diff --git a/nixos/lib/make-disk-image.nix b/nixos/lib/make-disk-image.nix
index da94ef16654c..9bdbf4e0713d 100644
--- a/nixos/lib/make-disk-image.nix
+++ b/nixos/lib/make-disk-image.nix
@@ -609,6 +609,13 @@ let format' = format; in let
         ''}
 
         # Set up core system link, bootloader (sd-boot, GRUB, uboot, etc.), etc.
+
+        # NOTE: systemd-boot-builder.py calls nix-env --list-generations which
+        # clobbers $HOME/.nix-defexpr/channels/nixos This would cause a  folder
+        # /homeless-shelter to show up in the final image which  in turn breaks
+        # nix builds in the target image if sandboxing is turned off (through
+        # __noChroot for example).
+        export HOME=$TMPDIR
         NIXOS_INSTALL_BOOTLOADER=1 nixos-enter --root $mountPoint -- /nix/var/nix/profiles/system/bin/switch-to-configuration boot
 
         # The above scripts will generate a random machine-id and we don't want to bake a single ID into all our images
diff --git a/nixos/tests/qemu-vm-external-disk-image.nix b/nixos/tests/qemu-vm-external-disk-image.nix
index a229fc5e3963..c481159511a0 100644
--- a/nixos/tests/qemu-vm-external-disk-image.nix
+++ b/nixos/tests/qemu-vm-external-disk-image.nix
@@ -69,5 +69,8 @@ in
     os.environ['NIX_DISK_IMAGE'] = tmp_disk_image.name
 
     machine.succeed("findmnt --kernel --source ${rootFsDevice} --target /")
+
+    # Make sure systemd boot didn't clobber this
+    machine.succeed("[ ! -e /homeless-shelter ]")
   '';
 }