diff --git a/mirrord/cli/src/execution.rs b/mirrord/cli/src/execution.rs
index 5d3e9657e88..611c45172ce 100644
--- a/mirrord/cli/src/execution.rs
+++ b/mirrord/cli/src/execution.rs
@@ -7,7 +7,7 @@ use std::{
 use mirrord_analytics::{AnalyticsError, AnalyticsReporter, Reporter};
 use mirrord_config::{
     config::ConfigError, feature::env::mapper::EnvVarsRemapper,
-    internal_proxy::MIRRORD_INTPROXY_CONNECT_TCP_ENV, LayerConfig,
+    internal_proxy::MIRRORD_INTPROXY_CONNECT_TCP_ENV, LayerConfig, MIRRORD_RESOLVED_CONFIG_ENV,
 };
 use mirrord_intproxy::agent_conn::AgentConnectInfo;
 use mirrord_operator::client::OperatorSession;
@@ -269,7 +269,7 @@ impl MirrordExecution {
 
         let stdout = proxy_process.stdout.take().expect("stdout was piped");
 
-        let address: SocketAddr = BufReader::new(stdout)
+        let intproxy_address: SocketAddr = BufReader::new(stdout)
             .lines()
             .next_line()
             .await
@@ -288,9 +288,10 @@ impl MirrordExecution {
                 ))
             })?;
 
-        // Provide details for layer to connect to agent via internal proxy
-        config.connect_tcp = Some(format!("127.0.0.1:{}", address.port()));
+        config.connect_tcp.replace(intproxy_address.to_string());
         config.update_env_var()?;
+        let config_as_env = config.to_env_var()?;
+        env_vars.insert(MIRRORD_RESOLVED_CONFIG_ENV.to_string(), config_as_env);
 
         // Fixes <https://github.com/metalbear-co/mirrord/issues/1745>
         // by disabling the fork safety check in the Objective-C runtime.
diff --git a/mirrord/cli/src/extension.rs b/mirrord/cli/src/extension.rs
index 005491a9aed..0c3f2c9c73c 100644
--- a/mirrord/cli/src/extension.rs
+++ b/mirrord/cli/src/extension.rs
@@ -4,7 +4,7 @@ use mirrord_analytics::{AnalyticsError, AnalyticsReporter, Reporter};
 use mirrord_config::{LayerConfig, MIRRORD_CONFIG_FILE_ENV};
 use mirrord_progress::{JsonProgress, Progress, ProgressTracker};
 
-use crate::{config::ExtensionExecArgs, error::CliError, execution::MirrordExecution, CliResult};
+use crate::{config::ExtensionExecArgs, execution::MirrordExecution, CliResult};
 
 /// Actually facilitate execution after all preparations were complete
 async fn mirrord_exec<P>(
@@ -40,23 +40,15 @@ where
 pub(crate) async fn extension_exec(args: ExtensionExecArgs, watch: drain::Watch) -> CliResult<()> {
     let progress = ProgressTracker::try_from_env("mirrord preparing to launch")
         .unwrap_or_else(|| JsonProgress::new("mirrord preparing to launch").into());
-    let mut env: HashMap<String, String> = HashMap::new();
 
+    // Set environment required for `LayerConfig::from_env_with_warnings`.
     if let Some(config_file) = args.config_file.as_ref() {
-        // Set canoncialized path to config file, in case forks/children are in different
-        // working directories.
-        let full_path = std::fs::canonicalize(config_file)
-            .map_err(|e| CliError::CanonicalizeConfigPathFailed(config_file.into(), e))?;
-        std::env::set_var(MIRRORD_CONFIG_FILE_ENV, full_path.clone());
-        env.insert(
-            MIRRORD_CONFIG_FILE_ENV.into(),
-            full_path.to_string_lossy().into(),
-        );
+        std::env::set_var(MIRRORD_CONFIG_FILE_ENV, config_file);
     }
     if let Some(target) = args.target.as_ref() {
         std::env::set_var("MIRRORD_IMPERSONATED_TARGET", target.clone());
-        env.insert("MIRRORD_IMPERSONATED_TARGET".into(), target.to_string());
     }
+
     let (config, mut context) = LayerConfig::from_env_with_warnings()?;
 
     let mut analytics = AnalyticsReporter::only_error(config.telemetry, Default::default(), watch);
@@ -76,7 +68,7 @@ pub(crate) async fn extension_exec(args: ExtensionExecArgs, watch: drain::Watch)
     )
     .await;
     #[cfg(not(target_os = "macos"))]
-    let execution_result = mirrord_exec(env, config, progress, &mut analytics).await;
+    let execution_result = mirrord_exec(Default::default(), config, progress, &mut analytics).await;
 
     if execution_result.is_err() && !analytics.has_error() {
         analytics.set_error(AnalyticsError::Unknown);
diff --git a/mirrord/config/src/lib.rs b/mirrord/config/src/lib.rs
index 8414bd742df..d3f8fae7bc6 100644
--- a/mirrord/config/src/lib.rs
+++ b/mirrord/config/src/lib.rs
@@ -345,15 +345,15 @@ impl LayerConfig {
 
     /// Given a [`LayerConfig`], serialise it and convert to base 64 so it can be
     /// set into [`MIRRORD_RESOLVED_CONFIG_ENV`].
-    fn to_env_var(&self) -> Result<String, ConfigError> {
+    pub fn to_env_var(&self) -> Result<String, ConfigError> {
         let serialized = serde_json::to_string(self)
             .map_err(|error| ConfigError::EnvVarEncodeError(error.to_string()))?;
         Ok(BASE64_STANDARD.encode(serialized))
     }
 
-    /// Given the encoded config as a string, set it into [`MIRRORD_RESOLVED_CONFIG_ENV`].
-    /// Must be used when updating [`LayerConfig`] after creation in order for the config
-    /// in env to reflect the change.
+    /// Encode this config with [`Self::to_env_var`] and set it into
+    /// [`MIRRORD_RESOLVED_CONFIG_ENV`]. Must be used when updating [`LayerConfig`] after
+    /// creation in order for the config in env to reflect the change.
     pub fn update_env_var(&self) -> Result<(), ConfigError> {
         std::env::set_var(MIRRORD_RESOLVED_CONFIG_ENV, self.to_env_var()?);
         Ok(())