diff --git a/goldens/public-api/angular_devkit/build_angular/index.md b/goldens/public-api/angular_devkit/build_angular/index.md
index f912d7001e8c..19a46f29ecdf 100644
--- a/goldens/public-api/angular_devkit/build_angular/index.md
+++ b/goldens/public-api/angular_devkit/build_angular/index.md
@@ -79,7 +79,7 @@ export interface AssetPatternObject {
     glob: string;
     ignore?: string[];
     input: string;
-    output: string;
+    output?: string;
 }
 
 // @public
diff --git a/packages/angular/pwa/pwa/files/root/manifest.webmanifest b/packages/angular/pwa/pwa/files/assets/manifest.webmanifest
similarity index 100%
rename from packages/angular/pwa/pwa/files/root/manifest.webmanifest
rename to packages/angular/pwa/pwa/files/assets/manifest.webmanifest
diff --git a/packages/angular/pwa/pwa/index.ts b/packages/angular/pwa/pwa/index.ts
index f817c4764905..2710247a619f 100644
--- a/packages/angular/pwa/pwa/index.ts
+++ b/packages/angular/pwa/pwa/index.ts
@@ -104,23 +104,6 @@ export default function (options: PwaOptions): Rule {
       }
     }
 
-    // Add manifest to asset configuration
-    const assetEntry = posix.join(
-      project.sourceRoot ?? posix.join(project.root, 'src'),
-      'manifest.webmanifest',
-    );
-    for (const target of [...buildTargets, ...testTargets]) {
-      if (target.options) {
-        if (Array.isArray(target.options.assets)) {
-          target.options.assets.push(assetEntry);
-        } else {
-          target.options.assets = [assetEntry];
-        }
-      } else {
-        target.options = { assets: [assetEntry] };
-      }
-    }
-
     // Find all index.html files in build targets
     const indexFiles = new Set<string>();
     for (const target of buildTargets) {
@@ -146,11 +129,32 @@ export default function (options: PwaOptions): Rule {
     const { title, ...swOptions } = options;
 
     await writeWorkspace(host, workspace);
+    let assetsDir = posix.join(sourcePath, 'assets');
+
+    if (host.exists(assetsDir)) {
+      // Add manifest to asset configuration
+      const assetEntry = posix.join(
+        project.sourceRoot ?? posix.join(project.root, 'src'),
+        'manifest.webmanifest',
+      );
+      for (const target of [...buildTargets, ...testTargets]) {
+        if (target.options) {
+          if (Array.isArray(target.options.assets)) {
+            target.options.assets.push(assetEntry);
+          } else {
+            target.options.assets = [assetEntry];
+          }
+        } else {
+          target.options = { assets: [assetEntry] };
+        }
+      }
+    } else {
+      assetsDir = posix.join(project.root, 'public');
+    }
 
     return chain([
       externalSchematic('@schematics/angular', 'service-worker', swOptions),
-      mergeWith(apply(url('./files/root'), [template({ ...options }), move(sourcePath)])),
-      mergeWith(apply(url('./files/assets'), [move(posix.join(sourcePath, 'assets'))])),
+      mergeWith(apply(url('./files/assets'), [template({ ...options }), move(assetsDir)])),
       ...[...indexFiles].map((path) => updateIndexFile(path)),
     ]);
   };
diff --git a/packages/angular/pwa/pwa/index_spec.ts b/packages/angular/pwa/pwa/index_spec.ts
index e6b0d4e576bb..e538af1ee625 100644
--- a/packages/angular/pwa/pwa/index_spec.ts
+++ b/packages/angular/pwa/pwa/index_spec.ts
@@ -54,7 +54,7 @@ describe('PWA Schematic', () => {
 
   it('should create icon files', async () => {
     const dimensions = [72, 96, 128, 144, 152, 192, 384, 512];
-    const iconPath = '/projects/bar/src/assets/icons/icon-';
+    const iconPath = '/projects/bar/public/icons/icon-';
     const tree = await schematicRunner.runSchematic('ng-add', defaultOptions, appTree);
 
     dimensions.forEach((d) => {
@@ -74,13 +74,13 @@ describe('PWA Schematic', () => {
 
   it('should create a manifest file', async () => {
     const tree = await schematicRunner.runSchematic('ng-add', defaultOptions, appTree);
-    expect(tree.exists('/projects/bar/src/manifest.webmanifest')).toBeTrue();
+    expect(tree.exists('/projects/bar/public/manifest.webmanifest')).toBeTrue();
   });
 
   it('should set the name & short_name in the manifest file', async () => {
     const tree = await schematicRunner.runSchematic('ng-add', defaultOptions, appTree);
 
-    const manifestText = tree.readContent('/projects/bar/src/manifest.webmanifest');
+    const manifestText = tree.readContent('/projects/bar/public/manifest.webmanifest');
     const manifest = JSON.parse(manifestText);
 
     expect(manifest.name).toEqual(defaultOptions.title);
@@ -91,7 +91,7 @@ describe('PWA Schematic', () => {
     const options = { ...defaultOptions, title: undefined };
     const tree = await schematicRunner.runSchematic('ng-add', options, appTree);
 
