diff --git a/eng/Version.Details.xml b/eng/Version.Details.xml
index 54d96538eae..38df097716a 100644
--- a/eng/Version.Details.xml
+++ b/eng/Version.Details.xml
@@ -96,14 +96,14 @@
       <Uri>https://dev.azure.com/dnceng/internal/_git/dotnet-runtime</Uri>
       <Sha>3a25a7f1cc446b60678ed25c9d829420d6321eba</Sha>
     </Dependency>
-    <Dependency Name="Microsoft.DotNet.Arcade.Sdk" Version="9.0.0-beta.26261.1">
+    <Dependency Name="Microsoft.DotNet.Arcade.Sdk" Version="9.0.0-beta.26372.8">
       <Uri>https://github.com/dotnet/arcade</Uri>
-      <Sha>6c1a2a69259c3f66af6176c9c70021b3d9989504</Sha>
+      <Sha>16960d68c1325deaabd35f46313462b7c1070545</Sha>
     </Dependency>
     <!-- Intermediate is necessary for source build. -->
-    <Dependency Name="Microsoft.SourceBuild.Intermediate.arcade" Version="9.0.0-beta.26261.1">
+    <Dependency Name="Microsoft.SourceBuild.Intermediate.arcade" Version="9.0.0-beta.26372.8">
       <Uri>https://github.com/dotnet/arcade</Uri>
-      <Sha>6c1a2a69259c3f66af6176c9c70021b3d9989504</Sha>
+      <Sha>16960d68c1325deaabd35f46313462b7c1070545</Sha>
       <SourceBuild RepoName="arcade" ManagedOnly="true" />
     </Dependency>
     <!-- Necessary for source-build. This allows Microsoft.Extensions.ObjectPool and System.Collections.Immutable packages
diff --git a/eng/Versions.props b/eng/Versions.props
index 8a3b1968f15..76ef082e7f8 100644
--- a/eng/Versions.props
+++ b/eng/Versions.props
@@ -50,7 +50,7 @@
     <MicrosoftNETCoreBrowserDebugHostTransportPackageVersion>6.0.2-servicing.22064.6</MicrosoftNETCoreBrowserDebugHostTransportPackageVersion>
     <MicrosoftNETCorePlatformsPackageVersion>6.0.1</MicrosoftNETCorePlatformsPackageVersion>
     <MicrosoftSourceBuildIntermediatesourcebuildreferencepackagesPackageVersion>10.0.617601</MicrosoftSourceBuildIntermediatesourcebuildreferencepackagesPackageVersion>
-    <MicrosoftSourceBuildIntermediatearcadePackageVersion>9.0.0-beta.26261.1</MicrosoftSourceBuildIntermediatearcadePackageVersion>
+    <MicrosoftSourceBuildIntermediatearcadePackageVersion>9.0.0-beta.26372.8</MicrosoftSourceBuildIntermediatearcadePackageVersion>
     <MicrosoftNetCompilersToolsetPackageVersion>4.14.0-3.25176.5</MicrosoftNetCompilersToolsetPackageVersion>
     <MicrosoftCommonLanguageServerProtocolFrameworkPackageVersion>4.14.0-3.25176.5</MicrosoftCommonLanguageServerProtocolFrameworkPackageVersion>
     <MicrosoftCodeAnalysisExternalAccessRazorPackageVersion>4.14.0-3.25176.5</MicrosoftCodeAnalysisExternalAccessRazorPackageVersion>
diff --git a/eng/common/core-templates/job/onelocbuild.yml b/eng/common/core-templates/job/onelocbuild.yml
index edefa789d36..79386ab0863 100644
--- a/eng/common/core-templates/job/onelocbuild.yml
+++ b/eng/common/core-templates/job/onelocbuild.yml
@@ -8,6 +8,12 @@ parameters:
   CeapexPat: $(dn-bot-ceapex-package-r) # PAT for the loc AzDO instance https://dev.azure.com/ceapex
   GithubPat: $(BotAccount-dotnet-bot-repo-PAT)
 
+  # Service connection for WIF-based Entra authentication to ceapex feeds (replaces CeapexPat).
+  # When set, dnceng/internal builds acquire a federated Entra token instead of using a PAT.
+  # All other projects (e.g. DevDiv, public), where this dnceng-scoped service connection does not
+  # exist, and any pipeline that sets this to '' fall back to PAT-based auth via the CeapexPat parameter.
+  CeapexServiceConnection: 'dnceng-onelocbuild-ceapex'
+
   SourcesDirectory: $(System.DefaultWorkingDirectory)
   CreatePr: true
   AutoCompletePr: false
@@ -73,6 +79,16 @@ jobs:
         displayName: Generate LocProject.json
         condition: ${{ parameters.condition }}
 
