diff --git a/.github/workflows/blocks-playwright.yml b/.github/workflows/blocks-playwright.yml
index 78317a6321b..9d24157a4b8 100644
--- a/.github/workflows/blocks-playwright.yml
+++ b/.github/workflows/blocks-playwright.yml
@@ -1,4 +1,4 @@
-name: Run Blocks Playwright Tests
+name: Blocks Playwright Tests
 
 on:
     pull_request:
@@ -11,13 +11,12 @@ on:
     # Allow manually triggering the workflow.
     workflow_dispatch:
 
-
 env:
     FORCE_COLOR: 1
 
 jobs:
-    e2e:
-        name: ${{ matrix.config.name }} [${{ matrix.shards.name }}]
+    blocks-playwright-tests:
+        name: Shard ${{ matrix.shardIndex }} of ${{ matrix.shardTotal }}
         timeout-minutes: 60
         runs-on: ubuntu-latest
         defaults:
@@ -26,27 +25,11 @@ jobs:
         strategy:
             fail-fast: false
             matrix:
-                config:
-                    - name: Default (Block) Theme
-                      file: playwright.config.ts
-                      resultPath: test-results
-                    - name: Classic Theme
-                      file: playwright.classic-theme.config.ts
-                      resultPath: test-results-classic-theme
-                    - name: Side Effects
-                      file: playwright.side-effects.config.ts
-                      resultPath: test-results-side-effects
-                    - name: Block Theme With Templates
-                      file: playwright.block-theme-with-templates.config.ts
-                      resultPath: test-results-block-theme-with-templates
-                shards:
-                    - name: 1/5
-                    - name: 2/5
-                    - name: 3/5
-                    - name: 4/5
-                    - name: 5/5
+                shardIndex: [1, 2, 3, 4, 5, 6, 7, 8, 9, 10]
+                shardTotal: [10]
+
         steps:
-            - uses: actions/checkout@v3
+            - uses: actions/checkout@v4
 
             - name: Setup WooCommerce Monorepo
               uses: ./.github/actions/setup-woocommerce-monorepo
@@ -54,19 +37,36 @@ jobs:
                   install: '@woocommerce/plugin-woocommerce...'
                   build: '@woocommerce/plugin-woocommerce'
 
-            - name: Install Playwright
-              run: pnpm --filter='@woocommerce/block-library' exec playwright install --with-deps
+            - name: Install Playwright dependencies
+              run: pnpm exec playwright install chromium --with-deps
 
-            - name: Start wp-env
-              run: pnpm --filter='@woocommerce/block-library' env:start
+            - name: Setup testing environment and start the server
+              run: pnpm env:start
 
             - name: Run Playwright tests
-              working-directory: plugins/woocommerce-blocks
-              run: pnpm playwright test --config=tests/e2e/${{ matrix.config.file }} --shard ${{ matrix.shards.name }}
+              run: pnpm test:e2e --shard=${{ matrix.shardIndex }}/${{ matrix.shardTotal }}
 
-            - uses: actions/upload-artifact@v3
-              if: ${{ failure() }}
+            - name: Archive debug artifacts (screenshots, traces)
+              uses: actions/upload-artifact@v4
+              if: ${{ !cancelled() }}
               with:
-                  name: playwright-report-${{ matrix.config.name }}
-                  path: plugins/woocommerce-blocks/tests/e2e/artifacts/${{ matrix.config.resultPath }}
-                  if-no-files-found: error # 'warn' or 'ignore' are also available, defaults to `warn`
+                  name: failures-artifacts-shard-${{ matrix.shardIndex }}
+                  path: plugins/woocommerce-blocks/tests/e2e/artifacts/test-results
+                  if-no-files-found: ignore
+
+    merge-artifacts:
+        # Merges all artifacts from all shards into a single zip and
+        # deletes the parts. In case of a rerun, artifacts from the
+        # previous run will be retained by merging them with the new ones. 
+        name: Merge Artifacts
+        if: ${{ !cancelled() }}
+        needs: [blocks-playwright-tests]
+        runs-on: ubuntu-latest
+        steps:
+            - name: Merge Artifacts
+              uses: actions/upload-artifact/merge@v4
+              # Don't fail the job if there aren't any artifacts to merge.
+              continue-on-error: true
+              with:
+                  name: failures-artifacts
+                  delete-merged: true
diff --git a/plugins/woocommerce-blocks/package.json b/plugins/woocommerce-blocks/package.json
index 7775ceb64ef..1c4a052d3c5 100644
--- a/plugins/woocommerce-blocks/package.json
+++ b/plugins/woocommerce-blocks/package.json
@@ -86,13 +86,9 @@
 		"test:js": "wp-scripts test-unit-js --config tests/js/jest.config.json",
 		"test:debug": "ndb .",
 		"test:e2e": "sh ./bin/check-env.sh && pnpm playwright test --config=tests/e2e/playwright.config.ts",
-		"test:e2e:report": "sh ./bin/check-env.sh && npx playwright test --config=tests/e2e/playwright.config.ts --reporter=html",
-		"test:e2e:side-effects": "pnpm run test:e2e --config=tests/e2e/playwright.side-effects.config.ts",
-		"test:e2e:side-effects:report": "pnpm run test:e2e:report --config=tests/e2e/playwright.side-effects.config.ts --reporter=html",
-		"test:e2e:classic-theme": "pnpm run test:e2e --config=tests/e2e/playwright.classic-theme.config.ts",
-		"test:e2e:classic-theme:report": "pnpm run test:e2e:report --config=tests/e2e/playwright.classic-theme.config.ts",
-		"test:e2e:block-theme-with-templates": "pnpm run test:e2e --config=tests/e2e/playwright.block-theme-with-templates.config.ts",
-		"test:e2e:block-theme-with-templates:report": "pnpm run test:e2e:report --config=tests/e2e/playwright.block-theme-with-templates.config.ts",
+		"test:e2e:block-theme": "pnpm run test:e2e block_theme",
+		"test:e2e:classic-theme": "pnpm run test:e2e classic_theme",
+		"test:e2e:block-theme-with-templates": "pnpm run test:e2e block_theme_with_templates",
 		"test:e2e:jest": "pnpm run wp-env:config && cross-env JEST_PUPPETEER_CONFIG=tests/e2e-jest/config/jest-puppeteer.config.js NODE_CONFIG_DIR=tests/e2e-jest/config wp-scripts test-e2e --config tests/e2e-jest/config/jest.config.js",
 		"test:e2e:jest:dev": "pnpm run wp-env:config && cross-env JEST_PUPPETEER_CONFIG=tests/e2e-jest/config/jest-puppeteer.config-dev.js NODE_CONFIG_DIR=tests/e2e-jest/config wp-scripts test-e2e --config tests/e2e-jest/config/jest.config.js",
 		"test:e2e:jest:dev-watch": "pnpm run wp-env:config && cross-env JEST_PUPPETEER_CONFIG=tests/e2e-jest/config/jest-puppeteer.config-dev.js NODE_CONFIG_DIR=tests/e2e-jest/config wp-scripts test-e2e --config tests/e2e-jest/config/jest.config.js --watch",
diff --git a/plugins/woocommerce-blocks/tests/e2e/block-theme-with-templates.setup.ts b/plugins/woocommerce-blocks/tests/e2e/block-theme-with-templates.setup.ts
deleted file mode 100644
index 8c26b4a04ee..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/block-theme-with-templates.setup.ts
+++ /dev/null
@@ -1,19 +0,0 @@
-/**
- * External dependencies
- */
-import {
-	BLOCK_THEME_WITH_TEMPLATES_SLUG,
-	DB_EXPORT_FILE,
-	cli,
-} from '@woocommerce/e2e-utils';
-import { test as setup, expect } from '@woocommerce/e2e-playwright-utils';
-
-setup( 'Sets up the block theme with templates', async ( { requestUtils } ) => {
-	await requestUtils.activateTheme( BLOCK_THEME_WITH_TEMPLATES_SLUG );
-
-	const cliOutput = await cli(
-		`npm run wp-env run tests-cli wp db export ${ DB_EXPORT_FILE }`
-	);
-	// eslint-disable-next-line playwright/no-standalone-expect
-	expect( cliOutput.stdout ).toContain( 'Success: Exported' );
-} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/block-theme.setup.ts b/plugins/woocommerce-blocks/tests/e2e/block-theme.setup.ts
deleted file mode 100644
index 940d5e76a2d..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/block-theme.setup.ts
+++ /dev/null
@@ -1,30 +0,0 @@
-/* eslint-disable playwright/no-standalone-expect */
-/**
- * External dependencies
- */
-import { BLOCK_THEME_SLUG, DB_EXPORT_FILE, cli } from '@woocommerce/e2e-utils';
-import { test as setup, expect } from '@woocommerce/e2e-playwright-utils';
-
-setup( 'Sets up the block theme', async () => {
-	let cliOutput = await cli(
-		`npm run wp-env run tests-cli -- wp theme install ${ BLOCK_THEME_SLUG } --activate`
-	);
-
-	expect(
-		cliOutput.stdout,
-		`Could not install and/or activate ${ BLOCK_THEME_SLUG }`
-	).toContain( 'Success' );
-
-	// Enable permalinks and perform a hard flush.
-	cliOutput = await cli(
-		`npm run wp-env run tests-cli -- wp rewrite structure /%postname%/ --hard`
-	);
-
-	expect( cliOutput.stdout ).toContain( 'Success: Rewrite structure set' );
-	expect( cliOutput.stdout ).toContain( 'Success: Rewrite rules flushed' );
-
-	cliOutput = await cli(
-		`npm run wp-env run tests-cli wp db export ${ DB_EXPORT_FILE }`
-	);
-	expect( cliOutput.stdout ).toContain( 'Success: Exported' );
-} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/classic-theme.setup.ts b/plugins/woocommerce-blocks/tests/e2e/classic-theme.setup.ts
deleted file mode 100644
index 93a74319f79..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/classic-theme.setup.ts
+++ /dev/null
@@ -1,26 +0,0 @@
-/* eslint-disable playwright/no-standalone-expect */
-/**
- * External dependencies
- */
-import {
-	CLASSIC_THEME_NAME,
-	CLASSIC_THEME_SLUG,
-	DB_EXPORT_FILE,
-	cli,
-} from '@woocommerce/e2e-utils';
-import { test as setup, expect } from '@woocommerce/e2e-playwright-utils';
-
-setup( 'Sets up the classic theme', async ( { admin } ) => {
-	await cli(
-		`npm run wp-env run tests-cli -- wp theme install ${ CLASSIC_THEME_SLUG } --activate`
-	);
-	await admin.page.goto( '/wp-admin/themes.php' );
-	await expect(
-		admin.page.getByText( `Active: ${ CLASSIC_THEME_NAME }` )
-	).toBeVisible();
-
-	const cliOutput = await cli(
-		`npm run wp-env run tests-cli wp db export ${ DB_EXPORT_FILE }`
-	);
-	expect( cliOutput.stdout ).toContain( 'Success: Exported' );
-} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/global-setup.ts b/plugins/woocommerce-blocks/tests/e2e/global-setup.ts
index 3a46c6a9fa5..72958cf5b95 100644
--- a/plugins/woocommerce-blocks/tests/e2e/global-setup.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/global-setup.ts
@@ -5,7 +5,14 @@
  */
 import { chromium, request } from '@playwright/test';
 import { RequestUtils } from '@wordpress/e2e-test-utils-playwright';
-import { BASE_URL, adminFile, cli, customerFile } from '@woocommerce/e2e-utils';
+import {
+	BASE_URL,
+	adminFile,
+	cli,
+	customerFile,
+	BLOCK_THEME_SLUG,
+	DB_EXPORT_FILE,
+} from '@woocommerce/e2e-utils';
 
