diff --git a/crates/ide-host/src/data_dirs.rs b/crates/ide-host/src/data_dirs.rs
index 4164212f7..9c96c4153 100644
--- a/crates/ide-host/src/data_dirs.rs
+++ b/crates/ide-host/src/data_dirs.rs
@@ -244,7 +244,7 @@ fn relocate_shims(root: &Path, source: &Path) -> io::Result<()> {
         }
         let text = fs::read_to_string(&path)?;
         if text.starts_with("@echo off\r\n") {
-            let updated = text.replace(source.to_string_lossy().as_ref(), "%~dp0..");
+            let updated = relative_wrapper(&text, source);
             if updated != text {
                 fs::write(path, updated)?;
             }
@@ -253,10 +253,37 @@ fn relocate_shims(root: &Path, source: &Path) -> io::Result<()> {
     Ok(())
 }
 
+fn relative_wrapper(text: &str, source: &Path) -> String {
+    // PathBuf can contain both separators (notably roots joined with "tools/demo").
+    // Compare normalized paths, but retain every other byte of the managed wrapper.
+    let normalized = text.replace('\\', "/");
+    let prefix = source.to_string_lossy().replace('\\', "/");
+    #[cfg(windows)]
+    let (normalized, prefix) = (normalized.to_ascii_lowercase(), prefix.to_ascii_lowercase());
+    let mut updated = text.to_owned();
+    let offsets: Vec<_> = normalized.match_indices(&prefix).map(|(offset, _)| offset).collect();
+    for offset in offsets.into_iter().rev() {
+        let end = offset + prefix.len();
+        if normalized.as_bytes().get(end) == Some(&b'/') {
+            updated.replace_range(offset..end, "%~dp0..");
+        }
+    }
+    updated
+}
+
 #[cfg(test)]
 mod tests {
     use super::*;
 
+    #[test]
+    fn wrappers_accept_mixed_separators_without_rewriting_neighbor_paths() {
+        let text = "@echo off\r\n\"C:\\old\\tools/demo\\payload.exe\" \"C:\\old\\tools/demo-other\\x\" %*\r\n";
+        assert_eq!(
+            relative_wrapper(text, Path::new("C:/old/tools/demo")),
+            "@echo off\r\n\"%~dp0..\\payload.exe\" \"C:\\old\\tools/demo-other\\x\" %*\r\n"
+        );
+    }
+
     #[test]
     fn storage_policy_is_conservative_and_preserves_unix_layout() {
         for entry in [
diff --git a/crates/ide-host/src/formatter.rs b/crates/ide-host/src/formatter.rs
index 2da08e368..7bc9af9d1 100644
--- a/crates/ide-host/src/formatter.rs
+++ b/crates/ide-host/src/formatter.rs
@@ -45,7 +45,7 @@ pub async fn format(
     }
     let config = config.unwrap().clone();
     let custom = ide_sdk::apply::setting_path(&project.root, &prettier.path);
-    let tools = Tools::new(&host.data_dir);
+    let tools = Tools::new(&host.local_data_dir);
     let whole_selection = range.is_some() && !config.range;
     let edits: IdeResult<Vec<TextEdit>> = tokio::task::spawn_blocking(move || {
         let text = ide_text::Document::new(&snap.text);
diff --git a/crates/ide-host/src/ops/tools.rs b/crates/ide-host/src/ops/tools.rs
index edeae318c..b92399c2f 100644
--- a/crates/ide-host/src/ops/tools.rs
+++ b/crates/ide-host/src/ops/tools.rs
@@ -104,7 +104,7 @@ pub async fn jdk_download_releases(
     vendor: String,
     request: RequestId,
 ) -> IdeResult<JdkReleases> {
-    let tools = Tools::new(&host.data_dir);
+    let tools = Tools::new(&host.local_data_dir);
     let cancel = host.begin_request(request);
     let result = tokio::task::spawn_blocking(move || tools.jdk_releases(&vendor, &cancel)).await.map_err(join_err);
     host.end_request(request);
@@ -130,7 +130,7 @@ pub async fn jdk_download(
     request: RequestId,
     on_event: Channel<InstallEvent>,
 ) -> IdeResult<Sdk> {
-    let tools = Tools::new(&host.data_dir);
+    let tools = Tools::new(&host.local_data_dir);
     let location = location.filter(|p| !p.as_os_str().is_empty());
     let cancel = host.begin_request(request);
     let result = tokio::task::spawn_blocking(move || {
diff --git a/crates/ide-host/src/project.rs b/crates/ide-host/src/project.rs
index 7ac81aac1..faf28db01 100644
--- a/crates/ide-host/src/project.rs
+++ b/crates/ide-host/src/project.rs
@@ -255,8 +255,8 @@ impl Host {
 
         let kotlin_bridge = crate::kotlin_bridge::KotlinBridge::new(
             root.clone(),
-            self.data_dir.join("cache").join(&project_key).join("build"),
-            &self.data_dir,
+            self.local_data_dir.join("cache").join(&project_key).join("build"),
+            &self.local_data_dir,
             settings.clone(),
             lsp.clone(),
             sink.clone(),