
+      New-Item -ItemType Directory -Path $publisherRoot -Force | Out-Null
+
+      function Invoke-AzCopy {
+        param(
+          [string]$Source,
+          [string]$Target
+        )
+
+        $parent = Split-Path -Path $Target -Parent
+        if (-not [string]::IsNullOrEmpty($parent)) {
+          New-Item -ItemType Directory -Path $parent -Force | Out-Null
+        }
+
+        $args = @('copy', $Source, $Target, '--recursive')
+
+        & azcopy @args
+        if ($LASTEXITCODE -ne 0) {
+          throw "azcopy failed downloading test data from $Source"
+        }
+      }
+
+      # The active SDK tests resolve versioned model aliases in cache.
+      # Keep one target alias per source model to avoid duplicate copies.
+      $modelMappings = @(
+        @{
+          SourcePath = 'qwen2.5-0.5b-instruct'
+          TargetAlias = 'qwen2.5-0.5b-instruct-generic-cpu-4'
+        },
+        @{
+          SourcePath = 'openai-whisper-tiny'
+          TargetAlias = 'openai-whisper-tiny-generic-cpu-4'
+        },
+        @{
+          SourcePath = 'nemotron-speech-streaming-en-0.6b'
+          TargetAlias = 'nemotron-speech-streaming-en-0.6b-generic-cpu-3'
+        },
+        @{
+          SourcePath = 'qwen3-embedding-0.6b'
+          TargetAlias = 'qwen3-embedding-0.6b-generic-cpu-1'
+        },
+        @{
+          SourcePath = 'qwen3.5-0.8b'
+          TargetAlias = 'qwen3.5-0.8b-generic-cpu-2'
+        },
+        @{
+          SourcePath = 'deepseek-r1-distill-qwen-14b'
+          TargetAlias = 'deepseek-r1-distill-qwen-14b-generic-cpu-4'
+        }
+      )
+
+      foreach ($model in $modelMappings) {
+        $requestedUrl = "https://$storageAccount.blob.core.windows.net/$container/$prefix/$($model.SourcePath)/onnx/cpu_and_mobile/*"
+        Write-Host "Requested blob URL: $requestedUrl"
+
+        $target = Join-Path $publisherRoot $model.TargetAlias
+        Invoke-AzCopy -Source $requestedUrl -Target $target
+      }
+
+      $count = @(Get-ChildItem -Path $destination -Recurse -File).Count
+
+      if ($count -eq 0) {
+        throw "Downloaded test data is empty at $destination"
+      }
+
+      Write-Host "Downloaded $count files into $destination"
+      Write-Host "Cache directory contents for $destination"
+      (Get-ChildItem -Path $destination -Recurse -Force |
+        Select-Object FullName, Length |
+        Format-Table -AutoSize |
+        Out-String).TrimEnd() | Write-Host
+  env:
+    AZCOPY_AUTO_LOGIN_TYPE: AZCLI
diff --git a/.pipelines/v2/templates/stages-cs.yml b/.pipelines/v2/templates/stages-cs.yml
index 3bb83a0e7..b83f48b35 100644
--- a/.pipelines/v2/templates/stages-cs.yml
+++ b/.pipelines/v2/templates/stages-cs.yml
@@ -67,9 +67,7 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-cs.yml
       parameters:
         flNugetDir: '$(Pipeline.Workspace)/cpp-nuget'
@@ -98,9 +96,7 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-cs.yml
       parameters:
         flNugetDir: '$(Pipeline.Workspace)/cpp-nuget'
@@ -128,16 +124,7 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - bash: |
-        set -euo pipefail
-        if ! command -v git-lfs >/dev/null 2>&1; then
-          brew install git-lfs
-        fi
-        git lfs install
-      displayName: 'Install git-lfs (macOS)'
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-cs.yml
       parameters:
         flNugetDir: '$(Pipeline.Workspace)/cpp-nuget'
diff --git a/.pipelines/v2/templates/stages-js.yml b/.pipelines/v2/templates/stages-js.yml
index e434f7c74..24308897f 100644
--- a/.pipelines/v2/templates/stages-js.yml
+++ b/.pipelines/v2/templates/stages-js.yml
@@ -198,14 +198,12 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-js.yml
       parameters:
         rid: 'win-x64'
         prebuildArtifactDir: '$(Pipeline.Workspace)/js-prebuild-win-x64'
-        testDataSharedDir: '$(Build.SourcesDirectory)/test-data-shared'
+        testDataSharedDir: '$(Build.SourcesDirectory)/test-data-shared/Microsoft'
 
