diff --git a/packages/server/src/api/controllers/application.ts b/packages/server/src/api/controllers/application.ts
index 74b08115ec..867eb2881b 100644
--- a/packages/server/src/api/controllers/application.ts
+++ b/packages/server/src/api/controllers/application.ts
@@ -659,7 +659,7 @@ async function destroyApp(ctx: UserCtx) {
   await quotas.removeApp()
   await events.app.deleted(app)
 
-  if (!env.isTest()) {
+  if (!env.USE_LOCAL_COMPONENT_LIBS) {
     await deleteAppFiles(appId)
   }
 
diff --git a/packages/server/src/api/routes/tests/application.spec.ts b/packages/server/src/api/routes/tests/application.spec.ts
index 9480593c2a..790772df42 100644
--- a/packages/server/src/api/routes/tests/application.spec.ts
+++ b/packages/server/src/api/routes/tests/application.spec.ts
@@ -1,4 +1,7 @@
 import { DEFAULT_TABLES } from "../../../db/defaultData/datasource_bb_default"
+import { setEnv } from "../../../environment"
+
+setEnv({ USE_LOCAL_COMPONENT_LIBS: "0" })
 
 jest.mock("../../../utilities/redis", () => ({
   init: jest.fn(),