 /**
  * Internal dependencies
@@ -53,36 +60,51 @@ const prepareAttributes = async () => {
 };
 
 async function globalSetup() {
-	const timers = {
-		total: '└ Total time',
-		authentication: '├ Authentication time',
-		attributes: '├ Attributes preparation time',
-	};
+	console.log( 'Running global setup:' );
+	console.time( '└ Total time' );
 
-	console.log( 'Running global setup...' );
-	console.time( timers.total );
+	let databaseImported = false;
+
+	try {
+		console.log( '├ Attempting database import…' );
+		await cli(
+			`npm run wp-env run tests-cli wp db import ${ DB_EXPORT_FILE }`
+		);
+		databaseImported = true;
+	} catch ( _error ) {
+		// noop
+	}
 
 	const requestContext = await request.newContext( {
 		baseURL: BASE_URL,
 	} );
 
-	console.time( timers.authentication );
-	await new RequestUtils( requestContext, {
-		user: admin,
-		storageStatePath: adminFile,
-	} ).setupRest();
+	console.log( '├ Pre-authenticating users…' );
 	await new RequestUtils( requestContext, {
 		user: customer,
 		storageStatePath: customerFile,
 	} ).setupRest();
-	console.timeEnd( timers.authentication );
+	const requestUtils = new RequestUtils( requestContext, {
+		user: admin,
+		storageStatePath: adminFile,
+	} );
+	await requestUtils.setupRest();
 
-	console.time( timers.attributes );
-	await prepareAttributes();
-	console.timeEnd( timers.attributes );
+	if ( ! databaseImported ) {
+		console.log( '├ Activating default theme…' );
+		await requestUtils.activateTheme( BLOCK_THEME_SLUG );
+
+		console.log( '├ Preparing product attributes…' );
+		await prepareAttributes();
+	}
+
+	console.log( '├ Exporting database…' );
+	await cli(
+		`npm run wp-env run tests-cli wp db export ${ DB_EXPORT_FILE }`
+	);
 
 	await requestContext.dispose();
-	console.timeEnd( timers.total );
+	console.timeEnd( '└ Total time' );
 }
 
 export default globalSetup;
diff --git a/plugins/woocommerce-blocks/tests/e2e/global-teardown.ts b/plugins/woocommerce-blocks/tests/e2e/global-teardown.ts
deleted file mode 100644
index 8c6fef834b0..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/global-teardown.ts
+++ /dev/null
@@ -1,3 +0,0 @@
-/* eslint-disable no-console, @typescript-eslint/no-empty-function */
-
-module.exports = async () => {};
diff --git a/plugins/woocommerce-blocks/tests/e2e/playwright-utils/test.ts b/plugins/woocommerce-blocks/tests/e2e/playwright-utils/test.ts
index ece2f02e473..c9dd31f2e1e 100644
--- a/plugins/woocommerce-blocks/tests/e2e/playwright-utils/test.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/playwright-utils/test.ts
@@ -161,12 +161,9 @@ const test = base.extend<
 			window.localStorage.clear();
 		} );
 
