diff --git a/azure-pipelines/end-to-end-tests-dir/bundles.ps1 b/azure-pipelines/end-to-end-tests-dir/bundles.ps1
index 0d39402c0e..c38fd5cf1a 100644
--- a/azure-pipelines/end-to-end-tests-dir/bundles.ps1
+++ b/azure-pipelines/end-to-end-tests-dir/bundles.ps1
@@ -40,9 +40,10 @@ foreach ($k in $b.keys) {
 Refresh-TestRoot
 
 New-Item -ItemType Directory -Force $bundle | Out-Null
+New-Item -ItemType File -Force $bundle/.vcpkg-root | Out-Null
 @{
     readonly = $True
-} | ConvertTo-JSON | out-file -enc ascii $bundle/.vcpkg-root | Out-Null
+} | ConvertTo-JSON | out-file -enc ascii $bundle/vcpkg-bundle.json | Out-Null
 
 $a = Run-Vcpkg z-print-config `
     --vcpkg-root=$bundle `
@@ -72,9 +73,10 @@ Refresh-TestRoot
 
 New-Item -ItemType Directory -Force $manifestdir | Out-Null
 New-Item -ItemType Directory -Force $bundle | Out-Null
+New-Item -ItemType File -Force $bundle/.vcpkg-root | Out-Null
 @{
     readonly = $True
-} | ConvertTo-JSON | out-file -enc ascii $bundle/.vcpkg-root | Out-Null
+} | ConvertTo-JSON | out-file -enc ascii $bundle/vcpkg-bundle.json | Out-Null
 @{
     name = "manifest"
     version = "0"
@@ -112,9 +114,10 @@ $manifestdir = Join-Path $TestingRoot "manifest"
 
 New-Item -ItemType Directory -Force $manifestdir | Out-Null
 New-Item -ItemType Directory -Force $bundle | Out-Null
+New-Item -ItemType File -Force $bundle/.vcpkg-root | Out-Null
 @{
     readonly = $True
-} | ConvertTo-JSON | out-file -enc ascii $bundle/.vcpkg-root | Out-Null
+} | ConvertTo-JSON | out-file -enc ascii $bundle/vcpkg-bundle.json | Out-Null
 @{
     name = "manifest"
     version = "0"
@@ -163,7 +166,7 @@ $CurrentTest = "Testing bundle.usegitregistry"
 @{
     readonly = $True
     usegitregistry = $True
-} | ConvertTo-JSON | out-file -enc ascii $bundle/.vcpkg-root | Out-Null
+} | ConvertTo-JSON | out-file -enc ascii $bundle/vcpkg-bundle.json | Out-Null
 Run-Vcpkg install --dry-run --vcpkg-root=$bundle `
     --x-manifest-root=$manifestdir `
     --overlay-triplets=$env:VCPKG_ROOT/triplets `
diff --git a/src/vcpkg/vcpkgpaths.cpp b/src/vcpkg/vcpkgpaths.cpp
index c7e112ab6d..0b6a7dc349 100644
--- a/src/vcpkg/vcpkgpaths.cpp
+++ b/src/vcpkg/vcpkgpaths.cpp
@@ -355,61 +355,49 @@ namespace vcpkg
 
     static Path lockfile_path(const VcpkgPaths& p) { return p.vcpkg_dir() / "vcpkg-lock.json"; }
 
-    VcpkgPaths::VcpkgPaths(Filesystem& filesystem, const VcpkgCmdArguments& args)
-        : m_pimpl(std::make_unique<details::VcpkgPathsImpl>(
-              filesystem,
-              args.feature_flag_settings(),
-              Util::Enum::to_enum<ToolCache::RequireExactVersions>(args.exact_abi_tools_versions.value_or(false))))
+    static Path determine_root(const Filesystem& fs, const Path& original_cwd, const VcpkgCmdArguments& args)
     {
-        original_cwd = filesystem.current_path(VCPKG_LINE_INFO);
-#if defined(_WIN32)
-        original_cwd = vcpkg::win32_fix_path_case(original_cwd);
-#endif // _WIN32
-
         if (args.vcpkg_root_dir)
         {
-            root = filesystem.almost_canonical(*args.vcpkg_root_dir, VCPKG_LINE_INFO);
+            return fs.almost_canonical(*args.vcpkg_root_dir, VCPKG_LINE_INFO);
         }
-        else
+
+        auto ret = fs.find_file_recursively_up(original_cwd, ".vcpkg-root", VCPKG_LINE_INFO);
+        if (ret.empty())
         {
-            root = filesystem.find_file_recursively_up(original_cwd, ".vcpkg-root", VCPKG_LINE_INFO);
-            if (root.empty())
-            {
-                root = filesystem.find_file_recursively_up(
-                    filesystem.almost_canonical(get_exe_path_of_current_process(), VCPKG_LINE_INFO),
-                    ".vcpkg-root",
-                    VCPKG_LINE_INFO);
-            }
+            return fs.find_file_recursively_up(fs.almost_canonical(get_exe_path_of_current_process(), VCPKG_LINE_INFO),
+                                               ".vcpkg-root",
+                                               VCPKG_LINE_INFO);
         }
 
