diff --git a/.github/workflows/pr-smoke-test.yml b/.github/workflows/pr-smoke-test.yml
index 72f6ad376fd..1bff56c666e 100644
--- a/.github/workflows/pr-smoke-test.yml
+++ b/.github/workflows/pr-smoke-test.yml
@@ -13,10 +13,10 @@ jobs:
     steps:
       - name: Create dirs.
         run: |
-              mkdir -p code/woocommerce
-              mkdir -p package/woocommerce
-              mkdir -p tmp/woocommerce
-              mkdir -p node_modules
+          mkdir -p code/woocommerce
+          mkdir -p package/woocommerce
+          mkdir -p tmp/woocommerce
+          mkdir -p node_modules
 
       - name: Checkout code.
         uses: actions/checkout@v2
@@ -32,10 +32,10 @@ jobs:
           pnpm nx composer-install-no-dev woocommerce
           pnpm nx build-assets woocommerce
           pnpm install jest
-          
+
       - name: Run smoke test.
         working-directory: package/woocommerce/plugins/woocommerce
-        if: steps.installation.outcome == 'success'
+        if: always()
         env:
           SMOKE_TEST_URL: ${{ secrets.SMOKE_TEST_URL }}
           SMOKE_TEST_ADMIN_USER: ${{ secrets.SMOKE_TEST_ADMIN_USER }}
@@ -55,7 +55,7 @@ jobs:
       - name: Post Smoke tests results comment on PR
         if: always()
         uses: actions/github-script@v5
-        env: 
+        env:
           TITLE: 'Smoke Test Results'
           SMOKE_TEST_URL: ${{ secrets.SMOKE_TEST_URL }}
         with:
@@ -66,7 +66,7 @@ jobs:
 
       - name: Run E2E tests.
         working-directory: package/woocommerce/plugins/woocommerce
-        if: steps.installation.outcome == 'success'
+        if: always()
         env:
           SMOKE_TEST_URL: ${{ secrets.SMOKE_TEST_URL }}
           SMOKE_TEST_ADMIN_USER: ${{ secrets.SMOKE_TEST_ADMIN_USER }}
@@ -86,7 +86,7 @@ jobs:
       - name: Post E2E tests results comment on PR
         if: always()
         uses: actions/github-script@v5
-        env: 
+        env:
           TITLE: 'E2E Test Results'
           SMOKE_TEST_URL: ${{ secrets.SMOKE_TEST_URL }}
         with:
@@ -96,7 +96,7 @@ jobs:
             await script({github, context})
 
       - name: Remove label from pull request.
-        if: "${{ contains(github.event.pull_request.labels.*.name, 'run: smoke tests') }}"
+        if: always() && ${{ contains(github.event.label.name, format( 'run{0} smoke tests', ':') ) }}
         uses: actions-ecosystem/action-remove-labels@v1
         with:
           github_token: ${{ secrets.GITHUB_TOKEN }}
diff --git a/packages/js/e2e-core-tests/CHANGELOG.md b/packages/js/e2e-core-tests/CHANGELOG.md
index 991e80a5324..38a7e3b33f2 100644
--- a/packages/js/e2e-core-tests/CHANGELOG.md
+++ b/packages/js/e2e-core-tests/CHANGELOG.md
@@ -1,5 +1,12 @@
 # Unreleased
 
+## Changes
+
+- Removed the node-config dependency
+
+## Fixed
+- Moved `merchant.login()` out of `beforeAll()` block and into test body for retried runs.
+
 ## Added
 
