diff --git a/packages/angular_devkit/build_angular/src/browser/schema.json b/packages/angular_devkit/build_angular/src/browser/schema.json
index b229e7b5627f..65d4542c030e 100644
--- a/packages/angular_devkit/build_angular/src/browser/schema.json
+++ b/packages/angular_devkit/build_angular/src/browser/schema.json
@@ -69,7 +69,7 @@
     "optimization": {
       "description": "Enables optimization of the build output. Including minification of scripts and styles, tree-shaking, dead-code elimination, inlining of critical CSS and fonts inlining. For more information, see https://angular.io/guide/workspace-config#optimization-configuration.",
       "x-user-analytics": 16,
-      "default": false,
+      "default": true,
       "oneOf": [
         {
           "type": "object",
@@ -153,11 +153,11 @@
       "type": "boolean",
       "description": "Build using Ahead of Time compilation.",
       "x-user-analytics": 13,
-      "default": false
+      "default": true
     },
     "sourceMap": {
       "description": "Output source maps for scripts and styles. For more information, see https://angular.io/guide/workspace-config#source-map-configuration.",
-      "default": true,
+      "default": false,
       "oneOf": [
         {
           "type": "object",
@@ -193,7 +193,7 @@
     "vendorChunk": {
       "type": "boolean",
       "description": "Generate a seperate bundle containing only vendor libraries. This option should only used for development.",
-      "default": true
+      "default": false
     },
     "commonChunk": {
       "type": "boolean",
@@ -280,7 +280,7 @@
     "extractLicenses": {
       "type": "boolean",
       "description": "Extract all licenses in a separate file.",
-      "default": false
+      "default": true
     },
     "showCircularDependencies": {
       "type": "boolean",
@@ -291,12 +291,12 @@
     "buildOptimizer": {
       "type": "boolean",
       "description": "Enables '@angular-devkit/build-optimizer' optimizations when using the 'aot' option.",
-      "default": false
+      "default": true
     },
     "namedChunks": {
       "type": "boolean",
       "description": "Use file name for lazy loaded chunks.",
-      "default": true
+      "default": false
     },
     "subresourceIntegrity": {
       "type": "boolean",
diff --git a/packages/angular_devkit/build_angular/src/browser/specs/works_spec.ts b/packages/angular_devkit/build_angular/src/browser/specs/works_spec.ts
index 8de151c2ca8c..e8a0f633f4a4 100644
--- a/packages/angular_devkit/build_angular/src/browser/specs/works_spec.ts
+++ b/packages/angular_devkit/build_angular/src/browser/specs/works_spec.ts
@@ -24,6 +24,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
         polyfills: 'src/polyfills.ts',
         tsConfig: 'src/tsconfig.app.json',
         progress: false,
+        vendorChunk: true,
         assets: ['src/favicon.ico', 'src/assets'],
         styles: ['src/styles.css'],
         scripts: [],
@@ -33,13 +34,13 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       await harness.executeOnce();
 
       // Default files should be in outputPath.
-      expect(harness.hasFile('dist/runtime.js')).toBe(true);
-      expect(harness.hasFile('dist/main.js')).toBe(true);
-      expect(harness.hasFile('dist/polyfills.js')).toBe(true);
-      expect(harness.hasFile('dist/vendor.js')).toBe(true);
-      expect(harness.hasFile('dist/favicon.ico')).toBe(true);
-      expect(harness.hasFile('dist/styles.css')).toBe(true);
-      expect(harness.hasFile('dist/index.html')).toBe(true);
+      expect(harness.hasFile('dist/runtime.js')).toBeTrue();
+      expect(harness.hasFile('dist/main.js')).toBeTrue();
+      expect(harness.hasFile('dist/polyfills.js')).toBeTrue();
+      expect(harness.hasFile('dist/vendor.js')).toBeTrue();
+      expect(harness.hasFile('dist/favicon.ico')).toBeTrue();
+      expect(harness.hasFile('dist/styles.css')).toBeTrue();
+      expect(harness.hasFile('dist/index.html')).toBeTrue();
     });
   });
 });
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/behavior/rebuild-errors_spec.ts b/packages/angular_devkit/build_angular/src/browser/tests/behavior/rebuild-errors_spec.ts
index 06d766cd23fa..116942a78444 100644
--- a/packages/angular_devkit/build_angular/src/browser/tests/behavior/rebuild-errors_spec.ts
+++ b/packages/angular_devkit/build_angular/src/browser/tests/behavior/rebuild-errors_spec.ts
@@ -281,6 +281,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       harness.useTarget('build', {
         ...BASE_OPTIONS,
         watch: true,
+        aot: false,
       });
 