-		const cliOutput = await cli(
+		await cli(
 			`npm run wp-env run tests-cli wp db import ${ DB_EXPORT_FILE }`
 		);
-		if ( ! cliOutput.stdout.includes( 'Success: Imported ' ) ) {
-			throw new Error( `Failed to import ${ DB_EXPORT_FILE }` );
-		}
 	},
 	pageUtils: async ( { page }, use ) => {
 		await use( new PageUtils( { page } ) );
diff --git a/plugins/woocommerce-blocks/tests/e2e/playwright.block-theme-with-templates.config.ts b/plugins/woocommerce-blocks/tests/e2e/playwright.block-theme-with-templates.config.ts
deleted file mode 100644
index 15bfd99bbde..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/playwright.block-theme-with-templates.config.ts
+++ /dev/null
@@ -1,28 +0,0 @@
-/**
- * External dependencies
- */
-import { defineConfig } from '@playwright/test';
-
-/**
- * Internal dependencies
- */
-import config from './playwright.config';
-
-export default defineConfig( {
-	...config,
-	outputDir: 'artifacts/test-results-block-theme-with-templates',
-	fullyParallel: true,
-	workers: 1,
-	projects: [
-		{
-			name: 'blockThemeWithTemplatesConfiguration',
-			testDir: '.',
-			testMatch: /block-theme-with-templates.setup.ts/,
-		},
-		{
-			name: 'blockThemeWithTemplates',
-			testMatch: /.*.block_theme_with_templates.spec.ts/,
-			dependencies: [ 'blockThemeWithTemplatesConfiguration' ],
-		},
-	],
-} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/playwright.classic-theme.config.ts b/plugins/woocommerce-blocks/tests/e2e/playwright.classic-theme.config.ts
deleted file mode 100644
index 0df3ce51a75..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/playwright.classic-theme.config.ts
+++ /dev/null
@@ -1,28 +0,0 @@
-/**
- * External dependencies
- */
-import { defineConfig } from '@playwright/test';
-
-/**
- * Internal dependencies
- */
-import config from './playwright.config';
-
-export default defineConfig( {
-	...config,
-	outputDir: 'artifacts/test-results-classic-theme',
-	fullyParallel: false,
-	workers: 1,
-	projects: [
-		{
-			name: 'classicThemeConfiguration',
-			testDir: '.',
-			testMatch: /classic-theme.setup.ts/,
-		},
-		{
-			name: 'classicTheme',
-			testMatch: /.*.classic_theme.spec.ts/,
-			dependencies: [ 'classicThemeConfiguration' ],
-		},
-	],
-} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/playwright.config.ts b/plugins/woocommerce-blocks/tests/e2e/playwright.config.ts
index e4317b8d3b7..66275559cfb 100644
--- a/plugins/woocommerce-blocks/tests/e2e/playwright.config.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/playwright.config.ts
@@ -1,43 +1,30 @@
 /**
  * External dependencies
  */
-import { defineConfig, PlaywrightTestConfig } from '@playwright/test';
-import { BASE_URL, STORAGE_STATE_PATH } from '@woocommerce/e2e-utils';
-
 import { fileURLToPath } from 'url';
+import { BASE_URL, STORAGE_STATE_PATH } from '@woocommerce/e2e-utils';
+import { PlaywrightTestConfig, defineConfig, devices } from '@playwright/test';
 
-// eslint-disable-next-line @typescript-eslint/no-var-requires
-require( 'dotenv' ).config();
-interface ExtendedPlaywrightTestConfig extends PlaywrightTestConfig {
-	use: {
-		stateDir?: string;
-	} & PlaywrightTestConfig[ 'use' ];
-}
+const { CI, DEFAULT_TIMEOUT_OVERRIDE } = process.env;
 
-const { CI, DEFAULT_TIMEOUT_OVERRIDE, E2E_MAX_FAILURES } = process.env;
-
-const config: ExtendedPlaywrightTestConfig = {
+const config: PlaywrightTestConfig = {
+	maxFailures: 0,
 	timeout: parseInt( DEFAULT_TIMEOUT_OVERRIDE || '', 10 ) || 100_000, // Defaults to 100s.
-	outputDir: 'artifacts/test-results',
+	outputDir: './artifacts/test-results',
 	globalSetup: fileURLToPath(
 		new URL( 'global-setup.ts', 'file:' + __filename ).href
 	),
-	globalTeardown: require.resolve( './global-teardown' ),
-	testDir: 'tests',
+	testDir: './tests',
 	retries: CI ? 2 : 0,
+	// We're running our tests in serial, so we only need one worker.
 	workers: 1,
+	fullyParallel: false,
 	// Don't report slow test "files", as we're running our tests in serial.
 	reportSlowTests: null,
-	reporter: process.env.CI
-		? [ [ 'github' ], [ 'list' ], [ 'html' ] ]
-		: 'list',
-	maxFailures: E2E_MAX_FAILURES ? Number( E2E_MAX_FAILURES ) : 0,
-	snapshotPathTemplate:
-		'{testDir}/{testFileDir}/__screenshots__/{arg}{testName}{ext}',
+	reporter: process.env.CI ? [ [ 'github' ], [ 'list' ] ] : 'list',
 	use: {
 		baseURL: BASE_URL,
 		screenshot: 'only-on-failure',
-		stateDir: 'tests/e2e/test-results/storage/',
 		trace: 'retain-on-failure',
 		video: 'on-first-retry',
 		viewport: { width: 1280, height: 720 },
@@ -47,14 +34,8 @@ const config: ExtendedPlaywrightTestConfig = {
 	},
 	projects: [
 		{
-			name: 'blockThemeConfiguration',
-			testDir: '.',
-			testMatch: /block-theme.setup.ts/,
-		},
-		{
-			name: 'blockTheme',
-			testMatch: /.*.block_theme.spec.ts/,
-			dependencies: [ 'blockThemeConfiguration' ],
+			name: 'chromium',
+			use: { ...devices[ 'Desktop Chrome' ] },
 		},
 	],
 };
diff --git a/plugins/woocommerce-blocks/tests/e2e/playwright.side-effects.config.ts b/plugins/woocommerce-blocks/tests/e2e/playwright.side-effects.config.ts
deleted file mode 100644
index a6e28f8a1ab..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/playwright.side-effects.config.ts
+++ /dev/null
@@ -1,28 +0,0 @@
-/**
- * External dependencies
- */
-import { defineConfig } from '@playwright/test';
-
-/**
- * Internal dependencies
- */
-import config from './playwright.config';
-
-export default defineConfig( {
-	...config,
-	outputDir: 'artifacts/test-results-side-effects',
-	fullyParallel: false,
-	workers: 1,
-	projects: [
-		{
-			name: 'blockThemeConfiguration',
-			testDir: '.',
-			testMatch: /block-theme.setup.ts/,
-		},
-		{
-			name: 'blockThemeWithGlobalSideEffects',
-			testMatch: /.*.block_theme.side_effects.spec.ts/,
-			dependencies: [ 'blockThemeConfiguration' ],
-		},
-	],
-} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/basic.block_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/basic.block_theme.spec.ts
index 9c762201fdf..6d6f2423a4b 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/basic.block_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/basic.block_theme.spec.ts
@@ -20,6 +20,7 @@ test.describe( 'Basic role-based functionality tests', () => {
 		test.use( {
 			storageState: customerFile,
 		} );
+
 		test( 'Load My Account page', async ( { page } ) => {
 			await page.goto( '/my-account' );
 
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.merchant.classic_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.merchant.classic_theme.spec.ts
index 34adb03e3ac..fbf6c227028 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.merchant.classic_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.merchant.classic_theme.spec.ts
@@ -1,9 +1,14 @@
 /**
  * External dependencies
  */
+import { CLASSIC_THEME_SLUG } from '@woocommerce/e2e-utils';
 import { test, expect } from '@woocommerce/e2e-playwright-utils';
 
 test.describe( 'Merchant → Cart', () => {
+	test.beforeEach( async ( { requestUtils } ) => {
+		await requestUtils.activateTheme( CLASSIC_THEME_SLUG );
+	} );
+
 	test.describe( 'in widget editor', () => {
 		test( "can't be inserted in a widget area", async ( {
 			editorUtils,
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.shopper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.shopper.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.shopper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-block.shopper.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.classic_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.classic_theme.spec.ts
index 8e18e928786..e4859030bc5 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.classic_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-notices.shopper.classic_theme.spec.ts
@@ -26,7 +26,9 @@ const test = base.extend< { checkoutPageObject: CheckoutPage } >( {
 } );
 
 test.describe( 'Shopper → Notice Templates', () => {
-	test.beforeEach( async ( { wpCliUtils, frontendUtils } ) => {
+	test.beforeEach( async ( { requestUtils, wpCliUtils, frontendUtils } ) => {
+		await requestUtils.activateTheme( CLASSIC_THEME_SLUG );
+
 		const cartShortcodeID = await wpCliUtils.getPostIDByTitle(
 			'Cart Shortcode'
 		);
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-shipping.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-shipping.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-shipping.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-shipping.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-translations.shopper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-translations.shopper.block_theme.spec.ts
similarity index 99%
rename from plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-translations.shopper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-translations.shopper.block_theme.spec.ts
index 130deccc1d5..61f41393183 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-translations.shopper.block_theme.side_effects.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/cart/cart-checkout-block-translations.shopper.block_theme.spec.ts
@@ -69,7 +69,6 @@ test.describe( 'Shopper → Translations', () => {
 		const beanieAddToCartButton = page.getByLabel(
 			'Toevoegen aan winkelwagen: “Beanie“'
 		);
-
 		await beanieAddToCartButton.click();
 		await page.getByLabel( 'Toevoegen aan winkelwagen: “Beanie“' ).click();
 
