diff --git a/src/Root.tsx b/src/Root.tsx
index 249f7bd37..a538dfb80 100644
--- a/src/Root.tsx
+++ b/src/Root.tsx
@@ -2,7 +2,6 @@ import { AppStateProvider } from '@src/AppState'
 import LspProvider from '@src/components/LspProvider'
 import { MachineManagerProvider } from '@src/components/MachineManagerProvider'
 import { OpenInDesktopAppHandler } from '@src/components/OpenInDesktopAppHandler'
-import { ProjectsContextProvider } from '@src/components/ProjectsContextProvider'
 import { SystemIOMachineLogicListener } from '@src/components/Providers/SystemIOProviderDesktop'
 import { RouteProvider } from '@src/components/RouteProvider'
 import { KclContextProvider } from '@src/lang/KclProvider'
@@ -17,24 +16,20 @@ function RootLayout() {
     }
   }, [])
   return (
-    <div>
-      <OpenInDesktopAppHandler>
-        <RouteProvider>
-          <LspProvider>
-            <ProjectsContextProvider>
-              <KclContextProvider>
-                <AppStateProvider>
-                  <MachineManagerProvider>
-                    <SystemIOMachineLogicListener />
-                    <Outlet />
-                  </MachineManagerProvider>
-                </AppStateProvider>
-              </KclContextProvider>
-            </ProjectsContextProvider>
-          </LspProvider>
-        </RouteProvider>
-      </OpenInDesktopAppHandler>
-    </div>
+    <OpenInDesktopAppHandler>
+      <RouteProvider>
+        <LspProvider>
+          <KclContextProvider>
+            <AppStateProvider>
+              <MachineManagerProvider>
+                <SystemIOMachineLogicListener />
+                <Outlet />
+              </MachineManagerProvider>
+            </AppStateProvider>
+          </KclContextProvider>
+        </LspProvider>
+      </RouteProvider>
+    </OpenInDesktopAppHandler>
   )
 }
 
diff --git a/src/Router.tsx b/src/Router.tsx
index c2836581d..b97a50b58 100644
--- a/src/Router.tsx
+++ b/src/Router.tsx
@@ -48,7 +48,7 @@ const createRouter = isDesktop() ? createHashRouter : createBrowserRouter
 const router = createRouter([
   {
     id: PATHS.INDEX,
-    element: <RootLayout />,
+    element: <RootLayout/>,
     children: [
       {
         path: PATHS.INDEX,
diff --git a/src/components/Providers/SystemIOProviderDesktop.tsx b/src/components/Providers/SystemIOProviderDesktop.tsx
index 3cca036e3..42148b0a8 100644
--- a/src/components/Providers/SystemIOProviderDesktop.tsx
+++ b/src/components/Providers/SystemIOProviderDesktop.tsx
@@ -1,20 +1,24 @@
 import { PATHS } from '@src/lib/paths'
-import { systemIOActor } from '@src/machines/appMachine'
-import { useSelector } from '@xstate/react'
+import { systemIOActor, useSettings } from '@src/machines/appMachine'
+import {
+  useProjectDirectoryPath,
+  useRequestedFileName,
+  useRequestedProjectName,
+  useState as useSystemIOState,
+} from '@src/machines/systemIO/hooks'
+import { SystemIOMachineEvents } from '@src/machines/systemIO/utils'
 import { useEffect } from 'react'
 import { useNavigate } from 'react-router-dom'
-export const useRequestedProjectName = () =>
-  useSelector(systemIOActor, (state) => state.context.requestedProjectName)
-export const useRequestedFileName = () =>
-  useSelector(systemIOActor, (state) => state.context.requestedFileName)
-export const useProjectDirectoryPath = () =>
-  useSelector(systemIOActor, (state) => state.context.projectDirectoryPath)
+import { projectsCommandBarConfig } from '@src/lib/commandBarConfigs/projectsCommandConfig'
+import useStateMachineCommands from '@src/hooks/useStateMachineCommands'
 
 export function SystemIOMachineLogicListener() {
   const requestedProjectName = useRequestedProjectName()
   const requestedFileName = useRequestedFileName()
   const projectDirectoryPath = useProjectDirectoryPath()
   const navigate = useNavigate()
+  const settings = useSettings()
+  const state = useSystemIOState()
 