       const buildCount = await harness
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/behavior/typescript-target_spec.ts b/packages/angular_devkit/build_angular/src/browser/tests/behavior/typescript-target_spec.ts
index 8ebb5f784d66..c7b28159fa4d 100644
--- a/packages/angular_devkit/build_angular/src/browser/tests/behavior/typescript-target_spec.ts
+++ b/packages/angular_devkit/build_angular/src/browser/tests/behavior/typescript-target_spec.ts
@@ -39,6 +39,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
 
       harness.useTarget('build', {
         ...BASE_OPTIONS,
+        vendorChunk: true,
       });
 
       const { result, logs } = await harness.executeOnce();
@@ -87,6 +88,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
 
       harness.useTarget('build', {
         ...BASE_OPTIONS,
+        vendorChunk: true,
         sourceMap: {
           scripts: true,
         },
@@ -119,6 +121,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
 
       harness.useTarget('build', {
         ...BASE_OPTIONS,
+        vendorChunk: true,
       });
 
       const { result, logs } = await harness.executeOnce();
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/options/extract-licenses_spec.ts b/packages/angular_devkit/build_angular/src/browser/tests/options/extract-licenses_spec.ts
index 50b29d23ee1b..0210fdd8ab2f 100644
--- a/packages/angular_devkit/build_angular/src/browser/tests/options/extract-licenses_spec.ts
+++ b/packages/angular_devkit/build_angular/src/browser/tests/options/extract-licenses_spec.ts
@@ -32,14 +32,14 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       harness.expectFile('dist/3rdpartylicenses.txt').toNotExist();
     });
 
-    it(`should not generate '3rdpartylicenses.txt' when 'extractLicenses' is not set`, async () => {
+    it(`should generate '3rdpartylicenses.txt' when 'extractLicenses' is not set`, async () => {
       harness.useTarget('build', {
         ...BASE_OPTIONS,
       });
 
       const { result } = await harness.executeOnce();
       expect(result?.success).toBe(true);
-      harness.expectFile('dist/3rdpartylicenses.txt').toNotExist();
+      harness.expectFile('dist/3rdpartylicenses.txt').content.toContain('MIT');
     });
   });
 });
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/options/main_spec.ts b/packages/angular_devkit/build_angular/src/browser/tests/options/main_spec.ts
index 021039529a92..dfd79cc0f16a 100644
--- a/packages/angular_devkit/build_angular/src/browser/tests/options/main_spec.ts
+++ b/packages/angular_devkit/build_angular/src/browser/tests/options/main_spec.ts
@@ -22,7 +22,6 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
 
       harness.expectFile('dist/runtime.js').toExist();
       harness.expectFile('dist/main.js').toExist();
-      harness.expectFile('dist/vendor.js').toExist();
       harness.expectFile('dist/index.html').toExist();
     });
 
@@ -40,7 +39,6 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
 
       harness.expectFile('dist/runtime.js').toExist();
       harness.expectFile('dist/main.js').toExist();
-      harness.expectFile('dist/vendor.js').toNotExist();
       harness.expectFile('dist/index.html').toExist();
 
       harness.expectFile('dist/main.js').content.toContain(`console.log('main')`);
@@ -61,7 +59,6 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
 
       harness.expectFile('dist/runtime.js').toNotExist();
       harness.expectFile('dist/main.js').toNotExist();
-      harness.expectFile('dist/vendor.js').toNotExist();
       harness.expectFile('dist/index.html').toNotExist();
     });
   });
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/options/named-chunks_spec.ts b/packages/angular_devkit/build_angular/src/browser/tests/options/named-chunks_spec.ts
index 85fcb4796240..1bace45fcfb1 100644
--- a/packages/angular_devkit/build_angular/src/browser/tests/options/named-chunks_spec.ts
+++ b/packages/angular_devkit/build_angular/src/browser/tests/options/named-chunks_spec.ts
@@ -62,8 +62,8 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       expect(result?.success).toBe(true);
 
