See this code: https://github.com/actions/runner/blob/6bec1e3bb832aad26f4ad5b64759a8e4d468df24/src/Runner.Common/HostContext.cs#L233 The runner prefers `RUNNER_TOOL_CACHE` and then falls back to `RUNNER_TOOLSDIRECTORY`. `setup-python` only uses the latter: https://github.com/actions/setup-python/blob/9ac730844c47e52575257e93faf193c4530bc095/src/find-python.ts#L6 - [ ] Update the code - [ ] Update the [self-hosted guidance](https://github.com/actions/setup-python#using-setup-python-with-a-self-hosted-runner)