diff --git a/tools/build/build-installer.ps1 b/tools/build/build-installer.ps1
index 927622aab3..76ae4c92ef 100644
--- a/tools/build/build-installer.ps1
+++ b/tools/build/build-installer.ps1
@@ -27,10 +27,12 @@ Runs the pipeline for x64 Release.
 Runs the pipeline for x64 Release with machine-wide installer.
 
 .NOTES
-- Make sure to run this script from a Developer PowerShell (e.g., VS2022 Developer PowerShell).
 - Generated MSIX files will be signed using cert-sign-package.ps1.
-- This script will clean previous outputs under the build directories and installer directory (except *.exe files).
-- First time run need admin permission to trust the certificate.
+- This script uses git to manage workspace state:
+  * Uncommitted changes are stashed before build and popped afterwards.
+  * Version files and manifests modified during build are reverted.
+  * Untracked generated files are cleaned up.
+- Use the -Clean parameter to clean build outputs (bin/obj) and ignored files.
 - The built installer will be placed under: installer/PowerToysSetupVNext/[Platform]/[Configuration]/User[Machine]Setup 
   relative to the solution root directory.
 - To run the full installation in other machines, call "./cert-management.ps1" to export the cert used to sign the packages.
@@ -129,188 +131,290 @@ if ($Clean) {
     RunMSBuild 'PowerToys.slnx' '/t:Clean' $Platform $Configuration
 }
 
-# Set up versioning using versionSetting.ps1 if Version is provided
-# These files will be modified by versionSetting.ps1 and need to be restored after build
-$versionFilesToRestore = @(
-    "src\Version.props",
-    "src\CmdPalVersion.props",
-    "src\modules\powerrename\PowerRenameContextMenu\AppxManifest.xml",
-    "src\modules\imageresizer\ImageResizerContextMenu\AppxManifest.xml",
-    "src\modules\FileLocksmith\FileLocksmithContextMenu\AppxManifest.xml",
-    "src\modules\NewPlus\NewShellExtensionContextMenu\AppxManifest.xml"
-)
-$versionFileBackups = @{}
+# Git Stash Logic to handle workspace cleanup
+$stashedChanges = $false
+$scriptPathRelative = "tools/build/build-installer.ps1" 
 
-# These files are generated by Terminal versioning and need to be cleaned up after build
-$cmdpalGeneratedFiles = @(
-    "src\modules\cmdpal\Directory.Build.props",
-    "src\modules\cmdpal\Directory.Build.targets",
-    "src\modules\cmdpal\Microsoft.CmdPal.UI\BuildInfo.xml",
-    "src\modules\cmdpal\Microsoft.CmdPal.UI\GeneratedPackage.appxmanifest",
-    "src\modules\cmdpal\ext\ProcessMonitorExtension\BuildInfo.xml",
-    "src\modules\cmdpal\ext\ProcessMonitorExtension\GeneratedPackage.appxmanifest",
-    "src\modules\cmdpal\ext\SamplePagesExtension\BuildInfo.xml",
-    "src\modules\cmdpal\ext\SamplePagesExtension\GeneratedPackage.appxmanifest"
-)
-
-# Backup all version files before any versioning scripts run
-Write-Host "[VERSION] Backing up version files before modification..."
-foreach ($relPath in $versionFilesToRestore) {
-    $fullPath = Join-Path $repoRoot $relPath
-    if (Test-Path $fullPath) {
-        $versionFileBackups[$relPath] = Get-Content $fullPath -Raw
-        Write-Host "  Backed up: $relPath"
-    }
+# Calculate relative path of this script to exclude it from stash/reset
+$currentScriptPath = $MyInvocation.MyCommand.Definition
+if ($currentScriptPath.StartsWith($repoRoot)) {
+    $scriptPathRelative = $currentScriptPath.Substring($repoRoot.Length).TrimStart('\', '/')
+    $scriptPathRelative = $scriptPathRelative -replace '\\', '/'
 }
 
-if ($Version) {
-    Write-Host "[VERSION] Setting PowerToys version to $Version using versionSetting.ps1..."