   // Handle global project name navigation
   useEffect(() => {
@@ -46,5 +50,27 @@ export function SystemIOMachineLogicListener() {
     navigate(requestedPath)
   }, [requestedFileName])
 
+  // Reload all folders when the project directory path changes
+  useEffect(() => {
+    systemIOActor.send({
+      type: SystemIOMachineEvents.setProjectDirectoryPath,
+      data: {
+        requestedProjectDirectoryPath:
+          settings.app.projectDirectory.current || '',
+      },
+    })
+  }, [settings.app.projectDirectory.current])
+
+  // Implement setting the default project folder name
+  useEffect(() => {
+    systemIOActor.send({
+      type: SystemIOMachineEvents.setDefaultProjectFolderName,
+      data: {
+        requestedDefaultProjectFolderName:
+          settings.projects.defaultProjectName.current || '',
+      },
+    })
+  }, [settings.projects.defaultProjectName.current])
+
   return null
 }
diff --git a/src/machines/appMachine.ts b/src/machines/appMachine.ts
index 61b4932cc..31d8aa616 100644
--- a/src/machines/appMachine.ts
+++ b/src/machines/appMachine.ts
@@ -1,10 +1,8 @@
 import { useSelector } from '@xstate/react'
 import { createActor, setup, spawnChild } from 'xstate'
 
-import { readAppSettingsFile } from '@src/lib/desktop'
 import { isDesktop } from '@src/lib/isDesktop'
 import { createSettings } from '@src/lib/settings/initialSettings'
-import { reportRejection } from '@src/lib/trap'
 import { authMachine } from '@src/machines/authMachine'
 import type { EngineStreamActor } from '@src/machines/engineStreamMachine'
 import {
@@ -15,7 +13,6 @@ import { ACTOR_IDS } from '@src/machines/machineConstants'
 import { settingsMachine } from '@src/machines/settingsMachine'
 import { systemIOMachineDesktop } from '@src/machines/systemIO/systemIOMachineDesktop'
 import { systemIOMachineWeb } from '@src/machines/systemIO/systemIOMachineWeb'
-import { SystemIOMachineEvents } from '@src/machines/systemIO/utils'
 const { AUTH, SETTINGS, SYSTEM_IO, ENGINE_STREAM } = ACTOR_IDS
 const appMachineActors = {
   [AUTH]: authMachine,
@@ -85,24 +82,6 @@ export const useSettings = () =>
 // TODO: Debugging
 export const systemIOActor = appActor.getSnapshot().children.systemIO!
 