@@ -117,7 +116,6 @@ test.describe( 'Shopper → Translations', () => {
 		).toBeVisible();
 
 		await expect( page.getByText( 'Subtotaal' ) ).toBeVisible();
-
 		await expect( page.getByText( 'Verzending' ) ).toBeVisible();
 
 		await expect(
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.guest-shopper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.guest-shopper.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.guest-shopper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.guest-shopper.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.merchant.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.merchant.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.merchant.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.merchant.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.shopper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.shopper.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.shopper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/checkout/additional-fields.shopper.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.merchant.classic_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.merchant.classic_theme.spec.ts
index ca3d8bfa3c1..d49fc184eaf 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.merchant.classic_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.merchant.classic_theme.spec.ts
@@ -1,9 +1,14 @@
 /**
  * External dependencies
  */
+import { CLASSIC_THEME_SLUG } from '@woocommerce/e2e-utils';
 import { test, expect } from '@woocommerce/e2e-playwright-utils';
 
 test.describe( 'Merchant → Checkout', () => {
+	test.beforeEach( async ( { requestUtils } ) => {
+		await requestUtils.activateTheme( CLASSIC_THEME_SLUG );
+	} );
+
 	test.describe( 'in widget editor', () => {
 		test( "can't be inserted in a widget area", async ( {
 			editorUtils,
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.shopper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.shopper.block_theme.spec.ts
similarity index 97%
rename from plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.shopper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.shopper.block_theme.spec.ts
index 3f45ce18953..92f962217a8 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.shopper.block_theme.side_effects.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/checkout-block.shopper.block_theme.spec.ts
@@ -64,16 +64,17 @@ test.describe( 'Shopper → Account (guest user)', () => {
 		requestUtils,
 		checkoutPageObject,
 		page,
+		baseURL,
 	} ) => {
 		//Get the login link from checkout page.
-		const loginLink = page.getByText( 'Log in.' );
-		const loginLinkHref = await loginLink.getAttribute( 'href' );
+		const loginLink = page.getByRole( 'link', { name: 'Log in.' } );
 
-		//Confirm login link is correct.
-		expect( loginLinkHref ).toContain(
-			`${ process.env.WORDPRESS_BASE_URL }/my-account/?redirect_to`
+		await expect( loginLink ).toHaveAttribute(
+			'href',
+			baseURL +
+				'/my-account/?redirect_to=' +
+				encodeURIComponent( baseURL + '/checkout/' )
 		);
-		expect( loginLinkHref ).toContain( `checkout` );
 
 		await requestUtils.rest( {
 			method: 'PUT',
@@ -85,7 +86,8 @@ test.describe( 'Shopper → Account (guest user)', () => {
 
 		const createAccount = page.getByLabel( 'Create an account?' );
 		await createAccount.check();
-		const testEmail = `test${ Math.random() * 10 }@example.com`;
+
+		const testEmail = `test-${ Date.now() }@example.com`;
 		await checkoutPageObject.fillInCheckoutWithTestData( {
 			email: testEmail,
 		} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/checkout/order-confirmation.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/checkout/order-confirmation.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/checkout/order-confirmation.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/checkout/order-confirmation.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/classic-template/classic-template.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/classic-template/classic-template.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/classic-template/classic-template.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/classic-template/classic-template.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/local-pickup/local-pickup.merchant.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/local-pickup/local-pickup.merchant.block_theme.side_effects.spec.ts
deleted file mode 100644
index dc43f1d4007..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/tests/local-pickup/local-pickup.merchant.block_theme.side_effects.spec.ts
+++ /dev/null
@@ -1,94 +0,0 @@
-/**
- * External dependencies
- */
-import { test, expect } from '@woocommerce/e2e-playwright-utils';
-
-/**
- * Internal dependencies
- */
-import { REGULAR_PRICED_PRODUCT_NAME } from '../checkout/constants';
-
-test.describe( 'Merchant → Local Pickup Settings', () => {
-	test.beforeEach( async ( { localPickupUtils } ) => {
-		await localPickupUtils.deleteLocations();
-		await localPickupUtils.addPickupLocation( {
-			location: {
-				name: 'Automattic, Inc.',
-				address: '60 29th Street, Suite 343',
-				city: 'San Francisco',
-				postcode: '94110',
-				state: 'US:CA',
-				details: 'American entity',
-			},
-		} );
-		await localPickupUtils.disableLocalPickupCosts();
-		await localPickupUtils.enableLocalPickup();
-	} );
-
-	test( 'Updating the title in WC Settings updates the local pickup text in the block and vice/versa', async ( {
-		page,
-		localPickupUtils,
-		admin,
-		editor,
-		editorUtils,
-		frontendUtils,
-	} ) => {
-		// First update the title via the site editor then check the local pickup settings.
-		await admin.visitSiteEditor( {
-			postId: 'woocommerce/woocommerce//page-checkout',
-			postType: 'wp_template',
-		} );
-		await editorUtils.enterEditMode();
-
-		const block = await editorUtils.getBlockByName(
-			'woocommerce/checkout-shipping-method-block'
-		);
-		await editor.selectBlocks( block );
-		const fakeInput = editor.canvas.getByLabel( 'Pickup', { exact: true } );
-		await fakeInput.click();
-
-		const isMacOS = process.platform === 'darwin'; // darwin is macOS
-
-		// eslint-disable-next-line playwright/no-conditional-in-test
-		if ( isMacOS ) {
-			await fakeInput.press( 'Meta+a' );
-		} else {
-			await fakeInput.press( 'Control+a' );
-		}
-		await fakeInput.press( 'Backspace' );
-		await fakeInput.pressSequentially( 'This is a test' );
-		await editor.canvas.getByText( 'This is a test' ).isVisible();
-		await editor.saveSiteEditorEntities();
-
-		// Now check if it's visible in the local pickup settings.
-		await localPickupUtils.openLocalPickupSettings();
-		await expect( page.getByLabel( 'Title' ) ).toHaveValue(
-			'This is a test'
-		);
-
-		// Now update the title via local pickup settings and check it reflects in the site editor and front end.
-		await localPickupUtils.setLocalPickupTitle(
-			'Edited from settings page'
-		);
-		await localPickupUtils.saveLocalPickupSettings();
-
-		await admin.visitSiteEditor( {
-			postId: 'woocommerce/woocommerce//page-checkout',
-			postType: 'wp_template',
-		} );
-		await editorUtils.enterEditMode();
-
-		await expect(
-			editor.canvas.getByText( 'Edited from settings page' )
-		).toBeVisible();
-
-		await frontendUtils.emptyCart();
-		await frontendUtils.goToShop();
-		await frontendUtils.addToCart( REGULAR_PRICED_PRODUCT_NAME );
-		await frontendUtils.goToCheckout();
-
-		await expect(
-			page.getByText( 'Edited from settings page' )
-		).toBeVisible();
-	} );
-} );
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/local-pickup/local-pickup.merchant.block_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/local-pickup/local-pickup.merchant.block_theme.spec.ts
index 4b3037152e8..26602c9bc52 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/local-pickup/local-pickup.merchant.block_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/local-pickup/local-pickup.merchant.block_theme.spec.ts
@@ -3,9 +3,13 @@
  */
 import { test, expect } from '@woocommerce/e2e-playwright-utils';
 
