diff --git a/kas/isar.yaml b/kas/isar.yaml
index 16ce8b42..d15bdbe1 100644
--- a/kas/isar.yaml
+++ b/kas/isar.yaml
@@ -17,3 +17,7 @@ bblayers_conf_header:
   standard: |
     BBPATH = "${TOPDIR}"
     BBFILES ?= ""
+
+local_conf_header:
+  bbmulticonfig: |
+    BBMULTICONFIG += "${MACHINE}-${BASE_DISTRO_CODENAME}"
diff --git a/testsuite/start_vm.py b/testsuite/start_vm.py
index 0b9a52d6..f39e53a1 100755
--- a/testsuite/start_vm.py
+++ b/testsuite/start_vm.py
@@ -135,7 +135,17 @@ def sb_cleanup():
     os.remove(os.path.basename(OVMF_VARS_PATH))
 
 
+def kas_paths_workaround():
+    # "repo" simlink pointing to the isar dir makes kas-generated
+    # ${TOPDIR}/../repo/ paths in local.conf work outside of kas container
+    isar_dir = os.path.realpath(f'{os.path.dirname(__file__)}/..')
+    if not os.path.exists(f'{isar_dir}/repo'):
+        os.symlink('.', f'{isar_dir}/repo')
+
+
 def start_qemu(arch, build, distro, image, out, pid, enforce_pcbios):
+    kas_paths_workaround()
+
     cmdline, vm_ctx = format_qemu_cmdline(
         arch, build, distro, image, out, pid, enforce_pcbios
     )