diff --git a/studio/setup.ps1 b/studio/setup.ps1
index c0dde94100..8ad4009bac 100644
--- a/studio/setup.ps1
+++ b/studio/setup.ps1
@@ -1020,17 +1020,19 @@ if (Test-Path $LlamaServerBin) {
     # Re-sanitize CUDA_PATH_V* vars — Refresh-Environment (called during
     # Node/Python installs above) may have repopulated conflicting versioned
     # vars from the Machine registry.
-    $cudaPathVars2 = @([Environment]::GetEnvironmentVariables('Process').Keys | Where-Object { $_ -match '^CUDA_PATH_V' })
-    foreach ($v2 in $cudaPathVars2) {
-        [Environment]::SetEnvironmentVariable($v2, $null, 'Process')
+    if ($HasNvidiaSmi -and $CudaToolkitRoot) {
+        $cudaPathVars2 = @([Environment]::GetEnvironmentVariables('Process').Keys | Where-Object { $_ -match '^CUDA_PATH_V' })
+        foreach ($v2 in $cudaPathVars2) {
+            [Environment]::SetEnvironmentVariable($v2, $null, 'Process')
+        }
+        $tkDirName2 = Split-Path $CudaToolkitRoot -Leaf
+        if ($tkDirName2 -match '^v(\d+)\.(\d+)') {
+            [Environment]::SetEnvironmentVariable("CUDA_PATH_V$($Matches[1])_$($Matches[2])", $CudaToolkitRoot, 'Process')
+        }
+        # Also re-assert CUDA_PATH and CudaToolkitDir in case they were overwritten
+        [Environment]::SetEnvironmentVariable('CUDA_PATH', $CudaToolkitRoot, 'Process')
+        [Environment]::SetEnvironmentVariable('CudaToolkitDir', "$CudaToolkitRoot\", 'Process')
     }
-    $tkDirName2 = Split-Path $CudaToolkitRoot -Leaf
-    if ($tkDirName2 -match '^v(\d+)\.(\d+)') {
-        [Environment]::SetEnvironmentVariable("CUDA_PATH_V$($Matches[1])_$($Matches[2])", $CudaToolkitRoot, 'Process')
-    }
-    # Also re-assert CUDA_PATH and CudaToolkitDir in case they were overwritten
-    [Environment]::SetEnvironmentVariable('CUDA_PATH', $CudaToolkitRoot, 'Process')
-    [Environment]::SetEnvironmentVariable('CudaToolkitDir', "$CudaToolkitRoot\", 'Process')
 
     # -- Step A: Clone or pull llama.cpp --