+/**
+ * Internal dependencies
+ */
+import { REGULAR_PRICED_PRODUCT_NAME } from '../checkout/constants';
+
 test.describe( 'Merchant → Local Pickup Settings', () => {
 	test.beforeEach( async ( { localPickupUtils } ) => {
-		await localPickupUtils.deleteLocations();
 		await localPickupUtils.disableLocalPickupCosts();
 		await localPickupUtils.enableLocalPickup();
 	} );
@@ -96,7 +100,6 @@ test.describe( 'Merchant → Local Pickup Settings', () => {
 		localPickupUtils,
 	} ) => {
 		await localPickupUtils.addPickupLocation( {
-			page,
 			location: {
 				name: 'Automattic, Inc.',
 				address: '60 29th Street, Suite 343',
@@ -116,7 +119,6 @@ test.describe( 'Merchant → Local Pickup Settings', () => {
 
 	test( 'user can edit a location', async ( { page, localPickupUtils } ) => {
 		await localPickupUtils.addPickupLocation( {
-			page,
 			location: {
 				name: 'Automattic, Inc.',
 				address: '60 29th Street, Suite 343',
@@ -134,7 +136,6 @@ test.describe( 'Merchant → Local Pickup Settings', () => {
 		).toBeVisible();
 
 		await localPickupUtils.editPickupLocation( {
-			page,
 			location: {
 				name: 'Ministry of Automattic Limited',
 				address: '100 New Bridge Street',
@@ -157,7 +158,6 @@ test.describe( 'Merchant → Local Pickup Settings', () => {
 		localPickupUtils,
 	} ) => {
 		await localPickupUtils.addPickupLocation( {
-			page,
 			location: {
 				name: 'Ausomattic Pty Ltd',
 				address:
@@ -183,4 +183,64 @@ test.describe( 'Merchant → Local Pickup Settings', () => {
 			} )
 		).toBeVisible();
 	} );
+
+	test( 'updating the title in WC Settings updates the local pickup text in the block and vice/versa', async ( {
+		page,
+		localPickupUtils,
+		admin,
+		editor,
+		editorUtils,
+		frontendUtils,
+	} ) => {
+		// First update the title via the site editor then check the local pickup settings.
+		await admin.visitSiteEditor( {
+			postId: 'woocommerce/woocommerce//page-checkout',
+			postType: 'wp_template',
+		} );
+		await editorUtils.enterEditMode();
+
+		const block = await editorUtils.getBlockByName(
+			'woocommerce/checkout-shipping-method-block'
+		);
+		await editor.selectBlocks( block );
+
+		const fakeInput = editor.canvas.getByLabel( 'Pickup', { exact: true } );
+		await fakeInput.focus();
+		await fakeInput.dblclick(); // Select all text.
+		await fakeInput.pressSequentially( 'This is a test' ); // We can't use locator.fill() because it's not a valid input element.
+
+		await editor.canvas.getByText( 'This is a test' ).isVisible();
+		await editor.saveSiteEditorEntities();
+
+		// Now check if it's visible in the local pickup settings.
+		await localPickupUtils.openLocalPickupSettings();
+		await expect( page.getByLabel( 'Title' ) ).toHaveValue(
+			'This is a test'
+		);
+
+		// Now update the title via local pickup settings and check it reflects in the site editor and front end.
+		await localPickupUtils.setLocalPickupTitle(
+			'Edited from settings page'
+		);
+		await localPickupUtils.saveLocalPickupSettings();
+
+		await admin.visitSiteEditor( {
+			postId: 'woocommerce/woocommerce//page-checkout',
+			postType: 'wp_template',
+		} );
+		await editorUtils.enterEditMode();
+
+		await expect(
+			editor.canvas.getByText( 'Edited from settings page' )
+		).toBeVisible();
+
+		await frontendUtils.emptyCart();
+		await frontendUtils.goToShop();
+		await frontendUtils.addToCart( REGULAR_PRICED_PRODUCT_NAME );
+		await frontendUtils.goToCheckout();
+
+		await expect(
+			page.getByText( 'Edited from settings page' )
+		).toBeVisible();
+	} );
 } );
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.classic_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.classic_theme.spec.ts
index 36e7e19f74c..8200a9b4417 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.classic_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.merchant.classic_theme.spec.ts
@@ -1,6 +1,7 @@
 /**
  * External dependencies
  */
+import { CLASSIC_THEME_SLUG } from '@woocommerce/e2e-utils';
 import { expect, test } from '@woocommerce/e2e-playwright-utils';
 import { BlockData } from '@woocommerce/e2e-types';
 
@@ -15,6 +16,10 @@ const blockData: BlockData = {
 };
 
 test.describe( 'Merchant → Mini Cart', () => {
+	test.beforeEach( async ( { requestUtils } ) => {
+		await requestUtils.activateTheme( CLASSIC_THEME_SLUG );
+	} );
+
 	test.describe( 'in widget editor', () => {
 		test( 'can be inserted in a widget area', async ( { editorUtils } ) => {
 			await editorUtils.openWidgetEditor();
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.shopper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.shopper.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.shopper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/mini-cart/mini-cart-block.shopper.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/on-sale-badge/on-sale-badge-single-product-template.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/on-sale-badge/on-sale-badge-single-product-template.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/on-sale-badge/on-sale-badge-single-product-template.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/on-sale-badge/on-sale-badge-single-product-template.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/page-content-wrapper/page-content-wrapper.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/page-content-wrapper/page-content-wrapper.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/page-content-wrapper/page-content-wrapper.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/page-content-wrapper/page-content-wrapper.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.classic_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.classic_theme.spec.ts
index 12b70440d53..21dacd98971 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.classic_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/product-button/product-button.classic_theme.spec.ts
@@ -1,6 +1,7 @@
 /**
  * External dependencies
  */
+import { CLASSIC_THEME_SLUG } from '@woocommerce/e2e-utils';
 import { expect, test as base } from '@woocommerce/e2e-playwright-utils';
 
 /**
@@ -25,7 +26,8 @@ const test = base.extend< { productCollectionPage: ProductCollectionPage } >( {
 	},
 } );
 test.describe( `${ blockData.name } Block`, () => {
-	test.beforeEach( async ( { page } ) => {
+	test.beforeEach( async ( { page, requestUtils } ) => {
+		await requestUtils.activateTheme( CLASSIC_THEME_SLUG );
 		await page.goto( '/product-collection/' );
 	} );
 
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-collection/compatibility-layer.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-collection/compatibility-layer.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-collection/compatibility-layer.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-collection/compatibility-layer.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-collection/product-collection.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-collection/product-collection.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-collection/product-collection.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-collection/product-collection.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image-next-previous/product-gallery-large-image-next-previous.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image-next-previous/product-gallery-large-image-next-previous.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image-next-previous/product-gallery-large-image-next-previous.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image-next-previous/product-gallery-large-image-next-previous.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image/product-gallery-large-image.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image/product-gallery-large-image.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image/product-gallery-large-image.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-large-image/product-gallery-large-image.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-pager/product-gallery-pager.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-pager/product-gallery-pager.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-pager/product-gallery-pager.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-pager/product-gallery-pager.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-thumbnails/product-gallery-thumbnails.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-thumbnails/product-gallery-thumbnails.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-thumbnails/product-gallery-thumbnails.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/inner-blocks/product-gallery-thumbnails/product-gallery-thumbnails.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/product-gallery.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/product-gallery.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/product-gallery.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/product-gallery/product-gallery.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/products/products.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/products/products.block_theme.spec.ts
similarity index 100%
rename from plugins/woocommerce-blocks/tests/e2e/tests/products/products.block_theme.side_effects.spec.ts
rename to plugins/woocommerce-blocks/tests/e2e/tests/products/products.block_theme.spec.ts
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/templates/legacy-templates.block_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/templates/legacy-templates.block_theme.spec.ts
index b02cad43428..bb22f83f99f 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/templates/legacy-templates.block_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/templates/legacy-templates.block_theme.spec.ts
@@ -5,10 +5,6 @@ import { test, expect } from '@woocommerce/e2e-playwright-utils';
 import { cli } from '@woocommerce/e2e-utils';
 
