diff --git a/python_modules/dagster/dagster/_cli/project.py b/python_modules/dagster/dagster/_cli/project.py
index cb37c3f555151..1fa5a217a3310 100644
--- a/python_modules/dagster/dagster/_cli/project.py
+++ b/python_modules/dagster/dagster/_cli/project.py
@@ -1,37 +1,34 @@
 import os
 import sys
-from typing import NamedTuple, Optional, Sequence
+from typing import List, NamedTuple, Optional, Sequence, Union
 
 import click
 import requests
 
-from dagster._generate import (
-    download_example_from_github,
-    generate_code_location,
-    generate_project,
-    generate_repository,
-)
+from dagster._generate import download_example_from_github, generate_project, generate_repository
 from dagster._generate.download import AVAILABLE_EXAMPLES
 from dagster.version import __version__ as dagster_version
 
 
 @click.group(name="project")
-def project_cli():
+def project_cli() -> None:
     """Commands for bootstrapping new Dagster projects and code locations."""
 
 
 # Keywords to flag in package names. When a project name contains one of these keywords, we check
 # if a conflicting PyPI package exists.
 FLAGGED_PACKAGE_KEYWORDS = ["dagster", "dbt"]
+VALID_EXCLUDES: list[str] = ["readme.md", "setup", "tests"]  # all lower case
 
 scaffold_repository_command_help_text = (
-    "(DEPRECATED; Use `dagster project scaffold-code-location` instead) "
+    "(DEPRECATED; Use `dagster project scaffold --excludes README.md` instead) "
     "Create a folder structure with a single Dagster repository, in the current directory. "
     "This CLI helps you to scaffold a new Dagster repository within a folder structure that "
     "includes multiple Dagster repositories"
 )
 
 scaffold_code_location_command_help_text = (
+    "(DEPRECATED; Use `dagster project scaffold --excludes README.md` instead) "
     "Create a folder structure with a single Dagster code location, in the current directory. "
     "This CLI helps you to scaffold a new Dagster code location within a folder structure that "
     "includes multiple Dagster code locations."
@@ -75,6 +72,37 @@ def check_if_pypi_package_conflict_exists(project_name: str) -> PackageConflictC
     return PackageConflictCheckResult(request_error_msg=None, conflict_exists=False)
 
 
+def _check_and_error_on_package_conflicts(project_name: str) -> None:
+    package_check_result: PackageConflictCheckResult = check_if_pypi_package_conflict_exists(
+        project_name
+    )
+    if package_check_result.request_error_msg:
+        click.echo(
+            click.style(
+                "An error occurred while checking for package conflicts:"
+                f" {package_check_result.request_error_msg}. \n\nConflicting package names will"
+                " cause import errors in your project if the existing PyPI package is included"
+                " as a dependency in your scaffolded project. If desired, this check can be"
+                " skipped by adding the `--ignore-package-conflict` flag.",
+                fg="red",
+            )
+        )
+        sys.exit(1)
+
+    if package_check_result.conflict_exists:
+        click.echo(
+            click.style(
+                f"The project '{project_name}' conflicts with an existing PyPI package."
+                " Conflicting package names will cause import errors in your project if the"
+                " existing PyPI package is included as a dependency in your scaffolded"
+                " project. Please choose another name, or add the `--ignore-package-conflict`"
+                " flag to bypass this check.",
+                fg="yellow",
+            )
+        )
+        sys.exit(1)
+
+
 @project_cli.command(
     name="scaffold-repository",
     short_help=scaffold_repository_command_help_text,
@@ -86,7 +114,7 @@ def check_if_pypi_package_conflict_exists(project_name: str) -> PackageConflictC
     type=click.STRING,
     help="Name of the new Dagster repository",
 )
-def scaffold_repository_command(name: str):
+def scaffold_repository_command(name: str) -> None:
     dir_abspath = os.path.abspath(name)
     if os.path.isdir(dir_abspath) and os.path.exists(dir_abspath):
         click.echo(
@@ -97,8 +125,7 @@ def scaffold_repository_command(name: str):
 