 - stage: js_test_linux_x64
   displayName: 'JS SDK: Test Linux x64'
@@ -224,14 +222,12 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-js.yml
       parameters:
         rid: 'linux-x64'
         prebuildArtifactDir: '$(Pipeline.Workspace)/js-prebuild-linux-x64'
-        testDataSharedDir: '$(Build.SourcesDirectory)/test-data-shared'
+        testDataSharedDir: '$(Build.SourcesDirectory)/test-data-shared/Microsoft'
 
 - stage: js_test_osx_arm64
   displayName: 'JS SDK: Test macOS ARM64'
@@ -252,21 +248,12 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - bash: |
-          set -euo pipefail
-          if ! command -v git-lfs >/dev/null 2>&1; then
-              brew install git-lfs
-          fi
-          git lfs install
-      displayName: 'Install git-lfs (macOS)'
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-js.yml
       parameters:
         rid: 'osx-arm64'
         prebuildArtifactDir: '$(Pipeline.Workspace)/js-prebuild-osx-arm64'
-        testDataSharedDir: '$(Build.SourcesDirectory)/test-data-shared'
+        testDataSharedDir: '$(Build.SourcesDirectory)/test-data-shared/Microsoft'
 
 # =====================================================================
 # Pack stage — runs after all four builds. Pure packaging on Windows.
diff --git a/.pipelines/v2/templates/stages-python.yml b/.pipelines/v2/templates/stages-python.yml
index e6b859dc9..8aeef0b43 100644
--- a/.pipelines/v2/templates/stages-python.yml
+++ b/.pipelines/v2/templates/stages-python.yml
@@ -189,9 +189,7 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-python.yml
       parameters:
         wheelDir: '$(Pipeline.Workspace)/python-sdk-linux-x64'
@@ -216,16 +214,7 @@ stages:
     steps:
     - checkout: self
       clean: true
-    - bash: |
-          set -euo pipefail
-          if ! command -v git-lfs >/dev/null 2>&1; then
-              brew install git-lfs
-          fi
-          git lfs install
-      displayName: 'Install git-lfs (macOS)'
-    - template: ../../templates/checkout-steps.yml@self
-      parameters:
-        repoName: test-data-shared
+    - template: ../../templates/fetch-test-data-from-blob.yml@self
     - template: steps-test-python.yml
       parameters:
         wheelDir: '$(Pipeline.Workspace)/python-sdk-osx-arm64'
diff --git a/.pipelines/v2/templates/steps-build-linux.yml b/.pipelines/v2/templates/steps-build-linux.yml
index b16b13fdd..f092abc41 100644
--- a/.pipelines/v2/templates/steps-build-linux.yml
+++ b/.pipelines/v2/templates/steps-build-linux.yml
@@ -43,10 +43,9 @@ steps:
   displayName: 'Append version define'
 
 - ${{ if eq(parameters.runTests, true) }}:
-  - template: ../../templates/checkout-steps.yml@self
+  - template: ../../templates/fetch-test-data-from-blob.yml@self
     parameters:
-      repoName: test-data-shared
-      basePath: '$(Agent.BuildDirectory)'
+      destinationPath: '$(Agent.BuildDirectory)/test-data-shared'
 
 - bash: |
     set -euo pipefail
diff --git a/.pipelines/v2/templates/steps-build-macos.yml b/.pipelines/v2/templates/steps-build-macos.yml
index 278bdbff8..92f9825e9 100644
--- a/.pipelines/v2/templates/steps-build-macos.yml
+++ b/.pipelines/v2/templates/steps-build-macos.yml
@@ -51,10 +51,9 @@ steps:
   displayName: 'Append version define'
 