 - This package is now transpiled with Babel, which allows the usage of modern, yet compatible JS code.
diff --git a/packages/js/e2e-core-tests/package.json b/packages/js/e2e-core-tests/package.json
index 382e9b909a8..b60de7e0381 100644
--- a/packages/js/e2e-core-tests/package.json
+++ b/packages/js/e2e-core-tests/package.json
@@ -13,7 +13,6 @@
   "dependencies": {
     "@jest/globals": "^26.4.2",
     "@wordpress/deprecated": "^3.2.3",
-    "config": "3.3.3",
     "faker": "^5.1.0"
   },
   "devDependencies": {
@@ -31,7 +30,8 @@
   },
   "peerDependencies": {
     "@woocommerce/api": "^0.2.0",
-    "@woocommerce/e2e-utils": "^0.1.6"
+    "@woocommerce/e2e-utils": "^0.1.6",
+	"@woocommerce/e2e-environment": "^0.2.3"
   },
   "publishConfig": {
     "access": "public"
diff --git a/packages/js/e2e-core-tests/src/specs/activate-and-setup/onboarding-tasklist.test.js b/packages/js/e2e-core-tests/src/specs/activate-and-setup/onboarding-tasklist.test.js
index a54fabc13c7..c6e03feb6cd 100644
--- a/packages/js/e2e-core-tests/src/specs/activate-and-setup/onboarding-tasklist.test.js
+++ b/packages/js/e2e-core-tests/src/specs/activate-and-setup/onboarding-tasklist.test.js
@@ -12,7 +12,7 @@ const {
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 import deprecated from '@wordpress/deprecated';
 const {
 	it,
diff --git a/packages/js/e2e-core-tests/src/specs/api/coupon.test.js b/packages/js/e2e-core-tests/src/specs/api/coupon.test.js
index 512cb6d8249..d41dbb958ba 100644
--- a/packages/js/e2e-core-tests/src/specs/api/coupon.test.js
+++ b/packages/js/e2e-core-tests/src/specs/api/coupon.test.js
@@ -6,7 +6,7 @@ const { HTTPClientFactory, Coupon } = require( '@woocommerce/api' );
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const { it, describe, beforeAll } = require( '@jest/globals' );
 
 /**
diff --git a/packages/js/e2e-core-tests/src/specs/api/external-product.test.js b/packages/js/e2e-core-tests/src/specs/api/external-product.test.js
index 6f8882aedf6..5e4b3ed3f83 100644
--- a/packages/js/e2e-core-tests/src/specs/api/external-product.test.js
+++ b/packages/js/e2e-core-tests/src/specs/api/external-product.test.js
@@ -6,7 +6,7 @@ const { HTTPClientFactory, ExternalProduct } = require( '@woocommerce/api' );
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const { it, describe, beforeAll } = require( '@jest/globals' );
 
 /**
diff --git a/packages/js/e2e-core-tests/src/specs/api/grouped-product.test.js b/packages/js/e2e-core-tests/src/specs/api/grouped-product.test.js
index 3a1cf785dd0..ad1d5717991 100644
--- a/packages/js/e2e-core-tests/src/specs/api/grouped-product.test.js
+++ b/packages/js/e2e-core-tests/src/specs/api/grouped-product.test.js
@@ -10,7 +10,7 @@ const {
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const { it, describe, beforeAll } = require( '@jest/globals' );
 
 /**
diff --git a/packages/js/e2e-core-tests/src/specs/api/order.test.js b/packages/js/e2e-core-tests/src/specs/api/order.test.js
index 0f4b5d75bed..6bf560f10fa 100644
--- a/packages/js/e2e-core-tests/src/specs/api/order.test.js
+++ b/packages/js/e2e-core-tests/src/specs/api/order.test.js
@@ -6,7 +6,7 @@ const { HTTPClientFactory, Order } = require( '@woocommerce/api' );
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const { it, describe, beforeAll } = require( '@jest/globals' );
 
 /**
diff --git a/packages/js/e2e-core-tests/src/specs/api/telemetry.test.js b/packages/js/e2e-core-tests/src/specs/api/telemetry.test.js
index 7def25552ba..139f1c0d376 100644
--- a/packages/js/e2e-core-tests/src/specs/api/telemetry.test.js
+++ b/packages/js/e2e-core-tests/src/specs/api/telemetry.test.js
@@ -6,7 +6,7 @@ const { HTTPClientFactory } = require( '@woocommerce/api' );
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const { it, describe, beforeAll } = require( '@jest/globals' );
 
