diff --git a/.ado/jobs/cli-init-windows.yml b/.ado/jobs/cli-init-windows.yml
new file mode 100644
index 00000000000..35e9736c8bb
--- /dev/null
+++ b/.ado/jobs/cli-init-windows.yml
@@ -0,0 +1,90 @@
+parameters:
+  - name: buildEnvironment
+    type: string
+    default: PullRequest
+    values:
+      - PullRequest
+      - Continuous
+  - name: AgentPool
+    type: object
+  - name: buildMatrix
+    type: object
+    default:
+      - BuildEnvironment: PullRequest
+        Matrix:
+          - Name: FabricX64Release
+            template: cpp-app
+            configuration: Release
+            platform: x64
+            additionalRunArguments: --no-autolink
+          - Name: FabricX86Debug
+            template: cpp-app
+            configuration: Debug
+            platform: x86
+            additionalRunArguments: --no-autolink
+      - BuildEnvironment: Continuous
+        Matrix:
+          - Name: FabricX64Debug
+            template: cpp-app
+            configuration: Debug
+            platform: x64
+            additionalRunArguments: --no-autolink
+          - Name: FabricX64Release
+            template: cpp-app
+            configuration: Release
+            platform: x64
+            additionalRunArguments: --no-autolink
+          - Name: FabricX86Debug
+            template: cpp-app
+            configuration: Debug
+            platform: x86
+            additionalRunArguments: --no-autolink
+          - Name: FabricX86Release
+            template: cpp-app
+            configuration: Release
+            platform: x86
+            additionalRunArguments: --no-autolink
+jobs:
+  - ${{ each config in parameters.buildMatrix }}:
+    - ${{ if eq(config.BuildEnvironment, parameters.buildEnvironment) }}:
+      - ${{ each matrix in config.Matrix }}:
+          - job: CliInitWindows${{ matrix.Name }}
+            displayName: Verify CliInitWindows ${{ matrix.Name }}
+
+            variables: [template: ../variables/windows.yml]
+
+            ${{ if eq(matrix.lowResource, true) }}:
+              pool: ${{ parameters.AgentPool.Small }}
+            ${{ else }}:
+              pool: ${{ parameters.AgentPool.Medium }}
+            timeoutInMinutes: 60
+            cancelTimeoutInMinutes: 5
+
+            steps:
+              - template: ../templates/checkout-full.yml
+                parameters:
+                  persistCredentials: false # We don't need git creds in this job
+
+              - template: ../templates/prepare-js-env.yml
+
+              - template: ../templates/prepare-build-env.yml
+                parameters:
+                  platform: ${{ parameters.platform }}
+                  configuration: ${{ parameters.configuration }}
+                  buildEnvironment: ${{ parameters.buildEnvironment }}
+
+              - task: CmdLine@2
+                displayName: Create npm directory
+                name: createNpmDirectory
+                inputs:
+                  script: mkdir %APPDATA%\npm
+                  
+              - template: ../templates/react-native-init-windows.yml
+                parameters:
+                  template: ${{ matrix.template }}
+                  configuration: ${{ matrix.configuration }}
+                  platform: ${{ matrix.platform }}
+                  additionalInitArguments: ${{ matrix.additionalInitArguments }}
+                  additionalRunArguments: ${{ matrix.additionalRunArguments }}
+                  runWack: ${{ coalesce(matrix.runWack, false) }}
+                  buildEnvironment: ${{ parameters.buildEnvironment }}
\ No newline at end of file
diff --git a/.ado/jobs/cli-init.yml b/.ado/jobs/cli-init.yml