-    const manifestText = tree.readContent('/projects/bar/src/manifest.webmanifest');
+    const manifestText = tree.readContent('/projects/bar/public/manifest.webmanifest');
     const manifest = JSON.parse(manifestText);
 
     expect(manifest.name).toEqual(defaultOptions.project);
@@ -125,17 +125,6 @@ describe('PWA Schematic', () => {
     expect(content).toMatch(/<noscript>NO JAVASCRIPT<\/noscript>/);
   });
 
-  it('should update the build and test assets configuration', async () => {
-    const tree = await schematicRunner.runSchematic('ng-add', defaultOptions, appTree);
-    const configText = tree.readContent('/angular.json');
-    const config = JSON.parse(configText);
-    const targets = config.projects.bar.architect;
-
-    ['build', 'test'].forEach((target) => {
-      expect(targets[target].options.assets).toContain('projects/bar/src/manifest.webmanifest');
-    });
-  });
-
   describe('Legacy browser builder', () => {
     function convertBuilderToLegacyBrowser(): void {
       const config = JSON.parse(appTree.readContent('/angular.json'));
diff --git a/packages/angular_devkit/build_angular/src/builders/application/schema.json b/packages/angular_devkit/build_angular/src/builders/application/schema.json
index 9266d7b45a7a..83a778cb9cf0 100644
--- a/packages/angular_devkit/build_angular/src/builders/application/schema.json
+++ b/packages/angular_devkit/build_angular/src/builders/application/schema.json
@@ -560,11 +560,12 @@
             },
             "output": {
               "type": "string",
+              "default": "",
               "description": "Absolute path within the output."
             }
           },
           "additionalProperties": false,
-          "required": ["glob", "input", "output"]
+          "required": ["glob", "input"]
         },
         {
           "type": "string"
diff --git a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/schema.json b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/schema.json
index 97775773d09c..158f028e4559 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/schema.json
+++ b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/schema.json
@@ -466,11 +466,12 @@
             },
             "output": {
               "type": "string",
+              "default": "",
               "description": "Absolute path within the output."
             }
           },
           "additionalProperties": false,
-          "required": ["glob", "input", "output"]
+          "required": ["glob", "input"]
         },
         {
           "type": "string"
diff --git a/packages/angular_devkit/build_angular/src/builders/browser/schema.json b/packages/angular_devkit/build_angular/src/builders/browser/schema.json
index 58ba4f089b11..c2a9e22c83e0 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser/schema.json
+++ b/packages/angular_devkit/build_angular/src/builders/browser/schema.json
@@ -454,11 +454,12 @@
             },
             "output": {
               "type": "string",
+              "default": "",
               "description": "Absolute path within the output."
             }
           },
           "additionalProperties": false,
-          "required": ["glob", "input", "output"]
+          "required": ["glob", "input"]
         },
         {
           "type": "string"
diff --git a/packages/angular_devkit/build_angular/src/builders/karma/schema.json b/packages/angular_devkit/build_angular/src/builders/karma/schema.json
index 9e8500d2227a..3ed14de2a1a3 100644
--- a/packages/angular_devkit/build_angular/src/builders/karma/schema.json
+++ b/packages/angular_devkit/build_angular/src/builders/karma/schema.json
@@ -290,6 +290,7 @@
             },
             "output": {
               "type": "string",
+              "default": "",
               "description": "Absolute path within the output."
             },
             "ignore": {
@@ -301,7 +302,7 @@
             }
           },
           "additionalProperties": false,
-          "required": ["glob", "input", "output"]
+          "required": ["glob", "input"]
         },
         {
           "type": "string"
diff --git a/packages/angular_devkit/build_angular/src/builders/server/schema.json b/packages/angular_devkit/build_angular/src/builders/server/schema.json
index c5e538432849..b6d8bff0e047 100644
--- a/packages/angular_devkit/build_angular/src/builders/server/schema.json
+++ b/packages/angular_devkit/build_angular/src/builders/server/schema.json
@@ -251,11 +251,12 @@
             },
             "output": {
               "type": "string",
+              "default": "",
               "description": "Absolute path within the output."
             }
           },
           "additionalProperties": false,
-          "required": ["glob", "input", "output"]
+          "required": ["glob", "input"]
         },
         {
           "type": "string"
diff --git a/packages/angular_devkit/build_angular/src/builders/web-test-runner/schema.json b/packages/angular_devkit/build_angular/src/builders/web-test-runner/schema.json
index f0c17d3f967b..ec707ec92a34 100644
--- a/packages/angular_devkit/build_angular/src/builders/web-test-runner/schema.json
+++ b/packages/angular_devkit/build_angular/src/builders/web-test-runner/schema.json
@@ -269,6 +269,7 @@
             },
             "output": {
               "type": "string",
+              "default": "",
               "description": "Absolute path within the output."
             },
             "ignore": {
@@ -280,7 +281,7 @@
             }
           },
           "additionalProperties": false,
-          "required": ["glob", "input", "output"]
+          "required": ["glob", "input"]
         },
         {
           "type": "string"
diff --git a/packages/angular_devkit/build_angular/src/tools/webpack/utils/helpers.ts b/packages/angular_devkit/build_angular/src/tools/webpack/utils/helpers.ts
index 7d4dd5924077..7e91e6294163 100644
--- a/packages/angular_devkit/build_angular/src/tools/webpack/utils/helpers.ts
+++ b/packages/angular_devkit/build_angular/src/tools/webpack/utils/helpers.ts
@@ -231,7 +231,7 @@ export function assetPatterns(root: string, assets: AssetPatternClass[]) {
   return assets.map((asset: AssetPatternClass, index: number): ObjectPattern => {
     // Resolve input paths relative to workspace root and add slash at the end.
     // eslint-disable-next-line prefer-const
-    let { input, output, ignore = [], glob } = asset;
+    let { input, output = '', ignore = [], glob } = asset;
     input = path.resolve(root, input).replace(/\\/g, '/');
     input = input.endsWith('/') ? input : input + '/';
     output = output.endsWith('/') ? output : output + '/';
diff --git a/packages/angular_devkit/build_angular/src/utils/normalize-asset-patterns.ts b/packages/angular_devkit/build_angular/src/utils/normalize-asset-patterns.ts
index 270b923486df..83b3d3a3acb6 100644
--- a/packages/angular_devkit/build_angular/src/utils/normalize-asset-patterns.ts
+++ b/packages/angular_devkit/build_angular/src/utils/normalize-asset-patterns.ts
@@ -7,6 +7,7 @@
  */
 
