diff --git a/src/Shared/MSBuildLoadContext.cs b/src/Shared/MSBuildLoadContext.cs
index 3e797529682..fa2bcce58a2 100644
--- a/src/Shared/MSBuildLoadContext.cs
+++ b/src/Shared/MSBuildLoadContext.cs
@@ -94,13 +94,15 @@ public MSBuildLoadContext(string assemblyPath)
             // If the Assembly is provided via a file path, the following rules are used to load the assembly:
             // - the assembly from the user specified path is loaded, if it exists, into the custom ALC, or
             // - if the simple name of the assembly exists in the same folder as msbuild.exe, then that assembly gets loaded
-            //   into the default ALC (so it's shared with other uses).
+            //   into the default ALC (so it's shared with other uses), or into the custom ALC if we are not running on
+            //   MSBuild.exe (because it might interfere with the app's own dependencies).
             var assemblyNameInExecutableDirectory = Path.Combine(BuildEnvironmentHelper.Instance.CurrentMSBuildToolsDirectory,
                 $"{assemblyName.Name}.dll");
 
             if (FileSystems.Default.FileExists(assemblyNameInExecutableDirectory))
             {
-                return AssemblyLoadContext.Default.LoadFromAssemblyPath(assemblyNameInExecutableDirectory);
+                AssemblyLoadContext targetAlc = BuildEnvironmentHelper.Instance.RunningInMSBuildExe ? Default : this;
+                return targetAlc.LoadFromAssemblyPath(assemblyNameInExecutableDirectory);
             }
 
             return null;