diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildMetricsService.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildMetricsService.kt
index a7e4958ab22..5457cdf78ad 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildMetricsService.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildMetricsService.kt
@@ -24,6 +24,7 @@ import org.jetbrains.kotlin.build.report.metrics.BuildTime
 import org.jetbrains.kotlin.gradle.plugin.internal.state.TaskExecutionResults
 import org.jetbrains.kotlin.gradle.plugin.statistics.KotlinBuildStatsService
 import org.jetbrains.kotlin.gradle.report.data.BuildOperationRecord
+import org.jetbrains.kotlin.gradle.utils.isProjectIsolationEnabled
 import org.jetbrains.kotlin.statistics.metrics.NumericalMetrics
 import org.jetbrains.kotlin.statistics.metrics.BooleanMetrics
 import java.util.concurrent.ConcurrentHashMap
@@ -134,7 +135,7 @@ abstract class BuildMetricsService : BuildService<BuildServiceParameters.None>,
             }
 
             //do not need to collect metrics if there aren't consumers for this data
-            val reportingSettings = reportingSettings(project.rootProject)
+            val reportingSettings = reportingSettings(project)
             if (reportingSettings.buildReportOutputs.isEmpty()) {
                 return null
             }
diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildReportsService.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildReportsService.kt
index 31bbc1c9060..c3ccdebafc7 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildReportsService.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/BuildReportsService.kt
@@ -305,7 +305,7 @@ abstract class BuildReportsService : BuildService<BuildReportsService.Parameters
             val serviceClass = BuildReportsService::class.java
             val serviceName = "${serviceClass.name}_${serviceClass.classLoader.hashCode()}"
 
-            val reportingSettings = reportingSettings(project.rootProject)
+            val reportingSettings = reportingSettings(project)
             if (reportingSettings.buildReportOutputs.isEmpty()) {
                 return null //no need to collect data
             }
diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/configureReporing.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/configureReporing.kt
index d8eee5bed06..103277f129c 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/configureReporing.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/report/configureReporing.kt
@@ -9,10 +9,12 @@ import org.gradle.api.Project
 import org.jetbrains.kotlin.gradle.plugin.PropertiesProvider
 import org.jetbrains.kotlin.gradle.plugin.PropertiesProvider.PropertyNames.KOTLIN_BUILD_REPORT_SINGLE_FILE
 import org.jetbrains.kotlin.gradle.plugin.PropertiesProvider.PropertyNames.KOTLIN_BUILD_REPORT_HTTP_URL
+import org.jetbrains.kotlin.gradle.utils.isProjectIsolationEnabled
 import org.jetbrains.kotlin.util.capitalizeDecapitalize.toUpperCaseAsciiOnly
+import java.io.File
 
-internal fun reportingSettings(rootProject: Project): ReportingSettings {
-    val properties = PropertiesProvider(rootProject)
+internal fun reportingSettings(project: Project): ReportingSettings {
+    val properties = PropertiesProvider(project)
     val buildReportOutputTypes = properties.buildReportOutputs.map {
         BuildReportType.values().firstOrNull { brt -> brt.name == it.trim().toUpperCaseAsciiOnly() }
             ?: throw IllegalStateException("Unknown output type: $it")
@@ -23,7 +25,12 @@ internal fun reportingSettings(rootProject: Project): ReportingSettings {
             else -> BuildReportMode.VERBOSE
         }
     val fileReportSettings = if (buildReportOutputTypes.contains(BuildReportType.FILE)) {
-        val buildReportDir = properties.buildReportFileOutputDir ?: rootProject.buildDir.resolve("reports/kotlin-build")
+        val buildReportDir = properties.buildReportFileOutputDir ?: (if (isProjectIsolationEnabled(project.gradle)) {
+            // TODO: it's a workaround for KT-52963, should be reworked – KT-55763
+            project.rootDir.resolve("build")
+        } else {
+            project.rootProject.buildDir
+        }).resolve("reports/kotlin-build")
         val includeMetricsInReport = properties.buildReportMetrics || buildReportMode == BuildReportMode.VERBOSE
         FileReportSettings(buildReportDir = buildReportDir, includeMetricsInReport = includeMetricsInReport)
     } else {
diff --git a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/targets/metadata/KotlinMetadataTargetConfigurator.kt b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/targets/metadata/KotlinMetadataTargetConfigurator.kt
index 3a1fbd09361..1187ad38971 100644
--- a/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/targets/metadata/KotlinMetadataTargetConfigurator.kt
+++ b/libraries/tools/kotlin-gradle-plugin/src/common/kotlin/org/jetbrains/kotlin/gradle/targets/metadata/KotlinMetadataTargetConfigurator.kt
@@ -34,14 +34,14 @@ internal const val COMMON_MAIN_ELEMENTS_CONFIGURATION_NAME = "commonMainMetadata
 internal const val ALL_COMPILE_METADATA_CONFIGURATION_NAME = "allSourceSetsCompileDependenciesMetadata"
 
 internal val Project.isKotlinGranularMetadataEnabled: Boolean
-    get() = project.pm20ExtensionOrNull != null || with(PropertiesProvider(rootProject)) {
+    get() = project.pm20ExtensionOrNull != null || with(PropertiesProvider(this)) {
         mppHierarchicalStructureByDefault || // then we want to use KLIB granular compilation & artifacts even if it's just commonMain
                 hierarchicalStructureSupport ||
                 enableGranularSourceSetsMetadata == true
     }
 
 internal val Project.shouldCompileIntermediateSourceSetsToMetadata: Boolean
-    get() = project.pm20ExtensionOrNull != null || with(PropertiesProvider(rootProject)) {
+    get() = project.pm20ExtensionOrNull != null || with(PropertiesProvider(this)) {
         when {
             !hierarchicalStructureSupport && mppHierarchicalStructureByDefault -> false
             else -> true