index 572408f4feb..3c1b7915474 100644
--- a/.ado/jobs/cli-init.yml
+++ b/.ado/jobs/cli-init.yml
@@ -96,20 +96,6 @@ parameters:
             platform: x64
             projectType: app
             lowResource: true
-          - Name: FabricX64Release
-            language: cpp
-            configuration: Release
-            platform: x64
-            projectType: app
-            initPath: InitWindows
-            additionalRunArguments: --no-autolink
-          - Name: FabricX86Debug
-            language: cpp
-            configuration: Debug
-            platform: x86
-            projectType: app
-            initPath: InitWindows
-            additionalRunArguments: --no-autolink
       - BuildEnvironment: Continuous
         Matrix:
           - Name: X64ReleaseCpp
@@ -283,34 +269,7 @@ parameters:
             platform: x64
             projectType: app
             lowResource: true
-          - Name: FabricX64Debug
-            language: cpp
-            configuration: Debug
-            platform: x64
-            projectType: app
-            initPath: InitWindows
-            additionalRunArguments: --no-autolink
-          - Name: FabricX64Release
-            language: cpp
-            configuration: Release
-            platform: x64
-            projectType: app
-            initPath: InitWindows
-            additionalRunArguments: --no-autolink
-          - Name: FabricX86Debug
-            language: cpp
-            configuration: Debug
-            platform: x86
-            projectType: app
-            initPath: InitWindows
-            additionalRunArguments: --no-autolink
-          - Name: FabricX86Release
-            language: cpp
-            configuration: Release
-            platform: x86
-            projectType: app
-            initPath: InitWindows
-            additionalRunArguments: --no-autolink
+
 jobs:
   - ${{ each config in parameters.buildMatrix }}:
     - ${{ if eq(config.BuildEnvironment, parameters.buildEnvironment) }}:
@@ -357,7 +316,6 @@ jobs:
                   configuration: ${{ matrix.configuration }}
                   platform: ${{ matrix.platform }}
                   projectType: ${{ matrix.projectType }}
-                  initPath: ${{ coalesce(matrix.initPath, 'ReactNativeWindowsInit') }}
                   additionalInitArguments: ${{ matrix.additionalInitArguments }}
                   additionalRunArguments: ${{ matrix.additionalRunArguments }}
                   runWack: ${{ coalesce(matrix.runWack, false) }}
diff --git a/.ado/stages.yml b/.ado/stages.yml
index 5960f6dcf18..42f6c548352 100644
--- a/.ado/stages.yml
+++ b/.ado/stages.yml
@@ -85,3 +85,8 @@ stages:
           buildEnvironment: ${{ parameters.buildEnvironment }}
           AgentPool: ${{ parameters.AgentPool }}
           buildNuGetOnly: false
+      
+      - template: jobs/cli-init-windows.yml
+        parameters:
+          buildEnvironment: ${{ parameters.buildEnvironment }}
+          AgentPool: ${{ parameters.AgentPool }}
diff --git a/.ado/templates/react-native-debug-info.yml b/.ado/templates/react-native-debug-info.yml
new file mode 100644
index 00000000000..b0ffb8042ac
--- /dev/null
+++ b/.ado/templates/react-native-debug-info.yml
@@ -0,0 +1,28 @@
+#
+parameters:
+  - name: workingDirectory
+    type: string
+  - name: doctor
+    type: boolean
+    default: true
+  - name: config
+    type: boolean
+    default: true
+
+steps:
+  # Useful info to have in the log, but also a necessary workaround to make sure the cli is cached by npx
+  - script: npx react-native info
+    displayName: React Native Info