 - ${{ if eq(parameters.runTests, true) }}:
-  - template: ../../templates/checkout-steps.yml@self
+  - template: ../../templates/fetch-test-data-from-blob.yml@self
     parameters:
-      repoName: test-data-shared
-      basePath: '$(Agent.BuildDirectory)'
+      destinationPath: '$(Agent.BuildDirectory)/test-data-shared'
 
 - bash: |
     set -euo pipefail
diff --git a/.pipelines/v2/templates/steps-build-windows.yml b/.pipelines/v2/templates/steps-build-windows.yml
index cc439f54f..5f1d0f761 100644
--- a/.pipelines/v2/templates/steps-build-windows.yml
+++ b/.pipelines/v2/templates/steps-build-windows.yml
@@ -74,10 +74,9 @@ steps:
 
 # Tests need shared model files.
 - ${{ if eq(parameters.runTests, true) }}:
-  - template: ../../templates/checkout-steps.yml@self
+  - template: ../../templates/fetch-test-data-from-blob.yml@self
     parameters:
-      repoName: test-data-shared
-      basePath: '$(Agent.BuildDirectory)'
+      destinationPath: '$(Agent.BuildDirectory)/test-data-shared'
 
 - ${{ if eq(parameters.arch, 'x64') }}:
   - script: >-
diff --git a/.pipelines/v2/templates/steps-test-cs.yml b/.pipelines/v2/templates/steps-test-cs.yml
index 4bca80729..adbb10644 100644
--- a/.pipelines/v2/templates/steps-test-cs.yml
+++ b/.pipelines/v2/templates/steps-test-cs.yml
@@ -2,7 +2,7 @@
 # (FoundryLocal.Tests). The caller is responsible for:
 #   - placing the Foundry Local Runtime nupkg in `flNugetDir`
 #   - downloading the `version-info` pipeline artifact
-#   - checking out `test-data-shared` at `testDataSharedDir`
+#   - populating the model cache directory at `testDataSharedDir`
 
 parameters:
 - name: flNugetDir
@@ -10,7 +10,7 @@ parameters:
   displayName: 'Path to directory containing the Foundry Local Runtime .nupkg'
 - name: testDataSharedDir
   type: string
-  displayName: 'Absolute path to a checked-out test-data-shared working tree'
+  displayName: 'Absolute path to the model cache directory used by tests'
 - name: additionalTestArgs
   type: string
   default: ''
diff --git a/.pipelines/v2/templates/steps-test-js.yml b/.pipelines/v2/templates/steps-test-js.yml
index d161da06e..f33c69850 100644
--- a/.pipelines/v2/templates/steps-test-js.yml
+++ b/.pipelines/v2/templates/steps-test-js.yml
@@ -14,7 +14,7 @@ parameters:
   displayName: 'Path to the downloaded js-prebuild-<rid> artifact directory (root with prebuilds/ inside)'
 - name: testDataSharedDir
   type: string
-  displayName: 'Path to the checked-out test-data-shared repo'
+  displayName: 'Path to the model cache directory used by tests'
 
 steps:
 
diff --git a/.pipelines/v2/templates/steps-test-python.yml b/.pipelines/v2/templates/steps-test-python.yml
index 5dfd4bab6..223ef527f 100644
--- a/.pipelines/v2/templates/steps-test-python.yml
+++ b/.pipelines/v2/templates/steps-test-python.yml
@@ -3,7 +3,7 @@
 #
 # The caller is responsible for:
 #   * placing the built wheel (.whl) under `wheelDir`
-#   * checking out test-data-shared at `testDataSharedDir`
+#   * populating the model cache directory at `testDataSharedDir`
 
 parameters:
 - name: wheelDir
diff --git a/sdk_v2/DEVELOPMENT.md b/sdk_v2/DEVELOPMENT.md
index febd9a8db..895a5b378 100644
--- a/sdk_v2/DEVELOPMENT.md
+++ b/sdk_v2/DEVELOPMENT.md
@@ -87,6 +87,24 @@ pwsh ./build_and_test_all.ps1 -ContinueOnError
 
 See `pwsh ./build_and_test_all.ps1 -?` for the full parameter list.
 