     click.echo(
         click.style(
-            "WARNING: This command is deprecated. Use `dagster project scaffold-code-location`"
-            " instead.",
+            "WARNING: command is deprecated. Use `dagster project scaffold --excludes readme` instead.",
             fg="yellow",
         )
     )
@@ -117,46 +144,15 @@ def scaffold_repository_command(name: str):
     type=click.STRING,
     help="Name of the new Dagster code location",
 )
-def scaffold_code_location_command(name: str):
-    dir_abspath = os.path.abspath(name)
-    if os.path.isdir(dir_abspath) and os.path.exists(dir_abspath):
-        click.echo(
-            click.style(f"The directory {dir_abspath} already exists. ", fg="red")
-            + "\nPlease delete the contents of this path or choose another location."
-        )
-        sys.exit(1)
-
-    generate_code_location(dir_abspath)
-    click.echo(_styled_success_statement(name, dir_abspath))
-
-
-def _check_and_error_on_package_conflicts(project_name: str) -> None:
-    package_check_result = check_if_pypi_package_conflict_exists(project_name)
-    if package_check_result.request_error_msg:
-        click.echo(
-            click.style(
-                "An error occurred while checking for package conflicts:"
-                f" {package_check_result.request_error_msg}. \n\nConflicting package names will"
-                " cause import errors in your project if the existing PyPI package is included"
-                " as a dependency in your scaffolded project. If desired, this check can be"
-                " skipped by adding the `--ignore-package-conflict` flag.",
-                fg="red",
-            )
-        )
-        sys.exit(1)
-
-    if package_check_result.conflict_exists:
-        click.echo(
-            click.style(
-                f"The project '{project_name}' conflicts with an existing PyPI package."
-                " Conflicting package names will cause import errors in your project if the"
-                " existing PyPI package is included as a dependency in your scaffolded"
-                " project. Please choose another name, or add the `--ignore-package-conflict`"
-                " flag to bypass this check.",
-                fg="yellow",
-            )
+@click.pass_context
+def scaffold_code_location_command(context, name: str):
+    click.echo(
+        click.style(
+            "WARNING: command is deprecated. Use `dagster project scaffold --excludes readme` instead.",
+            fg="yellow",
         )
-        sys.exit(1)
+    )
+    context.invoke(scaffold_command, name=name, excludes=["README.md"])
 
 
 @project_cli.command(
@@ -170,13 +166,24 @@ def _check_and_error_on_package_conflicts(project_name: str) -> None:
     type=click.STRING,
     help="Name of the new Dagster project",
 )
+@click.option(
+    "--excludes",
+    multiple=True,
+    type=click.STRING,
+    default=[],
+    help=f"Exclude case-insensitive file patterns from the project template. Valid patterns: {VALID_EXCLUDES}",
+)
 @click.option(
     "--ignore-package-conflict",
     is_flag=True,
     default=False,
     help="Controls whether the project name can conflict with an existing PyPI package.",
 )
-def scaffold_command(name: str, ignore_package_conflict: bool):
+def scaffold_command(
+    name: str,
+    excludes: Optional[Union[List[str], tuple]] = None,
+    ignore_package_conflict: bool = False,
+) -> None:
     dir_abspath = os.path.abspath(name)
     if os.path.isdir(dir_abspath) and os.path.exists(dir_abspath):
         click.echo(
@@ -185,10 +192,26 @@ def scaffold_command(name: str, ignore_package_conflict: bool):
         )
         sys.exit(1)
 
+    if isinstance(excludes, tuple):
+        excludes = list(excludes)
+    excludes = [] if not excludes else [item for item in excludes]
+
+    invalid_excludes = [item for item in excludes if item.lower() not in VALID_EXCLUDES]
+    if invalid_excludes:
+        click.echo(
+            click.style(
+                f"The following strings are invalid options for the excludes tag: {invalid_excludes}",
+                fg="red",
+            )
+            + f"Choose from {VALID_EXCLUDES}. Case-insensitive. "
+        )
+        sys.exit(1)
+    excludes = [item.lower() for item in excludes if item in VALID_EXCLUDES]
+
     if not ignore_package_conflict:
         _check_and_error_on_package_conflicts(name)
 
-    generate_project(dir_abspath)
+    generate_project(dir_abspath, excludes=excludes)
     click.echo(_styled_success_statement(name, dir_abspath))
 
 
@@ -219,7 +242,7 @@ def scaffold_command(name: str, ignore_package_conflict: bool):
     default=dagster_version,
     show_default=True,
 )
-def from_example_command(name: Optional[str], example: str, version: str):
+def from_example_command(name: Optional[str], example: str, version: str) -> None:
     name = name or example
     dir_abspath = os.path.abspath(name) + "/"
     if os.path.isdir(dir_abspath) and os.path.exists(dir_abspath):
@@ -229,7 +252,7 @@ def from_example_command(name: Optional[str], example: str, version: str):
         )
         sys.exit(1)
     else:
-        os.mkdir(dir_abspath)
+        os.makedirs(dir_abspath, exist_ok=True)
 
     download_example_from_github(dir_abspath, example, version)
 
@@ -241,7 +264,7 @@ def from_example_command(name: Optional[str], example: str, version: str):
     short_help=list_examples_command_help_text,
     help=list_examples_command_help_text,
 )
-def from_example_list_command():
+def from_example_list_command() -> None:
     click.echo("Examples available in `dagster project from-example`:")
 
     click.echo(_styled_list_examples_prints(AVAILABLE_EXAMPLES))
@@ -251,7 +274,7 @@ def _styled_list_examples_prints(examples: Sequence[str]) -> str:
     return "\n".join([f"* {name}" for name in examples])
 
