diff --git a/app/src/componentsV2/modals/CreateWorkspaceModalOld/CreateWorkspaceModalOld.tsx b/app/src/componentsV2/modals/CreateWorkspaceModalOld/CreateWorkspaceModalOld.tsx
index c2ec8a5be2..795e2afed7 100644
--- a/app/src/componentsV2/modals/CreateWorkspaceModalOld/CreateWorkspaceModalOld.tsx
+++ b/app/src/componentsV2/modals/CreateWorkspaceModalOld/CreateWorkspaceModalOld.tsx
@@ -1,14 +1,11 @@
 import React, { useCallback, useState } from "react";
-import { Checkbox, Input, Modal, Radio, Tag } from "antd";
+import { Checkbox, Input, Modal, Radio } from "antd";
 import { useDispatch, useSelector } from "react-redux";
 import * as Sentry from "@sentry/react";
 
 import { getAppMode } from "store/selectors";
 import { RQButton } from "lib/design-system-v2/components";
-import { CreateTeamParams, LocalWorkspaceConfig, SharedOrPrivateWorkspaceConfig } from "types";
-import { displayFolderSelector } from "components/mode-specific/desktop/misc/FileDialogButton";
-import { CONSTANTS as GLOBAL_CONSTANTS } from "@requestly/requestly-core";
-import { IoMdClose } from "@react-icons/all-files/io/IoMdClose";
+import { CreateTeamParams, SharedOrPrivateWorkspaceConfig } from "types";
 import { getFunctions, httpsCallable } from "firebase/functions";
 import {
   trackAddTeamMemberSuccess,
@@ -24,10 +21,8 @@ import { switchWorkspace } from "actions/TeamWorkspaceActions";
 import { redirectToTeam } from "utils/RedirectionUtils";
 import { useNavigate } from "react-router-dom";
 import { getAvailableBillingTeams } from "store/features/billing/selectors";
-import { createWorkspaceFolder } from "services/fsManagerServiceAdapter";
 import { isActiveWorkspaceShared } from "store/slices/workspaces/selectors";
-import { workspaceActions } from "store/slices/workspaces/slice";
-import { Workspace, WorkspaceMemberRole, WorkspaceType } from "features/workspaces/types";
+import { WorkspaceType } from "features/workspaces/types";
 import "./createOldWorkspaceModal.scss";
 
 interface Props {
@@ -45,17 +40,10 @@ export const CreateWorkspaceModalOld: React.FC<Props> = ({ isOpen, defaultWorksp
   const isSharedWorkspaceMode = useSelector(isActiveWorkspaceShared);
   const billingTeams = useSelector(getAvailableBillingTeams);
   const [workspaceName, setWorkspaceName] = useState("");
-  const [workspaceType, setWorkspaceType] = useState(
-    defaultWorkspaceType || (user.loggedIn ? WorkspaceType.SHARED : WorkspaceType.LOCAL)
-  );
-  const [folderPath, setFolderPath] = useState("");
+  const [workspaceType, setWorkspaceType] = useState(defaultWorkspaceType || WorkspaceType.SHARED);
   const [isLoading, setIsLoading] = useState(false);
   const [isNotifyAllSelected, setIsNotifyAllSelected] = useState(false);
 
-  const folderSelectCallback = (path: string) => {
-    setFolderPath(path);
-  };
-
   const handlePostTeamCreationStep = useCallback(
     (teamId: string, newTeamName: string, hasMembersInSameDomain: boolean) => {
       switchWorkspace(
@@ -138,43 +126,15 @@ export const CreateWorkspaceModalOld: React.FC<Props> = ({ isOpen, defaultWorksp
     const createOrgTeamInvite = httpsCallable(functions, "invites-createOrganizationTeamInvite");
     const upsertTeamCommonInvite = httpsCallable(functions, "invites-upsertTeamCommonInvite");
 