       harness.expectFile(MAIN_OUTPUT).toExist();
-      harness.expectFile(NAMED_LAZY_OUTPUT).toExist();
-      harness.expectFile(UNNAMED_LAZY_OUTPUT).toNotExist();
+      harness.expectFile(NAMED_LAZY_OUTPUT).toNotExist();
+      harness.expectFile(UNNAMED_LAZY_OUTPUT).toExist();
     });
   });
 });
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/options/output-hashing_spec.ts b/packages/angular_devkit/build_angular/src/browser/tests/options/output-hashing_spec.ts
index 6f046fcede67..e43d462f7c00 100644
--- a/packages/angular_devkit/build_angular/src/browser/tests/options/output-hashing_spec.ts
+++ b/packages/angular_devkit/build_angular/src/browser/tests/options/output-hashing_spec.ts
@@ -16,6 +16,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
     beforeEach(async () => {
       // Application code is not needed for asset tests
       await harness.writeFile('src/main.ts', '');
+      await harness.writeFile('src/polyfills.ts', '');
     });
 
     it('hashes all filenames when set to "all"', async () => {
@@ -27,6 +28,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       harness.useTarget('build', {
         ...BASE_OPTIONS,
         styles: ['src/styles.css'],
+        polyfills: 'src/polyfills.ts',
         outputHashing: OutputHashing.All,
       });
 
@@ -48,6 +50,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
 
       harness.useTarget('build', {
         ...BASE_OPTIONS,
+        polyfills: 'src/polyfills.ts',
         styles: ['src/styles.css'],
       });
 
@@ -70,6 +73,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       harness.useTarget('build', {
         ...BASE_OPTIONS,
         styles: ['src/styles.css'],
+        polyfills: 'src/polyfills.ts',
         outputHashing: OutputHashing.None,
       });
 
@@ -92,6 +96,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       harness.useTarget('build', {
         ...BASE_OPTIONS,
         styles: ['src/styles.css'],
+        polyfills: 'src/polyfills.ts',
         outputHashing: OutputHashing.Media,
       });
 
@@ -114,6 +119,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       harness.useTarget('build', {
         ...BASE_OPTIONS,
         styles: ['src/styles.css'],
+        polyfills: 'src/polyfills.ts',
         outputHashing: OutputHashing.Bundles,
       });
 
@@ -131,6 +137,7 @@ describeBuilder(buildWebpackBrowser, BROWSER_BUILDER_INFO, (harness) => {
       harness.useTarget('build', {
         ...BASE_OPTIONS,
         outputHashing: OutputHashing.All,
+        sourceMap: true,
         styles: [{
           input: 'src/styles.css',
           inject: false,
diff --git a/packages/angular_devkit/build_angular/src/browser/tests/setup.ts b/packages/angular_devkit/build_angular/src/browser/tests/setup.ts
index 6c44764e064f..0dcece4f7734 100644
--- a/packages/angular_devkit/build_angular/src/browser/tests/setup.ts
+++ b/packages/angular_devkit/build_angular/src/browser/tests/setup.ts
@@ -24,4 +24,8 @@ export const BASE_OPTIONS = Object.freeze<Schema>({
   outputPath: 'dist',
   tsConfig: 'src/tsconfig.app.json',
   progress: false,
+
+  // Disable optimizations
+  optimization: false,
+  buildOptimizer: false,
 });
diff --git a/packages/angular_devkit/build_angular/src/dev-server/tests/setup.ts b/packages/angular_devkit/build_angular/src/dev-server/tests/setup.ts
index cc864a9922a6..c1d513833191 100644
--- a/packages/angular_devkit/build_angular/src/dev-server/tests/setup.ts
+++ b/packages/angular_devkit/build_angular/src/dev-server/tests/setup.ts
@@ -24,7 +24,7 @@ export const DEV_SERVER_BUILDER_INFO = Object.freeze({
 });
 