 
-def _styled_success_statement(name: str, path: str):
+def _styled_success_statement(name: str, path: str) -> str:
     return (
         click.style("Success!", fg="green")
         + " Created "
diff --git a/python_modules/dagster/dagster/_generate/__init__.py b/python_modules/dagster/dagster/_generate/__init__.py
index 680aa2bc669e5..f6d6b66c15d42 100644
--- a/python_modules/dagster/dagster/_generate/__init__.py
+++ b/python_modules/dagster/dagster/_generate/__init__.py
@@ -1,6 +1,5 @@
 from dagster._generate.download import download_example_from_github as download_example_from_github
 from dagster._generate.generate import (
-    generate_code_location as generate_code_location,
     generate_project as generate_project,
     generate_repository as generate_repository,
 )
diff --git a/python_modules/dagster/dagster/_generate/download.py b/python_modules/dagster/dagster/_generate/download.py
index d51fb3f81a660..0266b2b59b3f4 100644
--- a/python_modules/dagster/dagster/_generate/download.py
+++ b/python_modules/dagster/dagster/_generate/download.py
@@ -11,11 +11,13 @@
 # Examples aren't that can't be downloaded from the dagster project CLI
 EXAMPLES_TO_IGNORE = [
     "deploy_k8s_beta",
-    "docs_snippets",
     "docs_beta_snippets",
+    "docs_snippets",
     "experimental",
-    "temp_pins.txt",
     "use_case_repository",
+    "pyproject.toml",
+    "README.md",
+    "temp_pins.txt",
 ]
 # Hardcoded list of available examples. The list is tested against the examples folder in this mono
 # repo to make sure it's up-to-date.
diff --git a/python_modules/dagster/dagster/_generate/generate.py b/python_modules/dagster/dagster/_generate/generate.py
index 07e336fc58a86..a3ce06873ea1b 100644
--- a/python_modules/dagster/dagster/_generate/generate.py
+++ b/python_modules/dagster/dagster/_generate/generate.py
@@ -1,12 +1,22 @@
 import os
 import posixpath
+from typing import List, Optional
 
 import click
 import jinja2
 
 from dagster.version import __version__ as dagster_version
 
-IGNORE_PATTERN_LIST = ["__pycache__", ".pytest_cache", "*.egg-info", ".DS_Store", "tox.ini"]
+DEFAULT_EXCLUDES: List[str] = [
+    "__pycache__",
+    ".pytest_cache",
+    "*.egg-info",
+    ".DS_Store",
+    ".ruff_cache",
+    "tox.ini",
+]
+
+PROJECT_NAME_PLACEHOLDER = "PROJECT_NAME_PLACEHOLDER"
 
 
 def generate_repository(path: str):
@@ -14,124 +24,100 @@ def generate_repository(path: str):
 
     click.echo(f"Creating a Dagster repository at {path}.")
 
-    # Step 1: Generate files for Dagster repository
-    _generate_files_from_template(
+    #
+    generate_project(
         path=path,
+        excludes=None,
         name_placeholder=REPO_NAME_PLACEHOLDER,
-        project_template_path=os.path.join(
-            os.path.dirname(__file__), "templates", REPO_NAME_PLACEHOLDER
-        ),
+        templates_path=os.path.join(os.path.dirname(__file__), "templates", REPO_NAME_PLACEHOLDER),
     )
 
     click.echo(f"Generated files for Dagster repository in {path}.")
 
 
-def generate_code_location(path: str):
-    CODE_LOCATION_NAME_PLACEHOLDER = "CODE_LOCATION_NAME_PLACEHOLDER"
-
-    click.echo(f"Creating a Dagster code location at {path}.")
-
-    # Step 1: Generate files for Dagster code location including pyproject.toml, setup.py
-    _generate_files_from_template(
-        path=path,
-        name_placeholder=CODE_LOCATION_NAME_PLACEHOLDER,
-        project_template_path=os.path.join(
-            os.path.dirname(__file__), "templates", CODE_LOCATION_NAME_PLACEHOLDER
-        ),
-    )
-
-    click.echo(f"Generated files for Dagster code location in {path}.")
-
-
-def generate_project(path: str):
-    PROJECT_NAME_PLACEHOLDER = "PROJECT_NAME_PLACEHOLDER"
+def generate_project(
+    path: str,
+    excludes: Optional[List[str]] = None,
+    name_placeholder: str = PROJECT_NAME_PLACEHOLDER,
+    templates_path: str = PROJECT_NAME_PLACEHOLDER,
+):
+    """Renders templates for Dagster project."""
+    excludes = DEFAULT_EXCLUDES if not excludes else DEFAULT_EXCLUDES + excludes
 
     click.echo(f"Creating a Dagster project at {path}.")
 