+    workingDirectory: ${{ parameters.workingDirectory }}
+
+  - ${{ if eq(parameters.doctor, true) }}:
+    # Verify react-native doctor command works
+    - script: npx react-native doctor
+      displayName: React Native Doctor
+      workingDirectory: ${{ parameters.workingDirectory }}
+
+  - ${{ if eq(parameters.config, true) }}:
+    # Print the config for debugging react-native CLI commands
+    - script: npx react-native config
+      displayName: React Native Config
+      workingDirectory: ${{ parameters.workingDirectory }}
diff --git a/.ado/templates/react-native-init-windows.yml b/.ado/templates/react-native-init-windows.yml
new file mode 100644
index 00000000000..69ee0b100a8
--- /dev/null
+++ b/.ado/templates/react-native-init-windows.yml
@@ -0,0 +1,140 @@
+#
+parameters:
+  - name: template
+    type: string
+  - name: platform
+    type: string
+    values:
+      - x86
+      - x64
+      - ARM64
+  - name: configuration
+    type: string
+    values:
+      - Debug
+      - Release
+  - name: additionalRunArguments
+    type: string
+    default: ''
+  - name: additionalInitArguments
+    type: string
+    default: ''
+  - name: runWack
+    type: boolean
+    default: false
+  - name: buildEnvironment
+    type: string
+    default: PullRequest
+    values: 
+     - PullRequest
+     - Continuous
+
+steps:
+  # Start npm test server
+  - template: verdaccio-start.yml
+
+  - template: set-version-vars.yml
+    parameters:
+      buildEnvironment: ${{ parameters.buildEnvironment }}
+
+  - ${{ if endsWith(parameters.template, '-app') }}:
+    - script: |
+        npx --yes react-native@$(reactNativeDevDependency) init testcli --template react-native@$(reactNativeDevDependency)
+      displayName: Init new app project
+      workingDirectory: $(Agent.BuildDirectory)
+
+  - ${{ if endsWith(parameters.template, '-lib') }}:
+    - script: |
+        npx --yes create-react-native-module@0.20.2 --package-name "testcli" testcli
+      displayName: Init new lib project
+      workingDirectory: $(Agent.BuildDirectory)
+
+    - script: |
+        rmdir /s /q android
+      displayName: Remove broken android folder # See issue https://github.com/microsoft/react-native-windows/issues/12209
+      workingDirectory: $(Agent.BuildDirectory)\testcli
+
+  - script: |
+      call yarn install
+      call yarn upgrade react@$(reactDevDependency) --dev
+      call yarn upgrade react-native@$(reactNativeDevDependency) --dev
+    displayName: Update project react and react-native dev versions
+    workingDirectory: $(Agent.BuildDirectory)\testcli
+
+  - script: |
+      call yarn add react-native-windows@$(npmVersion)
+    displayName: yarn add react-native-windows@$(npmVersion)
+    workingDirectory: $(Agent.BuildDirectory)\testcli
+    env:
+      npm_config_registry: http://localhost:4873
+
+  - script: |
+      call yarn react-native init-windows --template ${{ parameters.template }} --overwrite --logging ${{ parameters.additionalInitArguments }}
+    displayName: Call react-native init-windows
+    workingDirectory: $(Agent.BuildDirectory)\testcli
+    env:
+      npm_config_registry: http://localhost:4873
+  
+  - ${{ if endsWith(parameters.template, '-app') }}:
+    - powershell: |
+        $path = (Get-ChildItem -Filter "Package.appxmanifest" -File -Recurse).FullName;
+        [xml] $manifest = Get-Content $path
+        $manifest.Package.Identity.Name = 'ReactNative.InitTest'
+        $manifest.Save("$path")
+      displayName: Set AppX package name to "ReactNative.InitTest"
+      workingDirectory: $(Agent.BuildDirectory)\testcli\windows
+
+  # End npm test server