-    $versionScript = Join-Path $repoRoot ".pipelines\versionSetting.ps1"
-    if (Test-Path $versionScript) {
-        & $versionScript -versionNumber $Version -DevEnvironment 'Local'
-        if (-not $?) {
-            Write-Error "versionSetting.ps1 failed"
+Push-Location $repoRoot
+try {
+    if (git status --porcelain) {
+        Write-Host "[GIT] Uncommitted changes detected. Stashing (excluding this script)..."
+        $stashCountBefore = (git stash list).Count
+        
+        # Exclude the current script from stash so we don't revert it while running
+        git stash push --include-untracked -m "PowerToys Build Auto-Stash" -- . ":(exclude)$scriptPathRelative"
+        
+        $stashCountAfter = (git stash list).Count
+        if ($stashCountAfter -gt $stashCountBefore) {
+            $stashedChanges = $true 
+            Write-Host "[GIT] Changes stashed."
+        } else {
+            Write-Host "[GIT] No changes to stash (likely only this script is modified)."
+        }
+    }
+} finally {
+    Pop-Location
+}
+
+try {
+    if ($Version) {
+        Write-Host "[VERSION] Setting PowerToys version to $Version using versionSetting.ps1..."
+        $versionScript = Join-Path $repoRoot ".pipelines\versionSetting.ps1"
+        if (Test-Path $versionScript) {
+            & $versionScript -versionNumber $Version -DevEnvironment 'Local'
+            if (-not $?) {
+                Write-Error "versionSetting.ps1 failed"
+                exit 1
+            }
+        } else {
+            Write-Error "Could not find versionSetting.ps1 at: $versionScript"
             exit 1
         }
+    }
+
+    Write-Host "[VERSION] Setting up versioning using Microsoft.Windows.Terminal.Versioning..."
+
+    # Check for nuget.exe - download to AppData if not available
+    $nugetDownloaded = $false
+    $nugetPath = $null
+    if (-not (Get-Command nuget -ErrorAction SilentlyContinue)) {
+        Write-Warning "nuget.exe not found in PATH. Attempting to download..."
+        $nugetUrl = "https://dist.nuget.org/win-x86-commandline/latest/nuget.exe"
+        $nugetDir = Join-Path $env:LOCALAPPDATA "PowerToys\BuildTools"
+        if (-not (Test-Path $nugetDir)) { New-Item -ItemType Directory -Path $nugetDir -Force | Out-Null }
+        $nugetPath = Join-Path $nugetDir "nuget.exe"
+        if (-not (Test-Path $nugetPath)) {
+            try {
+                Invoke-WebRequest $nugetUrl -OutFile $nugetPath
+                $nugetDownloaded = $true
+            } catch {
+                Write-Error "Failed to download nuget.exe. Please install it manually and add to PATH."
+                exit 1
+            }
+        }
+        $env:Path += ";$nugetDir"
+    }
+
+    # Install Terminal versioning package to AppData
+    $versioningDir = Join-Path $env:LOCALAPPDATA "PowerToys\BuildTools\.versioning"
+    if (-not (Test-Path $versioningDir)) { New-Item -ItemType Directory -Path $versioningDir -Force | Out-Null }
+
+    $configFile = Join-Path $repoRoot ".pipelines\release-nuget.config"
+
+    # Install the package
+    # Use -ExcludeVersion to make the path predictable
+    nuget install Microsoft.Windows.Terminal.Versioning -ConfigFile $configFile -OutputDirectory $versioningDir -ExcludeVersion -NonInteractive
+
+    $versionRoot = Join-Path $versioningDir "Microsoft.Windows.Terminal.Versioning"
+    $setupScript = Join-Path $versionRoot "build\Setup.ps1"
+
+    if (Test-Path $setupScript) {
+        & $setupScript -ProjectDirectory (Join-Path $repoRoot "src\modules\cmdpal") -Verbose
     } else {
-        Write-Error "Could not find versionSetting.ps1 at: $versionScript"
-        exit 1
+        Write-Error "Could not find Setup.ps1 in $versionRoot"
     }
-}
 
-Write-Host "[VERSION] Setting up versioning using Microsoft.Windows.Terminal.Versioning..."
+    # WiX v5 projects use WixToolset.Sdk via NuGet/MSBuild; no separate WiX installation is required.