-    # Step 1: Generate files for Dagster code location
-    generate_code_location(path)
-
-    # Step 2: Generate project-level files, e.g. README
-    _generate_files_from_template(
-        path=path,
-        name_placeholder=PROJECT_NAME_PLACEHOLDER,
-        project_template_path=os.path.join(
-            os.path.dirname(__file__), "templates", PROJECT_NAME_PLACEHOLDER
-        ),
-        skip_mkdir=True,
-    )
-
-    click.echo(f"Generated files for Dagster project in {path}.")
-
-
-def _generate_files_from_template(
-    path: str, name_placeholder: str, project_template_path: str, skip_mkdir: bool = False
-):
     normalized_path = os.path.normpath(path)
-    code_location_name = os.path.basename(normalized_path).replace("-", "_")
+    project_name: str = os.path.basename(normalized_path).replace("-", "_")
+    os.mkdir(normalized_path)
 
-    if not skip_mkdir:  # skip if the dir is created by previous command
-        os.mkdir(normalized_path)
-
-    loader = jinja2.FileSystemLoader(searchpath=project_template_path)
-    env = jinja2.Environment(loader=loader)
+    project_template_path: str = os.path.join(
+        os.path.dirname(__file__), "templates", templates_path
+    )
+    loader: jinja2.loaders.FileSystemLoader = jinja2.FileSystemLoader(
+        searchpath=project_template_path
+    )
+    env: jinja2.environment.Environment = jinja2.Environment(loader=loader)
 
+    # merge custom skip_files with the default list
     for root, dirs, files in os.walk(project_template_path):
         # For each subdirectory in the source template, create a subdirectory in the destination.
         for dirname in dirs:
-            src_dir_path = os.path.join(root, dirname)
-            if _should_skip_file(src_dir_path):
+            src_dir_path: str = os.path.join(root, dirname)
+            if _should_skip_file(src_dir_path, excludes):
                 continue
 
-            src_relative_dir_path = os.path.relpath(src_dir_path, project_template_path)
-            dst_relative_dir_path = src_relative_dir_path.replace(
+            src_relative_dir_path: str = os.path.relpath(src_dir_path, project_template_path)
+            dst_relative_dir_path: str = src_relative_dir_path.replace(
                 name_placeholder,
-                code_location_name,
+                project_name,
                 1,
             )
-            dst_dir_path = os.path.join(normalized_path, dst_relative_dir_path)
+            dst_dir_path: str = os.path.join(normalized_path, dst_relative_dir_path)
 
             os.mkdir(dst_dir_path)
 
         # For each file in the source template, render a file in the destination.
         for filename in files:
             src_file_path = os.path.join(root, filename)
-            if _should_skip_file(src_file_path):
+            if _should_skip_file(src_file_path, excludes):
                 continue
 
-            src_relative_file_path = os.path.relpath(src_file_path, project_template_path)
-            dst_relative_file_path = src_relative_file_path.replace(
+            src_relative_file_path: str = os.path.relpath(src_file_path, project_template_path)
+            dst_relative_file_path: str = src_relative_file_path.replace(
                 name_placeholder,
-                code_location_name,
+                project_name,
                 1,
             )
-            dst_file_path = os.path.join(normalized_path, dst_relative_file_path)
+            dst_file_path: str = os.path.join(normalized_path, dst_relative_file_path)
 
-            if dst_file_path.endswith(".tmpl"):
-                dst_file_path = dst_file_path[: -len(".tmpl")]
+            if dst_file_path.endswith(".jinja"):
+                dst_file_path = dst_file_path[: -len(".jinja")]
 
             with open(dst_file_path, "w", encoding="utf8") as f:
                 # Jinja template names must use the POSIX path separator "/".
-                template_name = src_relative_file_path.replace(os.sep, posixpath.sep)
-                template = env.get_template(name=template_name)
+                template_name: str = src_relative_file_path.replace(os.sep, posixpath.sep)
+                template: jinja2.environment.Template = env.get_template(name=template_name)
                 f.write(
                     template.render(
-                        repo_name=code_location_name,  # deprecated
-                        code_location_name=code_location_name,
+                        repo_name=project_name,  # deprecated
+                        code_location_name=project_name,
                         dagster_version=dagster_version,
+                        project_name=project_name,
                     )
                 )
                 f.write("\n")
 
+    click.echo(f"Generated files for Dagster project in {path}.")
+
 
-def _should_skip_file(path):
+def _should_skip_file(path: str, excludes: List[str] = DEFAULT_EXCLUDES):
     """Given a file path `path` in a source template, returns whether or not the file should be skipped
     when generating destination files.
 
