diff --git a/.github/workflows/run-validation.yml b/.github/workflows/run-validation.yml
index 8bc398e6..805fa742 100644
--- a/.github/workflows/run-validation.yml
+++ b/.github/workflows/run-validation.yml
@@ -27,15 +27,6 @@ jobs:
       TEST_CONTAINER_APP_NAME: 'gh-ca-bs-${{ github.run_id }}'
 
     steps:
-
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
-
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -83,14 +74,6 @@ jobs:
       TEST_CONTAINER_APP_NAME: 'gh-ca-bs-${{ github.run_id }}'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -134,14 +117,6 @@ jobs:
       TEST_CONTAINER_APP_NAME: 'gh-ca-fd-${{ github.run_id }}'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -383,14 +358,6 @@ jobs:
       TEST_YAML_FILE_PATH: '${{ github.workspace }}/yaml-samples/create-with-builder-simple.yaml'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -450,14 +417,6 @@ jobs:
       TEST_YAML_FILE_PATH: '${{ github.workspace }}/yaml-samples/create-with-image-simple.yaml'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -502,14 +461,6 @@ jobs:
       TEST_YAML_FILE_PATH: 'yaml-samples/create-with-image-simple.yaml'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -554,14 +505,6 @@ jobs:
       TEST_CONTAINER_APP_NAME: 'update-using-builder-app'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -609,14 +552,6 @@ jobs:
       TEST_CONTAINER_APP_NAME: 'update-using-builder-app'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -660,14 +595,6 @@ jobs:
       TEST_CONTAINER_APP_NAME: 'update-using-image-app'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
@@ -695,14 +622,6 @@ jobs:
       TEST_YAML_FILE_PATH: '${{ github.workspace }}/yaml-samples/update-with-image-simple.yaml'
 
     steps:
-      - name: Clone azure-cli-extensions repo
-        uses: actions/checkout@v3
-        with:
-          repository: snehapar9/azure-cli-extensions
-          path: azure-cli-extensions
-
-      - name: Install latest azure-cli-extensions wheel
-        run: az extension add --source '${{ github.workspace }}/azure-cli-extensions/containerapp-0.3.42-py2.py3-none-any.whl' --yes
       - name: Checkout action repository
         uses: actions/checkout@v3
 
diff --git a/azurecontainerapps.ts b/azurecontainerapps.ts
index abad227a..fc5ecd29 100644
--- a/azurecontainerapps.ts
+++ b/azurecontainerapps.ts
@@ -32,13 +32,13 @@ export class azurecontainerapps {
             }
 
             const useAzureContainerRegistry = !this.util.isNullOrEmpty(this.registryUrl) && this.registryUrl.endsWith('.azurecr.io');
-            const useInternalRegistry = this.util.isNullOrEmpty(this.registryUrl) || this.imageToBuild.startsWith('default/');
+            const useInternalRegistry = this.util.isNullOrEmpty(this.registryUrl) && this.imageToBuild.startsWith('default/');
 
             // Determine if the image should be built and pushed using the CLI
-            this.useCliToBuildAndPushImage = !this.util.isNullOrEmpty(this.appSourcePath) && (useAzureContainerRegistry || useInternalRegistry);
+            this.useCliToBuildAndPushImage = (useAzureContainerRegistry || useInternalRegistry);
 
             // If the application source was provided, build a runnable application image from it
-            if (!this.useCliToBuildAndPushImage) {
+            if (!this.useCliToBuildAndPushImage && !this.util.isNullOrEmpty(this.appSourcePath)) {
                 await this.buildAndPushImageAsync();
             }
 
@@ -513,7 +513,7 @@ export class azurecontainerapps {
             }
         }
 
-        if (this.useCliToBuildAndPushImage) {
+        if (this.useCliToBuildAndPushImage && !this.util.isNullOrEmpty(this.appSourcePath)) {
             this.commandLineArgs.push(`--source ${this.appSourcePath}`);
         }
     }
diff --git a/dist/index.js b/dist/index.js
index 7c77dafb..98c7b3c4 100644
--- a/dist/index.js
+++ b/dist/index.js
@@ -89,10 +89,10 @@ var azurecontainerapps = /** @class */ (function () {
                         _a.label = 7;
                     case 7:
                         useAzureContainerRegistry = !this.util.isNullOrEmpty(this.registryUrl) && this.registryUrl.endsWith('.azurecr.io');
-                        useInternalRegistry = this.util.isNullOrEmpty(this.registryUrl) || this.imageToBuild.startsWith('default/');
+                        useInternalRegistry = this.util.isNullOrEmpty(this.registryUrl) && this.imageToBuild.startsWith('default/');
                         // Determine if the image should be built and pushed using the CLI
-                        this.useCliToBuildAndPushImage = !this.util.isNullOrEmpty(this.appSourcePath) && (useAzureContainerRegistry || useInternalRegistry);
-                        if (!!this.useCliToBuildAndPushImage) return [3 /*break*/, 9];
+                        this.useCliToBuildAndPushImage = (useAzureContainerRegistry || useInternalRegistry);
+                        if (!(!this.useCliToBuildAndPushImage && !this.util.isNullOrEmpty(this.appSourcePath))) return [3 /*break*/, 9];
                         return [4 /*yield*/, this.buildAndPushImageAsync()];
                     case 8:
                         _a.sent();
@@ -603,7 +603,7 @@ var azurecontainerapps = /** @class */ (function () {
                 this.commandLineArgs.push("--env-vars " + environmentVariables);
             }
         }
-        if (this.useCliToBuildAndPushImage) {
+        if (this.useCliToBuildAndPushImage && !this.util.isNullOrEmpty(this.appSourcePath)) {
             this.commandLineArgs.push("--source " + this.appSourcePath);
         }
     };