+## Model cache for tests
+
+Model-dependent sdk_v2 tests require `FOUNDRY_TEST_DATA_DIR` to point to a
+local model cache directory.
+
+In CI, sdk_v2 pipelines download model data from blob storage into this path.
+For local runs, set it explicitly before invoking test commands.
+
+Example:
+
+```powershell
+$env:FOUNDRY_TEST_DATA_DIR = 'C:\path\to\model-cache'
+pwsh ./build_and_test_all.ps1
+```
+
+The directory can have any name. What matters is that it already contains the
+model files expected by the tests you are running.
+
 ## Troubleshooting
 
 * **`cl.exe ... HostX86\x86\cl.exe` during pip install** — your shell has
diff --git a/sdk_v2/cpp/test/internal_api/test_model_cache.h b/sdk_v2/cpp/test/internal_api/test_model_cache.h
index 7f95e6bc0..ea08b9ba3 100644
--- a/sdk_v2/cpp/test/internal_api/test_model_cache.h
+++ b/sdk_v2/cpp/test/internal_api/test_model_cache.h
@@ -1,9 +1,7 @@
 // Copyright (c) Microsoft Corporation. All rights reserved.
 // Licensed under the MIT License.
 // Shared helper for tests that need access to the shared test model cache.
-// Mirrors the C# test setup pattern:
-//   - Default: look for "test-data-shared" in the parent of the git repo root
-//   - Override via FOUNDRY_TEST_DATA_DIR environment variable (absolute or relative path)
+// Requires FOUNDRY_TEST_DATA_DIR to be set to an existing model cache path.
 #pragma once
 
 #include "utils/safe_getenv.h"
@@ -17,56 +15,27 @@ namespace fs = std::filesystem;
 
 namespace fl::test {
 
-/// Walk up from source_dir to find the directory containing .git.
-inline fs::path FindRepoRoot(const fs::path& source_dir) {
-  fs::path dir = source_dir;
-
-  while (!dir.empty() && dir.has_parent_path()) {
-    if (fs::exists(dir / ".git")) {
-      return dir;
-    }
-
-    auto parent = dir.parent_path();
-    if (parent == dir) {
-      break;
-    }
-
-    dir = parent;
-  }
-
-  throw std::runtime_error("Could not find git repository root from: " + source_dir.string());
-}
-
-/// Default test-data-shared directory name.
-constexpr const char* kDefaultTestModelCacheDirName = "test-data-shared";
-
 /// Resolve the test model cache directory.
-/// Priority:
-///   1. FOUNDRY_TEST_DATA_DIR environment variable (absolute or relative path)
-///   2. Default: {repo_root}/../test-data-shared/
+/// FOUNDRY_TEST_DATA_DIR is required.
 inline fs::path GetTestModelCacheDir() {
-  // Check environment variable first
   std::string env_value = SafeGetEnv("FOUNDRY_TEST_DATA_DIR");
-  if (!env_value.empty()) {
-    fs::path env_path(env_value);
-    if (!fs::exists(env_path)) {
-      throw std::runtime_error("FOUNDRY_TEST_DATA_DIR does not exist: " + env_path.string());
-    }
-
-    return fs::canonical(env_path);
+  if (env_value.empty()) {
+    throw std::runtime_error(
+        "FOUNDRY_TEST_DATA_DIR is not set. Set it to a local model cache directory before running tests.");
   }
 
-  // Default: {repo_root}/../test-data-shared/
-  fs::path repo_root = FindRepoRoot(fs::path(__FILE__).parent_path());
-  fs::path default_path = repo_root.parent_path() / kDefaultTestModelCacheDirName;
+  fs::path env_path(env_value);
+  if (!fs::exists(env_path)) {
+    throw std::runtime_error("FOUNDRY_TEST_DATA_DIR does not exist: " + env_path.string());
+  }
 
-  if (!fs::exists(default_path)) {
-    throw std::runtime_error(
-        "Test model cache directory not found at default location: " + default_path.string() +
-        "\nSet FOUNDRY_TEST_DATA_DIR environment variable to override.");
+  fs::path publisher_path = env_path / "Microsoft";
+  if (!fs::exists(publisher_path)) {
+    throw std::runtime_error("FOUNDRY_TEST_DATA_DIR/Microsoft does not exist: " +
+                             publisher_path.string());
   }
 