     Technically, `path` could also be a directory path that should be skipped.
     """
-    for pattern in IGNORE_PATTERN_LIST:
-        if pattern in path:
+    for pattern in excludes:
+        if pattern.lower() in path.lower():
             return True
 
     return False
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/setup.cfg.tmpl b/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/setup.cfg.tmpl
deleted file mode 100644
index adfae7c0745fd..0000000000000
--- a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/setup.cfg.tmpl
+++ /dev/null
@@ -1,2 +0,0 @@
-[metadata]
-name = {{ code_location_name }}
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER/__init__.py b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER/__init__.py
similarity index 100%
rename from python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER/__init__.py
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER/__init__.py
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER/assets.py b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER/assets.py
similarity index 100%
rename from python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER/assets.py
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER/assets.py
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER/definitions.py b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER/definitions.py.jinja
similarity index 74%
rename from python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER/definitions.py
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER/definitions.py.jinja
index 6dd330fcd8ded..1f59c3f583c8c 100644
--- a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER/definitions.py
+++ b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER/definitions.py.jinja
@@ -1,6 +1,6 @@
 from dagster import Definitions, load_assets_from_modules
 
-from . import assets  # noqa: TID252
+from {{ project_name }} import assets  # noqa: TID252
 
 all_assets = load_assets_from_modules([assets])
 
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER_tests/__init__.py b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER_tests/__init__.py
similarity index 100%
rename from python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER_tests/__init__.py
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER_tests/__init__.py
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER_tests/test_assets.py.tmpl b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER_tests/test_assets.py.jinja
similarity index 100%
rename from python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/CODE_LOCATION_NAME_PLACEHOLDER_tests/test_assets.py.tmpl
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/PROJECT_NAME_PLACEHOLDER_tests/test_assets.py.jinja
diff --git a/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/README.md b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/README.md.jinja
similarity index 83%
rename from python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/README.md
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/README.md.jinja
index af2c1cc75743e..f1e6dde91d3bd 100644
--- a/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/README.md
+++ b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/README.md.jinja
@@ -1,4 +1,4 @@
-# {{ repo_name }}
+# {{ project_name }}
 
 This is a [Dagster](https://dagster.io/) project scaffolded with [`dagster project scaffold`](https://docs.dagster.io/getting-started/create-new-project).
 
@@ -18,7 +18,7 @@ dagster dev
 
 Open http://localhost:3000 with your browser to see the project.
 
-You can start writing assets in `{{ repo_name }}/assets.py`. The assets are automatically loaded into the Dagster code location as you define them.
+You can start writing assets in `{{ project_name }}/assets.py`. The assets are automatically loaded into the Dagster code location as you define them.
 
 ## Development
 
@@ -28,10 +28,10 @@ You can specify new Python dependencies in `setup.py`.
 
 ### Unit testing
 
-Tests are in the `{{ repo_name }}_tests` directory and you can run tests using `pytest`:
+Tests are in the `{{ project_name }}_tests` directory and you can run tests using `pytest`:
 
 ```bash
-pytest {{ repo_name }}_tests
+pytest {{ project_name }}_tests
 ```
 
 ### Schedules and sensors
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/pyproject.toml.tmpl b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/pyproject.toml.jinja
similarity index 66%
rename from python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/pyproject.toml.tmpl
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/pyproject.toml.jinja
index 84e7d57e93b61..6e1afe2858a3a 100644
--- a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/pyproject.toml.tmpl
+++ b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/pyproject.toml.jinja
@@ -1,5 +1,5 @@
 [project]
-name = "{{ code_location_name }}"
+name = "{{ project_name }}"
 version = "0.1.0"
 description = "Add your description here"
 readme = "README.md"
@@ -20,5 +20,8 @@ requires = ["setuptools"]
 build-backend = "setuptools.build_meta"
 
 [tool.dagster]
-module_name = "{{ code_location_name }}.definitions"
-code_location_name = "{{ code_location_name }}"
+module_name = "{{ project_name }}.definitions"
+project_name = "{{ project_name }}"
+
+[tool.setuptools.packages.find]
+exclude=["{{ project_name }}_tests"]
\ No newline at end of file
diff --git a/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/setup.cfg.jinja b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/setup.cfg.jinja
new file mode 100644
index 0000000000000..dbfb6531ca2fb
--- /dev/null
+++ b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/setup.cfg.jinja
@@ -0,0 +1,2 @@
+[metadata]
+name = {{ project_name }}
diff --git a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/setup.py.tmpl b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/setup.py.jinja
similarity index 63%
rename from python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/setup.py.tmpl
rename to python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/setup.py.jinja
index 043242d6313bb..114e9232e5749 100644
--- a/python_modules/dagster/dagster/_generate/templates/CODE_LOCATION_NAME_PLACEHOLDER/setup.py.tmpl
+++ b/python_modules/dagster/dagster/_generate/templates/PROJECT_NAME_PLACEHOLDER/setup.py.jinja
@@ -1,8 +1,8 @@
 from setuptools import find_packages, setup
 
 setup(
-    name="{{ code_location_name }}",
-    packages=find_packages(exclude=["{{ code_location_name }}_tests"]),
+    name="{{ project_name }}",
+    packages=find_packages(exclude=["{{ project_name }}_tests"]),
     install_requires=[
         "dagster",
         "dagster-cloud"
diff --git a/python_modules/dagster/dagster_tests/cli_tests/test_project_commands.py b/python_modules/dagster/dagster_tests/cli_tests/test_project_commands.py
index 7a0fbf9055520..f7318e1ad2533 100644
--- a/python_modules/dagster/dagster_tests/cli_tests/test_project_commands.py
+++ b/python_modules/dagster/dagster_tests/cli_tests/test_project_commands.py
@@ -1,5 +1,6 @@
 import os
 import re
+from pathlib import Path
 
