diff --git a/main.pm b/main.pm
index 94eab2f7..40daf304 100644
--- a/main.pm
+++ b/main.pm
@@ -249,13 +249,19 @@ sub _load_early_postinstall_tests {
 
     # For now, there's no possibility to get a graphical desktop on
     # Modular composes, so short-circuit here for those
-    # Rocky has no such thing as MODULAR composes.
-    if (!get_var("DESKTOP") || get_var("DESKTOP") eq "false") {
+    # Rocky has no such thing as MODULAR composes and we make use of PACKAGESET
+    # to select different Environments from the boot and/or DVD ISOs.
+    # DO NOT specify DESKTOP for minimal, server-product or virtualization-host
+    my $package_set = get_var("PACKAGE_SET");
+    if (!get_var("DESKTOP") || get_var("DESKTOP") eq "false" ||
+        $package_set eq "minimal" || $package_set eq "server" ||
+        $package_set eq "virtualization-host") {
         _load_instance("tests/_console_wait_login", $instance);
         return;
     }
 
-    # Appropriate login method for install type
+    # Explicitly setting DESKTOP="kde" or DESKTOP="gnome" should ALWAYS trigger
+    # graphical login...
     if (get_var("DESKTOP")) {
         _load_instance("tests/_graphical_wait_login", $instance);
     }
diff --git a/templates.fif.json b/templates.fif.json
index 1d0d90c8..fc170a83 100644
--- a/templates.fif.json
+++ b/templates.fif.json
@@ -494,6 +494,7 @@
                 "rocky-dvd-iso-x86_64-*-64bit": 10
             },
             "settings": {
+                "DESKTOP": "gnome",
                 "PACKAGE_SET": "default",
                 "POSTINSTALL": "_collect_data",
                 "STORE_HDD_1": "disk_%FLAVOR%_%MACHINE%.qcow2"
@@ -633,8 +634,8 @@
                 "rocky-package-set-x86_64-*-64bit": 30
             },
             "settings": {
-                "PACKAGE_SET": "minimal",
-                "POSTINSTALL": "_console_login"
+                "DESKTOP": "false",
+                "PACKAGE_SET": "minimal"
             }
         },
         "install_package_set_server": {
@@ -648,8 +649,8 @@
                 "rocky-package-set-x86_64-*-64bit": 30
             },
             "settings": {
-                "PACKAGE_SET": "server",
-                "POSTINSTALL": "_console_login"
+                "DESKTOP": "false",
+                "PACKAGE_SET": "server"
             }
         },
         "install_package_set_graphical-server": {