 /**
- * Contains all required extract-i18n builder fields.
+ * Contains all required dev-server builder fields.
  * The port is also set to zero to ensure a free port is used for each test which
  * supports parallel test execution.
  */
diff --git a/packages/angular_devkit/build_angular/src/extract-i18n/index.ts b/packages/angular_devkit/build_angular/src/extract-i18n/index.ts
index bb7fdbdb7587..f300335a30e6 100644
--- a/packages/angular_devkit/build_angular/src/extract-i18n/index.ts
+++ b/packages/angular_devkit/build_angular/src/extract-i18n/index.ts
@@ -17,7 +17,7 @@ import type { Diagnostics } from '@angular/localize/src/tools/src/diagnostics';
 import * as fs from 'fs';
 import * as path from 'path';
 import * as webpack from 'webpack';
-import { Schema as BrowserBuilderOptions } from '../browser/schema';
+import { OutputHashing, Schema as BrowserBuilderOptions } from '../browser/schema';
 import { ExecutionTransformer } from '../transforms';
 import { createI18nOptions } from '../utils/i18n-options';
 import { assertCompatibleAngularVersion } from '../utils/version';
@@ -177,12 +177,15 @@ export async function execute(
       buildOptimizer: false,
       aot: true,
       progress: options.progress,
+      budgets: [],
       assets: [],
       scripts: [],
       styles: [],
       deleteOutputPath: false,
       extractLicenses: false,
       subresourceIntegrity: false,
+      outputHashing: OutputHashing.None,
+      namedChunks: true,
     },
     context,
     (wco) => {
diff --git a/packages/angular_devkit/build_angular/src/karma/index.ts b/packages/angular_devkit/build_angular/src/karma/index.ts
index 542a8d435870..a2f7c557e3a7 100644
--- a/packages/angular_devkit/build_angular/src/karma/index.ts
+++ b/packages/angular_devkit/build_angular/src/karma/index.ts
@@ -12,7 +12,7 @@ import { dirname, resolve } from 'path';
 import { Observable, from } from 'rxjs';
 import { defaultIfEmpty, switchMap } from 'rxjs/operators';
 import * as webpack from 'webpack';
-import { Schema as BrowserBuilderOptions } from '../browser/schema';
+import { OutputHashing, Schema as BrowserBuilderOptions } from '../browser/schema';
 import { ExecutionTransformer } from '../transforms';
 import { assertCompatibleAngularVersion } from '../utils/version';
 import { generateBrowserWebpackConfigFromContext } from '../utils/webpack-browser-config';
@@ -41,7 +41,18 @@ async function initialize(
     // only two properties are missing:
     // * `outputPath` which is fixed for tests
     // * `budgets` which might be incorrect due to extra dev libs
-    { ...((options as unknown) as BrowserBuilderOptions), outputPath: '', budgets: undefined },
+    {
+      ...((options as unknown) as BrowserBuilderOptions),
+      outputPath: '',
+      budgets: undefined,
+      optimization: false,
+      buildOptimizer: false,
+      aot: false,
+      vendorChunk: true,
+      namedChunks: true,
+      extractLicenses: false,
+      outputHashing: OutputHashing.None,
+    },
     context,
     wco => [
       getCommonConfig(wco),
diff --git a/packages/angular_devkit/build_angular/src/server/schema.json b/packages/angular_devkit/build_angular/src/server/schema.json
index aa4c01521026..4a9b7b6f9d11 100644
--- a/packages/angular_devkit/build_angular/src/server/schema.json
+++ b/packages/angular_devkit/build_angular/src/server/schema.json
@@ -42,7 +42,7 @@
     "optimization": {
       "description": "Enables optimization of the build output. Including minification of scripts and styles, tree-shaking and dead-code elimination. For more information, see https://angular.io/guide/workspace-config#optimization-configuration.",
       "x-user-analytics": 16,
-      "default": false,
+      "default": true,
       "oneOf": [
         {
           "type": "object",
@@ -84,7 +84,7 @@
     },
     "sourceMap": {
       "description": "Output source maps for scripts and styles. For more information, see https://angular.io/guide/workspace-config#source-map-configuration.",
-      "default": true,
+      "default": false,
       "oneOf": [
         {
           "type": "object",
@@ -189,7 +189,7 @@
     "namedChunks": {
       "type": "boolean",
       "description": "Use file name for lazy loaded chunks.",
-      "default": true
+      "default": false
     },
     "bundleDependencies": {
       "description": "Which external dependencies to bundle into the bundle. By default, all of node_modules will be bundled.",
diff --git a/packages/angular_devkit/build_angular/src/utils/normalize-optimization.ts b/packages/angular_devkit/build_angular/src/utils/normalize-optimization.ts
index 6946a3039f1a..8f72b05b1c9c 100644
--- a/packages/angular_devkit/build_angular/src/utils/normalize-optimization.ts
+++ b/packages/angular_devkit/build_angular/src/utils/normalize-optimization.ts
@@ -13,7 +13,7 @@ export type NormalizedOptimizationOptions = Required<Omit<OptimizationClass, 'fo
   styles: StylesClass,
 };
 