 import { statSync } from 'fs';
+import assert from 'node:assert';
 import * as path from 'path';
 import { AssetPattern, AssetPatternClass } from '../builders/browser/schema';
 
@@ -21,7 +22,7 @@ export function normalizeAssetPatterns(
   workspaceRoot: string,
   projectRoot: string,
   projectSourceRoot: string | undefined,
-): AssetPatternClass[] {
+): (AssetPatternClass & { output: string })[] {
   if (assetPatterns.length === 0) {
     return [];
   }
@@ -67,13 +68,15 @@ export function normalizeAssetPatterns(
 
       assetPattern = { glob, input, output };
     } else {
-      assetPattern.output = path.join('.', assetPattern.output);
+      assetPattern.output = path.join('.', assetPattern.output ?? '');
     }
 
+    assert(assetPattern.output !== undefined);
+
     if (assetPattern.output.startsWith('..')) {
       throw new Error('An asset cannot be written to a location outside of the output path.');
     }
 
-    return assetPattern;
+    return assetPattern as AssetPatternClass & { output: string };
   });
 }
diff --git a/packages/schematics/angular/application/files/common-files/src/favicon.ico.template b/packages/schematics/angular/application/files/common-files/public/favicon.ico.template
similarity index 100%
rename from packages/schematics/angular/application/files/common-files/src/favicon.ico.template
rename to packages/schematics/angular/application/files/common-files/public/favicon.ico.template
diff --git a/packages/schematics/angular/application/files/common-files/src/assets/.gitkeep.template b/packages/schematics/angular/application/files/common-files/src/assets/.gitkeep.template
deleted file mode 100644
index e69de29bb2d1..000000000000
diff --git a/packages/schematics/angular/application/index.ts b/packages/schematics/angular/application/index.ts
index c4f07e64adc8..1b652eb8cc62 100644
--- a/packages/schematics/angular/application/index.ts
+++ b/packages/schematics/angular/application/index.ts
@@ -242,7 +242,7 @@ function addAppToWorkspaceFile(
           polyfills: ['zone.js'],
           tsConfig: `${projectRoot}tsconfig.app.json`,
           inlineStyleLanguage,
-          assets: [`${sourceRoot}/favicon.ico`, `${sourceRoot}/assets`],
+          assets: [{ 'glob': '**/*', 'input': 'public' }],
           styles: [`${sourceRoot}/styles.${options.style}`],
           scripts: [],
         },
@@ -285,7 +285,7 @@ function addAppToWorkspaceFile(
               polyfills: ['zone.js', 'zone.js/testing'],
               tsConfig: `${projectRoot}tsconfig.spec.json`,
               inlineStyleLanguage,
-              assets: [`${sourceRoot}/favicon.ico`, `${sourceRoot}/assets`],
+              assets: [{ 'glob': '**/*', 'input': 'public' }],
               styles: [`${sourceRoot}/styles.${options.style}`],
               scripts: [],
             },
diff --git a/packages/schematics/angular/application/index_spec.ts b/packages/schematics/angular/application/index_spec.ts
index c6c403aca2c7..ee053372b30b 100644
--- a/packages/schematics/angular/application/index_spec.ts
+++ b/packages/schematics/angular/application/index_spec.ts
@@ -50,7 +50,7 @@ describe('Application Schematic', () => {
       jasmine.arrayContaining([
         '/projects/foo/tsconfig.app.json',
         '/projects/foo/tsconfig.spec.json',
-        '/projects/foo/src/favicon.ico',
+        '/projects/foo/public/favicon.ico',
         '/projects/foo/src/index.html',
         '/projects/foo/src/main.ts',
         '/projects/foo/src/styles.css',
@@ -263,7 +263,7 @@ describe('Application Schematic', () => {
         jasmine.arrayContaining([
           '/tsconfig.app.json',
           '/tsconfig.spec.json',
-          '/src/favicon.ico',
+          '/public/favicon.ico',
           '/src/index.html',
           '/src/main.ts',
           '/src/styles.css',
@@ -448,7 +448,7 @@ describe('Application Schematic', () => {
     expect(files).toEqual(
       jasmine.arrayContaining([
         '/projects/foo/tsconfig.app.json',
-        '/projects/foo/src/favicon.ico',
+        '/projects/foo/public/favicon.ico',
