diff --git a/jest.preset.js b/jest.preset.js
index 28490c0c213ff3..28be337c9faf31 100644
--- a/jest.preset.js
+++ b/jest.preset.js
@@ -12,4 +12,5 @@ module.exports = {
   coverageReporters: ['html'],
   maxWorkers: 1,
   testEnvironment: 'node',
+  setupFiles: ['../../scripts/unit-test-setup.js'],
 };
diff --git a/packages/cypress/src/plugins/plugin.ts b/packages/cypress/src/plugins/plugin.ts
index 5313637d35abcd..7634b7f7695f03 100644
--- a/packages/cypress/src/plugins/plugin.ts
+++ b/packages/cypress/src/plugins/plugin.ts
@@ -210,6 +210,7 @@ async function buildCypressTargets(
         ? cypressConfig.e2e.excludeSpecPattern.map((p) => join(projectRoot, p))
         : [join(projectRoot, cypressConfig.e2e.excludeSpecPattern)];
       const specFiles = await globWithWorkspaceContext(
+        context.workspaceRoot,
         specPatterns,
         excludeSpecPatterns
       );
diff --git a/packages/eslint-plugin/src/migrations/update-17-2-6-rename-workspace-rules/rename-workspace-rules.spec.ts b/packages/eslint-plugin/src/migrations/update-17-2-6-rename-workspace-rules/rename-workspace-rules.spec.ts
index c00e45fe28f70e..57d2ba436d87b9 100644
--- a/packages/eslint-plugin/src/migrations/update-17-2-6-rename-workspace-rules/rename-workspace-rules.spec.ts
+++ b/packages/eslint-plugin/src/migrations/update-17-2-6-rename-workspace-rules/rename-workspace-rules.spec.ts
@@ -3,6 +3,8 @@ import { createTreeWithEmptyWorkspace } from 'nx/src/devkit-testing-exports';
 import { WORKSPACE_PLUGIN_DIR } from '../../constants';
 import update from './rename-workspace-rules';
 
+import 'nx/src/internal-testing-utils/mock-project-graph';
+
 const rule1Name = 'test-rule';
 const rule2Name = 'my-rule';
 
diff --git a/packages/eslint/src/generators/init/init.spec.ts b/packages/eslint/src/generators/init/init.spec.ts
index bcf161b287aefb..140bb2aeb7b309 100644
--- a/packages/eslint/src/generators/init/init.spec.ts
+++ b/packages/eslint/src/generators/init/init.spec.ts
@@ -3,6 +3,7 @@ import 'nx/src/internal-testing-utils/mock-project-graph';
 import { NxJsonConfiguration, readJson, Tree, updateJson } from '@nx/devkit';
 import { createTreeWithEmptyWorkspace } from '@nx/devkit/testing';
 import { LinterInitOptions, lintInitGenerator } from './init';
+import { setWorkspaceRoot } from 'nx/src/utils/workspace-root';
 
 describe('@nx/eslint:init', () => {
   let tree: Tree;
@@ -10,6 +11,7 @@ describe('@nx/eslint:init', () => {
 
   beforeEach(() => {
     tree = createTreeWithEmptyWorkspace({ layout: 'apps-libs' });
+    setWorkspaceRoot(tree.root);
     options = {
       addPlugin: true,
     };
diff --git a/packages/gradle/src/plugin/nodes.ts b/packages/gradle/src/plugin/nodes.ts
index 69ffc11cf9eb77..953eabcf8cd61d 100644
--- a/packages/gradle/src/plugin/nodes.ts
+++ b/packages/gradle/src/plugin/nodes.ts
@@ -72,7 +72,7 @@ export const createNodesV2: CreateNodesV2<GradlePluginOptions> = [
     );
     const targetsCache = readTargetsCache(cachePath);
 