 test.describe( 'Legacy templates', () => {
-	test.beforeEach( async ( { requestUtils } ) => {
-		await requestUtils.deleteAllTemplates( 'wp_template' );
-	} );
-
 	test( 'woocommerce//* slug is supported', async ( {
 		admin,
 		page,
@@ -48,15 +44,13 @@ test.describe( 'Legacy templates', () => {
 		} );
 
 		await test.step( 'Update created term to legacy format in the DB', async () => {
-			const cliOutput = await cli(
+			await cli(
 				`npm run wp-env run tests-cli -- \
 					wp term update wp_theme woocommerce-woocommerce \
 						--by="slug" \
 						--name="woocommerce" \
 						--slug="woocommerce"`
 			);
-
-			expect( cliOutput.stdout ).toContain( 'Success: Term updated.' );
 		} );
 
 		await test.step( 'Verify the template can be edited via a legacy ID ', async () => {
@@ -88,17 +82,5 @@ test.describe( 'Legacy templates', () => {
 
 			await expect( page.getByText( template.customText ) ).toBeVisible();
 		} );
-
-		await test.step( 'Revert term update', async () => {
-			const cliOutput = await cli(
-				`npm run wp-env run tests-cli -- \
-					wp term update wp_theme woocommerce \
-						--by="slug" \
-						--name="woocommerce/woocommerce" \
-						--slug="woocommerce-woocommerce"`
-			);
-
-			expect( cliOutput.stdout ).toContain( 'Success: Term updated.' );
-		} );
 	} );
 } );
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/templates/single-product-template.block_theme_with_templates.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/templates/single-product-template.block_theme_with_templates.spec.ts
index c6fc2cbf97e..4ee32982f35 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/templates/single-product-template.block_theme_with_templates.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/templates/single-product-template.block_theme_with_templates.spec.ts
@@ -1,6 +1,7 @@
 /**
  * External dependencies
  */
+import { BLOCK_THEME_WITH_TEMPLATES_SLUG } from '@woocommerce/e2e-utils';
 import { test, expect } from '@woocommerce/e2e-playwright-utils';
 
 /**
@@ -19,6 +20,10 @@ const userText = 'Hello World in the Belt template';
 const themeTemplateText = 'Single Product Belt template loaded from theme';
 
 test.describe( 'Single Product Template', () => {
+	test.beforeEach( async ( { requestUtils } ) => {
+		await requestUtils.activateTheme( BLOCK_THEME_WITH_TEMPLATES_SLUG );
+	} );
+
 	test( 'loads the theme template for a specific product using the product slug and it can be customized', async ( {
 		admin,
 		editor,
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme.side_effects.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme.side_effects.spec.ts
deleted file mode 100644
index fef99109dcb..00000000000
--- a/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme.side_effects.spec.ts
+++ /dev/null
@@ -1,89 +0,0 @@
-/**
- * External dependencies
- */
-import { test, expect } from '@woocommerce/e2e-playwright-utils';
-import {
-	BLOCK_THEME_SLUG,
-	BLOCK_THEME_WITH_TEMPLATES_SLUG,
-} from '@woocommerce/e2e-utils';
-
-/**
- * Internal dependencies
- */
-import { CUSTOMIZABLE_WC_TEMPLATES } from './constants';
-
-const testToRun = CUSTOMIZABLE_WC_TEMPLATES.filter(
-	( data ) => data.canBeOverriddenByThemes
-);
-
-for ( const testData of testToRun ) {
-	const userText = `Hello World in the ${ testData.templateName } template`;
-	const woocommerceTemplateUserText = `Hello World in the WooCommerce ${ testData.templateName } template`;
-
-	test.describe( `${ testData.templateName } template`, () => {
-		test( `user-modified ${ testData.templateName } template based on the theme template has priority over the user-modified template based on the default WooCommerce template`, async ( {
-			page,
-			admin,
-			editor,
-			requestUtils,
-			editorUtils,
-			frontendUtils,
-		} ) => {
-			// Edit the WooCommerce default template
-			await editorUtils.visitTemplateEditor(
-				testData.templateName,
-				testData.templateType
-			);
-			await editor.insertBlock( {
-				name: 'core/paragraph',
-				attributes: { content: woocommerceTemplateUserText },
-			} );
-			await editor.saveSiteEditorEntities();
-
-			await requestUtils.activateTheme( BLOCK_THEME_WITH_TEMPLATES_SLUG );
-
-			// Edit the theme template. The theme template is not
-			// directly available from the UI, because the customized
-			// one takes priority, so we go directly to its URL.
-			await admin.visitSiteEditor( {
-				postId: `${ BLOCK_THEME_WITH_TEMPLATES_SLUG }//${ testData.templatePath }`,
-				postType: testData.templateType,
-			} );
-			await editorUtils.enterEditMode();
-			await editorUtils.waitForSiteEditorFinishLoading();
-			await editorUtils.editor.insertBlock( {
-				name: 'core/paragraph',
-				attributes: { content: userText },
-			} );
-			await editor.saveSiteEditorEntities();
-
-			// Verify the template is the one modified by the user based on the theme.
-			await testData.visitPage( { frontendUtils, page } );
-			await expect( page.getByText( userText ).first() ).toBeVisible();
-			await expect(
-				page.getByText( woocommerceTemplateUserText )
-			).toHaveCount( 0 );
-
-			// Revert edition and verify the user-modified WC template is used.
-			// Note: we need to revert it from the admin (instead of calling
-			// `deleteAllTemplates()`). This way, we verify there are no
-			// duplicate templates with the same name.
-			// See: https://github.com/woocommerce/woocommerce/issues/42220
-			await admin.visitSiteEditor( {
-				path: `/${ testData.templateType }/all`,
-			} );
-			await editorUtils.revertTemplateCustomizations(
-				testData.templateName
-			);
-
-			await testData.visitPage( { frontendUtils, page } );
-
-			await expect(
-				page.getByText( woocommerceTemplateUserText ).first()
-			).toBeVisible();
-			await expect( page.getByText( userText ) ).toHaveCount( 0 );
-
-			await requestUtils.activateTheme( BLOCK_THEME_SLUG );
-		} );
-	} );
-}
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme.spec.ts
index ec878d3cb95..c3c77397920 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme.spec.ts
@@ -2,81 +2,54 @@
  * External dependencies
  */
 import { test, expect } from '@woocommerce/e2e-playwright-utils';
+import {
+	BLOCK_THEME_SLUG,
+	BLOCK_THEME_WITH_TEMPLATES_SLUG,
+} from '@woocommerce/e2e-utils';
 
 /**
  * Internal dependencies
  */
 import { CUSTOMIZABLE_WC_TEMPLATES } from './constants';
 
-CUSTOMIZABLE_WC_TEMPLATES.forEach( ( testData ) => {
-	const userText = `Hello World in the ${ testData.templateName } template`;
-	const fallbackTemplateUserText = `Hello World in the fallback ${ testData.templateName } template`;
-	const templateTypeName =
-		testData.templateType === 'wp_template' ? 'template' : 'template part';
+test.describe( 'Template customization', () => {
+	CUSTOMIZABLE_WC_TEMPLATES.forEach( ( testData ) => {
+		const userText = `Hello World in the ${ testData.templateName } template`;
+		const fallbackTemplateUserText = `Hello World in the fallback ${ testData.templateName } template`;
+		const templateTypeName =
+			testData.templateType === 'wp_template'
+				? 'template'
+				: 'template part';
 