-  return fs::canonical(default_path);
+  return fs::canonical(publisher_path);
 }
 
 /// Returns true when running under a known CI provider.
diff --git a/sdk_v2/cs/test/FoundryLocal.Tests/LOCAL_MODEL_TESTING.md b/sdk_v2/cs/test/FoundryLocal.Tests/LOCAL_MODEL_TESTING.md
index 1b4a71e78..6f74cb537 100644
--- a/sdk_v2/cs/test/FoundryLocal.Tests/LOCAL_MODEL_TESTING.md
+++ b/sdk_v2/cs/test/FoundryLocal.Tests/LOCAL_MODEL_TESTING.md
@@ -1,24 +1,13 @@
 # Running Local Model Tests
 
-## Configuration
-
-The test model cache directory name is configured in `sdk/cs/test/FoundryLocal.Tests/appsettings.Test.json`:
-
-```json
-{
-  "TestModelCacheDirName": "test-data-shared"
-}
-```
-
-If the value is a directory name it will be resolved as <repository-root>/../{TestModelCacheDirName}.
-Otherwise the value will be resolved using Path.GetFullPath, which allows for absolute paths or
-relative paths based on the current working directory.
+Set `FOUNDRY_TEST_DATA_DIR` to a local model cache path before running tests.
+The path can point to any directory layout that contains the models expected by
+the test suite.
 
 ## Run the tests
 
-The tests will automatically find the models in the configured test model cache directory.
-
 ```bash
-cd /path/to/parent-dir/foundry-local-sdk/sdk/cs/test/FoundryLocal.Tests
-dotnet test Microsoft.AI.Foundry.Local.Tests.csproj --configuration Release# Running Local Model Tests
+export FOUNDRY_TEST_DATA_DIR=/path/to/model-cache
+cd /path/to/Foundry-Local/sdk_v2/cs/test/FoundryLocal.Tests
+dotnet test Microsoft.AI.Foundry.Local.Tests.csproj --configuration Release
 ```
diff --git a/sdk_v2/cs/test/FoundryLocal.Tests/Microsoft.AI.Foundry.Local.Tests.csproj b/sdk_v2/cs/test/FoundryLocal.Tests/Microsoft.AI.Foundry.Local.Tests.csproj
index a2071fcc7..0644f330b 100644
--- a/sdk_v2/cs/test/FoundryLocal.Tests/Microsoft.AI.Foundry.Local.Tests.csproj
+++ b/sdk_v2/cs/test/FoundryLocal.Tests/Microsoft.AI.Foundry.Local.Tests.csproj
@@ -61,13 +61,6 @@
     <PackageReference Include="System.Threading.Channels" Version="9.0.9" />
   </ItemGroup>
 
-  <!-- copies appsettings.Test.json to output directory so tests can find it -->
-  <ItemGroup>
-    <None Update="appsettings.Test.json">
-      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
-    </None>
-  </ItemGroup>
-
   <ItemGroup>
     <None Include="../../../testdata/Recording.mp3" Link="testdata/Recording.mp3">
       <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
@@ -86,8 +79,6 @@
       <PrivateAssets>all</PrivateAssets>
     </PackageReference>
     <PackageReference Include="Microsoft.Extensions.Logging.Console" Version="9.0.9" />
-    <PackageReference Include="Microsoft.Extensions.Configuration" Version="9.0.9" />
-    <PackageReference Include="Microsoft.Extensions.Configuration.Json" Version="9.0.9" />
     <PackageReference Include="Microsoft.NET.Test.Sdk" Version="18.0.0" />
     <PackageReference Include="TUnit" Version="0.63.3" />
     <PackageReference Include="TUnit.Core" Version="0.63.3" />
diff --git a/sdk_v2/cs/test/FoundryLocal.Tests/Utils.cs b/sdk_v2/cs/test/FoundryLocal.Tests/Utils.cs
index e684e1e5d..f05fd8f31 100644
--- a/sdk_v2/cs/test/FoundryLocal.Tests/Utils.cs
+++ b/sdk_v2/cs/test/FoundryLocal.Tests/Utils.cs
@@ -14,7 +14,6 @@ namespace Microsoft.AI.Foundry.Local.Tests;
 using System.Text.Json;
 
 using Microsoft.AI.Foundry.Local.Detail;
-using Microsoft.Extensions.Configuration;
 using Microsoft.Extensions.Logging;
 