-    populateGradleReport(context.workspaceRoot);
+    await populateGradleReport(context.workspaceRoot);
     const gradleReport = getCurrentGradleReport();
 
     try {
@@ -131,7 +131,7 @@ export const createNodes: CreateNodes<GradlePluginOptions> = [
     logger.warn(
       '`createNodes` is deprecated. Update your plugin to utilize createNodesV2 instead. In Nx 20, this will error.'
     );
-    populateGradleReport(context.workspaceRoot);
+    await populateGradleReport(context.workspaceRoot);
     const gradleReport = getCurrentGradleReport();
     const internalCreateNodes = makeCreateNodes(gradleReport, {});
     return await internalCreateNodes(configFile, options, context);
diff --git a/packages/gradle/src/utils/get-gradle-report.ts b/packages/gradle/src/utils/get-gradle-report.ts
index 38c00fb9d8487a..76919c29e264c2 100644
--- a/packages/gradle/src/utils/get-gradle-report.ts
+++ b/packages/gradle/src/utils/get-gradle-report.ts
@@ -36,8 +36,10 @@ export function getCurrentGradleReport() {
   return gradleReportCache;
 }
 
-export function populateGradleReport(workspaceRoot: string): void {
-  const gradleConfigHash = hashWithWorkspaceContext(workspaceRoot, [
+export async function populateGradleReport(
+  workspaceRoot: string
+): Promise<void> {
+  const gradleConfigHash = await hashWithWorkspaceContext(workspaceRoot, [
     gradleConfigGlob,
   ]);
   if (gradleReportCache && gradleConfigHash === gradleCurrentConfigHash) {
diff --git a/packages/jest/src/plugins/plugin.spec.ts b/packages/jest/src/plugins/plugin.spec.ts
index f2e4a177a1cc3a..deb05e3817085c 100644
--- a/packages/jest/src/plugins/plugin.spec.ts
+++ b/packages/jest/src/plugins/plugin.spec.ts
@@ -3,6 +3,7 @@ import { join } from 'path';
 
 import { createNodes } from './plugin';
 import { TempFs } from 'nx/src/internal-testing-utils/temp-fs';
+import { setWorkspaceRoot } from 'nx/src/utils/workspace-root';
 
 describe('@nx/jest/plugin', () => {
   let createNodesFunction = createNodes[1];
@@ -25,6 +26,8 @@ describe('@nx/jest/plugin', () => {
       configFiles: [],
     };
 
+    setWorkspaceRoot(tempFs.tempDir);
+
     await tempFs.createFiles({
       'proj/jest.config.js': `module.exports = {}`,
       'proj/src/unit.spec.ts': '',
diff --git a/packages/nx/src/adapter/ngcli-adapter.spec.ts b/packages/nx/src/adapter/ngcli-adapter.spec.ts
index cb055967a3ead7..2e1946031d09f7 100644
--- a/packages/nx/src/adapter/ngcli-adapter.spec.ts
+++ b/packages/nx/src/adapter/ngcli-adapter.spec.ts
@@ -5,6 +5,14 @@ import {
 import { createTreeWithEmptyWorkspace } from '../generators/testing-utils/create-tree-with-empty-workspace';
 import { addProjectConfiguration } from '../generators/utils/project-configuration';
 
