diff --git a/Modules/CTestUseLaunchers.cmake b/Modules/CTestUseLaunchers.cmake
index 5c544f8cd9..eeea992734 100644
--- a/Modules/CTestUseLaunchers.cmake
+++ b/Modules/CTestUseLaunchers.cmake
@@ -46,7 +46,7 @@ endif()
 
 if(CTEST_USE_LAUNCHERS)
   set(__launch_common_options
-    "--target-name <TARGET_NAME> --build-dir <CMAKE_CURRENT_BINARY_DIR>")
+    "--target-name <TARGET_NAME> --current-build-dir <CMAKE_CURRENT_BINARY_DIR>")
 
   set(__launch_compile_options
     "${__launch_common_options} --output <OBJECT> --source <SOURCE> --language <LANGUAGE>")
diff --git a/Source/cmake.cxx b/Source/cmake.cxx
index 2e3b7f61c6..d051d68650 100644
--- a/Source/cmake.cxx
+++ b/Source/cmake.cxx
@@ -2661,14 +2661,14 @@ int cmake::ActualConfigure()
     std::string launcher;
     if (mf->IsOn("CTEST_USE_LAUNCHERS")) {
       launcher =
-        cmStrCat("\"", cmSystemTools::GetCTestCommand(), "\" --launch ");
+        cmStrCat("\"", cmSystemTools::GetCTestCommand(), "\" --launch ",
+                 "--current-build-dir <CMAKE_CURRENT_BINARY_DIR> ");
     } else {
       launcher =
         cmStrCat("\"", cmSystemTools::GetCTestCommand(), "\" --instrument ");
     }
     std::string common_args =
-      cmStrCat(" --target-name <TARGET_NAME> --current-build-dir ",
-               "<CMAKE_CURRENT_BINARY_DIR> --build-dir \"",
+      cmStrCat(" --target-name <TARGET_NAME> --build-dir \"",
                this->State->GetBinaryDirectory(), "\" ");
     this->State->SetGlobalProperty(
       "RULE_LAUNCH_COMPILE",
diff --git a/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-result.txt b/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-result.txt
new file mode 100644
index 0000000000..b57e2deb77
--- /dev/null
+++ b/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-result.txt
@@ -0,0 +1 @@
+(-1|255)
diff --git a/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-stderr.txt b/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-stderr.txt
new file mode 100644
index 0000000000..e9327a3c6e
--- /dev/null
+++ b/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-stderr.txt
@@ -0,0 +1,2 @@
+Unable to find executable:.*MyThirdPartyDependency/src(/[^/
+]+)?/third_party
diff --git a/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-stdout.txt b/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-stdout.txt
new file mode 100644
index 0000000000..c2c1bc7a0a
--- /dev/null
+++ b/Tests/RunCMake/ctest_labels_for_subprojects/CTestScriptVariableCommandLineWithInstrumentation-stdout.txt
@@ -0,0 +1,9 @@
+0% tests passed, 1 tests failed out of 1
++
+Subproject Time Summary:
+MyThirdPartyDependency += +[0-9.]+ sec\*proc \(1 test\)
++
+Label Time Summary:
+NotASubproject += +[0-9.]+ sec\*proc \(1 test\)
++
+Total Test time \(real\) = +[0-9.]+ sec
diff --git a/Tests/RunCMake/ctest_labels_for_subprojects/RunCMakeTest.cmake b/Tests/RunCMake/ctest_labels_for_subprojects/RunCMakeTest.cmake
index 7ed87eaf48..9b3b6f4927 100644
--- a/Tests/RunCMake/ctest_labels_for_subprojects/RunCMakeTest.cmake
+++ b/Tests/RunCMake/ctest_labels_for_subprojects/RunCMakeTest.cmake
@@ -29,25 +29,36 @@ run_CTestScriptVariable()
 #    ctest -S test.cmake -DCTEST_LABELS_FOR_SUBPROJECTS:STRING="MySubproject"
 # Note: This test includes a failing build
 # Note: Also use --instrumentation mode to ensure it doesn't interfere with label generation
-function(run_CTestScriptVariableCommandLine)
+function(run_CTestScriptVariableCommandLine USE_INSTRUMENTATION)
   set(CTEST_EXTRA_CONFIG "set(CTEST_USE_LAUNCHERS 1)")
   set(CASE_TEST_PREFIX_CODE [[
 file(COPY "${CTEST_RUNCMAKE_SOURCE_DIRECTORY}/MyThirdPartyDependency"
   DESTINATION ${CTEST_SOURCE_DIRECTORY})
   ]])
-  set(CASE_CMAKELISTS_SUFFIX_CODE [[
-add_subdirectory(MyThirdPartyDependency)
-set(CMAKE_EXPERIMENTAL_INSTRUMENTATION "a37d1069-1972-4901-b9c9-f194aaf2b6e0")
-cmake_instrumentation(DATA_VERSION 1 API_VERSION 1)
-  ]])
-
-  run_ctest(CTestScriptVariableCommandLine "-DCTEST_LABELS_FOR_SUBPROJECTS:STRING=MyThirdPartyDependency")
+  if(USE_INSTRUMENTATION)
+    set(CASE_CMAKELISTS_SUFFIX_CODE [[
+  add_subdirectory(MyThirdPartyDependency)
+  set(CMAKE_EXPERIMENTAL_INSTRUMENTATION "a37d1069-1972-4901-b9c9-f194aaf2b6e0")
+  cmake_instrumentation(DATA_VERSION 1 API_VERSION 1)
+    ]])
+    set(RunCMake-check-file CTestScriptVariableCommandLine-check.cmake)
+    run_ctest(CTestScriptVariableCommandLineWithInstrumentation
+      "-DCTEST_LABELS_FOR_SUBPROJECTS:STRING=MyThirdPartyDependency")
+    unset(RunCMake-check-file)
+  else()
+    set(CASE_CMAKELISTS_SUFFIX_CODE [[
+  add_subdirectory(MyThirdPartyDependency)
+    ]])
+    run_ctest(CTestScriptVariableCommandLine
+      "-DCTEST_LABELS_FOR_SUBPROJECTS:STRING=MyThirdPartyDependency")
+  endif()
 
   unset(CTEST_EXTRA_CONFIG)
   unset(CASE_TEST_PREFIX_CODE)
   unset(CASE_CMAKELISTS_SUFFIX_CODE)
 endfunction()
-run_CTestScriptVariableCommandLine()
+run_CTestScriptVariableCommandLine(ON)
+run_CTestScriptVariableCommandLine(OFF)
 
 # 3. Set subprojects via a CTest module variable on the command line
 #    (will populate DartConfiguration.tcl)