-export function normalizeOptimization(optimization: OptimizationUnion = false): NormalizedOptimizationOptions {
+export function normalizeOptimization(optimization: OptimizationUnion = true): NormalizedOptimizationOptions {
   if (typeof optimization === 'object') {
     return {
       scripts: !!optimization.scripts,
diff --git a/packages/angular_devkit/build_angular/test/hello-world-app/angular.json b/packages/angular_devkit/build_angular/test/hello-world-app/angular.json
index 060a1593f6a0..e4f4cf66efed 100644
--- a/packages/angular_devkit/build_angular/test/hello-world-app/angular.json
+++ b/packages/angular_devkit/build_angular/test/hello-world-app/angular.json
@@ -22,6 +22,13 @@
             "polyfills": "src/polyfills.ts",
             "tsConfig": "src/tsconfig.app.json",
             "progress": false,
+            "sourceMap": true,
+            "aot": false,
+            "vendorChunk": true,
+            "buildOptimizer": false,
+            "optimization": false,
+            "extractLicenses": false,
+            "namedChunks": true,
             "assets": [
               "src/favicon.ico",
               "src/assets"
@@ -67,7 +74,10 @@
             "outputPath": "dist-server",
             "main": "src/main.server.ts",
             "tsConfig": "src/tsconfig.server.json",
-            "progress": false
+            "progress": false,
+            "sourceMap": true,
+            "optimization": false,
+            "extractLicenses": false
           }
         },
         "app-shell": {
diff --git a/packages/schematics/angular/application/index.ts b/packages/schematics/angular/application/index.ts
index b8b4da6f7bfa..d79f1044b8d5 100644
--- a/packages/schematics/angular/application/index.ts
+++ b/packages/schematics/angular/application/index.ts
@@ -160,7 +160,6 @@ function addAppToWorkspaceFile(options: ApplicationOptions, appDir: string): Rul
           main: `${sourceRoot}/main.ts`,
           polyfills: `${sourceRoot}/polyfills.ts`,
           tsConfig: `${projectRoot}tsconfig.app.json`,
-          aot: true,
           inlineStyleLanguage,
           assets: [
             `${sourceRoot}/favicon.ico`,
@@ -178,16 +177,15 @@ function addAppToWorkspaceFile(options: ApplicationOptions, appDir: string): Rul
               replace: `${sourceRoot}/environments/environment.ts`,
               with: `${sourceRoot}/environments/environment.prod.ts`,
             }],
-            buildOptimizer: true,
-            optimization: true,
             outputHashing: 'all',
-            sourceMap: false,
-            namedChunks: false,
-            extractLicenses: true,
-            vendorChunk: false,
           },
           development: {
+            buildOptimizer: false,
+            optimization: false,
             vendorChunk: true,
+            extractLicenses: false,
+            sourceMap: true,
+            namedChunks: true,
           },
         },
       },
diff --git a/packages/schematics/angular/migrations/update-12/update-angular-config.ts b/packages/schematics/angular/migrations/update-12/update-angular-config.ts
index 4c0001f77f81..058911bc9793 100644
--- a/packages/schematics/angular/migrations/update-12/update-angular-config.ts
+++ b/packages/schematics/angular/migrations/update-12/update-angular-config.ts
@@ -6,16 +6,44 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
+import { JsonValue, workspaces } from '@angular-devkit/core';
 import { Rule } from '@angular-devkit/schematics';
 import { allTargetOptions, allWorkspaceTargets, updateWorkspace } from '../../utility/workspace';
 
+type BuilderOptionsType = Readonly<[optionName: string, oldDefault: JsonValue | undefined, newDefault: JsonValue | undefined][]>;
+
+const BrowserBuilderOptions: BuilderOptionsType = [
+  ['aot', false, true],
+  ['vendorChunk', true, false],
+  ['extractLicenses', true, false],
+  ['buildOptimizer', false, true],
+  ['sourceMap', true, false],
+  ['optimization', false, true],
+  ['namedChunks', false, true],
+];
+
+const ServerBuilderOptions: BuilderOptionsType = [
+  ['sourceMap', true, false],
+  ['optimization', false, true],
+];
+
 export default function (): Rule {
   return updateWorkspace(workspace => {
     for (const [, target] of allWorkspaceTargets(workspace)) {
-      if (!target.builder.startsWith('@angular-devkit/build-angular')) {
+      if (!target?.builder.startsWith('@angular-devkit/build-angular')) {
         continue;
       }
 