 from click.testing import CliRunner
 from dagster import file_relative_path
@@ -19,7 +20,8 @@ def test_project_scaffold_command_fails_when_dir_path_exists():
     with runner.isolated_filesystem():
         os.mkdir("existing_dir")
         result = runner.invoke(scaffold_command, ["--name", "existing_dir"])
-        assert re.match(r"The directory .* already exists", result.output)
+        assert "The directory" in result.output
+        assert "already exists" in result.output
         assert result.exit_code != 0
 
 
@@ -39,11 +41,11 @@ def test_project_scaffold_command_succeeds():
     with runner.isolated_filesystem():
         result = runner.invoke(scaffold_command, ["--name", "my_dagster_project"])
         assert result.exit_code == 0
-        assert os.path.exists("my_dagster_project")
-        assert os.path.exists("my_dagster_project/my_dagster_project")
-        assert os.path.exists("my_dagster_project/my_dagster_project_tests")
-        assert os.path.exists("my_dagster_project/README.md")
-        assert os.path.exists("my_dagster_project/pyproject.toml")
+        assert Path("my_dagster_project").exists()
+        assert Path("my_dagster_project/my_dagster_project/__init__.py").exists()
+        assert Path("my_dagster_project/my_dagster_project_tests/__init__.py").exists()
+        assert Path("my_dagster_project/README.md").exists()
+        assert Path("my_dagster_project/pyproject.toml").exists()
 
         # test target loadable
         origins = get_origins_from_toml("my_dagster_project/pyproject.toml")
@@ -51,29 +53,29 @@ def test_project_scaffold_command_succeeds():
         assert origins[0].loadable_target_origin.module_name == "my_dagster_project.definitions"
 
 
-def test_scaffold_code_location_scaffold_command_fails_when_dir_path_exists():
+def test_project_scaffold_command_excludes_succeeds():
     runner = CliRunner()
     with runner.isolated_filesystem():
-        os.mkdir("existing_dir")
-        result = runner.invoke(scaffold_code_location_command, ["--name", "existing_dir"])
-        assert re.match(r"The directory .* already exists", result.output)
-        assert result.exit_code != 0
+        result = runner.invoke(
+            scaffold_command,
+            ["--name", "diet_dagster", "--excludes", "setup", "--excludes", "tests"],
+        )
+        assert result.exit_code == 0
+        assert Path("diet_dagster/pyproject.toml").exists()
+        assert Path("diet_dagster/README.md").exists()
+        assert not Path("diet_dagster/diet_dagster_tests/__init__.py").exists()
+        assert not Path("diet_dagster/setup.cfg").exists()
+        assert not Path("diet_dagster/setup.py").exists()
 
 
-def test_scaffold_code_location_command_succeeds():
+def test_project_scaffold_command_excludes_fails_on_required_files():
     runner = CliRunner()
     with runner.isolated_filesystem():
-        result = runner.invoke(scaffold_code_location_command, ["--name", "my_dagster_code"])
-        assert result.exit_code == 0
-        assert os.path.exists("my_dagster_code")
-        assert os.path.exists("my_dagster_code/my_dagster_code")
-        assert os.path.exists("my_dagster_code/my_dagster_code_tests")
-        assert os.path.exists("my_dagster_code/pyproject.toml")
-
-        # test target loadable
-        origins = get_origins_from_toml("my_dagster_code/pyproject.toml")
-        assert len(origins) == 1
-        assert origins[0].loadable_target_origin.module_name == "my_dagster_code.definitions"
+        result = runner.invoke(
+            scaffold_command,
+            ["--name", "diet_dagster", "--excludes", "pyproject"],
+        )
+        assert result.exit_code != 0
 
 
 def test_from_example_command_fails_when_example_not_available():
@@ -94,11 +96,11 @@ def test_from_example_command_succeeds():
             ["--name", "my_dagster_project", "--example", "assets_dbt_python"],
         )
         assert result.exit_code == 0
-        assert os.path.exists("my_dagster_project")
-        assert os.path.exists("my_dagster_project/assets_dbt_python")
-        assert os.path.exists("my_dagster_project/assets_dbt_python_tests")
+        assert Path("my_dagster_project").exists()
+        assert Path("my_dagster_project/assets_dbt_python").exists()
+        assert Path("my_dagster_project/assets_dbt_python_tests").exists()
         # ensure we filter out tox.ini because it's used in our own CI
-        assert not os.path.exists("my_dagster_project/tox.ini")
+        assert not Path("my_dagster_project/tox.ini").exists()
 
