diff --git a/src/Umbraco.Core/Constants-Configuration.cs b/src/Umbraco.Core/Constants-Configuration.cs
index 11694fa5c0..bc4c29cfa6 100644
--- a/src/Umbraco.Core/Constants-Configuration.cs
+++ b/src/Umbraco.Core/Constants-Configuration.cs
@@ -41,6 +41,7 @@ public static partial class Constants
         public const string ConfigLogging = ConfigPrefix + "Logging";
         public const string ConfigMemberPassword = ConfigPrefix + "Security:MemberPassword";
         public const string ConfigModelsBuilder = ConfigPrefix + "ModelsBuilder";
+        public const string ConfigModelsMode = ConfigModelsBuilder + ":ModelsMode";
         public const string ConfigNuCache = ConfigPrefix + "NuCache";
         public const string ConfigPlugins = ConfigPrefix + "Plugins";
         public const string ConfigRequestHandler = ConfigPrefix + "RequestHandler";
diff --git a/src/Umbraco.Core/Extensions/ConfigurationExtensions.cs b/src/Umbraco.Core/Extensions/ConfigurationExtensions.cs
index 2003079736..2bdc75c7b1 100644
--- a/src/Umbraco.Core/Extensions/ConfigurationExtensions.cs
+++ b/src/Umbraco.Core/Extensions/ConfigurationExtensions.cs
@@ -1,5 +1,6 @@
 using Microsoft.Extensions.Configuration;
 using Umbraco.Cms.Core;
+using Umbraco.Cms.Core.Configuration;
 using Umbraco.Cms.Core.Configuration.Models;
 
 namespace Umbraco.Extensions;
@@ -101,4 +102,7 @@ public static class ConfigurationExtensions
     /// </returns>
     public static RuntimeMode GetRuntimeMode(this IConfiguration configuration)
         => configuration.GetValue<RuntimeMode>(Constants.Configuration.ConfigRuntimeMode);
+
+    public static ModelsMode GetModelsMode(this IConfiguration configuration) =>
+        configuration.GetValue<ModelsMode>(Constants.Configuration.ConfigModelsMode);
 }
diff --git a/src/Umbraco.Web.Common/ModelsBuilder/DependencyInjection/UmbracoBuilderDependencyInjectionExtensions.cs b/src/Umbraco.Web.Common/ModelsBuilder/DependencyInjection/UmbracoBuilderDependencyInjectionExtensions.cs
index 7e79d8787d..48a4478dc4 100644
--- a/src/Umbraco.Web.Common/ModelsBuilder/DependencyInjection/UmbracoBuilderDependencyInjectionExtensions.cs
+++ b/src/Umbraco.Web.Common/ModelsBuilder/DependencyInjection/UmbracoBuilderDependencyInjectionExtensions.cs
@@ -140,35 +140,27 @@ public static class UmbracoBuilderDependencyInjectionExtensions
         return builder;
     }
 
+    // See notes in RefreshingRazorViewEngine for information on what this is doing.
     private static IUmbracoBuilder AddInMemoryModelsRazorEngine(this IUmbracoBuilder builder)
     {
-        // See notes in RefreshingRazorViewEngine for information on what this is doing.
+        // We should only add/replace these services when models builder is InMemory, otherwise we'll cause issues.
+        // Since these services expect the ModelsMode to be InMemoryAuto
+        if (builder.Config.GetModelsMode() is ModelsMode.InMemoryAuto)
+        {
+            builder.Services.AddSingleton<UmbracoRazorReferenceManager>();
+            builder.Services.AddSingleton<CompilationOptionsProvider>();
+            builder.Services.AddSingleton<IViewCompilerProvider, UmbracoViewCompilerProvider>();
+            builder.Services.AddSingleton<RuntimeCompilationCacheBuster>();
+            builder.Services.AddSingleton<InMemoryAssemblyLoadContextManager>();
 
-        // copy the current collection, we need to use this later to rebuild a container
-        // to re-create the razor compiler provider
-        builder.Services.AddSingleton<UmbracoRazorReferenceManager>();
-        builder.Services.AddSingleton<CompilationOptionsProvider>();
-        builder.Services.AddSingleton<IViewCompilerProvider, UmbracoViewCompilerProvider>();
-        builder.Services.AddSingleton<RuntimeCompilationCacheBuster>();
-        builder.Services.AddSingleton<InMemoryAssemblyLoadContextManager>();
-
-        builder.Services.AddSingleton<InMemoryModelFactory>();
+            builder.Services.AddSingleton<InMemoryModelFactory>();
+            // Register the factory as IPublishedModelFactory
+            builder.Services.AddSingleton<IPublishedModelFactory, InMemoryModelFactory>();
+            return builder;
+        }
 
         // This is what the community MB would replace, all of the above services are fine to be registered
-        // even if the community MB is in place.
-        builder.Services.AddSingleton<IPublishedModelFactory>(factory =>
-        {
-            ModelsBuilderSettings modelsBuilderSettings = factory.GetRequiredService<IOptions<ModelsBuilderSettings>>().Value;
-            if (modelsBuilderSettings.ModelsMode == ModelsMode.InMemoryAuto)
-            {
-                return factory.GetRequiredService<InMemoryModelFactory>();
-            }
-            else
-            {
-                return factory.CreateDefaultPublishedModelFactory();
-            }
-        });
-
+        builder.Services.AddSingleton<IPublishedModelFactory>(factory => factory.CreateDefaultPublishedModelFactory());
         return builder;
     }
 }
diff --git a/templates/UmbracoPackage/.template.config/template.json b/templates/UmbracoPackage/.template.config/template.json
index d5aeaf7a82..36c93da093 100644
--- a/templates/UmbracoPackage/.template.config/template.json
+++ b/templates/UmbracoPackage/.template.config/template.json
@@ -28,13 +28,13 @@
       "datatype": "choice",
       "choices": [
         {
-          "displayName": ".NET 6.0",
-          "description": "Target net6.0",
-          "choice": "net6.0"
+          "displayName": ".NET 7.0",
+          "description": "Target net7.0",
+          "choice": "net7.0"
         }
       ],
-      "defaultValue": "net6.0",
-      "replaces": "net6.0"
+      "defaultValue": "net7.0",
+      "replaces": "net7.0"
     },
     "UmbracoVersion": {
       "displayName": "Umbraco version",
diff --git a/templates/UmbracoProject/.template.config/template.json b/templates/UmbracoProject/.template.config/template.json
index 6476fb1568..befe6d7e5a 100644
--- a/templates/UmbracoProject/.template.config/template.json
+++ b/templates/UmbracoProject/.template.config/template.json
@@ -38,13 +38,13 @@
       "datatype": "choice",
       "choices": [
         {
-          "displayName": ".NET 6.0",
-          "description": "Target net6.0",
-          "choice": "net6.0"
+          "displayName": ".NET 7.0",
+          "description": "Target net7.0",
+          "choice": "net7.0"
         }
       ],
-      "defaultValue": "net6.0",
-      "replaces": "net6.0"
+      "defaultValue": "net7.0",
+      "replaces": "net7.0"
     },
     "UmbracoVersion": {
       "displayName": "Umbraco version",