 #pragma warning disable CS0618 // Test helpers exercise PromptTemplate/ModelSettings which are obsolete but still supported.
@@ -62,58 +61,24 @@ static Utils()
 
         ILogger logger = loggerFactory.CreateLogger("FoundryLocalSdkTest");
 
-        // Read configuration from appsettings.Test.json
-        logger.LogDebug("Reading configuration from appsettings.Test.json");
-        var configuration = new ConfigurationBuilder()
-            .SetBasePath(Directory.GetCurrentDirectory())
-            .AddJsonFile("appsettings.Test.json", optional: true, reloadOnChange: false)
-            .Build();
-
-        // Prefer the FOUNDRY_TEST_DATA_DIR env var when set (used by CI). If it points at
-        // an existing directory we treat it as an absolute path. Otherwise fall back to
-        // the appsettings.Test.json TestModelCacheDirName logic for inner-loop / VS use.
+        // FOUNDRY_TEST_DATA_DIR is required for model-dependent tests.
         var envCacheDir = Environment.GetEnvironmentVariable("FOUNDRY_TEST_DATA_DIR");
-        string testDataSharedPath;
-        if (!string.IsNullOrWhiteSpace(envCacheDir) && Directory.Exists(envCacheDir))
+        if (string.IsNullOrWhiteSpace(envCacheDir))
         {
-            testDataSharedPath = Path.GetFullPath(envCacheDir);
-            logger.LogInformation(
-                "Using test model cache directory from FOUNDRY_TEST_DATA_DIR env var: {TestDataSharedPath}",
-                testDataSharedPath);
+            logger.LogWarning(
+                "FOUNDRY_TEST_DATA_DIR is not set. Integration tests will be skipped.");
+            Console.Error.WriteLine(
+                "[Utils::Utils] FOUNDRY_TEST_DATA_DIR is not set. Integration tests will be skipped.");
+            return;
         }
-        else
-        {
-            if (!string.IsNullOrWhiteSpace(envCacheDir))
-            {
-                logger.LogWarning(
-                    "FOUNDRY_TEST_DATA_DIR is set to '{EnvCacheDir}' but the directory does not exist; falling back to appsettings.Test.json.",
-                    envCacheDir);
-            }
 
-            var testModelCacheDirName = configuration["TestModelCacheDirName"] ?? "test-data-shared";
-            if (Path.IsPathRooted(testModelCacheDirName) ||
-                testModelCacheDirName.Contains(Path.DirectorySeparatorChar) ||
-                testModelCacheDirName.Contains(Path.AltDirectorySeparatorChar))
-            {
-                // It's a relative or complete filepath, resolve from current directory
-                testDataSharedPath = Path.GetFullPath(testModelCacheDirName);
-            }
-            else
-            {
-                // It's just a directory name, combine with repo root parent
-                testDataSharedPath = Path.GetFullPath(Path.Combine(GetRepoRoot(), "..", testModelCacheDirName));
-            }
-
-            logger.LogInformation(
-                "Using test model cache directory from appsettings.Test.json: {TestDataSharedPath}",
-                testDataSharedPath);
-        }
+        string testDataSharedPath = Path.GetFullPath(Path.Combine(envCacheDir, "Microsoft"));
+        logger.LogInformation(
+            "Using test model cache directory from FOUNDRY_TEST_DATA_DIR/Microsoft: {TestDataSharedPath}",
+            testDataSharedPath);
 