 /**
diff --git a/packages/js/e2e-core-tests/src/specs/api/variable-product.test.js b/packages/js/e2e-core-tests/src/specs/api/variable-product.test.js
index 3fcea7a8792..4579b6222fe 100644
--- a/packages/js/e2e-core-tests/src/specs/api/variable-product.test.js
+++ b/packages/js/e2e-core-tests/src/specs/api/variable-product.test.js
@@ -7,7 +7,7 @@ const { HTTPClientFactory, VariableProduct, ProductVariation } = require( '@wooc
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const {
 	it,
 	describe,
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-apply-coupon.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-apply-coupon.test.js
index 6e70fa8f95a..1696fa6fecf 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-apply-coupon.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-apply-coupon.test.js
@@ -11,8 +11,8 @@ const {
 	utils,
 } = require( '@woocommerce/e2e-utils' );
 
-const config = require( 'config' );
-const simpleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
+const { config } = require( '@woocommerce/e2e-environment' );
+const simpleProductPrice = config.get( 'products.simple.price', '9.99' );
 const discountedPrice = simpleProductPrice - 5.00;
 
 const couponDialogMessage = 'Enter a coupon code to apply. Discounts are applied to line totals, before taxes.';
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-customer-payment-page.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-customer-payment-page.test.js
index 988dc193d30..92e047962bc 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-customer-payment-page.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-customer-payment-page.test.js
@@ -9,9 +9,9 @@ const {
 } = require( '@woocommerce/e2e-utils' );
 
 // TODO create a function for the logic below getConfigSimpleProduct(), see: https://github.com/woocommerce/woocommerce/issues/29072
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
-const simpleProductPrice = config.has( 'products.simple.price' ) ? config.get( 'products.simple.price' ) : '9.99';
+const simpleProductPrice = config.get( 'products.simple.price', '9.99' );
 
 const runMerchantOrdersCustomerPaymentPage = () => {
 	let orderId;
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-emails.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-emails.test.js
index 1fbb5a0099f..8d9b7e2fbc0 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-emails.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-emails.test.js
@@ -9,10 +9,10 @@ const {
 	deleteAllEmailLogs,
 } = require( '@woocommerce/e2e-utils' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const customerEmail = config.get( 'addresses.customer.billing.email' );
-const adminEmail = config.has( 'users.admin.email' ) ? config.get( 'users.admin.email' )  : 'admin@woocommercecoree2etestsuite.com';
-const storeName = 'WooCommerce Core E2E Test Suite';
+const adminEmail = config.get( 'users.admin.email', 'admin@woocommercecoree2etestsuite.com' );
+const storeName = config.get( 'storeName', 'WooCommerce Core E2E Test Suite' );
 
 let orderId;
 
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-new.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-new.test.js
index 3dd15e2d758..39f510c437e 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-new.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-new.test.js
@@ -7,7 +7,7 @@ const {
 	withRestApi,
 	AdminEdit,
 } = require( '@woocommerce/e2e-utils' );
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const {
 	HTTPClientFactory,
 	VariableProduct,
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-refund.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-refund.test.js
index a2cc152406f..f90f29ac36f 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-refund.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-refund.test.js
@@ -12,8 +12,8 @@ const {
 	clickAndWaitForSelector,
 } = require( '@woocommerce/e2e-utils' );
 
-const config = require( 'config' );
-const simpleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
+const { config } = require( '@woocommerce/e2e-environment' );
+const simpleProductPrice = config.get( 'products.simple.price', '9.99' );
 
 const runRefundOrderTest = () => {
 	describe('WooCommerce Orders > Refund an order', () => {
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-status-filters.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-status-filters.test.js
index 5a2740774cd..75b970184c1 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-status-filters.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-order-status-filters.test.js
@@ -1,8 +1,6 @@
 /**
  * Internal dependencies
  */
-const config = require( 'config' );
-
 const {
 	merchant,
 	withRestApi,
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-new.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-new.test.js
index d22f6f33834..419d93abb68 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-new.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-new.test.js
@@ -23,13 +23,12 @@ const {
 const {
 	it,
 	describe,
-	beforeAll,
 } = require( '@jest/globals' );
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 
 const VirtualProductName = 'Virtual Product Name';
 const NonVirtualProductName = 'Non-Virtual Product Name';
-const simpleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
+const simpleProductPrice = config.get( 'products.simple.price', '9.99' );
 
 const openNewProductAndVerify = async () => {
 	// Go to "add product" page
@@ -41,10 +40,6 @@ const openNewProductAndVerify = async () => {
 
 const runAddSimpleProductTest = () => {
 	describe('Add New Simple Product Page', () => {
-		beforeAll(async () => {
-			await merchant.login();
-		});
-
 		it('can create simple virtual product and add it to the cart', async () => {
 