         '/projects/foo/src/index.html',
         '/projects/foo/src/main.ts',
         '/projects/foo/src/styles.css',
@@ -473,7 +473,7 @@ describe('Application Schematic', () => {
     expect(files).toEqual(
       jasmine.arrayContaining([
         '/projects/foo/tsconfig.app.json',
-        '/projects/foo/src/favicon.ico',
+        '/projects/foo/public/favicon.ico',
         '/projects/foo/src/index.html',
         '/projects/foo/src/main.ts',
         '/projects/foo/src/styles.css',
@@ -499,7 +499,7 @@ describe('Application Schematic', () => {
     expect(files).toEqual(
       jasmine.arrayContaining([
         '/projects/foo/tsconfig.app.json',
-        '/projects/foo/src/favicon.ico',
+        '/projects/foo/public/favicon.ico',
         '/projects/foo/src/index.html',
         '/projects/foo/src/main.ts',
         '/projects/foo/src/styles.css',
@@ -519,7 +519,7 @@ describe('Application Schematic', () => {
       jasmine.arrayContaining([
         '/projects/foo/tsconfig.app.json',
         '/projects/foo/tsconfig.spec.json',
-        '/projects/foo/src/favicon.ico',
+        '/projects/foo/public/favicon.ico',
         '/projects/foo/src/index.html',
         '/projects/foo/src/main.ts',
         '/projects/foo/src/styles.css',
diff --git a/packages/schematics/angular/service-worker/files/ngsw-config.json.template b/packages/schematics/angular/service-worker/files/ngsw-config.json.template
index 3e42dd24fb9c..17954bd634f1 100644
--- a/packages/schematics/angular/service-worker/files/ngsw-config.json.template
+++ b/packages/schematics/angular/service-worker/files/ngsw-config.json.template
@@ -21,8 +21,7 @@
       "updateMode": "prefetch",
       "resources": {
         "files": [
-          "/assets/**",
-          "<%= resourcesOutputPath %>/*.(svg|cur|jpg|jpeg|png|apng|webp|avif|gif|otf|ttf|woff|woff2)"
+          "/**/*.(svg|cur|jpg|jpeg|png|apng|webp|avif|gif|otf|ttf|woff|woff2)"
         ]
       }
     }
diff --git a/packages/schematics/angular/service-worker/index.ts b/packages/schematics/angular/service-worker/index.ts
index f415c2bce76d..02ef4c77bfda 100644
--- a/packages/schematics/angular/service-worker/index.ts
+++ b/packages/schematics/angular/service-worker/index.ts
@@ -120,12 +120,10 @@ export default function (options: ServiceWorkerOptions): Rule {
 
     const buildOptions = buildTarget.options as Record<string, string | boolean>;
     let browserEntryPoint: string | undefined;
-    let resourcesOutputPath = '';
     const ngswConfigPath = join(normalize(project.root), 'ngsw-config.json');
 
     if (buildTarget.builder === Builders.Application) {
       browserEntryPoint = buildOptions.browser as string;
-      resourcesOutputPath = '/media';
       const productionConf = buildTarget.configurations?.production;
       if (productionConf) {
         productionConf.serviceWorker = ngswConfigPath;
@@ -134,9 +132,6 @@ export default function (options: ServiceWorkerOptions): Rule {
       browserEntryPoint = buildOptions.main as string;
       buildOptions.serviceWorker = true;
       buildOptions.ngswConfigPath = ngswConfigPath;
-      if (buildOptions.resourcesOutputPath) {
-        resourcesOutputPath = normalize(`/${buildOptions.resourcesOutputPath}`);
-      }
     }
 
     await writeWorkspace(host, workspace);
@@ -147,7 +142,6 @@ export default function (options: ServiceWorkerOptions): Rule {
         apply(url('./files'), [
           applyTemplates({
             ...options,
-            resourcesOutputPath,
             relativePathToWorkspaceRoot: relativePathToWorkspaceRoot(project.root),
           }),
           move(project.root),
diff --git a/packages/schematics/angular/service-worker/index_spec.ts b/packages/schematics/angular/service-worker/index_spec.ts
index 8dc0dcf11fd5..26fc4d52762f 100644
--- a/packages/schematics/angular/service-worker/index_spec.ts
+++ b/packages/schematics/angular/service-worker/index_spec.ts
@@ -107,15 +107,6 @@ describe('Service Worker Schematic', () => {
     expect(configNotInRoot.$schema).toBe(`../../${pathToNgswConfigSchema}`);
   });
 
