diff --git a/packages/angular/cli/models/schematic-command.ts b/packages/angular/cli/models/schematic-command.ts
index a6be6add5788..af20499397d1 100644
--- a/packages/angular/cli/models/schematic-command.ts
+++ b/packages/angular/cli/models/schematic-command.ts
@@ -242,14 +242,17 @@ export abstract class SchematicCommand<
       schemaValidation: true,
       optionTransforms: [
         // Add configuration file defaults
-        async (schematic, current) => ({
-          ...(await getSchematicDefaults(
-            schematic.collection.name,
-            schematic.name,
-            getProjectName(),
-          )),
-          ...current,
-        }),
+        async (schematic, current) => {
+          const projectName =
+            typeof (current as Record<string, unknown>).project === 'string'
+              ? ((current as Record<string, unknown>).project as string)
+              : getProjectName();
+
+          return {
+            ...(await getSchematicDefaults(schematic.collection.name, schematic.name, projectName)),
+            ...current,
+          };
+        },
       ],
       engineHostCreator: (options) => new SchematicEngineHost(options.resolvePaths),
     });
@@ -446,14 +449,9 @@ export abstract class SchematicCommand<
     }
 
     const pathOptions = o ? this.setPathOptions(o, workingDir) : {};
-    let input = { ...pathOptions, ...args };
-
-    // Read the default values from the workspace.
-    const projectName = input.project !== undefined ? '' + input.project : null;
-    const defaults = await getSchematicDefaults(collectionName, schematicName, projectName);
-    input = {
-      ...defaults,
-      ...input,
+    const input = {
+      ...pathOptions,
+      ...args,
       ...options.additionalOptions,
     };
 
diff --git a/packages/schematics/angular/app-shell/index_spec.ts b/packages/schematics/angular/app-shell/index_spec.ts
index fb34c97523db..f18882ebdde7 100644
--- a/packages/schematics/angular/app-shell/index_spec.ts
+++ b/packages/schematics/angular/app-shell/index_spec.ts
@@ -17,7 +17,7 @@ describe('App Shell Schematic', () => {
     require.resolve('../collection.json'),
   );
   const defaultOptions: AppShellOptions = {
-    clientProject: 'bar',
+    project: 'bar',
   };
 
   const workspaceOptions: WorkspaceOptions = {
diff --git a/tests/legacy-cli/e2e/tests/generate/schematic-defaults.ts b/tests/legacy-cli/e2e/tests/generate/schematic-defaults.ts
new file mode 100644
index 000000000000..b4126339c3d1
--- /dev/null
+++ b/tests/legacy-cli/e2e/tests/generate/schematic-defaults.ts
@@ -0,0 +1,42 @@
+import { ng } from '../../utils/process';
+import { updateJsonFile } from '../../utils/project';
+
+export default async function () {
+  await updateJsonFile('angular.json', (config) => {
+    config.projects['test-project'].schematics = {
+      '@schematics/angular:component': {
+        style: 'scss',
+      },
+    };
+  });
+
+  // Generate component in application to verify that it's minimal
+  const { stdout } = await ng('generate', 'component', 'foo');
+  if (!stdout.includes('foo.component.scss')) {
+    console.log(stdout);
+    throw new Error('Expected "foo.component.scss" to exist.');
+  }
+
+  // Generate another project with different settings
+  await ng('generate', 'application', 'test-project-two', '--no-minimal');
+
+  await updateJsonFile('angular.json', (config) => {
+    config.projects['test-project-two'].schematics = {
+      '@schematics/angular:component': {
+        style: 'less',
+      },
+    };
+  });
+
+  const { stdout: stdout2 } = await ng(
+    'generate',
+    'component',
+    'foo',
+    '--project',
+    'test-project-two',
+  );
+  if (!stdout2.includes('foo.component.less')) {
+    console.log(stdout2);
+    throw new Error('Expected "foo.component.less" to exist.');
+  }
+}