 			// @todo: remove this once https://github.com/woocommerce/woocommerce/issues/31337 has been addressed
@@ -53,6 +48,7 @@ const runAddSimpleProductTest = () => {
 				height: 700,
 			} );
 
+			await merchant.login();
 			await openNewProductAndVerify();
 
 			// Set product data and publish the product
@@ -120,11 +116,8 @@ const runAddSimpleProductTest = () => {
 
 const runAddVariableProductTest = () => {
 	describe('Add New Variable Product Page', () => {
-		beforeAll(async () => {
-			await merchant.login();
-		});
-
 		it('can create product with variations', async () => {
+			await merchant.login();
 			await openNewProductAndVerify();
 
 			// Set product data
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-search.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-search.test.js
index d397c5685dc..a4f39b9ae03 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-search.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-product-search.test.js
@@ -8,9 +8,9 @@ const {
 	createSimpleProduct
 } = require( '@woocommerce/e2e-utils' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
-const simpleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
+const simpleProductPrice = config.get( 'products.simple.price', '9.99' );
 
 const runProductSearchTest = () => {
 	describe('Products > Search and View a product', () => {
diff --git a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-settings-shipping-zones.test.js b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-settings-shipping-zones.test.js
index ec59ac1df15..53716c179a5 100644
--- a/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-settings-shipping-zones.test.js
+++ b/packages/js/e2e-core-tests/src/specs/merchant/wp-admin-settings-shipping-zones.test.js
@@ -21,8 +21,8 @@ const {
 	beforeAll,
 } = require( '@jest/globals' );
 
-const config = require( 'config' );
-const simpleProductPrice = config.has( 'products.simple.price' ) ? config.get( 'products.simple.price' ) : '9.99';
+const { config } = require( '@woocommerce/e2e-environment' );
+const simpleProductPrice = config.get( 'products.simple.price', '9.99' );
 const california = 'state:US:CA';
 const sanFranciscoZIP = '94107';
 const shippingZoneNameUS = 'US with Flat rate';
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-calculate-shipping.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-calculate-shipping.test.js
index 98add6b0d52..45a537c3db4 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-calculate-shipping.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-calculate-shipping.test.js
@@ -18,8 +18,8 @@ const {
 	beforeAll,
 } = require( '@jest/globals' );
 
-const config = require( 'config' );
-const firstProductPrice = config.has( 'products.simple.price' ) ? config.get( 'products.simple.price' ) : '9.99';
+const { config } = require( '@woocommerce/e2e-environment' );
+const firstProductPrice = config.get( 'products.simple.price', '9.99' );
 const secondProductPrice = '4.99';
 const fourProductPrice = firstProductPrice * 4;
 var twoProductsPrice = (+firstProductPrice) + (+secondProductPrice);
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-redirection.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-redirection.test.js
index e91262de4cd..f83f3948362 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-redirection.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart-redirection.test.js
@@ -21,7 +21,7 @@
 	afterAll,
 } = require( '@jest/globals' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
 
 const runCartRedirectionTest = () => {
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart.test.js
index fea98893cf7..fa70f769e39 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-cart.test.js
@@ -17,9 +17,9 @@ const {
 	beforeAll,
 } = require( '@jest/globals' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
-const singleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
+const singleProductPrice = config.get( 'products.simple.price', '9.99' );
 const twoProductPrice = singleProductPrice * 2;
 
 const runCartPageTest = () => {
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-create-account.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-create-account.test.js
index 71dc37a1bdf..629185ada8e 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-create-account.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-create-account.test.js
@@ -21,7 +21,7 @@ const {
 	beforeAll,
 } = require( '@jest/globals' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const customerBilling = config.get( 'addresses.customer.billing' );
 
 const runCheckoutCreateAccountTest = () => {
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-login-account.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-login-account.test.js
index b81d115cd36..33141c6495e 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-login-account.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout-login-account.test.js
@@ -19,7 +19,7 @@ const {
 	beforeAll,
 } = require( '@jest/globals' );
 