+      // Only interested in Angular Devkit browser and server builders
+      switch (target.builder) {
+        case '@angular-devkit/build-angular:server':
+          updateOptions(target, ServerBuilderOptions);
+          break;
+        case '@angular-devkit/build-angular:browser':
+          updateOptions(target, BrowserBuilderOptions);
+          break;
+      }
+
       for (const [, options] of allTargetOptions(target)) {
         delete options.experimentalRollupPass;
         delete options.lazyModules;
@@ -23,3 +51,29 @@ export default function (): Rule {
     }
   });
 }
+
+function updateOptions(
+  target: workspaces.TargetDefinition, optionsToUpdate: typeof ServerBuilderOptions | typeof BrowserBuilderOptions,
+): void {
+  if (!target.options) {
+    target.options = {};
+  }
+
+  const configurationOptions = target.configurations && Object.values(target.configurations);
+
+  for (const [optionName, oldDefault, newDefault] of optionsToUpdate) {
+    let value = target.options[optionName];
+    if (value === newDefault) {
+      // Value is same as new default
+      delete target.options[optionName];
+    } else if (value === undefined) {
+      // Value is not defined, hence the default in the builder was used.
+      target.options[optionName] = oldDefault;
+      value = oldDefault;
+    }
+
+    // Remove overrides in configurations which are no longer needed.
+    configurationOptions?.filter(o => o && o[optionName] === value)
+      .forEach(o => o && delete o[optionName]);
+  }
+}
diff --git a/packages/schematics/angular/migrations/update-12/update-angular-config_spec.ts b/packages/schematics/angular/migrations/update-12/update-angular-config_spec.ts
index b3cc6f6c3374..3f35fddd6c9e 100644
--- a/packages/schematics/angular/migrations/update-12/update-angular-config_spec.ts
+++ b/packages/schematics/angular/migrations/update-12/update-angular-config_spec.ts
@@ -27,33 +27,20 @@ function createWorkSpaceConfig(tree: UnitTestTree) {
           build: {
             builder: Builders.Browser,
             options: {
-              scripts: [
-                { lazy: true, name: 'bundle-1.js' },
-              ],
+              aot: true,
+              optimization: true,
               experimentalRollupPass: false,
-              sourceMaps: true,
               buildOptimizer: false,
               // tslint:disable-next-line:no-any
             } as any,
             configurations: {
               one: {
                 aot: true,
-                scripts: [
-                  { lazy: true, name: 'bundle-1.js' },
-                  { lazy: false, name: 'bundle-2.js' },
-                  { inject: true, name: 'bundle-3.js' },
-                  'bundle-4.js',
-                ],
-                styles: [
-                  { lazy: true, name: 'bundle-1.css' },
-                  { lazy: false, name: 'bundle-2.css' },
-                  { inject: true, name: 'bundle-3.css' },
-                  'bundle-3.css',
-                ],
               },
               two: {
                 experimentalRollupPass: true,
-                aot: true,
+                aot: false,
+                optimization: false,
               },
               // tslint:disable-next-line:no-any
             } as any,
@@ -85,9 +72,37 @@ describe(`Migration to update 'angular.json'. ${schematicName}`, () => {
     const { options, configurations } = getBuildTarget(newTree);
 
     expect(options.experimentalRollupPass).toBeUndefined();
-    expect(options.sourceMaps).toBeTrue();
+    expect(options.buildOptimizer).toBeFalse();
     expect(configurations).toBeDefined();
     expect(configurations?.one.experimentalRollupPass).toBeUndefined();
     expect(configurations?.two.experimentalRollupPass).toBeUndefined();
   });
+
+  it(`should remove value from "options" section which value is now the new default`, async () => {
+    const newTree = await schematicRunner.runSchematicAsync(schematicName, {}, tree).toPromise();
+    const { options, configurations } = getBuildTarget(newTree);
+
+    expect(options.aot).toBeUndefined();
+    expect(configurations?.one.aot).toBeUndefined();
+    expect(configurations?.two.aot).toBeFalse();
+  });
+
+  it(`should remove value from "configuration" section when value is the same as that of "options"`, async () => {
+    const newTree = await schematicRunner.runSchematicAsync(schematicName, {}, tree).toPromise();
+    const { options, configurations } = getBuildTarget(newTree);
+
+    expect(options.aot).toBeUndefined();
+    expect(configurations?.one.aot).toBeUndefined();
+    expect(configurations?.two.aot).toBeFalse();
+  });
+
+  it(`should add value in "options" section when option was not defined`, async () => {
+    const newTree = await schematicRunner.runSchematicAsync(schematicName, {}, tree).toPromise();
+    const { options, configurations } = getBuildTarget(newTree);
+
+    expect(options.sourceMap).toBeTrue();
+    expect(configurations?.one.sourceMap).toBeUndefined();
+    expect(configurations?.two.sourceMap).toBeUndefined();
+    expect(configurations?.two.optimization).toBeFalse();
+  });
 });