+    Write-Host ("[PIPELINE] Start | Platform={0} Configuration={1} PerUser={2}" -f $Platform, $Configuration, $PerUser)
+    Write-Host ''
 
-# Check for nuget.exe - download to AppData if not available
-$nugetDownloaded = $false
-$nugetPath = $null
-if (-not (Get-Command nuget -ErrorAction SilentlyContinue)) {
-    Write-Warning "nuget.exe not found in PATH. Attempting to download..."
-    $nugetUrl = "https://dist.nuget.org/win-x86-commandline/latest/nuget.exe"
-    $nugetDir = Join-Path $env:LOCALAPPDATA "PowerToys\BuildTools"
-    if (-not (Test-Path $nugetDir)) { New-Item -ItemType Directory -Path $nugetDir -Force | Out-Null }
-    $nugetPath = Join-Path $nugetDir "nuget.exe"
-    if (-not (Test-Path $nugetPath)) {
-        try {
-            Invoke-WebRequest $nugetUrl -OutFile $nugetPath
-            $nugetDownloaded = $true
-        } catch {
-            Write-Error "Failed to download nuget.exe. Please install it manually and add to PATH."
+    $commonArgs = '/p:CIBuild=true /p:IsPipeline=true'
+
+    if ($EnableCmdPalAOT) {
+        $commonArgs += " /p:EnableCmdPalAOT=true"
+    }
+
+    # No local projects found (or continuing) - build full solution and tools
+    if (-not $SkipBuild) {
+        RestoreThenBuild 'PowerToys.slnx' $commonArgs $Platform $Configuration
+    }
+
+    $msixSearchRoot = Join-Path $repoRoot "$Platform\$Configuration"
+    $msixFiles = Get-ChildItem -Path $msixSearchRoot -Recurse -Filter *.msix |
+    Select-Object -ExpandProperty FullName
+
+    if ($msixFiles.Count) {
+        Write-Host ("[SIGN] .msix file(s): {0}" -f ($msixFiles -join '; '))
+        & (Join-Path $PSScriptRoot "cert-sign-package.ps1") -TargetPaths $msixFiles
+    }
+    else {
+        Write-Warning "[SIGN] No .msix files found in $msixSearchRoot"
+    }
+
+    # Generate DSC v2 manifests (PowerToys.Settings.DSC.Schema.Generator)
+    # The csproj PostBuild event is skipped on ARM64, so we run it manually here if needed.
+    if ($Platform -eq 'arm64') {
+        Write-Host "[DSC] Manually generating DSC v2 manifests for ARM64..."
+
+        # 1. Get Version
+        $versionPropsPath = Join-Path $repoRoot "src\Version.props"
+        [xml]$versionProps = Get-Content $versionPropsPath
+        $ptVersion = $versionProps.Project.PropertyGroup.Version
+        # Directory.Build.props appends .0 to the version for csproj files
+        $ptVersionFull = "$ptVersion.0"
+        
+        # 2. Build the Generator
+        $generatorProj = Join-Path $repoRoot "src\dsc\PowerToys.Settings.DSC.Schema.Generator\PowerToys.Settings.DSC.Schema.Generator.csproj"
+        RunMSBuild $generatorProj "/t:Build" $Platform $Configuration
+
+        # 3. Define paths
+        # The generator output path is in the project's bin folder
+        $generatorExe = Join-Path $repoRoot "src\dsc\PowerToys.Settings.DSC.Schema.Generator\bin\$Platform\$Configuration\PowerToys.Settings.DSC.Schema.Generator.exe"
+        
+        if (-not (Test-Path $generatorExe)) {
+            Write-Warning "Could not find generator at expected path: $generatorExe"
+            Write-Warning "Searching in build output..."