-const config = require('config');
+const { config } = require( '@woocommerce/e2e-environment' );
 
 const runCheckoutLoginAccountTest = () => {
 	describe('Shopper Checkout Login Account', () => {
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout.test.js
index 47999a5d07d..ea00b8911b3 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-checkout.test.js
@@ -9,9 +9,9 @@ const {
 	uiUnblocked,
 } = require( '@woocommerce/e2e-utils' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
-const singleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
+const singleProductPrice = config.get( 'products.simple.price', '9.99' );
 const twoProductPrice = singleProductPrice * 2;
 const threeProductPrice = singleProductPrice * 3;
 const fourProductPrice = singleProductPrice * 4;
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-my-account-pay-order.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-my-account-pay-order.test.js
index 4b6e9ca6609..f0ed8206fa7 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-my-account-pay-order.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-my-account-pay-order.test.js
@@ -11,7 +11,7 @@ const {
 
 let simplePostIdValue;
 let orderNum;
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
 
 const runMyAccountPayOrderTest = () => {
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-order-email-receiving.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-order-email-receiving.test.js
index 45961523c36..095122e2861 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-order-email-receiving.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-order-email-receiving.test.js
@@ -12,7 +12,7 @@
 
 let simplePostIdValue;
 let orderId;
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
 const customerEmail = config.get( 'addresses.customer.billing.email' );
 const storeName = 'WooCommerce Core E2E Test Suite';
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-product-browse-search-sort.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-product-browse-search-sort.test.js
index a0a1a298582..fab50e10b7d 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-product-browse-search-sort.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-product-browse-search-sort.test.js
@@ -17,11 +17,11 @@ const {
 	beforeAll,
 } = require( '@jest/globals' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const simpleProductName = config.get( 'products.simple.name' );
-const singleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
-const singleProductPrice2 = config.has('products.simple.price') ? '1' + singleProductPrice : '19.99';
-const singleProductPrice3 = config.has('products.simple.price') ? '2' + singleProductPrice : '29.99';
+const singleProductPrice = config.get( 'products.simple.price', '9.99' );
+const singleProductPrice2 = '1' + singleProductPrice;
+const singleProductPrice3 = '2' + singleProductPrice;
 const clothing = 'Clothing';
 const audio = 'Audio';
 const hardware = 'Hardware';
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-single-product.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-single-product.test.js
index 6a04850ca52..213e2d52aa6 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-single-product.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-single-product.test.js
@@ -9,7 +9,7 @@ const {
 	uiUnblocked
 } = require( '@woocommerce/e2e-utils' );
 
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 
 // Variables for simple product
 const simpleProductName = config.get( 'products.simple.name' );
@@ -20,7 +20,7 @@ const defaultVariableProduct = config.get( 'products.variable' );
 let variableProductId;
 
 // Variables for grouped product
-const simpleProductPrice = config.has('products.simple.price') ? config.get('products.simple.price') : '9.99';
+const simpleProductPrice = config.get( 'products.simple.price', '9.99' );
 const simple1 = {
 	name: simpleProductName + ' 1',
 	regularPrice: simpleProductPrice
diff --git a/packages/js/e2e-core-tests/src/specs/shopper/front-end-variable-product-updates.test.js b/packages/js/e2e-core-tests/src/specs/shopper/front-end-variable-product-updates.test.js
index 8c0ac5a9c5f..bb64ca46c89 100644
--- a/packages/js/e2e-core-tests/src/specs/shopper/front-end-variable-product-updates.test.js
+++ b/packages/js/e2e-core-tests/src/specs/shopper/front-end-variable-product-updates.test.js
@@ -6,7 +6,7 @@ const {
 	shopper,
 	createVariableProduct,
 } = require( '@woocommerce/e2e-utils' );
-const config = require('config');
+const { config } = require( '@woocommerce/e2e-environment' );
 
 let variablePostIdValue;
 