-    const config =
-      workspaceType === WorkspaceType.LOCAL
-        ? ({ type: WorkspaceType.LOCAL, rootPath: folderPath } as LocalWorkspaceConfig)
-        : ({ type: WorkspaceType.SHARED } as SharedOrPrivateWorkspaceConfig);
+    const config = { type: WorkspaceType.SHARED } as SharedOrPrivateWorkspaceConfig;
 
     try {
       const teamId = await (async () => {
-        if (config.type === WorkspaceType.LOCAL) {
-          const workspaceCreationResult = await createWorkspaceFolder(workspaceName, config.rootPath);
-          if (workspaceCreationResult.type === "error") {
-            throw new Error(workspaceCreationResult.error.message);
-          }
-          const partialWorkspace = workspaceCreationResult.content;
-          const localWorkspace: Workspace = {
-            id: partialWorkspace.id,
-            name: partialWorkspace.name,
-            owner: user?.details?.profile?.uid,
-            accessCount: 1,
-            adminCount: 1,
-            members: {
-              [user?.details?.profile?.uid]: {
-                role: WorkspaceMemberRole.admin,
-              },
-            },
-            appsumo: null,
-            workspaceType: WorkspaceType.LOCAL,
-            rootPath: partialWorkspace.path,
-          };
-          dispatch(workspaceActions.upsertWorkspace(localWorkspace));
-          return partialWorkspace.id;
-        } else {
-          const response: any = await createTeam({
-            teamName: workspaceName,
-            config,
-          });
-          return response.data.teamId;
-        }
+        const response: any = await createTeam({
+          teamName: workspaceName,
+          config,
+        });
+        return response.data.teamId;
       })();
 
       trackNewTeamCreateSuccess(teamId, workspaceName, "create_workspace_modal", workspaceType);
@@ -216,7 +176,6 @@ export const CreateWorkspaceModalOld: React.FC<Props> = ({ isOpen, defaultWorksp
   }, [
     billingTeams,
     callback,
-    dispatch,
     isNotifyAllSelected,
     toggleModal,
     user?.details?.profile?.email,
@@ -224,8 +183,6 @@ export const CreateWorkspaceModalOld: React.FC<Props> = ({ isOpen, defaultWorksp
     handlePostTeamCreationStep,
     handleDomainInvitesCreation,
     workspaceType,
-    folderPath,
-    user?.details?.profile?.uid,
   ]);
 
   return (
@@ -245,7 +202,7 @@ export const CreateWorkspaceModalOld: React.FC<Props> = ({ isOpen, defaultWorksp
           <RQButton onClick={toggleModal}>Cancel</RQButton>
           <RQButton
             type="primary"
-            disabled={!workspaceName.length || (workspaceType === WorkspaceType.LOCAL && !folderPath.length)}
+            disabled={!workspaceName.length}
             loading={isLoading}
             onClick={handleTeamWorkspaceCreation}
           >
@@ -300,45 +257,6 @@ export const CreateWorkspaceModalOld: React.FC<Props> = ({ isOpen, defaultWorksp
                   </div>
                 ),
               },
-              {
-                value: WorkspaceType.LOCAL,
-                disabled: appMode !== GLOBAL_CONSTANTS.APP_MODES.DESKTOP,
-                label: (
-                  <div className="workspace-type-content">
-                    <div className="workspace-type-content_title">
-                      Local workspace <Tag>BETA</Tag>
-                    </div>
-                    <div className="workspace-type-content_description">
-                      In a Local Workspace, your files are stored on your device. Currently, only API client files are
-                      supported.
-                    </div>
-                    {workspaceType === WorkspaceType.LOCAL ? (
-                      <div className="folder-path-selector">
-                        {folderPath.length ? (
-                          <div className="selected-folder-container">
-                            <div className="selected-folder-header">
-                              <span>SELECTED LOCATION</span> <IoMdClose onClick={() => setFolderPath("")} />
-                            </div>
-                            <div className="selected-folder-path">{folderPath}</div>
-                          </div>
-                        ) : (
-                          <>
-                            <RQButton
-                              disabled={appMode !== GLOBAL_CONSTANTS.APP_MODES.DESKTOP}
-                              block
-                              type="primary"
-                              onClick={() => displayFolderSelector(folderSelectCallback)}
-                            >
-                              Select a folder
-                            </RQButton>
-                            <div className="selector-description">A location to store your workspace data.</div>
-                          </>
-                        )}
-                      </div>
-                    ) : null}
-                  </div>
-                ),
-              },
             ]}
           ></Radio.Group>
         </div>
diff --git a/app/src/features/onboarding/components/recommendations/components/recommendations/personaRecommendationData.tsx b/app/src/features/onboarding/components/recommendations/components/recommendations/personaRecommendationData.tsx
index 20dd8fa6ad..eb6cd7cb14 100644
--- a/app/src/features/onboarding/components/recommendations/components/recommendations/personaRecommendationData.tsx
+++ b/app/src/features/onboarding/components/recommendations/components/recommendations/personaRecommendationData.tsx
@@ -5,7 +5,6 @@ import { FeatureSection, FeatureReleaseTag } from "./types";
 import { CONSTANTS as GLOBAL_CONSTANTS } from "@requestly/requestly-core";
 import { FiVideo } from "@react-icons/all-files/fi/FiVideo";
 import { IoDocumentTextOutline } from "@react-icons/all-files/io5/IoDocumentTextOutline";
-import { ApiOutlined } from "@ant-design/icons";
 