-async function initializeActors() {
-  if (isDesktop()) {
-    const appSettings = await readAppSettingsFile()
-    const projectDirectorySettting = appSettings.settings?.project?.directory
-    systemIOActor.send({
-      type: SystemIOMachineEvents.setProjectDirectoryPath,
-      data: {
-        requestedProjectDirectoryPath: projectDirectorySettting || '',
-      },
-    })
-    systemIOActor.send({
-      type: SystemIOMachineEvents.readFoldersFromProjectDirectory,
-    })
-  }
-}
-
-initializeActors().catch(reportRejection)
-
 window.systemIOActor = systemIOActor
 export const engineStreamActor = appActor.system.get(
   ENGINE_STREAM
diff --git a/src/machines/systemIO/hooks.ts b/src/machines/systemIO/hooks.ts
new file mode 100644
index 000000000..99c67d7c1
--- /dev/null
+++ b/src/machines/systemIO/hooks.ts
@@ -0,0 +1,11 @@
+import { systemIOActor } from '@src/machines/appMachine'
+import { useSelector } from '@xstate/react'
+export const useRequestedProjectName = () =>
+  useSelector(systemIOActor, (state) => state.context.requestedProjectName)
+export const useRequestedFileName = () =>
+  useSelector(systemIOActor, (state) => state.context.requestedFileName)
+export const useProjectDirectoryPath = () =>
+  useSelector(systemIOActor, (state) => state.context.projectDirectoryPath)
+export const useFolders = () =>
+  useSelector(systemIOActor, (state) => state.context.folders)
+export const useState = () => useSelector(systemIOActor, (state) => state)
diff --git a/src/machines/systemIO/systemIOMachine.test.ts b/src/machines/systemIO/systemIOMachine.test.ts
index c00ebdb1c..36add501d 100644
--- a/src/machines/systemIO/systemIOMachine.test.ts
+++ b/src/machines/systemIO/systemIOMachine.test.ts
@@ -62,5 +62,17 @@ describe('systemIOMachine - XState', () => {
         expect(context.projectDirectoryPath).toBe(kclSamplesPath)
       })
     })
+    describe('when setting default project folder name', () => {
+      it('should set a new default project folder name', async () => {
+        const expected = 'coolcoolcoolProjectName'
+        const actor = createActor(systemIOMachineDesktop).start()
+        actor.send({
+          type: SystemIOMachineEvents.setDefaultProjectFolderName,
+          data: { requestedDefaultProjectFolderName: expected },
+        })
+        let context = actor.getSnapshot().context
+        expect(context.defaultProjectFolderName).toBe(expected)
+      })
+    })
   })
 })
diff --git a/src/machines/systemIO/systemIOMachine.ts b/src/machines/systemIO/systemIOMachine.ts
index 2ecd36f44..cf8433232 100644
--- a/src/machines/systemIO/systemIOMachine.ts
+++ b/src/machines/systemIO/systemIOMachine.ts
@@ -58,6 +58,10 @@ export const systemIOMachine = setup({
             requestedFileName: string
             requestedCode: string
           }
+        }
+      | {
+          type: SystemIOMachineEvents.setDefaultProjectFolderName
+          data: { requestedDefaultProjectFolderName: string }
         },
   },
   actions: {
@@ -91,6 +95,12 @@ export const systemIOMachine = setup({
         }
       },
     }),
+    [SystemIOMachineActions.setDefaultProjectFolderName]: assign({
+      defaultProjectFolderName: ({ event }) => {
+        assertEvent(event, SystemIOMachineEvents.setDefaultProjectFolderName)
+        return event.data.requestedDefaultProjectFolderName
+      },
+    }),
   },
   actors: {
     [SystemIOMachineActors.readFoldersFromProjectDirectory]: fromPromise(
@@ -133,7 +143,8 @@ export const systemIOMachine = setup({
           requestedProjectName: string
           requestedFileName: string
           requestedCode: string
-        }
+
+}
       }) => {}
     ),
   },
@@ -182,6 +193,9 @@ export const systemIOMachine = setup({
         [SystemIOMachineEvents.createKCLFile]: {
           target: SystemIOMachineStates.creatingKCLFile,
         },
+        [SystemIOMachineEvents.setDefaultProjectFolderName]: {
+          actions: [SystemIOMachineActions.setDefaultProjectFolderName],
+        },
       },
     },
     [SystemIOMachineStates.readingFolders]: {
diff --git a/src/machines/systemIO/utils.ts b/src/machines/systemIO/utils.ts
index 23d394217..8baaee263 100644
--- a/src/machines/systemIO/utils.ts
+++ b/src/machines/systemIO/utils.ts
@@ -32,6 +32,7 @@ export enum SystemIOMachineEvents {
   renameProject = 'rename project',
   deleteProject = 'delete project',
   createKCLFile = 'create kcl file',
+  setDefaultProjectFolderName = 'set default project folder name',
 }
 
 export enum SystemIOMachineActions {
@@ -39,6 +40,7 @@ export enum SystemIOMachineActions {
   setProjectDirectoryPath = 'set project directory path',
   setRequestedProjectName = 'set requested project name',
   setRequestedFileName = 'set requested file name',
+  setDefaultProjectFolderName = 'set default project folder name',
 }
 
