diff --git a/e2e/nx-misc/src/misc.test.ts b/e2e/nx-misc/src/misc.test.ts
index ab6869c97e..46e8a843f5 100644
--- a/e2e/nx-misc/src/misc.test.ts
+++ b/e2e/nx-misc/src/misc.test.ts
@@ -1,6 +1,7 @@
 import type { NxJsonConfiguration } from '@nx/devkit';
 import {
   cleanupProject,
+  createNonNxProjectDirectory,
   e2eCwd,
   getPackageManagerCommand,
   getPublishedVersion,
@@ -588,8 +589,6 @@ describe('global installation', () => {
   let oldPath: string;
 
   beforeAll(() => {
-    newProject();
-
     ensureDirSync(globalsPath);
     writeFileSync(
       path.join(path.dirname(path.dirname(globalsPath)), 'package.json'),
@@ -618,66 +617,95 @@ describe('global installation', () => {
     process.env.PATH = oldPath;
   });
 
-  it('should invoke Nx commands from local repo', () => {
-    const nxJsContents = readFile('node_modules/nx/bin/nx.js');
-    updateFile('node_modules/nx/bin/nx.js', `console.log('local install');`);
-    let output: string;
-    expect(() => {
-      output = runCommand(`nx show projects`);
-    }).not.toThrow();
-    expect(output).toContain('local install');
-    updateFile('node_modules/nx/bin/nx.js', nxJsContents);
+  describe('inside nx directory', () => {
+    beforeAll(() => {
+      newProject();
+    });
+
+    it('should invoke Nx commands from local repo', () => {
+      const nxJsContents = readFile('node_modules/nx/bin/nx.js');
+      updateFile('node_modules/nx/bin/nx.js', `console.log('local install');`);
+      let output: string;
+      expect(() => {
+        output = runCommand(`nx show projects`);
+      }).not.toThrow();
+      expect(output).toContain('local install');
+      updateFile('node_modules/nx/bin/nx.js', nxJsContents);
+    });
+
+    it('should warn if local Nx has higher major version', () => {
+      const packageJsonContents = readFile('node_modules/nx/package.json');
+      updateJson('node_modules/nx/package.json', (json) => {
+        json.version = `${major(getPublishedVersion()) + 2}.0.0`;
+        return json;
+      });
+      let output: string;
+      expect(() => {
+        output = runCommand(`nx show projects`);
+      }).not.toThrow();
+      expect(output).toContain('Its time to update Nx');
+      updateFile('node_modules/nx/package.json', packageJsonContents);
+    });
+
+    it('--version should display global installs version', () => {
+      const packageJsonContents = readFile('node_modules/nx/package.json');
+      const localVersion = `${major(getPublishedVersion()) + 2}.0.0`;
+      updateJson('node_modules/nx/package.json', (json) => {
+        json.version = localVersion;
+        return json;
+      });
+      let output: string;
+      expect(() => {
+        output = runCommand(`nx --version`);
+      }).not.toThrow();
+      expect(output).toContain(`- Local: v${localVersion}`);
+      expect(output).toContain(`- Global: v${getPublishedVersion()}`);
+      updateFile('node_modules/nx/package.json', packageJsonContents);
+    });
+
+    it('report should display global installs version', () => {
+      const packageJsonContents = readFile('node_modules/nx/package.json');
+      const localVersion = `${major(getPublishedVersion()) + 2}.0.0`;
+      updateJson('node_modules/nx/package.json', (json) => {
+        json.version = localVersion;
+        return json;
+      });
+      let output: string;
+      expect(() => {
+        output = runCommand(`nx report`);
+      }).not.toThrow();
+      expect(output).toEqual(
+        expect.stringMatching(new RegExp(`nx.*:.*${localVersion}`))
+      );
+      expect(output).toEqual(
+        expect.stringMatching(
+          new RegExp(`nx \\(global\\).*:.*${getPublishedVersion()}`)
+        )
+      );
+      updateFile('node_modules/nx/package.json', packageJsonContents);
+    });
   });
 