 
 def test_from_example_command_versioned_succeeds():
@@ -116,11 +118,11 @@ def test_from_example_command_versioned_succeeds():
             ],
         )
         assert result.exit_code == 0
-        assert os.path.exists("my_dagster_project")
-        assert os.path.exists("my_dagster_project/assets_dbt_python")
-        assert os.path.exists("my_dagster_project/assets_dbt_python_tests")
+        assert Path("my_dagster_project").exists()
+        assert Path("my_dagster_project/assets_dbt_python").exists()
+        assert Path("my_dagster_project/assets_dbt_python_tests").exists()
         # ensure we filter out tox.ini because it's used in our own CI
-        assert not os.path.exists("my_dagster_project/tox.ini")
+        assert not Path("my_dagster_project/tox.ini").exists()
 
 
 def test_from_example_command_default_name():
@@ -131,21 +133,21 @@ def test_from_example_command_default_name():
             ["--name", "assets_dbt_python", "--example", "assets_dbt_python"],
         )
         assert result.exit_code == 0
-        assert os.path.exists("assets_dbt_python")
-        assert os.path.exists("assets_dbt_python/assets_dbt_python")
-        assert os.path.exists("assets_dbt_python/assets_dbt_python_tests")
+        assert Path("assets_dbt_python").exists()
+        assert Path("assets_dbt_python/assets_dbt_python").exists()
+        assert Path("assets_dbt_python/assets_dbt_python_tests").exists()
         # ensure we filter out tox.ini because it's used in our own CI
-        assert not os.path.exists("assets_dbt_python/tox.ini")
+        assert not Path("assets_dbt_python/tox.ini").exists()
 
 
 def test_available_examples_in_sync_with_example_folder():
     # ensure the list of AVAILABLE_EXAMPLES is in sync with the example folder minus EXAMPLES_TO_IGNORE
-    example_folder = file_relative_path(__file__, "../../../../examples")
+    example_folder = Path(file_relative_path(__file__, "../../../../examples"))
     available_examples_in_folder = [
         e
         for e in os.listdir(example_folder)
         if (
-            os.path.isdir(os.path.join(example_folder, e))
+            Path(example_folder / e).exists()
             and e not in EXAMPLES_TO_IGNORE
             and not _should_skip_file(e)
         )
@@ -153,6 +155,46 @@ def test_available_examples_in_sync_with_example_folder():
     assert set(available_examples_in_folder) == set(AVAILABLE_EXAMPLES)
 
 
+#####################
+# `dagster project scaffold-code-location` command is deprecated.
+
+
+def test_scaffold_code_location_deprecation():
+    runner = CliRunner()
+    with runner.isolated_filesystem():
+        result = runner.invoke(scaffold_code_location_command, ["--name", "my_dagster_project"])
+        assert re.match(
+            "WARNING: command is deprecated. Use `dagster project scaffold --excludes readme` instead.",
+            result.output.lstrip(),
+        )
+
+
+def test_scaffold_code_location_scaffold_command_fails_when_dir_path_exists():
+    runner = CliRunner()
+    with runner.isolated_filesystem():
+        os.mkdir("existing_dir")
+        result = runner.invoke(scaffold_code_location_command, ["--name", "existing_dir"])
+        assert "The directory" in result.output
+        assert "already exists" in result.output
+        assert result.exit_code != 0
+
+
+def test_scaffold_code_location_command_succeeds():
+    runner = CliRunner()
+    with runner.isolated_filesystem():
+        result = runner.invoke(scaffold_code_location_command, ["--name", "my_dagster_code"])
+        assert result.exit_code == 0
+        assert Path("my_dagster_code").exists()
+        assert Path("my_dagster_code/my_dagster_code/__init__.py").exists()
+        assert Path("my_dagster_code/my_dagster_code_tests/__init__.py").exists()
+        assert Path("my_dagster_code/pyproject.toml").exists()
+
+        # test target loadable
+        origins = get_origins_from_toml("my_dagster_code/pyproject.toml")
+        assert len(origins) == 1
+        assert origins[0].loadable_target_origin.module_name == "my_dagster_code.definitions"
+
+
 # `dagster project scaffold-repository` command is deprecated.
 # We're keeping the tests below for backcompat.
 
@@ -162,8 +204,7 @@ def test_scaffold_repository_deprecation():
     with runner.isolated_filesystem():
         result = runner.invoke(scaffold_repository_command, ["--name", "my_dagster_project"])
         assert re.match(
-            "WARNING: This command is deprecated. Use `dagster project scaffold-code-location`"
-            " instead.",
+            "WARNING: command is deprecated. Use `dagster project scaffold --excludes readme` instead.",
             result.output,
         )
 