+jest.mock('../project-graph/project-graph', () => ({
+  ...jest.requireActual('../project-graph/project-graph'),
+  createProjectGraphAsync: () => ({
+    nodes: {},
+    externalNodes: {},
+  }),
+}));
+
 describe('ngcli-adapter', () => {
   it('arrayBufferToString should support large buffers', () => {
     const largeString = 'a'.repeat(1000000);
diff --git a/packages/nx/src/daemon/client/client.ts b/packages/nx/src/daemon/client/client.ts
index 0fb3fa08804af3..29f6524592002f 100644
--- a/packages/nx/src/daemon/client/client.ts
+++ b/packages/nx/src/daemon/client/client.ts
@@ -4,7 +4,7 @@ import { readFileSync, statSync } from 'fs';
 import { FileHandle, open } from 'fs/promises';
 import { ensureDirSync, ensureFileSync } from 'fs-extra';
 import { connect } from 'net';
-import { join } from 'path';
+import { extname, join } from 'path';
 import { performance } from 'perf_hooks';
 import { output } from '../../utils/output';
 import { getFullOsSocketPath, killSocketOrPath } from '../socket-utils';
@@ -49,9 +49,6 @@ import { NxWorkspaceFiles } from '../../native';
 const DAEMON_ENV_SETTINGS = {
   NX_PROJECT_GLOB_CACHE: 'false',
   NX_CACHE_PROJECTS_CONFIG: 'false',
-
-  // Used to identify that the code is running in the daemon process.
-  NX_ON_DAEMON_PROCESS: 'true',
 };
 
 export type UnregisterCallback = () => void;
@@ -283,14 +280,9 @@ export class DaemonClient {
     return this.sendToDaemonViaQueue(message);
   }
 
-  getWorkspaceContextFileData(
-    globs: string[],
-    exclude?: string[]
-  ): Promise<FileData[]> {
+  getWorkspaceContextFileData(): Promise<FileData[]> {
     const message: HandleContextFileDataMessage = {
       type: GET_CONTEXT_FILE_DATA,
-      globs,
-      exclude,
     };
     return this.sendToDaemonViaQueue(message);
   }
@@ -480,14 +472,17 @@ export class DaemonClient {
 
     const backgroundProcess = spawn(
       process.execPath,
-      [join(__dirname, '../server/start.js')],
+      [join(__dirname, `../server/start.js`)],
       {
         cwd: workspaceRoot,
         stdio: ['ignore', this._out.fd, this._err.fd],
         detached: true,
         windowsHide: true,
         shell: false,
-        env: { ...process.env, ...DAEMON_ENV_SETTINGS },
+        env: {
+          ...process.env,
+          ...DAEMON_ENV_SETTINGS,
+        },
       }
     );
     backgroundProcess.unref();
diff --git a/packages/nx/src/daemon/message-types/get-context-file-data.ts b/packages/nx/src/daemon/message-types/get-context-file-data.ts
index c804b93eaf340a..935f1cbb876091 100644
--- a/packages/nx/src/daemon/message-types/get-context-file-data.ts
+++ b/packages/nx/src/daemon/message-types/get-context-file-data.ts
@@ -2,8 +2,6 @@ export const GET_CONTEXT_FILE_DATA = 'GET_CONTEXT_FILE_DATA' as const;
 
 export type HandleContextFileDataMessage = {
   type: typeof GET_CONTEXT_FILE_DATA;
-  globs: string[];
-  exclude?: string[];
 };
 
 export function isHandleContextFileDataMessage(
diff --git a/packages/nx/src/daemon/server/handle-context-file-data.ts b/packages/nx/src/daemon/server/handle-context-file-data.ts
index 24d9243d45c2a5..52468d72033d86 100644
--- a/packages/nx/src/daemon/server/handle-context-file-data.ts
+++ b/packages/nx/src/daemon/server/handle-context-file-data.ts
@@ -3,7 +3,7 @@ import { workspaceRoot } from '../../utils/workspace-root';
 import { HandlerResult } from './server';
 