+    # Acquire an Entra token for ceapex feed access via WIF (dnceng/internal only).
+    # All other projects use PAT-based auth, since the ceapex service connection is scoped to dnceng/internal.
+    - ${{ if and(ne(parameters.CeapexServiceConnection, ''), eq(variables['System.TeamProject'], 'internal')) }}:
+      - template: /eng/common/core-templates/steps/get-federated-access-token.yml
+        parameters:
+          is1ESPipeline: ${{ parameters.is1ESPipeline }}
+          federatedServiceConnection: ${{ parameters.CeapexServiceConnection }}
+          outputVariableName: 'CeapexEntraToken'
+          condition: ${{ parameters.condition }}
+
     - task: OneLocBuild@2
       displayName: OneLocBuild
       env:
@@ -89,7 +105,10 @@ jobs:
           ${{ if eq(parameters.RepoType, 'gitHub') }}:
             isShouldReusePrSelected: ${{ parameters.ReusePr }}
         packageSourceAuth: patAuth
-        patVariable: ${{ parameters.CeapexPat }}
+        ${{ if and(ne(parameters.CeapexServiceConnection, ''), eq(variables['System.TeamProject'], 'internal')) }}:
+          patVariable: $(CeapexEntraToken)
+        ${{ if or(eq(parameters.CeapexServiceConnection, ''), ne(variables['System.TeamProject'], 'internal')) }}:
+          patVariable: ${{ parameters.CeapexPat }}
         ${{ if eq(parameters.RepoType, 'gitHub') }}:
           repoType: ${{ parameters.RepoType }}
           gitHubPatVariable: "${{ parameters.GithubPat }}"
diff --git a/eng/common/tools.ps1 b/eng/common/tools.ps1
index a06513a5940..d89aa48781b 100644
--- a/eng/common/tools.ps1
+++ b/eng/common/tools.ps1
@@ -727,7 +727,7 @@ function InitializeToolset() {
 
   '<Project Sdk="Microsoft.DotNet.Arcade.Sdk"/>' | Set-Content $proj
 
-  MSBuild-Core $proj $bl /t:__WriteToolsetLocation /clp:ErrorsOnly`;NoSummary /p:__ToolsetLocationOutputFile=$toolsetLocationFile
+  MSBuild-Core $proj $bl /t:__WriteToolsetLocation /clp:ErrorsOnly`;NoSummary /p:__ToolsetLocationOutputFile=$toolsetLocationFile /p:RestoreIgnoreFailedSources=true
 
   $path = Get-Content $toolsetLocationFile -Encoding UTF8 -TotalCount 1
   if (!(Test-Path $path)) {
diff --git a/eng/common/tools.sh b/eng/common/tools.sh
index 01b09b65796..c412703d1ba 100755
--- a/eng/common/tools.sh
+++ b/eng/common/tools.sh
@@ -410,7 +410,7 @@ function InitializeToolset {
   fi
 
   echo '<Project Sdk="Microsoft.DotNet.Arcade.Sdk"/>' > "$proj"
-  MSBuild-Core "$proj" $bl /t:__WriteToolsetLocation /clp:ErrorsOnly\;NoSummary /p:__ToolsetLocationOutputFile="$toolset_location_file"
+  MSBuild-Core "$proj" $bl /t:__WriteToolsetLocation /clp:ErrorsOnly\;NoSummary /p:__ToolsetLocationOutputFile="$toolset_location_file" /p:RestoreIgnoreFailedSources=true
 
   local toolset_build_proj=`cat "$toolset_location_file"`
 
diff --git a/global.json b/global.json
index 7fb5ad83c01..b64c39aa892 100644
--- a/global.json
+++ b/global.json
@@ -22,7 +22,7 @@
     "rollForward": "latestPatch"
   },
   "msbuild-sdks": {
-    "Microsoft.DotNet.Arcade.Sdk": "9.0.0-beta.26261.1",
+    "Microsoft.DotNet.Arcade.Sdk": "9.0.0-beta.26372.8",
     "Microsoft.Build.NoTargets": "3.7.0"
   }
 }