@@ -100,7 +100,7 @@ const runVariableProductUpdateTest = () => {
 		});
 
 	});
-	
+
 };
 
 module.exports = runVariableProductUpdateTest;
diff --git a/packages/js/e2e-environment/CHANGELOG.md b/packages/js/e2e-environment/CHANGELOG.md
index a73b7838292..7fabf853710 100644
--- a/packages/js/e2e-environment/CHANGELOG.md
+++ b/packages/js/e2e-environment/CHANGELOG.md
@@ -1,11 +1,17 @@
 # Unreleased
 
+
+## Added
+
+- Added a `config` export to the `@woocommerce/e2e-environment` package that has all data and methods of the [config](https://github.com/lorenwest/node-config) package
+  - it provides its own `get()` method that accepts an optional default parameter to be used if the property is not found in the config file.
+  
 ## Added
 
 - Added `post-results-to-github-pr.js` to post smoke test results to a GitHub PR.
 - Added jest flags to generate a json test report
 - Added more entries to `default.json`
-
+  
 ## Added
 
 - Added `await` for every call to `shopper.logout`
diff --git a/packages/js/e2e-environment/README.md b/packages/js/e2e-environment/README.md
index e18973d5f3a..0aef343c41e 100644
--- a/packages/js/e2e-environment/README.md
+++ b/packages/js/e2e-environment/README.md
@@ -98,6 +98,22 @@ The E2E environment has the following methods to let us control Jest's overall b
 E2E_RETRY_TIMES=2 pnpx wc-e2e test:e2e
 ```
 
+### Default Environment Configurations
+
+The E2E environment exports a config object which provides all the functionality of the [config](https://www.npmjs.com/package/config) package along with extending the `get` method to accept an optional second argument that will be used if the property is not found in the config file.
+
+```js
+const { config } = require( '@woocommerce/e2e-environment' );
+
+// 'users.admin.email' doesn't exist
+const adminEmail = config.get( 'users.admin.email', 'admin@woocommercecoree2etestsuite.com' );
+
+console.log( adminEmail );
+// admin@woocommercecoree2etestsuite.com
+```
+
+**Note**: If the default parameter is not found and no optional parameter is provided, an error will be thrown.
+
 #### Test Screenshots
 
 The test sequencer provides a screenshot function for test failures. To enable screenshots on test failure use
diff --git a/packages/js/e2e-environment/config/config.js b/packages/js/e2e-environment/config/config.js
new file mode 100644
index 00000000000..7cb078255fd
--- /dev/null
+++ b/packages/js/e2e-environment/config/config.js
@@ -0,0 +1,32 @@
+/**
+ * External Dependencies
+ */
+const config = require( 'config' );
+
+/**
+ * Since the 'config' object is not extensible, we create an empty 'e2eConfig' object and map
+ * its prototype to the 'config' object. This allows us to extend the new 'e2eConfig' object
+ * while still having access to all the data and methods of 'config'
+ */
+const e2eConfig = Object.create( config );
+
+/**
+ *
+ * @param property { string } - the property to be fetched from the config file
+ * @param defaultValue { string | number | boolean | null } - default value if 'property' is not found
+ * @returns { string | number | boolean }
+ * @throws Error
+ */
+e2eConfig.get = ( property, defaultValue = null ) => {
+	if ( config.has( property ) ) {
+		return config.get( property );
+	} else if ( defaultValue ) {
+		return defaultValue;
+	}
+
+	throw new Error(
+		`Configuration property "${ property }" is not defined and no defaultValue has been provided`
+	);
+};
+
+module.exports = e2eConfig;
diff --git a/packages/js/e2e-environment/config/index.js b/packages/js/e2e-environment/config/index.js
index ba96035504a..b4fd540211c 100644
