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NuGet ignores our service-level USERPROFILE override (it uses SHGetKnownFolderPath which returns LocalSystem's profile regardless of the env var) and installs packages to C:\Windows\system32\configsystemprofile\.nuget\packages. 32-bit MSBuild then can't find them because the Win32 File System Redirector silently shunts system32 paths to SysWOW64 for 32-bit processes -> NETSDK1064 'package not found'. NUGET_PACKAGES is NuGet's highest-priority package-folder override and puts everything outside system32, so both restore and build agree on paths and the redirector never gets involved. Co-Authored-By: Claude Opus 4.7 (1M context) <noreply@anthropic.com>