 const { RULE_TYPES } = GLOBAL_CONSTANTS;
 const { RULE_TYPES_CONFIG } = APP_CONSTANTS;
@@ -76,13 +75,6 @@ export const personaRecommendationData: FeatureSection[] = [
         subTitle: "Create mocks for your APIs",
         link: PATHS.MOCK_SERVER_V2.ABSOLUTE,
       },
-      {
-        id: "test_api_endpoints",
-        title: "Test API endpoints",
-        icon: () => <ApiOutlined />,
-        subTitle: "Test responses quickly using API Client",
-        link: PATHS.API_CLIENT.ABSOLUTE,
-      },
     ],
   },
 ];
diff --git a/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/DesktopOnboardingModal.tsx b/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/DesktopOnboardingModal.tsx
index a1e59e013b..956554f5b6 100644
--- a/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/DesktopOnboardingModal.tsx
+++ b/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/DesktopOnboardingModal.tsx
@@ -1,19 +1,13 @@
 import React, { useEffect, useState } from "react";
 import { Button, Modal } from "antd";
-import { useNavigate } from "react-router-dom";
-import { WorkspaceCreationView } from "componentsV2/modals/CreateWorkspaceModal/components/WorkspaceCreationView";
 import { AuthCard } from "./components/AuthCard/AuthCard";
 import { WelcomeCard } from "./components/WelcomeCard/WelcomeCard";
 import { useDispatch, useSelector } from "react-redux";
 import { globalActions } from "store/slices/global/slice";
 import { getUserAuthDetails } from "store/slices/global/user/selectors";
-// import { IoMdArrowBack } from "@react-icons/all-files/io/IoMdArrowBack";
-import { redirectToApiClient } from "utils/RedirectionUtils";
 import "./desktopOnboardingModal.scss";
 import { trackDesktopOnboardingStepSkipped, trackDesktopOnboardingViewed } from "./analytics";
 import { OnboardingStep } from "./types";
-import { WorkspaceType } from "features/workspaces/types";
-import { WorkspaceCreationProvider } from "componentsV2/modals/CreateWorkspaceModal/context";
 
 export const DesktopOnboardingCard = ({ children, className }: { children: React.ReactNode; className?: string }) => {
   return <div className={`rq-desktop-onboarding-modal-content__card ${className}`}>{children}</div>;
@@ -21,7 +15,6 @@ export const DesktopOnboardingCard = ({ children, className }: { children: React
 
 export const DesktopOnboardingModal = () => {
   const dispatch = useDispatch();
-  const navigate = useNavigate();
   const user = useSelector(getUserAuthDetails);
   const [onboardingStep, setOnboardingStep] = useState<OnboardingStep>(OnboardingStep.FEATURE_SELECTION);
 