--- a/packages/js/e2e-environment/config/index.js
+++ b/packages/js/e2e-environment/config/index.js
@@ -1,6 +1,7 @@
 /**
  * Internal dependencies
  */
+const config = require('./config');
 const jestConfig = require( './jest.config' );
 const jestPuppeteerConfig = require( './jest-puppeteer.config' );
 const jestobjectConfig = require('./jest-object.config');
@@ -12,6 +13,7 @@ const {
 } = require( './use-config' );
 
 module.exports = {
+	config,
 	jestConfig,
 	...jestobjectConfig,
 	jestPuppeteerConfig,
diff --git a/packages/js/e2e-utils/CHANGELOG.md b/packages/js/e2e-utils/CHANGELOG.md
index d5f40537e1c..490cf0e5cde 100644
--- a/packages/js/e2e-utils/CHANGELOG.md
+++ b/packages/js/e2e-utils/CHANGELOG.md
@@ -1,4 +1,9 @@
 # Unreleased
+## Changes
+
+- Removed node-config dependency
+- Added @woocommerce/e2e-environment peerDependency
+- Updated the package to use the custom node-config object from @woocommerce/e2e-environment
 
 ## Fixed
 
diff --git a/packages/js/e2e-utils/package.json b/packages/js/e2e-utils/package.json
index 9ab299798d2..891c3d52630 100644
--- a/packages/js/e2e-utils/package.json
+++ b/packages/js/e2e-utils/package.json
@@ -14,7 +14,6 @@
     "@automattic/puppeteer-utils": "github:Automattic/puppeteer-utils#0f3ec50",
     "@wordpress/deprecated": "^3.2.3",
     "@wordpress/e2e-test-utils": "^4.16.1",
-    "config": "3.3.3",
     "faker": "^5.1.0",
     "fishery": "^1.2.0"
   },
@@ -35,7 +34,8 @@
     "eslint": "^8.1.0"
   },
   "peerDependencies": {
-    "@woocommerce/api": "^0.2.0"
+    "@woocommerce/api": "^0.2.0",
+	"@woocommerce/e2e-environment": "^0.2.3"
   },
   "publishConfig": {
     "access": "public"
diff --git a/packages/js/e2e-utils/src/factories.js b/packages/js/e2e-utils/src/factories.js
index 4ebc5e38041..fb7f080f825 100644
--- a/packages/js/e2e-utils/src/factories.js
+++ b/packages/js/e2e-utils/src/factories.js
@@ -1,5 +1,5 @@
 import { HTTPClientFactory } from '@woocommerce/api';
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 import { simpleProductFactory } from './factories/simple-product';
 import { variableProductFactory } from './factories/variable-product';
 import { variationFactory } from './factories/variation';
diff --git a/packages/js/e2e-utils/src/flows/constants.js b/packages/js/e2e-utils/src/flows/constants.js
index 118a207bdd6..17010823f52 100644
--- a/packages/js/e2e-utils/src/flows/constants.js
+++ b/packages/js/e2e-utils/src/flows/constants.js
@@ -1,7 +1,7 @@
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 const baseUrl = config.get( 'url' );
 
 /**
diff --git a/packages/js/e2e-utils/src/flows/merchant.js b/packages/js/e2e-utils/src/flows/merchant.js
index ab880f255de..ec5b2986492 100644
--- a/packages/js/e2e-utils/src/flows/merchant.js
+++ b/packages/js/e2e-utils/src/flows/merchant.js
@@ -1,7 +1,7 @@
 /**
  * External dependencies
  */
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 
 /**
  * Internal dependencies
@@ -440,10 +440,9 @@ const merchant = {
 	 */
 	collapseAdminMenu: async ( collapse = true ) => {
 		const collapseButton = await page.$( '.folded #collapse-button' );
-		if ( ( ! collapseButton ) == collapse ) {
+		if ( ( ! collapse ) == collapseButton ) {
 			await collapseButton.click();
 		}
-
 	},
 };
 
diff --git a/packages/js/e2e-utils/src/flows/shopper.js b/packages/js/e2e-utils/src/flows/shopper.js
index 3f9e2cb43ff..92fbecb291a 100644
--- a/packages/js/e2e-utils/src/flows/shopper.js
+++ b/packages/js/e2e-utils/src/flows/shopper.js
@@ -2,7 +2,7 @@
  * External dependencies
  */
