diff --git a/composer.json b/composer.json
index 7b239f0e6c..bbcb4956fc 100644
--- a/composer.json
+++ b/composer.json
@@ -6,7 +6,7 @@
     "license": "MIT",
     "require": {
         "php": ">=8.1",
-        "cakephp/cakephp": "^5.0.0",
+        "cakephp/cakephp": "^5.0.1",
         "cakephp/migrations": "^4.0.0",
         "cakephp/plugin-installer": "^2.0",
         "mobiledetect/mobiledetectlib": "^3.74"
diff --git a/config/plugins.php b/config/plugins.php
new file mode 100644
index 0000000000..72984dcdd4
--- /dev/null
+++ b/config/plugins.php
@@ -0,0 +1,33 @@
+<?php
+/**
+ * Plugin configuration.
+ *
+ * In this file, you configure which plugins are loaded in the different states your app can be.
+ * It's loaded via the `parent::bootstrap();` call inside your `Application::bootstrap()` method.
+ * For more information see https://book.cakephp.org/5/en/plugins.html#loading-plugins-via-configuration-array
+ *
+ * CakePHP(tm) : Rapid Development Framework (https://cakephp.org)
+ * Copyright (c) Cake Software Foundation, Inc. (https://cakefoundation.org)
+ *
+ * Licensed under The MIT License
+ * For full copyright and license information, please see the LICENSE.txt
+ * Redistributions of files must retain the above copyright notice.
+ *
+ * @copyright     Copyright (c) Cake Software Foundation, Inc. (https://cakefoundation.org)
+ * @link          https://cakephp.org CakePHP(tm) Project
+ * @since         5.0.0
+ * @license       https://opensource.org/licenses/mit-license.php MIT License
+ */
+
+return [
+    // Plugins only needed when in debug mode
+    'DebugKit' => ['onlyDebug' => true],
+
+    // Optional plugins which are only needed in CLI commands
+    'Bake' => ['onlyCli' => true, 'optional' => true],
+
+    // Required plugins only in CLI commands
+    'Migrations' => ['onlyCli' => true],
+
+    // Add your custom plugins here
+];
diff --git a/src/Application.php b/src/Application.php
index 7d2481b52d..c85a1ecdb2 100644
--- a/src/Application.php
+++ b/src/Application.php
@@ -48,24 +48,12 @@ public function bootstrap(): void
         // Call parent to load bootstrap from files.
         parent::bootstrap();
 
-        if (PHP_SAPI === 'cli') {
-            $this->bootstrapCli();
-        } else {
+        if (PHP_SAPI !== 'cli') {
             FactoryLocator::add(
                 'Table',
                 (new TableLocator())->allowFallbackClass(false)
             );
         }
-
-        /*
-         * Only try to load DebugKit in development mode
-         * Debug Kit should not be installed on a production system
-         */
-        if (Configure::read('debug')) {
-            $this->addPlugin('DebugKit');
-        }
-
-        // Load more plugins here
     }
 
     /**
@@ -116,20 +104,4 @@ public function middleware(MiddlewareQueue $middlewareQueue): MiddlewareQueue
     public function services(ContainerInterface $container): void
     {
     }
-
-    /**
-     * Bootstrapping for CLI application.
-     *
-     * That is when running commands.
-     *
-     * @return void
-     */
-    protected function bootstrapCli(): void
-    {
-        $this->addOptionalPlugin('Bake');
-
-        $this->addPlugin('Migrations');
-
-        // Load more plugins here
-    }
 }
diff --git a/src/Console/Installer.php b/src/Console/Installer.php
index e446aee09f..6f5579829b 100644
--- a/src/Console/Installer.php
+++ b/src/Console/Installer.php
@@ -57,7 +57,7 @@ public static function postInstall(Event $event): void
     {
         $io = $event->getIO();
 
-        $rootDir = dirname(dirname(__DIR__));
+        $rootDir = dirname(__DIR__, 2);
 
         static::createAppLocalConfig($rootDir, $io);
         static::createWritableDirectories($rootDir, $io);
diff --git a/tests/TestCase/ApplicationTest.php b/tests/TestCase/ApplicationTest.php
index 7c42d856dc..6a65c52bde 100644
--- a/tests/TestCase/ApplicationTest.php
+++ b/tests/TestCase/ApplicationTest.php
@@ -24,7 +24,6 @@
 use Cake\Routing\Middleware\RoutingMiddleware;
 use Cake\TestSuite\IntegrationTestTrait;
 use Cake\TestSuite\TestCase;
-use InvalidArgumentException;
 
 /**
  * ApplicationTest class
@@ -41,7 +40,7 @@ class ApplicationTest extends TestCase
     public function testBootstrap()
     {
         Configure::write('debug', false);
-        $app = new Application(dirname(dirname(__DIR__)) . '/config');
+        $app = new Application(dirname(__DIR__, 2) . '/config');
         $app->bootstrap();
         $plugins = $app->getPlugins();
 
@@ -58,33 +57,13 @@ public function testBootstrap()
     public function testBootstrapInDebug()
     {
         Configure::write('debug', true);
-        $app = new Application(dirname(dirname(__DIR__)) . '/config');
+        $app = new Application(dirname(__DIR__, 2) . '/config');
         $app->bootstrap();
         $plugins = $app->getPlugins();
 
         $this->assertTrue($plugins->has('DebugKit'), 'plugins has DebugKit?');
     }
 
-    /**
-     * testBootstrapPluginWitoutHalt
-     *
-     * @return void
-     */
-    public function testBootstrapPluginWithoutHalt()
-    {
-        $this->expectException(InvalidArgumentException::class);
-
-        $app = $this->getMockBuilder(Application::class)
-            ->setConstructorArgs([dirname(dirname(__DIR__)) . '/config'])
-            ->onlyMethods(['addPlugin'])
-            ->getMock();
-
-        $app->method('addPlugin')
-            ->will($this->throwException(new InvalidArgumentException('test exception.')));
-
-        $app->bootstrap();
-    }
-
     /**
      * testMiddleware
      *
@@ -92,7 +71,7 @@ public function testBootstrapPluginWithoutHalt()
      */
     public function testMiddleware()
     {
-        $app = new Application(dirname(dirname(__DIR__)) . '/config');
+        $app = new Application(dirname(__DIR__, 2) . '/config');
         $middleware = new MiddlewareQueue();
 
         $middleware = $app->middleware($middleware);