+            $found = Get-ChildItem -Path (Join-Path $repoRoot "$Platform\$Configuration") -Filter "PowerToys.Settings.DSC.Schema.Generator.exe" -Recurse | Select-Object -First 1
+            if ($found) {
+                $generatorExe = $found.FullName
+            }
+        }
+
+        $settingsLibDll = Join-Path $repoRoot "$Platform\$Configuration\WinUI3Apps\PowerToys.Settings.UI.Lib.dll"
+        
+        $dscGenDir = Join-Path $repoRoot "src\dsc\Microsoft.PowerToys.Configure\Generated\Microsoft.PowerToys.Configure\$ptVersionFull"
+        if (-not (Test-Path $dscGenDir)) {
+            New-Item -ItemType Directory -Path $dscGenDir -Force | Out-Null
+        }
+        
+        $outPsm1 = Join-Path $dscGenDir "Microsoft.PowerToys.Configure.psm1"
+        $outPsd1 = Join-Path $dscGenDir "Microsoft.PowerToys.Configure.psd1"
+
+        # 4. Run Generator
+        if (Test-Path $generatorExe) {
+            Write-Host "[DSC] Executing: $generatorExe"
+            
+            $generatorDir = Split-Path -Parent $generatorExe
+            $winUI3AppsDir = Join-Path $repoRoot "$Platform\$Configuration\WinUI3Apps"
+            
+            # Copy dependencies from WinUI3Apps to Generator directory to satisfy WinRT/WinUI3 dependencies
+            # This avoids "Class not registered" errors without polluting the WinUI3Apps directory which is used for packaging.
+            if (Test-Path $winUI3AppsDir) {
+                Write-Host "[DSC] Copying dependencies from $winUI3AppsDir to $generatorDir"
+                Get-ChildItem -Path $winUI3AppsDir -Filter "*.dll" | ForEach-Object {
+                    $destPath = Join-Path $generatorDir $_.Name
+                    if (-not (Test-Path $destPath)) {
+                        Copy-Item -Path $_.FullName -Destination $destPath -Force
+                    }
+                }
+                # Also copy resources.pri if it exists, as it might be needed for resource lookup
+                $priFile = Join-Path $winUI3AppsDir "resources.pri"
+                if (Test-Path $priFile) {
+                    Copy-Item -Path $priFile -Destination $generatorDir -Force
+                }
+            }
+
+            Push-Location $generatorDir
+            try {
+                # Now we can use the local DLLs
+                $localSettingsLibDll = Join-Path $generatorDir "PowerToys.Settings.UI.Lib.dll"
+                
+                if (Test-Path $localSettingsLibDll) {
+                    Write-Host "[DSC] Using local DLL: $localSettingsLibDll"
+                    & $generatorExe $localSettingsLibDll $outPsm1 $outPsd1
+                } else {
+                    # Fallback (shouldn't happen if copy succeeded or build was correct)
+                    Write-Warning "[DSC] Local DLL not found, falling back to: $settingsLibDll"
+                    & $generatorExe $settingsLibDll $outPsm1 $outPsd1
+                }
+
+                if ($LASTEXITCODE -ne 0) {
+                    Write-Error "DSC v2 generation failed with exit code $LASTEXITCODE"
+                    exit 1
+                }
+            } finally {
+                Pop-Location
+            }
+            
+            Write-Host "[DSC] DSC v2 manifests generated successfully."
+        } else {
+            Write-Error "Could not find generator executable at $generatorExe"
             exit 1
         }
     }
-    $env:Path += ";$nugetDir"
-}
 
-# Install Terminal versioning package to AppData
-$versioningDir = Join-Path $env:LOCALAPPDATA "PowerToys\BuildTools\.versioning"
-if (-not (Test-Path $versioningDir)) { New-Item -ItemType Directory -Path $versioningDir -Force | Out-Null }
-
-$configFile = Join-Path $repoRoot ".pipelines\release-nuget.config"
-
-# Install the package
-# Use -ExcludeVersion to make the path predictable
-nuget install Microsoft.Windows.Terminal.Versioning -ConfigFile $configFile -OutputDirectory $versioningDir -ExcludeVersion -NonInteractive
-
-$versionRoot = Join-Path $versioningDir "Microsoft.Windows.Terminal.Versioning"
-$setupScript = Join-Path $versionRoot "build\Setup.ps1"
-
-if (Test-Path $setupScript) {
-    & $setupScript -ProjectDirectory (Join-Path $repoRoot "src\modules\cmdpal") -Verbose
-} else {
-    Write-Error "Could not find Setup.ps1 in $versionRoot"
-}
-
-# WiX v5 projects use WixToolset.Sdk via NuGet/MSBuild; no separate WiX installation is required.