+  - template: verdaccio-stop.yml
+
+  - task: PowerShell@2
+    displayName: Start tracing
+    inputs:
+      targetType: filePath # filePath | inline
+      filePath: $(Build.SourcesDirectory)\vnext\Scripts\Tracing\Start-Tracing.ps1
+
+  - template: react-native-debug-info.yml
+    parameters:
+      workingDirectory: $(Agent.BuildDirectory)\testcli
+
+  - template: ../templates/run-windows-with-certificates.yml
+    parameters:
+      buildEnvironment: ${{ parameters.BuildEnvironment }}
+      certificateName: RNWEncodedKey
+      buildConfiguration: ${{ parameters.configuration }}
+      buildPlatform: ${{ parameters.platform }}
+      deployOption: ${{ parameters.additionalRunArguments }}
+      buildLogDirectory: $(Build.BinariesDirectory)\${{ parameters.platform }}\${{ parameters.configuration }}\BuildLogs
+      workingDirectory: $(Agent.BuildDirectory)\testcli
+      restoreLockedMode: false # Allow new lockfile to be created
+
+  - template: upload-build-logs.yml
+    parameters:
+      buildLogDirectory: '$(Build.BinariesDirectory)\${{ parameters.platform }}\${{ parameters.configuration }}\BuildLogs'
+
+  # Only test bundling in debug since we already bundle as part of release builds
+  - ${{ if and(endsWith(parameters.template, '-app'), eq(parameters.configuration, 'Debug')) }}:
+    - script: npx react-native bundle --entry-file index.js --platform windows --bundle-output test.bundle
+      displayName: Create bundle testcli
+      workingDirectory: $(Agent.BuildDirectory)\testcli
+
+  - ${{ if eq(parameters.runWack, true) }}:
+    - template: ../templates/run-wack.yml
+      parameters:
+        packageName: ReactNative.InitTest
+        reportArtifact: 'Template App WACK Report ${{ parameters.platform }} ${{ parameters.configuration }} ($(System.JobAttempt))'
+
+  - task: PowerShell@2
+    displayName: Stop tracing
+    inputs:
+      targetType: filePath # filePath | inline
+      filePath: $(Build.SourcesDirectory)\vnext\Scripts\Tracing\Stop-Tracing.ps1
+      arguments: -NoAnalysis -outputFolder $(Build.StagingDirectory)/Tracing
+    condition: succeededOrFailed()
+
+  - task: PublishBuildArtifacts@1
+    displayName: Upload traces
+    inputs:
+      pathtoPublish: '$(Build.StagingDirectory)/Tracing'
+      artifactName: 'Traces - $(Agent.JobName)-$(System.JobAttempt)'
+    condition: succeededOrFailed()
diff --git a/.ado/templates/react-native-init.yml b/.ado/templates/react-native-init.yml
index b8637dd9665..6c00615b7a9 100644
--- a/.ado/templates/react-native-init.yml
+++ b/.ado/templates/react-native-init.yml
@@ -30,12 +30,6 @@ parameters:
   - name: runWack
     type: boolean
     default: false
-  - name: initPath
-    type: string
-    default: ReactNativeWindowsInit
-    values:
-      - ReactNativeWindowsInit
-      - InitWindows
   - name: additionalInitArguments
     type: string
     default: ''
@@ -47,19 +41,8 @@ parameters:
      - Continuous
 
 steps:
-  - powershell: start-process verdaccio.cmd -ArgumentList @('--config', './.ado/verdaccio/config.yaml')
-    displayName: Launch test npm server (verdaccio)
-
-  - script: node .ado/scripts/waitForVerdaccio.js
-    displayName: Wait for verdaccio server to boot
-
-  - script: node .ado/scripts/npmAddUser.js user pass mail@nomail.com http://localhost:4873
-    displayName: Add npm user to verdaccio
-
-  - template: compute-beachball-branch-name.yml
-
-  - script: npx beachball publish --branch origin/$(BeachBallBranchName) --no-push --registry http://localhost:4873 --yes --verbose --access public --changehint "Run `yarn change` from root of repo to generate a change file."