-	test.describe( `${ testData.templateName } template`, () => {
-		test( 'can be modified and reverted', async ( {
-			admin,
-			frontendUtils,
-			editor,
-			editorUtils,
-			page,
-		} ) => {
-			// Verify the template can be edited.
-			await editorUtils.visitTemplateEditor(
-				testData.templateName,
-				testData.templateType
-			);
-			await editor.insertBlock( {
-				name: 'core/paragraph',
-				attributes: { content: userText },
-			} );
-			await editor.saveSiteEditorEntities();
-			// Verify template name didn't change.
-			// See: https://github.com/woocommerce/woocommerce/issues/42221
-			await expect(
-				page.getByRole( 'heading', {
-					name: `Editing ${ templateTypeName }: ${ testData.templateName }`,
-				} )
-			).toBeVisible();
-
-			await testData.visitPage( { frontendUtils, page } );
-			await expect( page.getByText( userText ).first() ).toBeVisible();
-
-			// Verify the edition can be reverted.
-			await admin.visitSiteEditor( {
-				path: `/${ testData.templateType }/all`,
-			} );
-			await editorUtils.revertTemplateCustomizations(
-				testData.templateName
-			);
-			await testData.visitPage( { frontendUtils, page } );
-			await expect( page.getByText( userText ) ).toHaveCount( 0 );
-		} );
-
-		if ( testData.fallbackTemplate ) {
-			test( `defaults to the ${ testData.fallbackTemplate.templateName } template`, async ( {
+		test.describe( `${ testData.templateName } template`, () => {
+			test( 'can be modified and reverted', async ( {
 				admin,
 				frontendUtils,
 				editor,
 				editorUtils,
 				page,
 			} ) => {
-				// Edit fallback template and verify changes are visible.
+				// Verify the template can be edited.
 				await editorUtils.visitTemplateEditor(
-					testData.fallbackTemplate?.templateName || '',
+					testData.templateName,
 					testData.templateType
 				);
 				await editor.insertBlock( {
 					name: 'core/paragraph',
-					attributes: {
-						content: fallbackTemplateUserText,
-					},
+					attributes: { content: userText },
 				} );
 				await editor.saveSiteEditorEntities();
+				// Verify template name didn't change.
+				// See: https://github.com/woocommerce/woocommerce/issues/42221
+				await expect(
+					page.getByRole( 'heading', {
+						name: `Editing ${ templateTypeName }: ${ testData.templateName }`,
+					} )
+				).toBeVisible();
+
 				await testData.visitPage( { frontendUtils, page } );
 				await expect(
-					page.getByText( fallbackTemplateUserText ).first()
+					page.getByText( userText ).first()
 				).toBeVisible();
 
 				// Verify the edition can be reverted.
@@ -84,13 +57,130 @@ CUSTOMIZABLE_WC_TEMPLATES.forEach( ( testData ) => {
 					path: `/${ testData.templateType }/all`,
 				} );
 				await editorUtils.revertTemplateCustomizations(
-					testData.fallbackTemplate?.templateName || ''
+					testData.templateName
 				);
 				await testData.visitPage( { frontendUtils, page } );
-				await expect(
-					page.getByText( fallbackTemplateUserText )
-				).toHaveCount( 0 );
+				await expect( page.getByText( userText ) ).toHaveCount( 0 );
 			} );
-		}
+
+			if ( testData.fallbackTemplate ) {
+				test( `defaults to the ${ testData.fallbackTemplate.templateName } template`, async ( {
+					admin,
+					frontendUtils,
+					editor,
+					editorUtils,
+					page,
+				} ) => {
+					// Edit fallback template and verify changes are visible.
+					await editorUtils.visitTemplateEditor(
+						testData.fallbackTemplate?.templateName || '',
+						testData.templateType
+					);
+					await editor.insertBlock( {
+						name: 'core/paragraph',
+						attributes: {
+							content: fallbackTemplateUserText,
+						},
+					} );
+					await editor.saveSiteEditorEntities();
+					await testData.visitPage( { frontendUtils, page } );
+					await expect(
+						page.getByText( fallbackTemplateUserText ).first()
+					).toBeVisible();
+
+					// Verify the edition can be reverted.
+					await admin.visitSiteEditor( {
+						path: `/${ testData.templateType }/all`,
+					} );
+					await editorUtils.revertTemplateCustomizations(
+						testData.fallbackTemplate?.templateName || ''
+					);
+					await testData.visitPage( { frontendUtils, page } );
+					await expect(
+						page.getByText( fallbackTemplateUserText )
+					).toHaveCount( 0 );
+				} );
+			}
+		} );
 	} );
+
+	const testToRun = CUSTOMIZABLE_WC_TEMPLATES.filter(
+		( data ) => data.canBeOverriddenByThemes
+	);
+
+	for ( const testData of testToRun ) {
+		const userText = `Hello World in the ${ testData.templateName } template`;
+		const woocommerceTemplateUserText = `Hello World in the WooCommerce ${ testData.templateName } template`;
+
+		test.describe( `${ testData.templateName } template`, () => {
+			test( `user-modified ${ testData.templateName } template based on the theme template has priority over the user-modified template based on the default WooCommerce template`, async ( {
+				page,
+				admin,
+				editor,
+				requestUtils,
+				editorUtils,
+				frontendUtils,
+			} ) => {
+				// Edit the WooCommerce default template
+				await editorUtils.visitTemplateEditor(
+					testData.templateName,
+					testData.templateType
+				);
+				await editor.insertBlock( {
+					name: 'core/paragraph',
+					attributes: { content: woocommerceTemplateUserText },
+				} );
+				await editor.saveSiteEditorEntities();
+
+				await requestUtils.activateTheme(
+					BLOCK_THEME_WITH_TEMPLATES_SLUG
+				);
+
+				// Edit the theme template. The theme template is not
+				// directly available from the UI, because the customized
+				// one takes priority, so we go directly to its URL.
+				await admin.visitSiteEditor( {
+					postId: `${ BLOCK_THEME_WITH_TEMPLATES_SLUG }//${ testData.templatePath }`,
+					postType: testData.templateType,
+				} );
+				await editorUtils.enterEditMode();
+				await editorUtils.waitForSiteEditorFinishLoading();
+				await editorUtils.editor.insertBlock( {
+					name: 'core/paragraph',
+					attributes: { content: userText },
+				} );
+				await editor.saveSiteEditorEntities();
+
+				// Verify the template is the one modified by the user based on the theme.
+				await testData.visitPage( { frontendUtils, page } );
+				await expect(
+					page.getByText( userText ).first()
+				).toBeVisible();
+				await expect(
+					page.getByText( woocommerceTemplateUserText )
+				).toHaveCount( 0 );
+
+				// Revert edition and verify the user-modified WC template is used.
+				// Note: we need to revert it from the admin (instead of calling
+				// `deleteAllTemplates()`). This way, we verify there are no
+				// duplicate templates with the same name.
+				// See: https://github.com/woocommerce/woocommerce/issues/42220
+				await admin.visitSiteEditor( {
+					path: `/${ testData.templateType }/all`,
+				} );
+				await editorUtils.revertTemplateCustomizations(
+					testData.templateName
+				);
+
+				await testData.visitPage( { frontendUtils, page } );
+
+				await expect(
+					page.getByText( woocommerceTemplateUserText ).first()
+				).toBeVisible();
+				await expect( page.getByText( userText ) ).toHaveCount( 0 );
+
+				await requestUtils.activateTheme( BLOCK_THEME_SLUG );
+			} );
+		} );
+	}
 } );
diff --git a/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme_with_templates.spec.ts b/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme_with_templates.spec.ts
index 0edd26c84ec..9a50287abf3 100644
--- a/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme_with_templates.spec.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/tests/templates/template-customization.block_theme_with_templates.spec.ts
@@ -1,6 +1,7 @@
 /**
  * External dependencies
  */
+import { BLOCK_THEME_WITH_TEMPLATES_SLUG } from '@woocommerce/e2e-utils';
 import { test, expect } from '@woocommerce/e2e-playwright-utils';
 
 /**
@@ -8,97 +9,107 @@ import { test, expect } from '@woocommerce/e2e-playwright-utils';
  */
 import { CUSTOMIZABLE_WC_TEMPLATES } from './constants';
 
