diff --git a/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap b/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
index 19ffa199c1303a..f507baeef469d6 100644
--- a/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
+++ b/packages/storybook/src/generators/configuration/__snapshots__/configuration.spec.ts.snap
@@ -22,11 +22,11 @@ export default config;
 
 exports[`@nx/storybook:configuration for Storybook v7 basic functionalities should generate TypeScript Configuration files by default 1`] = `
 {
-  "$schema": "../../node_modules/nx/schemas/project-schema.json",
+  "$schema": "../node_modules/nx/schemas/project-schema.json",
   "name": "test-ui-lib",
   "projectType": "library",
-  "root": "libs/test-ui-lib",
-  "sourceRoot": "libs/test-ui-lib/src",
+  "root": "test-ui-lib",
+  "sourceRoot": "test-ui-lib/src",
   "tags": [],
   "targets": {
     "build-storybook": {
@@ -39,7 +39,7 @@ exports[`@nx/storybook:configuration for Storybook v7 basic functionalities shou
       "options": {
         "browserTarget": "test-ui-lib:build-storybook",
         "compodoc": false,
-        "configDir": "libs/test-ui-lib/.storybook",
+        "configDir": "test-ui-lib/.storybook",
         "outputDir": "dist/storybook/test-ui-lib",
       },
       "outputs": [
@@ -50,7 +50,7 @@ exports[`@nx/storybook:configuration for Storybook v7 basic functionalities shou
       "executor": "@nx/linter:eslint",
       "options": {
         "lintFilePatterns": [
-          "libs/test-ui-lib/**/*.ts",
+          "test-ui-lib/**/*.ts",
         ],
       },
       "outputs": [
@@ -67,7 +67,7 @@ exports[`@nx/storybook:configuration for Storybook v7 basic functionalities shou
       "options": {
         "browserTarget": "test-ui-lib:build-storybook",
         "compodoc": false,
-        "configDir": "libs/test-ui-lib/.storybook",
+        "configDir": "test-ui-lib/.storybook",
         "port": 4400,
       },
     },
@@ -80,7 +80,7 @@ exports[`@nx/storybook:configuration for Storybook v7 basic functionalities shou
       },
       "executor": "@nx/jest:jest",
       "options": {
-        "jestConfig": "libs/test-ui-lib/jest.config.ts",
+        "jestConfig": "test-ui-lib/jest.config.ts",
         "passWithNoTests": true,
       },
       "outputs": [
@@ -90,7 +90,7 @@ exports[`@nx/storybook:configuration for Storybook v7 basic functionalities shou
     "test-storybook": {
       "executor": "nx:run-commands",
       "options": {
-        "command": "test-storybook -c libs/test-ui-lib/.storybook --url=http://localhost:4400",
+        "command": "test-storybook -c test-ui-lib/.storybook --url=http://localhost:4400",
       },
     },
   },
@@ -127,9 +127,9 @@ exports[`@nx/storybook:configuration for Storybook v7 basic functionalities shou
     "outDir": ""
   },
   "files": [
-    "../../node_modules/@nx/react/typings/styled-jsx.d.ts",
-    "../../node_modules/@nx/react/typings/cssmodule.d.ts",
-    "../../node_modules/@nx/react/typings/image.d.ts"
+    "../node_modules/@nx/react/typings/styled-jsx.d.ts",
+    "../node_modules/@nx/react/typings/cssmodule.d.ts",
+    "../node_modules/@nx/react/typings/image.d.ts"
   ],
   "exclude": [
     "src/**/*.spec.ts",
diff --git a/packages/storybook/src/generators/configuration/configuration.spec.ts b/packages/storybook/src/generators/configuration/configuration.spec.ts
index ca8322157fd2f5..29f3adad089ed5 100644
--- a/packages/storybook/src/generators/configuration/configuration.spec.ts
+++ b/packages/storybook/src/generators/configuration/configuration.spec.ts
@@ -41,6 +41,7 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       await libraryGenerator(tree, {
         name: 'test-ui-lib',
         bundler: 'none',
+        projectNameAndRootFormat: 'as-provided',
       });
       writeJson(tree, 'package.json', {
         devDependencies: {
@@ -66,15 +67,11 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       expect(project).toMatchSnapshot();
 
       expect(tree.read('.storybook/main.ts', 'utf-8')).toMatchSnapshot();
+      expect(tree.exists('test-ui-lib/tsconfig.storybook.json')).toBeFalsy();
       expect(
-        tree.exists('libs/test-ui-lib/tsconfig.storybook.json')
-      ).toBeFalsy();
-      expect(
-        tree.read('libs/test-ui-lib/.storybook/main.ts', 'utf-8')
+        tree.read('test-ui-lib/.storybook/main.ts', 'utf-8')
       ).toMatchSnapshot();
-      expect(
-        tree.exists('libs/test-ui-lib/.storybook/preview.ts')
-      ).toBeTruthy();
+      expect(tree.exists('test-ui-lib/.storybook/preview.ts')).toBeTruthy();
     });
 
