diff --git a/tests/system-setup/setup-defaults.sh b/tests/system-setup/setup-defaults.sh
index 29cf1828..692b9b37 100755
--- a/tests/system-setup/setup-defaults.sh
+++ b/tests/system-setup/setup-defaults.sh
@@ -1,7 +1,9 @@
 #!/bin/bash
 
+export MIAB_LDAP_PROJECT=true
+
 # Used by setup/start.sh
-export PRIMARY_HOSTNAME=${PRIMARY_HOSTNAME:-$(hostname --fqdn || hostname)}
+export PRIMARY_HOSTNAME=${PRIMARY_HOSTNAME:-$(hostname --fqdn 2>/dev/null || hostname)}
 export NONINTERACTIVE=${NONINTERACTIVE:-1}
 export SKIP_NETWORK_CHECKS=${SKIP_NETWORK_CHECKS:-1}
 export SKIP_SYSTEM_UPDATE=${SKIP_SYSTEM_UPDATE:-1}
@@ -11,10 +13,19 @@ export STORAGE_ROOT="${STORAGE_ROOT:-/home/$STORAGE_USER}"
 export EMAIL_ADDR="${EMAIL_ADDR:-qa@abc.com}"
 export EMAIL_PW="${EMAIL_PW:-Test_1234}"
 export PUBLIC_IP="${PUBLIC_IP:-$(source ${MIAB_DIR:-.}/setup/functions.sh; get_default_privateip 4)}"
-export LOCAL_MODS_DIR="${LOCAL_MODS_DIR:-local}"
+if lsmod | grep "^vboxguest[\t ]" >/dev/null; then
+    # The local mods directory defaults to 'local' (relative to the
+    # source tree, which is a mounted filesystem of the host). This
+    # will keep mods directory out of the source tree when running
+    # under virtualbox / vagrant.
+    export LOCAL_MODS_DIR="${LOCAL_MODS_DIR:-/local}"
+else
+    export LOCAL_MODS_DIR="${LOCAL_MODS_DIR:-local}"
+fi
 export DOWNLOAD_CACHE_DIR="${DOWNLOAD_CACHE_DIR:-$(pwd)/downloads}"
 export DOWNLOAD_NEXTCLOUD_FROM_GITHUB="${DOWNLOAD_NEXTCLOUD_FROM_GITHUB:-false}"
 
+
 # Used by ehdd/start-encrypted.sh
 export EHDD_KEYFILE="${EHDD_KEYFILE:-}"
 export EHDD_GB="${EHDD_GB:-2}"
@@ -43,3 +54,4 @@ export UPSTREAM_TAG="${UPSTREAM_TAG:-}"
 # For setup scripts that install miabldap releases
 export MIABLDAP_GIT="${MIABLDAP_GIT:-https://github.com/downtownallday/mailinabox-ldap.git}"
 export MIABLDAP_RELEASE_TAG="${MIABLDAP_RELEASE_TAG:-v55}"
+
diff --git a/tests/vagrant/Vagrantfile b/tests/vagrant/Vagrantfile
index 65ed6d6e..41be6d29 100644
--- a/tests/vagrant/Vagrantfile
+++ b/tests/vagrant/Vagrantfile
@@ -11,7 +11,6 @@ Vagrant.configure("2") do |config|
     config.vm.define "remote-nextcloud-docker-ehdd" do |m1|
       m1.vm.provision :shell, :inline => <<-SH
 cd /mailinabox
-source tests/vagrant/globals.sh || exit 1
 export PRIMARY_HOSTNAME=qa1.abc.com
 export FEATURE_MUNIN=false
 export EHDD_KEYFILE=$HOME/keyfile
@@ -27,7 +26,6 @@ SH
   config.vm.define "remote-nextcloud-docker" do |m1|
     m1.vm.provision :shell, :inline => <<-SH
 cd /mailinabox
-source tests/vagrant/globals.sh || exit 1
 export PRIMARY_HOSTNAME=qa2.abc.com
 export FEATURE_MUNIN=false
 tests/system-setup/remote-nextcloud-docker.sh upgrade basic || exit 1
@@ -41,7 +39,6 @@ SH
   config.vm.define "upgrade-from-upstream" do |m1|
     m1.vm.provision :shell, :inline => <<-SH
 cd /mailinabox
-source tests/vagrant/globals.sh || exit 1
 export PRIMARY_HOSTNAME=qa3.abc.com
 export UPSTREAM_TAG=jammyjellyfish2204
 tests/system-setup/upgrade-from-upstream.sh basic totpuser || exit 1
@@ -59,7 +56,6 @@ SH
   config.vm.define "upgrade" do |m1|
     m1.vm.provision :shell, :inline => <<-SH
 cd /mailinabox
-source tests/vagrant/globals.sh || exit 1
 export PRIMARY_HOSTNAME=upgrade.abc.com
 tests/system-setup/upgrade.sh basic totpuser || exit 1
 tests/runner.sh upgrade-basic upgrade-totpuser default || exit 2
diff --git a/tests/vagrant/globals.sh b/tests/vagrant/globals.sh
deleted file mode 100644
index 2a2c6b7b..00000000
--- a/tests/vagrant/globals.sh
+++ /dev/null
@@ -1,2 +0,0 @@
-export MIAB_LDAP_PROJECT=true
-export LOCAL_MODS_DIR=/local
diff --git a/tests/vagrant/vanilla/Vagrantfile b/tests/vagrant/vanilla/Vagrantfile
index cd781813..2dd67350 100644
--- a/tests/vagrant/vanilla/Vagrantfile
+++ b/tests/vagrant/vanilla/Vagrantfile
@@ -11,7 +11,6 @@ Vagrant.configure("2") do |config|
   config.vm.define "vanilla" do |m1|
     m1.vm.provision :shell, :inline => <<-SH
 cd /mailinabox
-source tests/vagrant/globals.sh || exit 1
 export PRIMARY_HOSTNAME=vanilla.local
 export FEATURE_MUNIN=false
 tests/system-setup/vanilla.sh