-    displayName: Publish packages to verdaccio
+  # Start npm test server
+  - template: verdaccio-start.yml
 
   - template: set-version-vars.yml
     parameters:
@@ -104,56 +87,32 @@ steps:
       displayName: Update lib project react and react-native dev versions
       workingDirectory: $(Agent.BuildDirectory)\testcli
 
-  - script: yarn config set registry http://localhost:4873
-    displayName: Modify yarn config to point to local verdaccio server
-
-  - ${{ if eq(parameters.initPath, 'ReactNativeWindowsInit') }}:
-
-    - ${{ if eq(parameters.useNuget, true) }}:
-      - script: |
-          npx --yes react-native-windows-init@latest --verbose --version $(npmVersion) --overwrite --language ${{ parameters.language }} --projectType ${{ parameters.projectType }} ${{ parameters.additionalInitArguments }} --experimentalNuGetDependency true --nuGetTestFeed $(System.DefaultWorkingDirectory)\NuGetTestFeed
-        displayName: Apply windows template (with nuget)
-        workingDirectory: $(Agent.BuildDirectory)\testcli
-        env:
-          npm_config_registry: http://localhost:4873
-
-    - ${{ if eq(parameters.useNuget, false) }}:
-      - script: |
-          npx --yes react-native-windows-init@latest --verbose --version $(npmVersion) --overwrite --language ${{ parameters.language }} --projectType ${{ parameters.projectType }} ${{ parameters.additionalInitArguments }}
-        displayName: Apply windows template (without nuget)
-        workingDirectory: $(Agent.BuildDirectory)\testcli
-        env:
-          npm_config_registry: http://localhost:4873
-
-    - ${{ if eq(parameters.projectType, 'app') }}:
-      - powershell: |
-          [xml] $manifest = Get-Content .\Package.appxmanifest
-          $manifest.Package.Identity.Name = 'ReactNative.InitTest'
-          $manifest.Save("$pwd\Package.appxmanifest")
-        displayName: Set AppX package name to "ReactNative.InitTest"
-        workingDirectory: $(Agent.BuildDirectory)\testcli\windows\testcli
-  
-  - ${{ if eq(parameters.initPath, 'InitWindows') }}:
-    - ${{ if and(eq(parameters.projectType, 'app'), eq(parameters.language, 'cpp')) }}:
-      - script: |
-          call yarn add react-native-windows@$(npmVersion)
-          call yarn react-native init-windows --template cpp-app --overwrite --logging ${{ parameters.additionalInitArguments }}
-        displayName: Call react-native init-windows
-        workingDirectory: $(Agent.BuildDirectory)\testcli
-        env:
-          npm_config_registry: http://localhost:4873
-      
-      - powershell: |
-          [xml] $manifest = Get-Content .\Package.appxmanifest
-          $manifest.Package.Identity.Name = 'ReactNative.InitTest'
-          $manifest.Save("$pwd\Package.appxmanifest")
-        displayName: Set AppX package name to "ReactNative.InitTest"
-        workingDirectory: $(Agent.BuildDirectory)\testcli\windows\testcli.Package
-
-  # Reclaim memory used by Verdaccio to reduce the chance of build OOM issues
-  - script: tskill node
-    displayName: Kill Verdaccio
-    condition: succeededOrFailed()
+  - ${{ if eq(parameters.useNuget, true) }}:
+    - script: |
+        npx --yes react-native-windows-init@latest --verbose --version $(npmVersion) --overwrite --language ${{ parameters.language }} --projectType ${{ parameters.projectType }} ${{ parameters.additionalInitArguments }} --experimentalNuGetDependency true --nuGetTestFeed $(System.DefaultWorkingDirectory)\NuGetTestFeed
+      displayName: Apply windows template (with nuget)
+      workingDirectory: $(Agent.BuildDirectory)\testcli
+      env:
+        npm_config_registry: http://localhost:4873
+
+  - ${{ if eq(parameters.useNuget, false) }}:
+    - script: |
+        npx --yes react-native-windows-init@latest --verbose --version $(npmVersion) --overwrite --language ${{ parameters.language }} --projectType ${{ parameters.projectType }} ${{ parameters.additionalInitArguments }}
+      displayName: Apply windows template (without nuget)
+      workingDirectory: $(Agent.BuildDirectory)\testcli
+      env:
+        npm_config_registry: http://localhost:4873
+
+  - ${{ if eq(parameters.projectType, 'app') }}:
+    - powershell: |
+        [xml] $manifest = Get-Content .\Package.appxmanifest
+        $manifest.Package.Identity.Name = 'ReactNative.InitTest'
+        $manifest.Save("$pwd\Package.appxmanifest")
+      displayName: Set AppX package name to "ReactNative.InitTest"
+      workingDirectory: $(Agent.BuildDirectory)\testcli\windows\testcli
+
+  # End npm test server
+  - template: verdaccio-stop.yml
 
   - task: PowerShell@2
     displayName: Start tracing
@@ -161,15 +120,9 @@ steps:
       targetType: filePath # filePath | inline
       filePath: $(Build.SourcesDirectory)\vnext\Scripts\Tracing\Start-Tracing.ps1
 
-  # Useful info to have in the log, but also a necessary workaround to make sure the cli is cached by npx
-  - script: npx react-native info
-    displayName: React Native Info
-    workingDirectory: $(Agent.BuildDirectory)\testcli
-
-  # Verify react-native doctor command works
-  - script: npx react-native doctor
-    displayName: React Native Doctor
-    workingDirectory: $(Agent.BuildDirectory)\testcli
+  - template: react-native-debug-info.yml
+    parameters:
+      workingDirectory: $(Agent.BuildDirectory)\testcli
 
   - template: ../templates/run-windows-with-certificates.yml
     parameters:
@@ -198,15 +151,6 @@ steps:
         packageName: ReactNative.InitTest
         reportArtifact: 'Template App WACK Report ${{ parameters.platform }} ${{ parameters.configuration }} ($(System.JobAttempt))'
 
-  # We are experiencing random package restore failures.
