diff --git a/registry/coder/modules/devcontainers-cli/README.md b/registry/coder/modules/devcontainers-cli/README.md
index ed2a4cb17..9622cceb0 100644
--- a/registry/coder/modules/devcontainers-cli/README.md
+++ b/registry/coder/modules/devcontainers-cli/README.md
@@ -15,7 +15,7 @@ The devcontainers-cli module provides an easy way to install [`@devcontainers/cl
 ```tf
 module "devcontainers-cli" {
   source   = "registry.coder.com/coder/devcontainers-cli/coder"
-  version  = "1.0.31"
+  version  = "1.0.32"
   agent_id = coder_agent.example.id
 }
 ```
diff --git a/registry/coder/modules/devcontainers-cli/main.test.ts b/registry/coder/modules/devcontainers-cli/main.test.ts
index 6cfe4d04e..5a4d34e8e 100644
--- a/registry/coder/modules/devcontainers-cli/main.test.ts
+++ b/registry/coder/modules/devcontainers-cli/main.test.ts
@@ -45,6 +45,8 @@ const executeScriptInContainerWithPackageManager = async (
 
   console.log(path);
 
+  await execContainer(id, [shell, "-c", "mkdir -p /tmp/coder-script-data"]);
+
   const resp = await execContainer(
     id,
     [shell, "-c", instance.script],
@@ -52,6 +54,8 @@ const executeScriptInContainerWithPackageManager = async (
       "--env",
       "CODER_SCRIPT_BIN_DIR=/tmp/coder-script-data/bin",
       "--env",
+      "CODER_SCRIPT_DATA_DIR=/tmp/coder-script-data",
+      "--env",
       `PATH=${path}:/tmp/coder-script-data/bin`,
     ],
   );
diff --git a/registry/coder/modules/devcontainers-cli/run.sh b/registry/coder/modules/devcontainers-cli/run.sh
old mode 100644
new mode 100755
index f7bf852c6..7be78616d
--- a/registry/coder/modules/devcontainers-cli/run.sh
+++ b/registry/coder/modules/devcontainers-cli/run.sh
@@ -1,5 +1,11 @@
 #!/usr/bin/env sh
 
+# We want to cd into `$CODER_SCRIPT_DATA_DIR` as the current directory
+# might contain a `package.json` with `packageManager` set to something
+# other than the detected package manager. When this happens, it can
+# cause the installation to fail.
+cd "$CODER_SCRIPT_DATA_DIR"
+
 # If @devcontainers/cli is already installed, we can skip
 if command -v devcontainer >/dev/null 2>&1; then
     echo "🥳 @devcontainers/cli is already installed into $(which devcontainer)!"
@@ -34,7 +40,7 @@ install() {
         # so that the devcontainer command is available
         if [ -z "$PNPM_HOME" ]; then
             PNPM_HOME="$CODER_SCRIPT_BIN_DIR"
-            export M_HOME
+            export PNPM_HOME
         fi
         pnpm add -g @devcontainers/cli
     elif [ "$PACKAGE_MANAGER" = "yarn" ]; then