 const { pressKeyWithModifier } = require( '@wordpress/e2e-test-utils' );
-const config = require( 'config' );
+const { config } = require( '@woocommerce/e2e-environment' );
 
 /**
  * Internal dependencies
diff --git a/plugins/woocommerce/includes/class-wc-template-loader.php b/plugins/woocommerce/includes/class-wc-template-loader.php
index d8c1182c931..cd621431b34 100644
--- a/plugins/woocommerce/includes/class-wc-template-loader.php
+++ b/plugins/woocommerce/includes/class-wc-template-loader.php
@@ -103,6 +103,9 @@ class WC_Template_Loader {
 	/**
 	 * Checks whether a block template with that name exists.
 	 *
+	 * **Note: ** This checks both the `templates` and `block-templates` directories
+	 * as both conventions should be supported.
+	 *
 	 * @since  5.5.0
 	 * @param string $template_name Template to check.
 	 * @return boolean
@@ -112,7 +115,31 @@ class WC_Template_Loader {
 			return false;
 		}
 
-		$has_template = is_readable( get_stylesheet_directory() . '/block-templates/' . $template_name . '.html' );
+		$has_template            = false;
+		$template_filename       = $template_name . '.html';
+		// Since Gutenberg 12.1.0, the conventions for block templates directories have changed,
+		// we should check both these possible directories for backwards-compatibility.
+		$possible_templates_dirs = array( 'templates', 'block-templates' );
+
+		// Combine the possible root directory names with either the template directory
+		// or the stylesheet directory for child themes, getting all possible block templates
+		// locations combinations.
+		$filepath        = DIRECTORY_SEPARATOR . 'templates' . DIRECTORY_SEPARATOR . $template_filename;
+		$legacy_filepath = DIRECTORY_SEPARATOR . 'block-templates' . DIRECTORY_SEPARATOR . $template_filename;
+		$possible_paths  = array(
+			get_stylesheet_directory() . $filepath,
+			get_stylesheet_directory() . $legacy_filepath,
+			get_template_directory() . $filepath,
+			get_template_directory() . $legacy_filepath,
+		);
+
+		// Check the first matching one.
+		foreach ( $possible_paths as $path ) {
+			if ( is_readable( $path ) ) {
+				$has_template = true;
+				break;
+			}
+		}
 
 		/**
 		 * Filters the value of the result of the block template check.
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index b87ac777b3f..6fcb3f28f4f 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -113,12 +113,10 @@ importers:
       '@wordpress/babel-preset-default': 3.0.2
       '@wordpress/browserslist-config': ^4.1.0
       '@wordpress/deprecated': ^3.2.3
-      config: 3.3.3
       faker: ^5.1.0
     dependencies:
       '@jest/globals': 26.6.2
       '@wordpress/deprecated': 3.2.3
-      config: 3.3.3
       faker: 5.5.3
     devDependencies:
       '@babel/cli': 7.12.8_@babel+core@7.12.9
@@ -218,7 +216,6 @@ importers:
       '@wordpress/browserslist-config': ^4.1.0
       '@wordpress/deprecated': ^3.2.3
       '@wordpress/e2e-test-utils': ^4.16.1
-      config: 3.3.3
       eslint: ^8.1.0
       faker: ^5.1.0
       fishery: ^1.2.0
@@ -226,7 +223,6 @@ importers:
       '@automattic/puppeteer-utils': github.com/Automattic/puppeteer-utils/0f3ec50
       '@wordpress/deprecated': 3.2.3
       '@wordpress/e2e-test-utils': 4.16.1_jest@27.3.1
-      config: 3.3.3
       faker: 5.5.3
       fishery: 1.4.0
     devDependencies:
@@ -7572,6 +7568,7 @@ packages:
     engines: {node: '>= 6.0.0'}
     dependencies:
       json5: 2.2.0
+    dev: true
 
   /config/3.3.6:
     resolution: {integrity: sha512-Hj5916C5HFawjYJat1epbyY2PlAgLpBtDUlr0MxGLgo3p5+7kylyvnRY18PqJHgnNWXcdd0eWDemT7eYWuFgwg==}