         if (!Directory.Exists(testDataSharedPath))
         {
-            // Do NOT throw — that would abort every test in the assembly, including pure unit
-            // tests that don't touch the manager. Instead leave IntegrationTestsAvailable=false
-            // so integration tests skip via [SkipUnlessIntegration] while unit tests still run.
             logger.LogWarning(
                 "Test model cache directory does not exist: {TestDataSharedPath}. Integration tests will be skipped. See LOCAL_MODEL_TESTING.md.",
                 testDataSharedPath);
@@ -127,7 +92,7 @@ static Utils()
         // exactly which path we resolved. Critical when diagnosing initialization
         // failures from CI logs only.
         Console.WriteLine($"[Utils::Utils] FOUNDRY_TEST_DATA_DIR env: '{envCacheDir}'");
-        Console.WriteLine($"[Utils::Utils] Resolved test model cache: '{testDataSharedPath}'");
+        Console.WriteLine($"[Utils::Utils] Resolved test model cache (FOUNDRY_TEST_DATA_DIR/Microsoft): '{testDataSharedPath}'");
 
         var config = new Configuration
         {
diff --git a/sdk_v2/cs/test/FoundryLocal.Tests/appsettings.Test.json b/sdk_v2/cs/test/FoundryLocal.Tests/appsettings.Test.json
deleted file mode 100644
index d42d87893..000000000
--- a/sdk_v2/cs/test/FoundryLocal.Tests/appsettings.Test.json
+++ /dev/null
@@ -1,3 +0,0 @@
-{
-  "TestModelCacheDirName": "test-data-shared"
-}
diff --git a/sdk_v2/js/test/_fixtures/realModelManager.ts b/sdk_v2/js/test/_fixtures/realModelManager.ts
index 786bf427e..8a9ff919b 100644
--- a/sdk_v2/js/test/_fixtures/realModelManager.ts
+++ b/sdk_v2/js/test/_fixtures/realModelManager.ts
@@ -75,31 +75,58 @@ export async function setupRealModelManager(opts: RealModelManagerOptions = {}):
   });
   const catalog = manager.catalog;
   const namePref = opts.namePreference ?? "qwen2.5-0.5b";
+  const task = opts.task ?? "chat-completion";
+  const all = await catalog.getModels();
+
+  const normalizeVersionSuffix = (value: string): string => value.replace(/-\d+$/, "");
+  const nameMatchesPreference = (candidateName: string, preference: string): boolean => {
+    if (candidateName === preference) {
+      return true;
+    }
+
+    const candidateBase = normalizeVersionSuffix(candidateName);
+    const prefBase = normalizeVersionSuffix(preference);
+
+    // Handles versioned/unversioned pairs in either direction, e.g.
+    //  - preference: openai-whisper-tiny-generic-cpu
+    //  - candidate : openai-whisper-tiny-generic-cpu-4
+    return candidateBase === prefBase;
+  };
+
+  const bySize = (a: IModel, b: IModel): number =>
+    (a.info.fileSizeMb ?? Number.POSITIVE_INFINITY) - (b.info.fileSizeMb ?? Number.POSITIVE_INFINITY);
+
+  const preferCachedThenSize = (models: IModel[]): IModel | undefined => {
+    const cached = models.filter((m) => m.isCached);
+    if (cached.length > 0) {
+      return cached.sort(bySize)[0];
+    }
+    return models.sort(bySize)[0];
+  };
 
   // Preference 1: exact name / alias hit (V1 throws on miss, so swallow).
   let model: IModel | undefined;
   try {
-    model = await catalog.getModel(namePref);
+    const exact = await catalog.getModel(namePref);
+    if (exact.info.deviceType === "CPU") {
+      model = exact;
+    }
   } catch {
     model = undefined;
   }
 
-  // Preference 1b: catalog entries often carry a `-N` version suffix
-  // (e.g. `nemotron-speech-streaming-en-0.6b-generic-cpu-3`). If the exact
-  // hit missed, try matching by prefix before falling back to the task
-  // filter — caller-specified names should win over "smallest by task".
-  if (model === undefined && opts.namePreference !== undefined) {
-    const all = await catalog.getModels();
-    const prefixed = all.find((m) => m.info.name.startsWith(namePref));
-    if (prefixed !== undefined) {
-      model = prefixed;
-    }
+  // Preference 1b: robust preference matching with CPU + cache-first behavior.
+  // Handles versioned/unversioned names in either direction.
+  if (model === undefined) {
+    const preferredMatches = all.filter((m) => {
+      const info = m.info;
+      return info.deviceType === "CPU" && nameMatchesPreference(info.name, namePref);
+    });
+    model = preferCachedThenSize(preferredMatches);
   }
 
