diff --git a/src/System.Management.Automation/engine/remoting/commands/CustomShellCommands.cs b/src/System.Management.Automation/engine/remoting/commands/CustomShellCommands.cs
index a342219a85..a544c37660 100644
--- a/src/System.Management.Automation/engine/remoting/commands/CustomShellCommands.cs
+++ b/src/System.Management.Automation/engine/remoting/commands/CustomShellCommands.cs
@@ -964,7 +964,13 @@ else
                     }
                 }
 
-                string destPath = System.IO.Path.Combine(Utils.DefaultPowerShellAppBase, "SessionConfig",
+                string destFolder = System.IO.Path.Combine(Utils.DefaultPowerShellAppBase, "SessionConfig");
+                if (!Directory.Exists(destFolder))
+                {
+                    Directory.CreateDirectory(destFolder);
+                }
+
+                string destPath = System.IO.Path.Combine(destFolder,
                     shellName + "_" + sessionGuid.ToString() + StringLiterals.PowerShellDISCFileExtension);
                 if (string.Equals(ProcessorArchitecture, "x86", StringComparison.OrdinalIgnoreCase))
                 {
diff --git a/test/powershell/Modules/Microsoft.PowerShell.Utility/Implicit.Remoting.Tests.ps1 b/test/powershell/Modules/Microsoft.PowerShell.Utility/Implicit.Remoting.Tests.ps1
index 72247041c8..a5a4d27223 100644
--- a/test/powershell/Modules/Microsoft.PowerShell.Utility/Implicit.Remoting.Tests.ps1
+++ b/test/powershell/Modules/Microsoft.PowerShell.Utility/Implicit.Remoting.Tests.ps1
@@ -2108,7 +2108,10 @@ Describe "Import-PSSession on Restricted Session" -tags "Feature","RequireAdminO
         }
     }
 
-    It "Verifies that Import-PSSession works on a restricted session" {
+    # Blocked by https://github.com/PowerShell/PowerShell/issues/4275
+    # Need a way to created restricted endpoint based on a different endpoint other than microsoft.powershell which points
+    # to Windows PowerShell 5.1
+    It "Verifies that Import-PSSession works on a restricted session" -Pending {
 
         $errorVariable = $null
         Import-PSSession -Session $session -AllowClobber -ErrorVariable $errorVariable