@@ -42,43 +35,29 @@ export const DesktopOnboardingModal = () => {
       wrapClassName="rq-desktop-onboarding-modal-wrapper"
       className="rq-desktop-onboarding-modal"
     >
-      <WorkspaceCreationProvider>
-        <div className="rq-desktop-onboarding-modal-content">
-          {onboardingStep === OnboardingStep.FEATURE_SELECTION ? (
-            <DesktopOnboardingCard className="welcome-card">
-              <WelcomeCard onFeatureClick={(step: OnboardingStep) => setOnboardingStep(step)} />
+      <div className="rq-desktop-onboarding-modal-content">
+        {onboardingStep === OnboardingStep.FEATURE_SELECTION ? (
+          <DesktopOnboardingCard className="welcome-card">
+            <WelcomeCard onFeatureClick={(step: OnboardingStep) => setOnboardingStep(step)} />
+          </DesktopOnboardingCard>
+        ) : onboardingStep === OnboardingStep.AUTH ? (
+          <>
+            <DesktopOnboardingCard className="auth-card">
+              <AuthCard onBackClick={() => setOnboardingStep(OnboardingStep.FEATURE_SELECTION)} />
             </DesktopOnboardingCard>
-          ) : onboardingStep === OnboardingStep.FOLDER_SELECTION ? (
-            <DesktopOnboardingCard className="local-workspace-card">
-              <WorkspaceCreationView
-                workspaceType={WorkspaceType.LOCAL}
-                onCancel={() => setOnboardingStep(OnboardingStep.FEATURE_SELECTION)}
-                callback={() => {
-                  dispatch(globalActions.updateIsOnboardingCompleted(true));
-                  redirectToApiClient(navigate);
-                }}
-                analyticEventSource="desktop_onboarding_modal"
-              />
-            </DesktopOnboardingCard>
-          ) : onboardingStep === OnboardingStep.AUTH ? (
-            <>
-              <DesktopOnboardingCard className="auth-card">
-                <AuthCard onBackClick={() => setOnboardingStep(OnboardingStep.FEATURE_SELECTION)} />
-              </DesktopOnboardingCard>
-              <Button
-                type="link"
-                className="skip-desktop-onboarding"
-                onClick={() => {
-                  trackDesktopOnboardingStepSkipped(OnboardingStep.AUTH);
-                  dispatch(globalActions.updateIsOnboardingCompleted(true));
-                }}
-              >
-                Continue without sign in
-              </Button>
-            </>
-          ) : null}
-        </div>
-      </WorkspaceCreationProvider>
+            <Button
+              type="link"
+              className="skip-desktop-onboarding"
+              onClick={() => {
+                trackDesktopOnboardingStepSkipped(OnboardingStep.AUTH);
+                dispatch(globalActions.updateIsOnboardingCompleted(true));
+              }}
+            >
+              Continue without sign in
+            </Button>
+          </>
+        ) : null}
+      </div>
     </Modal>
   );
 };
diff --git a/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/components/WelcomeCard/WelcomeCard.tsx b/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/components/WelcomeCard/WelcomeCard.tsx
index ea8b6671ca..c2e94de95c 100644
--- a/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/components/WelcomeCard/WelcomeCard.tsx
+++ b/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/components/WelcomeCard/WelcomeCard.tsx
@@ -1,4 +1,4 @@
-import React, { useEffect, useRef, useState } from "react";
+import React from "react";
 import { Button } from "antd";
 import RQOnlyLogo from "/assets/media/common/RQ-only-logo.svg";
 import { useDispatch } from "react-redux";
@@ -6,20 +6,8 @@ import { globalActions } from "store/slices/global/slice";
 import { trackDesktopOnboardingFeatureSelected, trackDesktopOnboardingStepSkipped } from "../../analytics";
 import { OnboardingStep } from "../../types";
 import { WelcomeCardHeader } from "./components/WelcomeCardHeader/WelcomeCardHeader";
-import { AnimatePresence, m } from "framer-motion";
-import { collapseExpandTransition } from "utils/animations";
-import { MdOutlineKeyboardArrowUp } from "@react-icons/all-files/md/MdOutlineKeyboardArrowUp";
-import { MdOutlineKeyboardArrowDown } from "@react-icons/all-files/md/MdOutlineKeyboardArrowDown";
-import { LocalWorkspaceCreateOptions } from "componentsV2/modals/CreateWorkspaceModal";
-import clsx from "clsx";
-import { useCreateDefaultLocalWorkspace } from "features/workspaces/hooks/useCreateDefaultLocalWorkspace";
-import { FileSystemError } from "features/apiClient/helpers/modules/sync/local/services/types";
-import { OpenWorkspaceErrorView } from "componentsV2/modals/CreateWorkspaceModal/components/LocalWorkspaceCreationView/components/OpenWorkspaceErrorView";
-import { useOpenLocalWorkspace } from "features/workspaces/hooks/useOpenLocalWorkspace";
 import { MdOutlineKeyboardArrowRight } from "@react-icons/all-files/md/MdOutlineKeyboardArrowRight";
 import "./welcomeCard.scss";
-import { useNavigate } from "react-router-dom";
-import { redirectToApiClient } from "utils/RedirectionUtils";
 