-  it('should warn if local Nx has higher major version', () => {
-    const packageJsonContents = readFile('node_modules/nx/package.json');
-    updateJson('node_modules/nx/package.json', (json) => {
-      json.version = `${major(getPublishedVersion()) + 2}.0.0`;
-      return json;
+  describe('non-nx directory', () => {
+    beforeAll(() => {
+      createNonNxProjectDirectory();
     });
-    let output: string;
-    expect(() => {
-      output = runCommand(`nx show projects`);
-    }).not.toThrow();
-    expect(output).toContain('Its time to update Nx');
-    updateFile('node_modules/nx/package.json', packageJsonContents);
-  });
 
-  it('--version should display global installs version', () => {
-    const packageJsonContents = readFile('node_modules/nx/package.json');
-    const localVersion = `${major(getPublishedVersion()) + 2}.0.0`;
-    updateJson('node_modules/nx/package.json', (json) => {
-      json.version = localVersion;
-      return json;
+    it('--version should report global version and local not found', () => {
+      let output: string;
+      expect(() => {
+        output = runCommand(`nx --version`);
+      }).not.toThrow();
+      expect(output).toContain(`- Local: Not found`);
+      expect(output).toContain(`- Global: v${getPublishedVersion()}`);
     });
-    let output: string;
-    expect(() => {
-      output = runCommand(`nx --version`);
-    }).not.toThrow();
-    expect(output).toContain(`- Local: v${localVersion}`);
-    expect(output).toContain(`- Global: v${getPublishedVersion()}`);
-    updateFile('node_modules/nx/package.json', packageJsonContents);
-  });
 
-  it('report should display global installs version', () => {
-    const packageJsonContents = readFile('node_modules/nx/package.json');
-    const localVersion = `${major(getPublishedVersion()) + 2}.0.0`;
-    updateJson('node_modules/nx/package.json', (json) => {
-      json.version = localVersion;
-      return json;
+    it('graph should work in npm workspaces repo', () => {
+      expect(() => {
+        runCommand(`nx graph --file graph.json`);
+      }).not.toThrow();
+      const { graph } = readJson('graph.json');
+      expect(graph).toHaveProperty('nodes');
     });
-    let output: string;
-    expect(() => {
-      output = runCommand(`nx report`);
-    }).not.toThrow();
-    expect(output).toEqual(
-      expect.stringMatching(new RegExp(`nx.*:.*${localVersion}`))
-    );
-    expect(output).toEqual(
-      expect.stringMatching(
-        new RegExp(`nx \\(global\\).*:.*${getPublishedVersion()}`)
-      )
-    );
-    updateFile('node_modules/nx/package.json', packageJsonContents);
   });
 });
diff --git a/packages/nx/bin/nx.ts b/packages/nx/bin/nx.ts
index 0e58cf4cba..47ff78c576 100644
--- a/packages/nx/bin/nx.ts
+++ b/packages/nx/bin/nx.ts
@@ -35,47 +35,27 @@ function main() {
     if (!(Symbol as any).observable)
       (Symbol as any).observable = Symbol('observable polyfill');
 
-    if (!workspace) {
-      output.log({
-        title: `The current directory isn't part of an Nx workspace.`,
-        bodyLines: [
-          `To create a workspace run:`,
-          chalk.bold.white(`npx create-nx-workspace@latest <workspace name>`),
-          '',
-          `To add Nx to an existing workspace with a workspace-specific nx.json, run:`,
-          chalk.bold.white(`npx nx@latest init`),
-        ],
-      });
-
-      output.note({
-        title: `For more information please visit https://nx.dev/`,
-      });
-      process.exit(1);
-    }
-
     // Make sure that a local copy of Nx exists in workspace
     let localNx: string;
     try {
-      localNx = resolveNx(workspace);
+      localNx = workspace && resolveNx(workspace);
     } catch {
       localNx = null;
     }
 
     const isLocalInstall = localNx === resolveNx(null);
-    const LOCAL_NX_VERSION: string | null = localNx
-      ? getLocalNxVersion(workspace)
-      : null;
-    const GLOBAL_NX_VERSION: string | null = isLocalInstall
-      ? null
-      : require('../package.json').version;
-
-    globalThis.GLOBAL_NX_VERSION ??= GLOBAL_NX_VERSION;
+    const { LOCAL_NX_VERSION, GLOBAL_NX_VERSION } = determineNxVersions(
+      localNx,
+      workspace,
+      isLocalInstall
+    );
 