-CUSTOMIZABLE_WC_TEMPLATES.forEach( ( testData ) => {
-	if ( ! testData.canBeOverriddenByThemes ) {
-		return;
-	}
-	const userText = `Hello World in the ${ testData.templateName } template`;
-	const fallbackTemplateUserText = `Hello World in the fallback ${ testData.templateName } template`;
-	const templateTypeName =
-		testData.templateType === 'wp_template' ? 'template' : 'template part';
+test.describe( 'Template customization', () => {
+	test.beforeEach( async ( { requestUtils } ) => {
+		await requestUtils.activateTheme( BLOCK_THEME_WITH_TEMPLATES_SLUG );
+	} );
 
-	test.describe( `${ testData.templateName } template`, () => {
-		test( "theme template has priority over WooCommerce's and can be modified", async ( {
-			admin,
-			editor,
-			editorUtils,
-			frontendUtils,
-			page,
-		} ) => {
-			// Edit the theme template.
-			await editorUtils.visitTemplateEditor(
-				testData.templateName,
-				testData.templateType
-			);
-			await editor.insertBlock( {
-				name: 'core/paragraph',
-				attributes: { content: userText },
-			} );
-			await editor.saveSiteEditorEntities();
-			// Verify template name didn't change.
-			// See: https://github.com/woocommerce/woocommerce/issues/42221
-			await expect(
-				page.getByRole( 'heading', {
-					name: `Editing ${ templateTypeName }: ${ testData.templateName }`,
-				} )
-			).toBeVisible();
+	CUSTOMIZABLE_WC_TEMPLATES.forEach( ( testData ) => {
+		if ( ! testData.canBeOverriddenByThemes ) {
+			return;
+		}
+		const userText = `Hello World in the ${ testData.templateName } template`;
+		const fallbackTemplateUserText = `Hello World in the fallback ${ testData.templateName } template`;
+		const templateTypeName =
+			testData.templateType === 'wp_template'
+				? 'template'
+				: 'template part';
 
-			// Verify the template is the one modified by the user.
-			await testData.visitPage( { frontendUtils, page } );
-			await expect( page.getByText( userText ).first() ).toBeVisible();
-
-			// Revert edition and verify the template from the theme is used.
-			await admin.visitSiteEditor( {
-				path: `/${ testData.templateType }/all`,
-			} );
-			await editorUtils.revertTemplateCustomizations(
-				testData.templateName
-			);
-			await testData.visitPage( { frontendUtils, page } );
-
-			await expect(
-				page
-					.getByText(
-						`${ testData.templateName } template loaded from theme`
-					)
-					.first()
-			).toBeVisible();
-			await expect( page.getByText( userText ) ).toHaveCount( 0 );
-		} );
-
-		if ( testData.fallbackTemplate ) {
-			test( `theme template has priority over user-modified ${ testData.fallbackTemplate.templateName } template`, async ( {
+		test.describe( `${ testData.templateName } template`, () => {
+			test( "theme template has priority over WooCommerce's and can be modified", async ( {
 				admin,
-				frontendUtils,
 				editor,
 				editorUtils,
+				frontendUtils,
 				page,
 			} ) => {
-				// Edit default template and verify changes are not visible, as the theme template has priority.
+				// Edit the theme template.
 				await editorUtils.visitTemplateEditor(
-					testData.fallbackTemplate?.templateName || '',
+					testData.templateName,
 					testData.templateType
 				);
 				await editor.insertBlock( {
 					name: 'core/paragraph',
-					attributes: {
-						content: fallbackTemplateUserText,
-					},
+					attributes: { content: userText },
 				} );
 				await editor.saveSiteEditorEntities();
+				// Verify template name didn't change.
+				// See: https://github.com/woocommerce/woocommerce/issues/42221
+				await expect(
+					page.getByRole( 'heading', {
+						name: `Editing ${ templateTypeName }: ${ testData.templateName }`,
+					} )
+				).toBeVisible();
+
+				// Verify the template is the one modified by the user.
 				await testData.visitPage( { frontendUtils, page } );
 				await expect(
-					page.getByText( fallbackTemplateUserText )
-				).toHaveCount( 0 );
+					page.getByText( userText ).first()
+				).toBeVisible();
 
-				// Revert the edit.
+				// Revert edition and verify the template from the theme is used.
 				await admin.visitSiteEditor( {
 					path: `/${ testData.templateType }/all`,
 				} );
 				await editorUtils.revertTemplateCustomizations(
-					testData.fallbackTemplate?.templateName || ''
+					testData.templateName
 				);
+				await testData.visitPage( { frontendUtils, page } );
+
+				await expect(
+					page
+						.getByText(
+							`${ testData.templateName } template loaded from theme`
+						)
+						.first()
+				).toBeVisible();
+				await expect( page.getByText( userText ) ).toHaveCount( 0 );
 			} );
-		}
+
+			if ( testData.fallbackTemplate ) {
+				test( `theme template has priority over user-modified ${ testData.fallbackTemplate.templateName } template`, async ( {
+					admin,
+					frontendUtils,
+					editor,
+					editorUtils,
+					page,
+				} ) => {
+					// Edit default template and verify changes are not visible, as the theme template has priority.
+					await editorUtils.visitTemplateEditor(
+						testData.fallbackTemplate?.templateName || '',
+						testData.templateType
+					);
+					await editor.insertBlock( {
+						name: 'core/paragraph',
+						attributes: {
+							content: fallbackTemplateUserText,
+						},
+					} );
+					await editor.saveSiteEditorEntities();
+					await testData.visitPage( { frontendUtils, page } );
+					await expect(
+						page.getByText( fallbackTemplateUserText )
+					).toHaveCount( 0 );
+
+					// Revert the edit.
+					await admin.visitSiteEditor( {
+						path: `/${ testData.templateType }/all`,
+					} );
+					await editorUtils.revertTemplateCustomizations(
+						testData.fallbackTemplate?.templateName || ''
+					);
+				} );
+			}
+		} );
 	} );
 } );
diff --git a/plugins/woocommerce-blocks/tests/e2e/utils/cli.ts b/plugins/woocommerce-blocks/tests/e2e/utils/cli.ts
index ec375d1f1a3..c5be024ebbd 100644
--- a/plugins/woocommerce-blocks/tests/e2e/utils/cli.ts
+++ b/plugins/woocommerce-blocks/tests/e2e/utils/cli.ts
@@ -1,25 +1,35 @@
 /**
  * External dependencies
  */
-import { ExecException, exec } from 'child_process';
+import { exec, ExecException } from 'child_process';
 
-export function cli(
-	cmd: string,
-	args = []
-): Promise< {
-	code: number;
-	error: ExecException | null;
+interface ExecResult {
 	stdout: string;
 	stderr: string;
-} > {
-	return new Promise( ( resolve ) => {
-		exec( `${ cmd } ${ args.join( ' ' ) }`, ( error, stdout, stderr ) => {
-			resolve( {
-				code: error && error.code ? error.code : 0,
-				error,
-				stdout,
-				stderr,
-			} );
-		} );
+}
+
+interface ExecError extends ExecResult {
+	error: ExecException | null;
+}
+
+export function cli( command: string ): Promise< ExecResult > {
+	return new Promise( ( resolve, reject ) => {
+		exec(
+			command,
+			( error: ExecException | null, stdout: string, stderr: string ) => {
+				if ( error ) {
+					reject( {
+						error,
+						stdout,
+						stderr,
+					} as ExecError );
+				} else {
+					resolve( {
+						stdout,
+						stderr,
+					} as ExecResult );
+				}
+			}
+		);
 	} );
 }
diff --git a/plugins/woocommerce/changelog/refactor-e2e-playwright-configs b/plugins/woocommerce/changelog/refactor-e2e-playwright-configs
new file mode 100644
index 00000000000..1878545c6f6
--- /dev/null
+++ b/plugins/woocommerce/changelog/refactor-e2e-playwright-configs
@@ -0,0 +1,4 @@
+Significance: patch
+Type: dev
+
+Blocks E2E: Refactor Playwright configs and CI workflow