-  it('should add root assets RegExp', async () => {
-    const tree = await schematicRunner.runSchematic('service-worker', defaultOptions, appTree);
-    const pkgText = tree.readContent('/projects/bar/ngsw-config.json');
-    const config = JSON.parse(pkgText);
-    expect(config.assetGroups[1].resources.files).toContain(
-      '/media/*.(svg|cur|jpg|jpeg|png|apng|webp|avif|gif|otf|ttf|woff|woff2)',
-    );
-  });
-
   it('should generate ngsw-config.json in root when the application is at root level', async () => {
     const name = 'foo';
     const rootAppOptions: ApplicationOptions = {
@@ -228,18 +219,6 @@ describe('Service Worker Schematic', () => {
       convertBuilderToLegacyBrowser();
     });
 
-    it('should add resourcesOutputPath to root assets when specified', async () => {
-      const config = JSON.parse(appTree.readContent('/angular.json'));
-      config.projects.bar.architect.build.options.resourcesOutputPath = 'outDir';
-      appTree.overwrite('/angular.json', JSON.stringify(config));
-      const tree = await schematicRunner.runSchematic('service-worker', defaultOptions, appTree);
-      const pkgText = tree.readContent('/projects/bar/ngsw-config.json');
-      const ngswConfig = JSON.parse(pkgText);
-      expect(ngswConfig.assetGroups[1].resources.files).toContain(
-        '/outDir/*.(svg|cur|jpg|jpeg|png|apng|webp|avif|gif|otf|ttf|woff|woff2)',
-      );
-    });
-
     it('should add `serviceWorker` option to build target', async () => {
       const tree = await schematicRunner.runSchematic('service-worker', defaultOptions, appTree);
       const configText = tree.readContent('/angular.json');
diff --git a/tests/legacy-cli/e2e/tests/build/assets.ts b/tests/legacy-cli/e2e/tests/build/assets.ts
index 53922b06bd66..5a13deec4c26 100644
--- a/tests/legacy-cli/e2e/tests/build/assets.ts
+++ b/tests/legacy-cli/e2e/tests/build/assets.ts
@@ -5,21 +5,21 @@ import { updateJsonFile } from '../../utils/project';
 import { expectToFail } from '../../utils/utils';
 
 export default async function () {
-  await writeFile('src/assets/.file', '');
-  await writeFile('src/assets/test.abc', 'hello world');
+  await writeFile('public/.file', '');
+  await writeFile('public/test.abc', 'hello world');
 
   await ng('build', '--configuration=development');
 
   await expectFileToExist('dist/test-project/browser/favicon.ico');
-  await expectFileToExist('dist/test-project/browser/assets/.file');
-  await expectFileToMatch('dist/test-project/browser/assets/test.abc', 'hello world');
-  await expectToFail(() => expectFileToExist('dist/test-project/browser/assets/.gitkeep'));
+  await expectFileToExist('dist/test-project/browser/.file');
+  await expectFileToMatch('dist/test-project/browser/test.abc', 'hello world');
+  await expectToFail(() => expectFileToExist('dist/test-project/browser/.gitkeep'));
 
   // Ensure `followSymlinks` option follows symlinks
   await updateJsonFile('angular.json', (workspaceJson) => {
     const appArchitect = workspaceJson.projects['test-project'].architect;
     appArchitect['build'].options.assets = [
-      { glob: '**/*', input: 'src/assets', output: 'assets', followSymlinks: true },
+      { glob: '**/*', input: 'public', followSymlinks: true },
     ];
   });
   fs.mkdirSync('dirToSymlink/subdir1', { recursive: true });
@@ -28,12 +28,12 @@ export default async function () {
   fs.writeFileSync('dirToSymlink/subdir1/b.txt', '');
   fs.writeFileSync('dirToSymlink/subdir2/c.txt', '');
   fs.writeFileSync('dirToSymlink/subdir2/subsubdir1/d.txt', '');
-  fs.symlinkSync(process.cwd() + '/dirToSymlink', 'src/assets/symlinkDir');
+  fs.symlinkSync(process.cwd() + '/dirToSymlink', 'public/symlinkDir');
 
   await ng('build', '--configuration=development');
 