     if (process.argv[2] === '--version') {
-      console.log(stripIndents`Nx Version:
-      - Local: ${LOCAL_NX_VERSION ? 'v' + LOCAL_NX_VERSION : 'Not found'}
-      - Global: ${GLOBAL_NX_VERSION ? 'v' + GLOBAL_NX_VERSION : 'Not found'}`);
-      process.exit(0);
+      handleNxVersionCommand(LOCAL_NX_VERSION, GLOBAL_NX_VERSION);
+    }
+
+    if (!workspace) {
+      handleNoWorkspace();
     }
 
     if (!localNx) {
@@ -98,6 +78,50 @@ function main() {
   }
 }
 
+function handleNoWorkspace() {
+  output.log({
+    title: `The current directory isn't part of an Nx workspace.`,
+    bodyLines: [
+      `To create a workspace run:`,
+      chalk.bold.white(`npx create-nx-workspace@latest <workspace name>`),
+      '',
+      `To add Nx to an existing workspace with a workspace-specific nx.json, run:`,
+      chalk.bold.white(`npx nx@latest init`),
+    ],
+  });
+
+  output.note({
+    title: `For more information please visit https://nx.dev/`,
+  });
+  process.exit(1);
+}
+
+function handleNxVersionCommand(
+  LOCAL_NX_VERSION: string,
+  GLOBAL_NX_VERSION: string
+) {
+  console.log(stripIndents`Nx Version:
+      - Local: ${LOCAL_NX_VERSION ? 'v' + LOCAL_NX_VERSION : 'Not found'}
+      - Global: ${GLOBAL_NX_VERSION ? 'v' + GLOBAL_NX_VERSION : 'Not found'}`);
+  process.exit(0);
+}
+
+function determineNxVersions(
+  localNx: string,
+  workspace: WorkspaceTypeAndRoot,
+  isLocalInstall: boolean
+) {
+  const LOCAL_NX_VERSION: string | null = localNx
+    ? getLocalNxVersion(workspace)
+    : null;
+  const GLOBAL_NX_VERSION: string | null = isLocalInstall
+    ? null
+    : require('../package.json').version;
+
+  globalThis.GLOBAL_NX_VERSION ??= GLOBAL_NX_VERSION;
+  return { LOCAL_NX_VERSION, GLOBAL_NX_VERSION };
+}
+
 function resolveNx(workspace: WorkspaceTypeAndRoot | null) {
   // prefer Nx installed in .nx/installation
   try {
@@ -167,17 +191,13 @@ function warnIfUsingOutdatedGlobalInstall(
 }
 
 function getLocalNxVersion(workspace: WorkspaceTypeAndRoot): string | null {
-  // TODO(v17): Remove @nrwl/cli from this list
-  const localNxPackages = ['nx', '@nrwl/tao', '@nrwl/cli'];
-  for (const pkg of localNxPackages) {
-    try {
-      const { packageJson } = readModulePackageJson(
-        'nx',
-        getNxRequirePaths(workspace.dir)
-      );
-      return packageJson.version;
-    } catch {}
-  }
+  try {
+    const { packageJson } = readModulePackageJson(
+      'nx',
+      getNxRequirePaths(workspace.dir)
+    );
+    return packageJson.version;
+  } catch {}
 }
 
 function _getLatestVersionOfNx(): string {
diff --git a/packages/nx/src/utils/package-json.ts b/packages/nx/src/utils/package-json.ts
index 93e217290f..b99e9de9f6 100644
--- a/packages/nx/src/utils/package-json.ts
+++ b/packages/nx/src/utils/package-json.ts
@@ -6,7 +6,6 @@ import {
 } from '../config/workspace-json-project-json';
 import { readJsonFile } from './fileutils';
 import { getNxRequirePaths } from './installation-directory';
-import { workspaceRoot } from './workspace-root';
 
 export type PackageJsonTargetConfiguration = Omit<
   TargetConfiguration,