Migrating .NET8 app to NET10 getting sysrem folders fail

After migration from .Net8 to Net10 of a web app hosted on iis 10 getting paths for special folders does not work correctly. Instead of using iis pool user profile it uses system profile from windows\system32 folder. LoadUserProfiles is set to true on iis pool.

When getting the path instead of using Environment.Special.Folder.ApplicationData i used Environment.SpecialFolder.UserProfile and concat AppData\Roaming myself and was able to mitigate the issue.

Actual behaviour: using ApplicationData returs path in systemprofile.

Expected behaviour: AplicationData should return path in the iis app polol identity user profile not in system32 folder