 interface Props {
   onFeatureClick: (step: OnboardingStep) => void;
@@ -27,140 +15,19 @@ interface Props {
 
 export const WelcomeCard: React.FC<Props> = ({ onFeatureClick }) => {
   const dispatch = useDispatch();
-  const navigate = useNavigate();
-  const [isApiClientCardExpanded, setIsApiClientCardExpanded] = useState(false);
-  const [openWorkspaceError, setOpenWorkspaceError] = useState<FileSystemError | null>(null);
-  const apiClientCardRef = useRef<HTMLDivElement | null>(null);
-
-  const { createWorkspace, isLoading } = useCreateDefaultLocalWorkspace({
-    analyticEventSource: "desktop_onboarding_modal",
-    onCreateWorkspaceCallback: () => {
-      trackDesktopOnboardingStepSkipped(OnboardingStep.FEATURE_SELECTION);
-      dispatch(globalActions.updateIsOnboardingCompleted(true));
-      redirectToApiClient(navigate);
-    },
-  });
-
-  const { openWorkspace, isLoading: isOpeningWorkspaceLoading } = useOpenLocalWorkspace({
-    analyticEventSource: "desktop_onboarding_modal",
-    onOpenWorkspaceCallback: () => {
-      dispatch(globalActions.updateIsOnboardingCompleted(true));
-      redirectToApiClient(navigate);
-    },
-    onError: (error: FileSystemError) => {
-      setOpenWorkspaceError(error);
-    },
-  });
-
-  useEffect(() => {
-    if (!isApiClientCardExpanded) {
-      return;
-    }
-
-    const handleClickOutside = (event: MouseEvent) => {
-      if (apiClientCardRef.current && !apiClientCardRef.current.contains(event.target as Node)) {
-        setIsApiClientCardExpanded(false);
-      }
-    };
-
-    document.addEventListener("mousedown", handleClickOutside);
-
-    return () => {
-      document.removeEventListener("mousedown", handleClickOutside);
-    };
-  }, [isApiClientCardExpanded]);
-
-  const handleApiClientCardExpandToggle = () => {
-    if (!isApiClientCardExpanded) {
-      trackDesktopOnboardingFeatureSelected("api_client");
-    }
-    setIsApiClientCardExpanded((prev) => !prev);
-  };
-
-  if (openWorkspaceError) {
-    return (
-      <div style={{ padding: 24 }}>
-        <OpenWorkspaceErrorView
-          path={openWorkspaceError.error.path}
-          onNewWorkspaceClick={() => onFeatureClick(OnboardingStep.FOLDER_SELECTION)}
-          openWorkspace={openWorkspace}
-          isOpeningWorkspaceLoading={isOpeningWorkspaceLoading}
-          analyticEventSource="desktop_onboarding_modal"
-        />
-      </div>
-    );
-  }
 
