chore: cherry-pick fixes from the main branch

[chetan-rns]

cherry-pick b317965 (fix: don't remove default project on restart (#656))
cherry-pick c8217aa (fix: use prefixed AppProject name while handling resyncs (#666))

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[jannfis]

Please cherry-pick each commit individually with its own commit message, so that we can easily keep track of what's in the release branch. Thanks.