 export async function handleContextFileData(): Promise<HandlerResult> {
-  const files = getAllFileDataInContext(workspaceRoot);
+  const files = await getAllFileDataInContext(workspaceRoot);
   return {
     response: JSON.stringify(files),
     description: 'handleContextFileData',
diff --git a/packages/nx/src/daemon/server/handle-get-files-in-directory.ts b/packages/nx/src/daemon/server/handle-get-files-in-directory.ts
index aa781ab77980b8..adcfe93f82c4e5 100644
--- a/packages/nx/src/daemon/server/handle-get-files-in-directory.ts
+++ b/packages/nx/src/daemon/server/handle-get-files-in-directory.ts
@@ -5,7 +5,7 @@ import { HandlerResult } from './server';
 export async function handleGetFilesInDirectory(
   dir: string
 ): Promise<HandlerResult> {
-  const files = getFilesInDirectoryUsingContext(workspaceRoot, dir);
+  const files = await getFilesInDirectoryUsingContext(workspaceRoot, dir);
   return {
     response: JSON.stringify(files),
     description: 'handleNxWorkspaceFiles',
diff --git a/packages/nx/src/daemon/server/handle-request-file-data.ts b/packages/nx/src/daemon/server/handle-request-file-data.ts
deleted file mode 100644
index 2bfd24e7e16967..00000000000000
--- a/packages/nx/src/daemon/server/handle-request-file-data.ts
+++ /dev/null
@@ -1,10 +0,0 @@
-import { getAllFileDataInContext } from '../../utils/workspace-context';
-import { workspaceRoot } from '../../utils/workspace-root';
-
-export async function handleRequestFileData() {
-  const response = JSON.stringify(getAllFileDataInContext(workspaceRoot));
-  return {
-    response,
-    description: 'handleRequestFileData',
-  };
-}
diff --git a/packages/nx/src/daemon/server/server.ts b/packages/nx/src/daemon/server/server.ts
index 6310c497c372d1..dcd51bc464aa24 100644
--- a/packages/nx/src/daemon/server/server.ts
+++ b/packages/nx/src/daemon/server/server.ts
@@ -26,7 +26,6 @@ import {
   handleRecordOutputsHash,
 } from './handle-outputs-tracking';
 import { handleProcessInBackground } from './handle-process-in-background';
-import { handleRequestFileData } from './handle-request-file-data';
 import { handleRequestProjectGraph } from './handle-request-project-graph';
 import { handleRequestShutdown } from './handle-request-shutdown';
 import { serverLogger } from './logger';
@@ -132,11 +131,12 @@ async function handleMessage(socket, data: string) {
     );
   }
 
-  if (daemonIsOutdated()) {
+  const outdated = daemonIsOutdated();
+  if (outdated) {
     await respondWithErrorAndExit(
       socket,
-      `Lock files changed`,
-      new Error('LOCK-FILES-CHANGED')
+      `Daemon outdated`,
+      new Error(outdated)
     );
   }
 
@@ -164,10 +164,6 @@ async function handleMessage(socket, data: string) {
     );
   } else if (payload.type === 'HASH_TASKS') {
     await handleResult(socket, 'HASH_TASKS', () => handleHashTasks(payload));
-  } else if (payload.type === 'REQUEST_FILE_DATA') {
-    await handleResult(socket, 'REQUEST_FILE_DATA', () =>
-      handleRequestFileData()
-    );
   } else if (payload.type === 'PROCESS_IN_BACKGROUND') {
     await handleResult(socket, 'PROCESS_IN_BACKGROUND', () =>
       handleProcessInBackground(payload)
@@ -274,8 +270,13 @@ function registerProcessTerminationListeners() {
 
 let existingLockHash: string | undefined;
 
-function daemonIsOutdated(): boolean {
-  return nxVersionChanged() || lockFileHashChanged();
+function daemonIsOutdated(): string | null {
+  if (nxVersionChanged()) {
+    return 'NX_VERSION_CHANGED';
+  } else if (lockFileHashChanged()) {
+    return 'LOCK_FILES_CHANGED';
+  }
+  return null;
 }
 
 function nxVersionChanged(): boolean {
@@ -332,10 +333,11 @@ const handleWorkspaceChanges: FileWatcherCallback = async (
   try {
     resetInactivityTimeout(handleInactivityTimeout);
 