   return (
     <div className="welcome-card__cover">
-      <img src={RQOnlyLogo} alt="RQ Only Logo" className={clsx(isApiClientCardExpanded && "fade-out")} />
-      <div
-        className={clsx("rq-desktop-onboarding-modal-content__card-header", isApiClientCardExpanded && "fade-out")}
-        style={{ marginTop: "24px" }}
-      >
+      <img src={RQOnlyLogo} alt="RQ Only Logo" />
+      <div className="rq-desktop-onboarding-modal-content__card-header" style={{ marginTop: "24px" }}>
         Welcome to Requestly
       </div>
-      <div
-        className={clsx("rq-desktop-onboarding-modal-content__card-description", isApiClientCardExpanded && "fade-out")}
-      >
+      <div className="rq-desktop-onboarding-modal-content__card-description">
         Intercept, Mock, Build & Test APIs faster
       </div>
       <div className="welcome-options">
-        <m.div
-          layout
-          transition={{
-            layout: {
-              duration: 0.25,
-              ease: "easeInOut",
-            },
-          }}
-        >
-          <div
-            ref={apiClientCardRef}
-            className="api-client-onboard-card welcome-card-option"
-            onClick={handleApiClientCardExpandToggle}
-          >
-            <div className="api-client-onboard-card__header">
-              <WelcomeCardHeader
-                title="Start using API Client"
-                description={
-                  !isApiClientCardExpanded
-                    ? "Create, manage, and test APIs with collections and reusable variables."
-                    : null
-                }
-                iconSrc={"/assets/media/apiClient/api-client-icon.svg"}
-              />
-              {isApiClientCardExpanded ? (
-                <MdOutlineKeyboardArrowUp className="api-client-onboard-card__arrow" />
-              ) : (
-                <MdOutlineKeyboardArrowDown className="api-client-onboard-card__arrow" />
-              )}
-            </div>
-            <AnimatePresence initial={false}>
-              {isApiClientCardExpanded && (
-                <m.div {...collapseExpandTransition}>
-                  <div className="api-client-onboard-card__options-container">
-                    <LocalWorkspaceCreateOptions
-                      analyticEventSource="desktop_onboarding_modal"
-                      onCreateWorkspaceClick={() => onFeatureClick(OnboardingStep.FOLDER_SELECTION)}
-                      onCreationCallback={() => {
-                        dispatch(globalActions.updateIsOnboardingCompleted(true));
-                        redirectToApiClient(navigate);
-                      }}
-                      openWorkspace={openWorkspace}
-                      isOpeningWorkspaceLoading={isOpeningWorkspaceLoading}
-                    />
-                  </div>
-                </m.div>
-              )}
-            </AnimatePresence>
-          </div>
-        </m.div>
         <div
-          className={clsx(
-            "welcome-card-option onboarding-interceptor-card-option",
-            isApiClientCardExpanded && "fade-out"
-          )}
+          className="welcome-card-option onboarding-interceptor-card-option"
           onClick={() => {
             trackDesktopOnboardingFeatureSelected("rules");
             onFeatureClick(OnboardingStep.AUTH);
@@ -175,7 +42,14 @@ export const WelcomeCard: React.FC<Props> = ({ onFeatureClick }) => {
         </div>
       </div>
       <div className="skip-footer">
-        <Button type="link" size="small" loading={isLoading} onClick={createWorkspace}>
+        <Button
+          type="link"
+          size="small"
+          onClick={() => {
+            trackDesktopOnboardingStepSkipped(OnboardingStep.FEATURE_SELECTION);
+            dispatch(globalActions.updateIsOnboardingCompleted(true));
+          }}
+        >
           Skip
         </Button>{" "}
         this screen and quick start
diff --git a/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/types.ts b/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/types.ts
index 271a41f8d8..a0ca630dbc 100644
--- a/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/types.ts
+++ b/app/src/features/onboarding/componentsV2/DesktopOnboardingModal/types.ts
@@ -1,5 +1,4 @@
 export enum OnboardingStep {
   FEATURE_SELECTION = "feature_selection",
-  FOLDER_SELECTION = "folder_selection",
   AUTH = "auth",
 }