-  # We want to uploading the vedaccio logs to aid in diagnosing if it is verdaccio or npmjs.org
-  - task: PublishPipelineArtifact@1
-    displayName: Upload Verdaccio.log (on failure)
-    inputs:
-      targetPath: 'verdaccio.log'
-      artifact: '$(Agent.JobName).Verdaccio.log-$(System.JobAttempt)'
-    condition: failed()
-
   - task: PowerShell@2
     displayName: Stop tracing
     inputs:
diff --git a/.ado/templates/verdaccio-start.yml b/.ado/templates/verdaccio-start.yml
new file mode 100644
index 00000000000..294219a8016
--- /dev/null
+++ b/.ado/templates/verdaccio-start.yml
@@ -0,0 +1,24 @@
+#
+parameters:
+  - name: beachballPublish
+    type: boolean
+    default: true
+
+steps:
+  - powershell: start-process verdaccio.cmd -ArgumentList @('--config', './.ado/verdaccio/config.yaml')
+    displayName: Launch test npm server (verdaccio)
+
+  - script: node .ado/scripts/waitForVerdaccio.js
+    displayName: Wait for verdaccio server to boot
+
+  - script: node .ado/scripts/npmAddUser.js user pass mail@nomail.com http://localhost:4873
+    displayName: Add npm user to verdaccio
+
+  - template: compute-beachball-branch-name.yml
+
+  - ${{ if eq(parameters.beachballPublish, true) }}:
+    - script: npx beachball publish --branch origin/$(BeachBallBranchName) --no-push --registry http://localhost:4873 --yes --verbose --access public --changehint "Run `yarn change` from root of repo to generate a change file."
+      displayName: Publish packages to verdaccio
+    
+  - script: yarn config set registry http://localhost:4873
+    displayName: Modify yarn config to point to local verdaccio server
diff --git a/.ado/templates/verdaccio-stop.yml b/.ado/templates/verdaccio-stop.yml
new file mode 100644
index 00000000000..18c7a21566f
--- /dev/null
+++ b/.ado/templates/verdaccio-stop.yml
@@ -0,0 +1,21 @@
+#
+parameters:
+  - name: uploadLogs
+    type: boolean
+    default: true
+
+steps:
+  # Reclaim memory used by Verdaccio to reduce the chance of build OOM issues
+  - script: tskill node
+    displayName: Kill Verdaccio
+    condition: succeededOrFailed()
+
+  - ${{ if eq(parameters.uploadLogs, true) }}:
+    # We are experiencing random package restore failures.
+    # We want to uploading the vedaccio logs to aid in diagnosing if it is verdaccio or npmjs.org
+    - task: PublishPipelineArtifact@1
+      displayName: Upload Verdaccio.log (on failure)
+      inputs:
+        targetPath: 'verdaccio.log'
+        artifact: '$(Agent.JobName).Verdaccio.log-$(System.JobAttempt)'
+      condition: failed()