-  await expectFileToExist('dist/test-project/browser/assets/symlinkDir/a.txt');
-  await expectFileToExist('dist/test-project/browser/assets/symlinkDir/subdir1/b.txt');
-  await expectFileToExist('dist/test-project/browser/assets/symlinkDir/subdir2/c.txt');
-  await expectFileToExist('dist/test-project/browser/assets/symlinkDir/subdir2/subsubdir1/d.txt');
+  await expectFileToExist('dist/test-project/browser/symlinkDir/a.txt');
+  await expectFileToExist('dist/test-project/browser/symlinkDir/subdir1/b.txt');
+  await expectFileToExist('dist/test-project/browser/symlinkDir/subdir2/c.txt');
+  await expectFileToExist('dist/test-project/browser/symlinkDir/subdir2/subsubdir1/d.txt');
 }
diff --git a/tests/legacy-cli/e2e/tests/build/css-urls.ts b/tests/legacy-cli/e2e/tests/build/css-urls.ts
index 8f0d777b7519..6ce16d5ada48 100644
--- a/tests/legacy-cli/e2e/tests/build/css-urls.ts
+++ b/tests/legacy-cli/e2e/tests/build/css-urls.ts
@@ -8,6 +8,7 @@ import {
 import { copyProjectAsset } from '../../utils/assets';
 import { expectToFail } from '../../utils/utils';
 import { getGlobalVariable } from '../../utils/env';
+import { mkdir } from 'node:fs/promises';
 
 const imgSvg = `
   <svg width="100" height="100" xmlns="http://www.w3.org/2000/svg">
@@ -22,6 +23,8 @@ export default async function () {
     ? './dist/test-project/browser'
     : './dist/test-project/browser/media';
 
+  await mkdir('public/assets/', { recursive: true });
+
   await Promise.resolve()
     // Verify absolute/relative paths in global/component css.
     .then(() =>
@@ -34,8 +37,8 @@ export default async function () {
         h3 { background: url('/assets/component-img-absolute.svg'); }
         h4 { background: url('../assets/component-img-relative.png'); }
       `,
-        'src/assets/global-img-absolute.svg': imgSvg,
-        'src/assets/component-img-absolute.svg': imgSvg,
+        'public/assets/global-img-absolute.svg': imgSvg,
+        'public/assets/component-img-absolute.svg': imgSvg,
       }),
     )
     .then(() => copyProjectAsset('images/spectrum.png', './src/assets/global-img-relative.png'))
diff --git a/tests/legacy-cli/e2e/tests/build/multiple-configs.ts b/tests/legacy-cli/e2e/tests/build/multiple-configs.ts
index 2212c46e84cf..dbbeba4658e3 100644
--- a/tests/legacy-cli/e2e/tests/build/multiple-configs.ts
+++ b/tests/legacy-cli/e2e/tests/build/multiple-configs.ts
@@ -24,7 +24,6 @@ export default async function () {
         sourceMap: true,
         outputHashing: 'none',
         vendorChunk: true,
-        assets: ['src/favicon.ico', 'src/assets'],
         styles: ['src/styles.css'],
         scripts: [],
         budgets: [],
diff --git a/tests/legacy-cli/e2e/tests/build/prerender/http-requests-assets.ts b/tests/legacy-cli/e2e/tests/build/prerender/http-requests-assets.ts
index 52f7ac439bb1..40720a0953a3 100644
--- a/tests/legacy-cli/e2e/tests/build/prerender/http-requests-assets.ts
+++ b/tests/legacy-cli/e2e/tests/build/prerender/http-requests-assets.ts
@@ -39,7 +39,7 @@ export default async function () {
       };
     `,
     // Add asset
-    'src/assets/media.json': JSON.stringify({ dataFromAssets: true }),
+    'public/media.json': JSON.stringify({ dataFromAssets: true }),
     // Update component to do an HTTP call to asset.
     'src/app/app.component.ts': `
     import { Component, inject } from '@angular/core';
@@ -60,7 +60,7 @@ export default async function () {
       data: any;
       constructor() {
         const http = inject(HttpClient);
-        http.get('/assets/media.json').subscribe((d) => {
+        http.get('/media.json').subscribe((d) => {
           this.data = d;
         });
       }
diff --git a/tests/legacy-cli/e2e/tests/commands/add/add-pwa.ts b/tests/legacy-cli/e2e/tests/commands/add/add-pwa.ts
index 8c40dfa06cd6..e4c3be19cc88 100644
--- a/tests/legacy-cli/e2e/tests/commands/add/add-pwa.ts
+++ b/tests/legacy-cli/e2e/tests/commands/add/add-pwa.ts
@@ -1,4 +1,3 @@
-import { join } from 'path';
 import { getGlobalVariable } from '../../../utils/env';
 import { expectFileToExist, readFile, rimraf } from '../../../utils/fs';
 import { installWorkspacePackages } from '../../../utils/packages';
@@ -11,12 +10,10 @@ export default async function () {
   // forcibly remove in case another test doesn't clean itself up
   await rimraf('node_modules/@angular/pwa');
   await ng('add', '@angular/pwa', '--skip-confirmation');
-  await expectFileToExist(join(process.cwd(), 'src/manifest.webmanifest'));
+  await expectFileToExist('public/manifest.webmanifest');
 