-    if (daemonIsOutdated()) {
+    const outdatedReason = daemonIsOutdated();
+    if (outdatedReason) {
       await handleServerProcessTermination({
         server,
-        reason: 'Lock file changed',
+        reason: outdatedReason,
       });
       return;
     }
diff --git a/packages/nx/src/plugins/js/project-graph/build-dependencies/explicit-package-json-dependencies.spec.ts b/packages/nx/src/plugins/js/project-graph/build-dependencies/explicit-package-json-dependencies.spec.ts
index 3849124542e8e9..529caa2b39ce51 100644
--- a/packages/nx/src/plugins/js/project-graph/build-dependencies/explicit-package-json-dependencies.spec.ts
+++ b/packages/nx/src/plugins/js/project-graph/build-dependencies/explicit-package-json-dependencies.spec.ts
@@ -89,7 +89,7 @@ describe('explicit package json dependencies', () => {
 
     const fileMap = createFileMap(
       projectsConfigurations as any,
-      getAllFileDataInContext(tempFs.tempDir)
+      await getAllFileDataInContext(tempFs.tempDir)
     ).fileMap;
 
     const builder = new ProjectGraphBuilder(undefined, fileMap.projectFileMap);
diff --git a/packages/nx/src/project-graph/plugins/isolation/plugin-pool.ts b/packages/nx/src/project-graph/plugins/isolation/plugin-pool.ts
index 64a86e394bbdae..ec404a4a6321d1 100644
--- a/packages/nx/src/project-graph/plugins/isolation/plugin-pool.ts
+++ b/packages/nx/src/project-graph/plugins/isolation/plugin-pool.ts
@@ -39,8 +39,6 @@ export function loadRemoteNxPlugin(
       : {}),
   };
 
-  delete env.NX_ON_DAEMON_PROCESS;
-
   const worker = fork(workerPath, [], {
     stdio: ['ignore', 'inherit', 'inherit', 'ipc'],
     env,
diff --git a/packages/nx/src/project-graph/utils/retrieve-workspace-files.spec.ts b/packages/nx/src/project-graph/utils/retrieve-workspace-files.spec.ts
index 3d23230b11e692..4499637562e47b 100644
--- a/packages/nx/src/project-graph/utils/retrieve-workspace-files.spec.ts
+++ b/packages/nx/src/project-graph/utils/retrieve-workspace-files.spec.ts
@@ -25,7 +25,7 @@ describe('retrieveProjectConfigurationPaths', () => {
       })
     );
 
-    const configPaths = retrieveProjectConfigurationPaths(fs.tempDir, [
+    const configPaths = await retrieveProjectConfigurationPaths(fs.tempDir, [
       {
         createNodes: [
           '{project.json,**/project.json}',
diff --git a/packages/nx/src/utils/all-file-data.ts b/packages/nx/src/utils/all-file-data.ts
index 4a6a36271b7c7a..7ce3da07886b33 100644
--- a/packages/nx/src/utils/all-file-data.ts
+++ b/packages/nx/src/utils/all-file-data.ts
@@ -1,12 +1,7 @@
 import { FileData } from '../config/project-graph';
-import { daemonClient } from '../daemon/client/client';
 import { getAllFileDataInContext } from './workspace-context';
 import { workspaceRoot } from './workspace-root';
 
 export function allFileData(): Promise<FileData[]> {
-  if (daemonClient.enabled()) {
-    return daemonClient.getAllFileData();
-  } else {
-    return Promise.resolve(getAllFileDataInContext(workspaceRoot));
-  }
+  return getAllFileDataInContext(workspaceRoot);
 }
diff --git a/packages/nx/src/utils/workspace-context.ts b/packages/nx/src/utils/workspace-context.ts
index 9640965e758f31..68ee35ee3633a7 100644
--- a/packages/nx/src/utils/workspace-context.ts
+++ b/packages/nx/src/utils/workspace-context.ts
@@ -81,7 +81,7 @@ export function updateFilesInContext(
   return workspaceContext?.incrementalUpdate(updatedFiles, deletedFiles);
 }
 