-        Checks::check_exit(VCPKG_LINE_INFO, !root.empty(), "Error: Could not detect vcpkg-root.");
-        Debug::print("Using vcpkg-root: ", root, '\n');
-        const auto vcpkg_root_file = root / ".vcpkg-root";
-        auto bundle_file = filesystem.read_contents(vcpkg_root_file, VCPKG_LINE_INFO);
-        if (!std::all_of(bundle_file.begin(), bundle_file.end(), Parse::ParserBase::is_whitespace))
+        return ret;
+    }
+
+    static void load_bundle_file(const Filesystem& fs, const Path& root, details::VcpkgPathsImpl& impl)
+    {
+        const auto vcpkg_bundle_file = root / "vcpkg-bundle.json";
+        std::error_code ec;
+        auto bundle_file = fs.read_contents(vcpkg_bundle_file, ec);
+        if (!ec)
         {
-            auto maybe_bundle_doc = Json::parse(bundle_file, vcpkg_root_file.native());
+            auto maybe_bundle_doc = Json::parse(bundle_file, bundle_file);
             if (auto bundle_doc = maybe_bundle_doc.get())
             {
-                if (auto v = bundle_doc->first.object().get("readonly"))
+                const auto& first_object = bundle_doc->first.object();
+                if (auto v = first_object.get("readonly"))
                 {
-                    m_pimpl->m_readonly = v->boolean();
+                    impl.m_readonly = v->boolean();
                 }
-                if (auto v = bundle_doc->first.object().get("usegitregistry"))
+
+                if (auto v = first_object.get("usegitregistry"))
                 {
-                    m_pimpl->m_usegitregistry = v->boolean();
+                    impl.m_usegitregistry = v->boolean();
                 }
-                if (auto v = bundle_doc->first.object().get("embeddedsha"))
+
+                if (auto v = first_object.get("embeddedsha"))
                 {
-                    m_pimpl->m_embedded_git_sha = v->string().to_string();
+                    impl.m_embedded_git_sha = v->string().to_string();
                 }
-                Debug::print("Bundle config: readonly=",
-                             m_pimpl->m_readonly,
-                             ", usegitregistry=",
-                             m_pimpl->m_usegitregistry,
-                             ", embeddedsha=",
-                             m_pimpl->m_embedded_git_sha.value_or("nullopt"),
-                             "\n");
             }
             else
             {
@@ -418,6 +406,33 @@ namespace vcpkg
             }
         }
 
+        Debug::print("Bundle config: readonly=",
+                     impl.m_readonly,
+                     ", usegitregistry=",
+                     impl.m_usegitregistry,
+                     ", embeddedsha=",
+                     impl.m_embedded_git_sha.value_or("nullopt"),
+                     "\n");
+    }
+
+    VcpkgPaths::VcpkgPaths(Filesystem& filesystem, const VcpkgCmdArguments& args)
+        : m_pimpl(std::make_unique<details::VcpkgPathsImpl>(
+              filesystem,
+              args.feature_flag_settings(),
+              Util::Enum::to_enum<ToolCache::RequireExactVersions>(args.exact_abi_tools_versions.value_or(false))))
+    {
+        original_cwd = filesystem.current_path(VCPKG_LINE_INFO);
+#if defined(_WIN32)
+        original_cwd = vcpkg::win32_fix_path_case(original_cwd);
+#endif // _WIN32
+
+        root = determine_root(filesystem, original_cwd, args);
+        Checks::check_exit(VCPKG_LINE_INFO, !root.empty(), "Error: Could not detect vcpkg-root.");
+        Debug::print("Using vcpkg-root: ", root, '\n');
+
+        load_bundle_file(filesystem, root, *m_pimpl);
+
+        const auto vcpkg_root_file = root / ".vcpkg-root";
         std::error_code ec;
         if (args.manifests_enabled())
         {