   // Angular PWA doesn't install as a dependency
-  const { dependencies, devDependencies } = JSON.parse(
-    await readFile(join(process.cwd(), 'package.json')),
-  );
+  const { dependencies, devDependencies } = JSON.parse(await readFile('package.json'));
   const hasPWADep = Object.keys({ ...dependencies, ...devDependencies }).some(
     (d) => d === '@angular/pwa',
   );
diff --git a/tests/legacy-cli/e2e/tests/commands/add/npm-env-vars.ts b/tests/legacy-cli/e2e/tests/commands/add/npm-env-vars.ts
index 35294336b4ac..a7c181f27764 100644
--- a/tests/legacy-cli/e2e/tests/commands/add/npm-env-vars.ts
+++ b/tests/legacy-cli/e2e/tests/commands/add/npm-env-vars.ts
@@ -13,17 +13,17 @@ export default async function () {
   const command = ['add', '@angular/pwa', '--skip-confirmation'];
 
   // Environment variables only
-  await expectFileNotToExist('src/manifest.webmanifest');
+  await expectFileNotToExist('public/manifest.webmanifest');
   setNpmEnvVarsForAuthentication();
   await ng(...command);
-  await expectFileToExist('src/manifest.webmanifest');
+  await expectFileToExist('public/manifest.webmanifest');
   await git('clean', '-dxf');
 
   // Mix of config file and env vars works
-  await expectFileNotToExist('src/manifest.webmanifest');
+  await expectFileNotToExist('public/manifest.webmanifest');
   await createNpmConfigForAuthentication(false, true);
   await ng(...command);
-  await expectFileToExist('src/manifest.webmanifest');
+  await expectFileToExist('public/manifest.webmanifest');
 
   await git('clean', '-dxf');
   await installWorkspacePackages();
diff --git a/tests/legacy-cli/e2e/tests/commands/add/registry-option.ts b/tests/legacy-cli/e2e/tests/commands/add/registry-option.ts
index 13d54e6c2f50..dc336cdd5b30 100644
--- a/tests/legacy-cli/e2e/tests/commands/add/registry-option.ts
+++ b/tests/legacy-cli/e2e/tests/commands/add/registry-option.ts
@@ -12,5 +12,5 @@ export default async function () {
   await expectToFail(() => ng('add', '@angular/pwa', '--skip-confirmation'));
 
   await ng('add', `--registry=${testRegistry}`, '@angular/pwa', '--skip-confirmation');
-  await expectFileToExist('src/manifest.webmanifest');
+  await expectFileToExist('public/manifest.webmanifest');
 }
diff --git a/tests/legacy-cli/e2e/tests/commands/add/secure-registry.ts b/tests/legacy-cli/e2e/tests/commands/add/secure-registry.ts
index df4bf57525e8..266abe242cf0 100644
--- a/tests/legacy-cli/e2e/tests/commands/add/secure-registry.ts
+++ b/tests/legacy-cli/e2e/tests/commands/add/secure-registry.ts
@@ -9,20 +9,20 @@ export default async function () {
   delete process.env['NPM_CONFIG_REGISTRY'];
 
   const command = ['add', '@angular/pwa', '--skip-confirmation'];
-  await expectFileNotToExist('src/manifest.webmanifest');
+  await expectFileNotToExist('public/manifest.webmanifest');
 
   // Works with unscoped registry authentication details
   await createNpmConfigForAuthentication(false);
   await ng(...command);
-  await expectFileToExist('src/manifest.webmanifest');
+  await expectFileToExist('public/manifest.webmanifest');
   await git('clean', '-dxf');
 
   // Works with scoped registry authentication details
-  await expectFileNotToExist('src/manifest.webmanifest');
+  await expectFileNotToExist('public/manifest.webmanifest');
 
   await createNpmConfigForAuthentication(true);
   await ng(...command);
-  await expectFileToExist('src/manifest.webmanifest');
+  await expectFileToExist('public/manifest.webmanifest');
 
   // Invalid authentication token
   await createNpmConfigForAuthentication(false, true);
diff --git a/tests/legacy-cli/e2e/tests/commands/add/yarn-env-vars.ts b/tests/legacy-cli/e2e/tests/commands/add/yarn-env-vars.ts
index 67ffdbdc9b09..103a99c04056 100644
--- a/tests/legacy-cli/e2e/tests/commands/add/yarn-env-vars.ts
+++ b/tests/legacy-cli/e2e/tests/commands/add/yarn-env-vars.ts
@@ -15,15 +15,15 @@ export default async function () {
   const command = ['add', '@angular/pwa', '--skip-confirmation'];
 