@@ -182,10 +223,10 @@ def test_scaffold_repository_command_succeeds():
     with runner.isolated_filesystem():
         result = runner.invoke(scaffold_repository_command, ["--name", "my_dagster_repo"])
         assert result.exit_code == 0
-        assert os.path.exists("my_dagster_repo")
-        assert os.path.exists("my_dagster_repo/my_dagster_repo")
-        assert os.path.exists("my_dagster_repo/my_dagster_repo_tests")
-        assert not os.path.exists("my_dagster_repo/workspace.yaml")
+        assert Path("my_dagster_repo").exists()
+        assert Path("my_dagster_repo/my_dagster_repo").exists()
+        assert Path("my_dagster_repo/my_dagster_repo_tests").exists()
+        assert not Path("my_dagster_repo/workspace.yaml").exists()
 
 
 def test_versioned_download():
diff --git a/scripts/install_dev_python_modules.py b/scripts/install_dev_python_modules.py
index d97c6bff7c7c9..494534db2687c 100644
--- a/scripts/install_dev_python_modules.py
+++ b/scripts/install_dev_python_modules.py
@@ -49,16 +49,22 @@ def main(
 
     # Supported on all Python versions.
     editable_target_paths = [
+        ".buildkite/dagster-buildkite",
+        "examples/experimental/dagster-blueprints",
+        "examples/experimental/dagster-airlift[core,in-airflow,mwaa,dbt,test]",
+        "integration_tests/python_modules/dagster-k8s-test-infra",
+        "helm/dagster/schema[test]",
+        "python_modules/automation",
         "python_modules/dagster[pyright,ruff,test]",
         "python_modules/dagster-pipes",
         "python_modules/dagster-graphql",
         "python_modules/dagster-test",
         "python_modules/dagster-webserver",
         "python_modules/dagit",
-        "python_modules/automation",
         "python_modules/libraries/dagster-managed-elements",
         "python_modules/libraries/dagster-airbyte",
         "python_modules/libraries/dagster-aws[stubs,test]",
+        "python_modules/libraries/dagster-azure",
         "python_modules/libraries/dagster-celery",
         "python_modules/libraries/dagster-celery-docker",
         "python_modules/libraries/dagster-dask[yarn,pbs,kube]",
@@ -66,6 +72,9 @@ def main(
         "python_modules/libraries/dagster-datadog",
         "python_modules/libraries/dagster-datahub",
         "python_modules/libraries/dagster-dbt",
+        "python_modules/libraries/dagster-deltalake",
+        "python_modules/libraries/dagster-deltalake-pandas",
+        "python_modules/libraries/dagster-deltalake-polars",
         "python_modules/libraries/dagster-docker",
         "python_modules/libraries/dagster-gcp",
         "python_modules/libraries/dagster-gcp-pandas",
@@ -77,31 +86,26 @@ def main(
         "python_modules/libraries/dagster-celery-k8s",
         "python_modules/libraries/dagster-github",
         "python_modules/libraries/dagster-mlflow",
+        "python_modules/libraries/dagster-msteams",
         "python_modules/libraries/dagster-mysql",
         "python_modules/libraries/dagster-looker",
         "python_modules/libraries/dagster-openai",
         "python_modules/libraries/dagster-pagerduty",
         "python_modules/libraries/dagster-pandas",
+        "python_modules/libraries/dagster-pandera",
+        "python_modules/libraries/dagster-polars[deltalake,gcp,test]",
         "python_modules/libraries/dagster-papertrail",
         "python_modules/libraries/dagster-postgres",
         "python_modules/libraries/dagster-prometheus",
         "python_modules/libraries/dagster-pyspark",
         "python_modules/libraries/dagster-shell",
         "python_modules/libraries/dagster-slack",
+        "python_modules/libraries/dagster-snowflake",
+        "python_modules/libraries/dagster-snowflake-pandas",
         "python_modules/libraries/dagster-spark",
         "python_modules/libraries/dagster-ssh",
         "python_modules/libraries/dagster-twilio",
         "python_modules/libraries/dagstermill",
-        "integration_tests/python_modules/dagster-k8s-test-infra",
-        "python_modules/libraries/dagster-azure",
-        "python_modules/libraries/dagster-msteams",
-        "python_modules/libraries/dagster-deltalake",
-        "python_modules/libraries/dagster-deltalake-pandas",
-        "python_modules/libraries/dagster-deltalake-polars",
-        "helm/dagster/schema[test]",
-        ".buildkite/dagster-buildkite",
-        "examples/experimental/dagster-blueprints",
-        "examples/experimental/dagster-airlift[core,in-airflow,mwaa,dbt,test]",
     ]
 
     if sys.version_info <= (3, 12):
@@ -114,13 +118,8 @@ def main(
             "python_modules/libraries/dagster-airflow",
         ]
 
-    if sys.version_info > (3, 7):
-        editable_target_paths += [
-            "python_modules/libraries/dagster-pandera",
-            "python_modules/libraries/dagster-snowflake",
-            "python_modules/libraries/dagster-snowflake-pandas",
-            "python_modules/libraries/dagster-polars[deltalake,gcp,test]",
-        ]
+    # if sys.version_info > (3, 7):
+    #     editable_target_paths += []
 
     install_targets += list(
         itertools.chain.from_iterable(