 export const NO_PROJECT_DIRECTORY = ''
diff --git a/src/routes/Home.tsx b/src/routes/Home.tsx
index 385251f7f..d0104e7ba 100644
--- a/src/routes/Home.tsx
+++ b/src/routes/Home.tsx
@@ -15,7 +15,6 @@ import {
 } from '@src/components/ProjectSearchBar'
 import { useCreateFileLinkQuery } from '@src/hooks/useCreateFileLinkQueryWatcher'
 import { useMenuListener } from '@src/hooks/useMenu'
-import { useProjectsContext } from '@src/hooks/useProjectsContext'
 import { isDesktop } from '@src/lib/isDesktop'
 import { PATHS } from '@src/lib/paths'
 import { markOnce } from '@src/lib/performance'
@@ -27,14 +26,22 @@ import {
   getSortIcon,
 } from '@src/lib/sorting'
 import { reportRejection } from '@src/lib/trap'
-import { authActor, useSettings } from '@src/machines/appMachine'
+import { authActor, systemIOActor, useSettings } from '@src/machines/appMachine'
 import { commandBarActor } from '@src/machines/commandBarMachine'
+import {
+  useFolders,
+  useState as useSystemIOState,
+} from '@src/machines/systemIO/hooks'
+import {
+  SystemIOMachineEvents,
+  SystemIOMachineStates,
+} from '@src/machines/systemIO/utils'
 import type { WebContentSendPayload } from '@src/menu/channels'
 
 // This route only opens in the desktop context for now,
 // as defined in Router.tsx, so we can use the desktop APIs and types.
 const Home = () => {
-  const { state, send } = useProjectsContext()
+  const state = useSystemIOState()
   const [readWriteProjectDir, setReadWriteProjectDir] = useState<{
     value: boolean
     error: unknown
@@ -156,40 +163,13 @@ const Home = () => {
     }
   )
   const ref = useRef<HTMLDivElement>(null)
-
-  const projects = state?.context.projects ?? []
+  const projects = useFolders()
   const [searchParams, setSearchParams] = useSearchParams()
   const { searchResults, query, setQuery } = useProjectSearch(projects)
   const sort = searchParams.get('sort_by') ?? 'modified:desc'
 
   const isSortByModified = sort?.includes('modified') || !sort || sort === null
 
-  // Update the default project name and directory in the home machine
-  // when the settings change
-  useEffect(() => {
-    send({
-      type: 'assign',
-      data: {
-        defaultProjectName: settings.projects.defaultProjectName.current,
-        defaultDirectory: settings.app.projectDirectory.current,
-      },
-    })
-
-    // Must be a truthy string, not '' or null or undefined
-    if (settings.app.projectDirectory.current) {
-      window.electron
-        .canReadWriteDirectory(settings.app.projectDirectory.current)
-        .then((res) => {
-          setReadWriteProjectDir(res)
-        })
-        .catch(reportRejection)
-    }
-  }, [
-    settings.app.projectDirectory.current,
-    settings.projects.defaultProjectName.current,
-    send,
-  ])
-
   async function handleRenameProject(
     e: FormEvent<HTMLFormElement>,
     project: Project
@@ -204,17 +184,20 @@ const Home = () => {
     }
 
     if (newProjectName !== project.name) {
-      send({
-        type: 'Rename project',
-        data: { oldName: project.name, newName: newProjectName as string },
+      systemIOActor.send({
+        type: SystemIOMachineEvents.renameProject,
+        data: {
+          requestedProjectName: String(newProjectName),
+          projectName: project.name,
+        },
       })
     }
   }
 
   async function handleDeleteProject(project: Project) {
-    send({
-      type: 'Delete project',
-      data: { name: project.name || '' },
+    systemIOActor.send({
+      type: SystemIOMachineEvents.deleteProject,
+      data: { requestedProjectName: project.name },
     })
   }
   /** Type narrowing function of unknown error to a string */
@@ -345,7 +328,7 @@ const Home = () => {
           data-testid="home-section"
           className="flex-1 overflow-y-auto pr-2 pb-24"
         >
-          {state?.matches('Reading projects') ? (
+          {state?.matches(SystemIOMachineStates.readingFolders) ? (
             <Loading>Loading your Projects...</Loading>
           ) : (
             <>