   // Environment variables only
-  await expectFileNotToExist('src/manifest.webmanifest');
+  await expectFileNotToExist('public/manifest.webmanifest');
   setNpmEnvVarsForAuthentication(false, true);
   await ng(...command);
-  await expectFileToExist('src/manifest.webmanifest');
+  await expectFileToExist('public/manifest.webmanifest');
   await git('clean', '-dxf');
 
   // Mix of config file and env vars works
-  await expectFileNotToExist('src/manifest.webmanifest');
+  await expectFileNotToExist('public/manifest.webmanifest');
   await createNpmConfigForAuthentication(false, true);
   await ng(...command);
-  await expectFileToExist('src/manifest.webmanifest');
+  await expectFileToExist('public/manifest.webmanifest');
 }
diff --git a/tests/legacy-cli/e2e/tests/commands/config/config-get.ts b/tests/legacy-cli/e2e/tests/commands/config/config-get.ts
index 0f33c75feaee..51d5f5c7aa1e 100644
--- a/tests/legacy-cli/e2e/tests/commands/config/config-get.ts
+++ b/tests/legacy-cli/e2e/tests/commands/config/config-get.ts
@@ -23,8 +23,8 @@ export default async function () {
     'config',
     `projects.test-project.architect.build.options.assets[0]`,
   );
-  if (!stdout2.includes('src/favicon.ico')) {
-    throw new Error(`Expected "src/favicon.ico", received "${JSON.stringify(stdout)}".`);
+  if (!stdout2.includes('"input": "public"')) {
+    throw new Error(`Expected "input": "public", received "${JSON.stringify(stdout)}".`);
   }
 
   const { stdout: stdout3 } = await ng(
@@ -32,8 +32,8 @@ export default async function () {
     `projects["test-project"].architect.build.options.assets[0]`,
   );
 
-  if (!stdout3.includes('src/favicon.ico')) {
-    throw new Error(`Expected "src/favicon.ico", received "${JSON.stringify(stdout)}".`);
+  if (!stdout3.includes('"input": "public"')) {
+    throw new Error(`Expected "input": "public", received "${JSON.stringify(stdout)}".`);
   }
 
   // should print all config when no positional args are provided.
diff --git a/tests/legacy-cli/e2e/tests/commands/serve/assets.ts b/tests/legacy-cli/e2e/tests/commands/serve/assets.ts
index 53853144f985..83fcb42aa8f2 100644
--- a/tests/legacy-cli/e2e/tests/commands/serve/assets.ts
+++ b/tests/legacy-cli/e2e/tests/commands/serve/assets.ts
@@ -8,12 +8,12 @@ export default async function () {
   const outsideDirectoryName = `../outside-${randomUUID()}`;
 
   await updateJsonFile('angular.json', (json) => {
-    json.projects['test-project'].architect.build.options.assets = [
-      'src/favicon.ico',
-      'src/assets',
-      // Ensure assets located outside the workspace root work with the dev server
-      { 'input': outsideDirectoryName, 'glob': '**/*', 'output': './outside' },
-    ];
+    // Ensure assets located outside the workspace root work with the dev server
+    json.projects['test-project'].architect.build.options.assets.push({
+      'input': outsideDirectoryName,
+      'glob': '**/*',
+      'output': './outside',
+    });
   });
 
   await mkdir(outsideDirectoryName);
diff --git a/tests/legacy-cli/e2e/tests/commands/serve/ssr-http-requests-assets.ts b/tests/legacy-cli/e2e/tests/commands/serve/ssr-http-requests-assets.ts
index ecb0e0fd8d00..981407e6cd93 100644
--- a/tests/legacy-cli/e2e/tests/commands/serve/ssr-http-requests-assets.ts
+++ b/tests/legacy-cli/e2e/tests/commands/serve/ssr-http-requests-assets.ts
@@ -34,7 +34,7 @@ export default async function () {
       };
     `,
     // Add asset
-    'src/assets/media.json': JSON.stringify({ dataFromAssets: true }),
+    'public/media.json': JSON.stringify({ dataFromAssets: true }),
     // Update component to do an HTTP call to asset.
     'src/app/app.component.ts': `
     import { Component, inject } from '@angular/core';
@@ -55,7 +55,7 @@ export default async function () {
       data: any;
       constructor() {
         const http = inject(HttpClient);
-        http.get('/assets/media.json').toPromise().then((d) => {
+        http.get('/media.json').toPromise().then((d) => {
           this.data = d;
         });
       }
diff --git a/tests/legacy-cli/e2e/utils/fs.ts b/tests/legacy-cli/e2e/utils/fs.ts
index fd419b45683e..2bcb3f044c08 100644
--- a/tests/legacy-cli/e2e/utils/fs.ts
+++ b/tests/legacy-cli/e2e/utils/fs.ts
@@ -1,4 +1,4 @@
-import { PathLike, promises as fs, constants } from 'fs';
+import { promises as fs, constants } from 'fs';
 import { dirname, join } from 'path';
 
 export function readFile(fileName: string): Promise<string> {