diff --git a/common/config/subspaces/default/common-versions.json b/common/config/subspaces/default/common-versions.json
index 67948f39642..bcaa4198eb5 100644
--- a/common/config/subspaces/default/common-versions.json
+++ b/common/config/subspaces/default/common-versions.json
@@ -143,6 +143,10 @@
     "@rushstack/eslint-config": [
       // This is used by the ESLint 7 build tests
       "3.7.1"
+    ],
+    "@rushstack/set-webpack-public-path-plugin": [
+      // This is used by the webpack 4 localization plugin tests
+      "^4.1.16"
     ]
   }
 }
diff --git a/repo-scripts/repo-toolbox/src/ToolboxCommandLine.ts b/repo-scripts/repo-toolbox/src/cli/ToolboxCommandLine.ts
similarity index 65%
rename from repo-scripts/repo-toolbox/src/ToolboxCommandLine.ts
rename to repo-scripts/repo-toolbox/src/cli/ToolboxCommandLine.ts
index 475a4b48aa9..eb384cdb761 100644
--- a/repo-scripts/repo-toolbox/src/ToolboxCommandLine.ts
+++ b/repo-scripts/repo-toolbox/src/cli/ToolboxCommandLine.ts
@@ -3,9 +3,9 @@
 
 import { CommandLineParser } from '@rushstack/ts-command-line';
 
-import { ReadmeAction } from './ReadmeAction';
-import { RecordVersionsAction } from './RecordVersionsAction';
-import { BumpCyclicsAction } from './BumpCyclicsAction';
+import { ReadmeAction } from './actions/ReadmeAction';
+import { RecordVersionsAction } from './actions/RecordVersionsAction';
+import { BumpDecoupledLocalDependencies } from './actions/BumpDecoupledLocalDependencies';
 
 export class ToolboxCommandLine extends CommandLineParser {
   public constructor() {
@@ -16,6 +16,6 @@ export class ToolboxCommandLine extends CommandLineParser {
 
     this.addAction(new ReadmeAction());
     this.addAction(new RecordVersionsAction());
-    this.addAction(new BumpCyclicsAction());
+    this.addAction(new BumpDecoupledLocalDependencies());
   }
 }
diff --git a/repo-scripts/repo-toolbox/src/BumpCyclicsAction.ts b/repo-scripts/repo-toolbox/src/cli/actions/BumpDecoupledLocalDependencies.ts
similarity index 78%
rename from repo-scripts/repo-toolbox/src/BumpCyclicsAction.ts
rename to repo-scripts/repo-toolbox/src/cli/actions/BumpDecoupledLocalDependencies.ts
index 2c43ef5874f..b2f10b83de8 100644
--- a/repo-scripts/repo-toolbox/src/BumpCyclicsAction.ts
+++ b/repo-scripts/repo-toolbox/src/cli/actions/BumpDecoupledLocalDependencies.ts
@@ -5,14 +5,14 @@ import type { ChildProcess } from 'node:child_process';
 
 import { Async, Executable, JsonFile } from '@rushstack/node-core-library';
 import { ConsoleTerminalProvider, Terminal } from '@rushstack/terminal';
-import { DependencyType, RushConfiguration } from '@microsoft/rush-lib';
+import { DependencyType, RushConfiguration, type CommonVersionsConfiguration } from '@microsoft/rush-lib';
 import { CommandLineAction } from '@rushstack/ts-command-line';
 
-export class BumpCyclicsAction extends CommandLineAction {
+export class BumpDecoupledLocalDependencies extends CommandLineAction {
   public constructor() {
     super({
-      actionName: 'bump-cyclic-dependencies',
-      summary: 'Updates cyclic dependencies inside the repo.',
+      actionName: 'bump-decoupled-local-dependencies',
+      summary: 'Updates decoupled local dependencies inside the repo.',
       documentation: ''
     });
   }
@@ -46,12 +46,25 @@ export class BumpCyclicsAction extends CommandLineAction {
     terminal.writeLine();
 
     for (const project of rushConfiguration.projects) {
+      const commonVersions: CommonVersionsConfiguration = project.subspace.getCommonVersions();
+
       for (const cyclicDependencyProject of project.decoupledLocalDependencies) {
-        const version: string = cyclicDependencyVersions.get(cyclicDependencyProject)!;
+        const existingVersion: string | undefined =
+          project.packageJson.dependencies?.[cyclicDependencyProject] ??
+          project.packageJson.devDependencies?.[cyclicDependencyProject];
+        if (
+          existingVersion &&
+          commonVersions.allowedAlternativeVersions.get(cyclicDependencyProject)?.includes(existingVersion)
+        ) {
+          // Skip if the existing version is allowed by common-versions.json
+          continue;
+        }
+
+        const newVersion: string = cyclicDependencyVersions.get(cyclicDependencyProject)!;
         if (project.packageJsonEditor.tryGetDependency(cyclicDependencyProject)) {
           project.packageJsonEditor.addOrUpdateDependency(
             cyclicDependencyProject,
-            version,
+            newVersion,
             DependencyType.Regular
           );
         }
@@ -59,7 +72,7 @@ export class BumpCyclicsAction extends CommandLineAction {
         if (project.packageJsonEditor.tryGetDevDependency(cyclicDependencyProject)) {
           project.packageJsonEditor.addOrUpdateDependency(
             cyclicDependencyProject,
-            version,
+            newVersion,
             DependencyType.Dev
           );
         }
diff --git a/repo-scripts/repo-toolbox/src/ReadmeAction.ts b/repo-scripts/repo-toolbox/src/cli/actions/ReadmeAction.ts
similarity index 100%
rename from repo-scripts/repo-toolbox/src/ReadmeAction.ts
rename to repo-scripts/repo-toolbox/src/cli/actions/ReadmeAction.ts
diff --git a/repo-scripts/repo-toolbox/src/RecordVersionsAction.ts b/repo-scripts/repo-toolbox/src/cli/actions/RecordVersionsAction.ts
similarity index 100%
rename from repo-scripts/repo-toolbox/src/RecordVersionsAction.ts
rename to repo-scripts/repo-toolbox/src/cli/actions/RecordVersionsAction.ts
diff --git a/repo-scripts/repo-toolbox/src/start.ts b/repo-scripts/repo-toolbox/src/start.ts
index aaab695092f..11b0e4064c4 100644
--- a/repo-scripts/repo-toolbox/src/start.ts
+++ b/repo-scripts/repo-toolbox/src/start.ts
@@ -1,7 +1,7 @@
 // Copyright (c) Microsoft Corporation. All rights reserved. Licensed under the MIT license.
 // See LICENSE in the project root for license information.
 
-import { ToolboxCommandLine } from './ToolboxCommandLine';
+import { ToolboxCommandLine } from './cli/ToolboxCommandLine';
 
 // eslint-disable-next-line no-console
 console.log('repo-toolbox\n');