-export function getAllFileDataInContext(workspaceRoot: string) {
+export async function getAllFileDataInContext(workspaceRoot: string) {
   if (isOnDaemon() || !daemonClient.enabled()) {
     ensureContextAvailable(workspaceRoot);
     return workspaceContext.allFileData();
@@ -89,7 +89,7 @@ export function getAllFileDataInContext(workspaceRoot: string) {
   return daemonClient.getAllFileData();
 }
 
-export function getFilesInDirectoryUsingContext(
+export async function getFilesInDirectoryUsingContext(
   workspaceRoot: string,
   dir: string
 ) {
diff --git a/packages/playwright/src/plugins/plugin.ts b/packages/playwright/src/plugins/plugin.ts
index 69d143a3560e56..7cc373d1747840 100644
--- a/packages/playwright/src/plugins/plugin.ts
+++ b/packages/playwright/src/plugins/plugin.ts
@@ -163,7 +163,7 @@ async function buildPlaywrightTargets(
     playwrightConfig.testMatch ??= '**/*.@(spec|test).?(c|m)[jt]s?(x)';
 
     const dependsOn: TargetConfiguration['dependsOn'] = [];
-    forEachTestFile(
+    await forEachTestFile(
       (testFile) => {
         const relativeSpecFilePath = normalizePath(
           relative(projectRoot, testFile)
@@ -210,7 +210,7 @@ async function buildPlaywrightTargets(
   return { targets, metadata };
 }
 
-function forEachTestFile(
+async function forEachTestFile(
   cb: (path: string) => void,
   opts: {
     context: CreateNodesContext;
@@ -218,7 +218,7 @@ function forEachTestFile(
     config: PlaywrightTestConfig;
   }
 ) {
-  const files = getFilesInDirectoryUsingContext(
+  const files = await getFilesInDirectoryUsingContext(
     opts.context.workspaceRoot,
     opts.path
   );
diff --git a/scripts/unit-test-setup.js b/scripts/unit-test-setup.js
new file mode 100644
index 00000000000000..b3837d5a994897
--- /dev/null
+++ b/scripts/unit-test-setup.js
@@ -0,0 +1,13 @@
+module.exports = () => {
+  process.env.NX_DAEMON = 'false';
+
+  jest.doMock('@nx/devkit', () => ({
+    ...jest.requireActual('@nx/devkit'),
+    createProjectGraphAsync: jest.fn().mockImplementation(async () => {
+      return {
+        nodes: {},
+        dependencies: {},
+      };
+    }),
+  }));
+};
diff --git a/typedoc-theme/jest.config.ts b/typedoc-theme/jest.config.ts
index 69cf4a39427b9c..a39ec5d9696170 100644
--- a/typedoc-theme/jest.config.ts
+++ b/typedoc-theme/jest.config.ts
@@ -1,5 +1,22 @@
+const nxPreset = require('@nx/jest/preset').default;
+
+const preset = {
+  ...nxPreset,
+  testTimeout: 35000,
+  testMatch: ['**/+(*.)+(spec|test).+(ts|js)?(x)'],
+  transform: {
+    '^.+\\.(ts|js|html)$': 'ts-jest',
+  },
+  resolver: '../scripts/patched-jest-resolver.js',
+  moduleFileExtensions: ['ts', 'js', 'html'],
+  coverageReporters: ['html'],
+  maxWorkers: 1,
+  testEnvironment: 'node',
+};
+
 /* eslint-disable */
 export default {
+  ...preset,
   displayName: 'typedoc-theme',
 
   globals: {},
@@ -14,5 +31,5 @@ export default {
   resolver: '../scripts/patched-jest-resolver.js',
   moduleFileExtensions: ['ts', 'tsx', 'js', 'jsx'],
   coverageDirectory: '../coverage/typedoc-theme',
-  preset: '../jest.preset.js',
+  setupFiles: [],
 };