-Write-Host ("[PIPELINE] Start | Platform={0} Configuration={1} PerUser={2}" -f $Platform, $Configuration, $PerUser)
-Write-Host ''
-
-$commonArgs = '/p:CIBuild=true /p:IsPipeline=true'
-
-if ($EnableCmdPalAOT) {
-    $commonArgs += " /p:EnableCmdPalAOT=true"
-}
-
-# No local projects found (or continuing) - build full solution and tools
-if (-not $SkipBuild) {
-    RestoreThenBuild 'PowerToys.slnx' $commonArgs $Platform $Configuration
-}
-
-$msixSearchRoot = Join-Path $repoRoot "$Platform\$Configuration"
-$msixFiles = Get-ChildItem -Path $msixSearchRoot -Recurse -Filter *.msix |
-Select-Object -ExpandProperty FullName
-
-if ($msixFiles.Count) {
-    Write-Host ("[SIGN] .msix file(s): {0}" -f ($msixFiles -join '; '))
-    & (Join-Path $PSScriptRoot "cert-sign-package.ps1") -TargetPaths $msixFiles
-}
-else {
-    Write-Warning "[SIGN] No .msix files found in $msixSearchRoot"
-}
-
-# Generate DSC manifest files
-Write-Host '[DSC] Generating DSC manifest files...'
-$dscScriptPath = Join-Path $repoRoot '.\tools\build\generate-dsc-manifests.ps1'
-if (Test-Path $dscScriptPath) {
-    & $dscScriptPath -BuildPlatform $Platform -BuildConfiguration $Configuration -RepoRoot $repoRoot
-    if ($LASTEXITCODE -ne 0) {
-        Write-Error "DSC manifest generation failed with exit code $LASTEXITCODE"
-        exit 1
+    # Generate DSC manifest files
+    Write-Host '[DSC] Generating DSC manifest files...'
+    $dscScriptPath = Join-Path $repoRoot '.\tools\build\generate-dsc-manifests.ps1'
+    if (Test-Path $dscScriptPath) {
+        & $dscScriptPath -BuildPlatform $Platform -BuildConfiguration $Configuration -RepoRoot $repoRoot
+        if ($LASTEXITCODE -ne 0) {
+            Write-Error "DSC manifest generation failed with exit code $LASTEXITCODE"
+            exit 1
+        }
+        Write-Host '[DSC] DSC manifest files generated successfully'
+    } else {
+        Write-Warning "[DSC] DSC manifest generator script not found at: $dscScriptPath"
     }
-    Write-Host '[DSC] DSC manifest files generated successfully'
-} else {
-    Write-Warning "[DSC] DSC manifest generator script not found at: $dscScriptPath"
-}
 
-if (-not $SkipBuild) {
-    RestoreThenBuild 'tools\BugReportTool\BugReportTool.sln' $commonArgs $Platform $Configuration
-    RestoreThenBuild 'tools\StylesReportTool\StylesReportTool.sln' $commonArgs $Platform $Configuration
-}
+    if (-not $SkipBuild) {
+        RestoreThenBuild 'tools\BugReportTool\BugReportTool.sln' $commonArgs $Platform $Configuration
+        RestoreThenBuild 'tools\StylesReportTool\StylesReportTool.sln' $commonArgs $Platform $Configuration
+    }
 
-if ($Clean) {
-    Write-Host '[CLEAN] installer (keep *.exe)'
+    if ($Clean) {
+        Write-Host '[CLEAN] installer (keep *.exe)'
+        Push-Location $repoRoot
+        try {
+            git clean -xfd -e '*.exe' -- .\installer\ | Out-Null
+        } finally {
+            Pop-Location
+        }
+    }
+
+    # Set NUGET_PACKAGES environment variable if not set, to help wixproj find heat.exe
+    if (-not $env:NUGET_PACKAGES) {
+        $env:NUGET_PACKAGES = Join-Path $env:USERPROFILE ".nuget\packages"
+        Write-Host "[ENV] Set NUGET_PACKAGES to $env:NUGET_PACKAGES"
+    }
+
+    RunMSBuild 'installer\PowerToysSetup.slnx' "$commonArgs /t:restore /p:RestorePackagesConfig=true" $Platform $Configuration
+
+    RunMSBuild 'installer\PowerToysSetup.slnx' "$commonArgs /m /t:PowerToysInstallerVNext /p:PerUser=$PerUser" $Platform $Configuration
+
+    # Fix: WiX v5 locally puts the MSI in an 'en-us' subfolder, but the Bootstrapper expects it in the root of UserSetup/MachineSetup.