   // Preference 2: smallest model matching the task filter.
   if (model === undefined) {
-    const task = opts.task ?? "chat-completion";
-    const all = await catalog.getModels();
     const matching = all.filter((m) => {
       const info = m.info;
       return info.task === task && info.deviceType === "CPU";
@@ -110,11 +137,7 @@ export async function setupRealModelManager(opts: RealModelManagerOptions = {}):
         `No catalog model matches task='${task}' deviceType='CPU' (and preference '${namePref}' missing)`,
       );
     }
-    matching.sort(
-      (a, b) =>
-        (a.info.filesizeMb ?? Number.POSITIVE_INFINITY) - (b.info.filesizeMb ?? Number.POSITIVE_INFINITY),
-    );
-    model = matching[0];
+    model = preferCachedThenSize(matching);
   }
   if (model === undefined) {
     manager.dispose();
diff --git a/sdk_v2/js/test/audio-client.test.ts b/sdk_v2/js/test/audio-client.test.ts
index 0cf818311..6b3eb9d3c 100644
--- a/sdk_v2/js/test/audio-client.test.ts
+++ b/sdk_v2/js/test/audio-client.test.ts
@@ -51,7 +51,7 @@ describe.skipIf(!haveTestModelCache)("AudioClient (real whisper-tiny model, V1 O
 
   beforeAll(async () => {
     fixture = await setupRealModelManager({
-      namePreference: "whisper-tiny",
+      namePreference: "openai-whisper-tiny-generic-cpu",
       task: "automatic-speech-recognition",
     });
     if (fixture !== undefined) {
diff --git a/sdk_v2/js/test/audio-session.test.ts b/sdk_v2/js/test/audio-session.test.ts
index a2a7fcb7d..72b522710 100644
--- a/sdk_v2/js/test/audio-session.test.ts
+++ b/sdk_v2/js/test/audio-session.test.ts
@@ -257,7 +257,7 @@ describe.skipIf(!haveTestModelCache)("AudioSession (real whisper-tiny model)", (
 
   beforeAll(async () => {
     fixture = await setupRealModelManager({
-      namePreference: "whisper-tiny",
+      namePreference: "openai-whisper-tiny-generic-cpu",
       task: "automatic-speech-recognition",
     });
   }, 5 * 60_000);
diff --git a/sdk_v2/python/test/conftest.py b/sdk_v2/python/test/conftest.py
index 5f521efed..a1fdccfce 100644
--- a/sdk_v2/python/test/conftest.py
+++ b/sdk_v2/python/test/conftest.py
@@ -38,9 +38,7 @@ def is_running_in_ci() -> bool:
 
 IS_CI: bool = is_running_in_ci()
 
-# Optional override that points the SDK at a pre-staged model cache so
-# integration tests can find cached models without downloading.
-# Mirrors the C++ FOUNDRY_TEST_DATA_DIR env var.
+# Required model cache path for sdk_v2 Python tests.
 FOUNDRY_TEST_DATA_DIR: str | None = os.environ.get("FOUNDRY_TEST_DATA_DIR") or None
 
 
@@ -66,13 +64,18 @@ def manager():
     # and must not close it on teardown.
     created_here = False
 
+    if not FOUNDRY_TEST_DATA_DIR:
+        pytest.skip("FOUNDRY_TEST_DATA_DIR is required for sdk_v2 Python tests.")
+
+    if not os.path.isdir(FOUNDRY_TEST_DATA_DIR):
+        pytest.skip(f"FOUNDRY_TEST_DATA_DIR does not exist: {FOUNDRY_TEST_DATA_DIR}")
+
     if FoundryLocalManager.instance is None:
         config_kwargs = {
             "app_name": "FoundryLocalPythonTests",
             "log_level": LogLevel.WARNING,
+            "model_cache_dir": FOUNDRY_TEST_DATA_DIR,
         }
-        if FOUNDRY_TEST_DATA_DIR:
-            config_kwargs["model_cache_dir"] = FOUNDRY_TEST_DATA_DIR
 
         config = Configuration(**config_kwargs)
         FoundryLocalManager.initialize(config)