     it('should update `tsconfig.lib.json` file', async () => {
@@ -85,7 +82,7 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       });
       const tsconfigJson = readJson<TsConfig>(
         tree,
-        'libs/test-ui-lib/tsconfig.lib.json'
+        'test-ui-lib/tsconfig.lib.json'
       ) as Required<TsConfig>;
 
       expect(tsconfigJson.exclude).toContain('**/*.stories.ts');
@@ -102,7 +99,7 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       });
       const tsconfigJson = readJson<TsConfig>(
         tree,
-        'libs/test-ui-lib/tsconfig.json'
+        'test-ui-lib/tsconfig.json'
       );
 
       expect(tsconfigJson.references).toMatchInlineSnapshot(`
@@ -124,9 +121,10 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       await libraryGenerator(tree, {
         name: 'test-ui-lib2',
         linter: Linter.EsLint,
+        projectNameAndRootFormat: 'as-provided',
       });
 
-      updateJson(tree, 'libs/test-ui-lib2/.eslintrc.json', (json) => {
+      updateJson(tree, 'test-ui-lib2/.eslintrc.json', (json) => {
         json.parserOptions = {
           project: [],
         };
@@ -139,11 +137,11 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
         uiFramework: '@storybook/react-webpack5',
       });
 
-      expect(readJson(tree, 'libs/test-ui-lib2/.eslintrc.json').parserOptions)
+      expect(readJson(tree, 'test-ui-lib2/.eslintrc.json').parserOptions)
         .toMatchInlineSnapshot(`
         {
           "project": [
-            "libs/test-ui-lib2/tsconfig.storybook.json",
+            "test-ui-lib2/tsconfig.storybook.json",
           ],
         }
       `);
@@ -153,6 +151,7 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       await libraryGenerator(tree, {
         name: 'test-ui-lib2',
         linter: Linter.EsLint,
+        projectNameAndRootFormat: 'as-provided',
       });
 
       await configurationGenerator(tree, {
@@ -162,7 +161,7 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       });
 
       expect(
-        tree.read('libs/test-ui-lib2/tsconfig.storybook.json', 'utf-8')
+        tree.read('test-ui-lib2/tsconfig.storybook.json', 'utf-8')
       ).toMatchSnapshot();
 
       expect(
@@ -178,13 +177,11 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
       });
 
       expect(
-        tree.read('libs/test-ui-lib/.storybook/main.ts', 'utf-8')
+        tree.read('test-ui-lib/.storybook/main.ts', 'utf-8')
       ).toMatchSnapshot();
-      expect(
-        tree.exists('libs/test-ui-lib/.storybook/preview.ts')
-      ).toBeTruthy();
-      expect(tree.exists('libs/test-ui-lib/.storybook/main.js')).toBeFalsy();
-      expect(tree.exists('libs/test-ui-lib/.storybook/preview.js')).toBeFalsy();
+      expect(tree.exists('test-ui-lib/.storybook/preview.ts')).toBeTruthy();
+      expect(tree.exists('test-ui-lib/.storybook/main.js')).toBeFalsy();
+      expect(tree.exists('test-ui-lib/.storybook/preview.js')).toBeFalsy();
     });
 
     it('should add test-storybook target', async () => {
@@ -223,7 +220,7 @@ describe('@nx/storybook:configuration for Storybook v7', () => {
         executor: 'nx:run-commands',
         options: {
           command:
-            'test-storybook -c libs/test-ui-lib/.storybook --url=http://localhost:4400',
+            'test-storybook -c test-ui-lib/.storybook --url=http://localhost:4400',
         },
       });
     });
diff --git a/packages/storybook/src/generators/cypress-project/cypress-project.spec.ts b/packages/storybook/src/generators/cypress-project/cypress-project.spec.ts
index b3d082c85a8d7b..0dc2fb7533af89 100644
--- a/packages/storybook/src/generators/cypress-project/cypress-project.spec.ts
+++ b/packages/storybook/src/generators/cypress-project/cypress-project.spec.ts
@@ -17,6 +17,7 @@ describe('@nx/storybook:cypress-project', () => {
     tree = createTreeWithEmptyWorkspace({ layout: 'apps-libs' });
     await libraryGenerator(tree, {
       name: 'test-ui-lib',
+      projectNameAndRootFormat: 'as-provided',
     });
   });
   afterEach(() => jest.clearAllMocks());