+    # We move it up one level to match expectations.
+    $setupType = if ($PerUser -eq 'true') { 'UserSetup' } else { 'MachineSetup' }
+    $msiParentDir = Join-Path $repoRoot "installer\PowerToysSetupVNext\$Platform\$Configuration\$setupType"
+    $msiEnUsDir = Join-Path $msiParentDir "en-us"
+
+    if (Test-Path $msiEnUsDir) {
+        Write-Host "[FIX] Moving MSI files from $msiEnUsDir to $msiParentDir"
+        Get-ChildItem -Path $msiEnUsDir -Filter *.msi | Move-Item -Destination $msiParentDir -Force
+    }
+
+    RunMSBuild 'installer\PowerToysSetup.slnx' "$commonArgs /m /t:PowerToysBootstrapperVNext /p:PerUser=$PerUser" $Platform $Configuration
+
+} finally {
+    # Restore workspace state using Git
+    Write-Host "[GIT] Cleaning up build artifacts..."
     Push-Location $repoRoot
     try {
-        git clean -xfd -e '*.exe' -- .\installer\ | Out-Null
+        # Revert all changes EXCEPT the script itself
+        # This cleans up Version.props, AppxManifests, etc.
+        git checkout HEAD -- . ":(exclude)$scriptPathRelative"
+        
+        # Remove untracked files (generated manifests, etc.)
+        # -f: force, -d: remove directories, -q: quiet
+        git clean -fd -q
+        
+        if ($stashedChanges) {
+            Write-Host "[GIT] Restoring stashed changes..."
+            git stash pop --index
+            if ($LASTEXITCODE -ne 0) {
+                Write-Warning "[GIT] 'git stash pop' reported conflicts or errors. Your changes are in the stash list."
+            }
+        }
     } finally {
         Pop-Location
     }
 }
 
-RunMSBuild 'installer\PowerToysSetup.slnx' "$commonArgs /t:restore /p:RestorePackagesConfig=true" $Platform $Configuration
-
-RunMSBuild 'installer\PowerToysSetup.slnx' "$commonArgs /m /t:PowerToysInstallerVNext /p:PerUser=$PerUser" $Platform $Configuration
-
-# Fix: WiX v5 locally puts the MSI in an 'en-us' subfolder, but the Bootstrapper expects it in the root of UserSetup/MachineSetup.
-# We move it up one level to match expectations.
-$setupType = if ($PerUser -eq 'true') { 'UserSetup' } else { 'MachineSetup' }
-$msiParentDir = Join-Path $repoRoot "installer\PowerToysSetupVNext\$Platform\$Configuration\$setupType"
-$msiEnUsDir = Join-Path $msiParentDir "en-us"
-
-if (Test-Path $msiEnUsDir) {
-    Write-Host "[FIX] Moving MSI files from $msiEnUsDir to $msiParentDir"
-    Get-ChildItem -Path $msiEnUsDir -Filter *.msi | Move-Item -Destination $msiParentDir -Force
-}
-
-RunMSBuild 'installer\PowerToysSetup.slnx' "$commonArgs /m /t:PowerToysBootstrapperVNext /p:PerUser=$PerUser" $Platform $Configuration
-
-# Restore version files if they were backed up
-if ($versionFileBackups.Count -gt 0) {
-    Write-Host "[VERSION] Restoring version files to original state..."
-    foreach ($relPath in $versionFileBackups.Keys) {
-        $fullPath = Join-Path $repoRoot $relPath
-        Set-Content -Path $fullPath -Value $versionFileBackups[$relPath] -NoNewline
-        Write-Host "  Restored: $relPath"
-    }
-}
-
-# Clean up cmdpal generated files from Terminal versioning
-Write-Host "[CLEANUP] Removing cmdpal generated files..."
-foreach ($relPath in $cmdpalGeneratedFiles) {
-    $fullPath = Join-Path $repoRoot $relPath
-    if (Test-Path $fullPath) {
-        Remove-Item $fullPath -Force
-        Write-Host "  Removed: $relPath"
-    }
-}
-
 Write-Host '[PIPELINE] Completed'