diff --git a/python/pluginResources/intellij.python.community.impl.xml b/python/pluginResources/intellij.python.community.impl.xml
index d58980868414..398164522c2a 100644
--- a/python/pluginResources/intellij.python.community.impl.xml
+++ b/python/pluginResources/intellij.python.community.impl.xml
@@ -123,6 +123,11 @@
               topic="com.intellij.openapi.fileEditor.FileEditorManagerListener"/>
   </projectListeners>
 
+  <applicationListeners>
+    <listener class="com.jetbrains.python.sdk.PySdkTransferredRootsListener"
+              topic="com.jetbrains.python.sdk.PySdkListener"/>
+  </applicationListeners>
+
   <extensions defaultExtensionNs="com.intellij">
     <registryKey key="use.python.for.local.conda"
                  defaultValue="true"
diff --git a/python/src/com/jetbrains/python/sdk/AddInterpreterActions.kt b/python/src/com/jetbrains/python/sdk/AddInterpreterActions.kt
index 33a4e95fde16..55ebfedca14c 100644
--- a/python/src/com/jetbrains/python/sdk/AddInterpreterActions.kt
+++ b/python/src/com/jetbrains/python/sdk/AddInterpreterActions.kt
@@ -160,22 +160,6 @@ internal class AddInterpreterOnTargetAction(
   }
 }
 
-@ApiStatus.Internal
-fun switchToSdk(module: Module, sdk: Sdk, currentSdk: Sdk?) {
-  val project = module.project
-  (sdk.sdkType as PythonSdkType).setupSdkPaths(sdk)
-
-  removeTransferredRootsFromModulesWithInheritedSdk(project, currentSdk)
-  project.pythonSdk = sdk
-  transferRootsToModulesWithInheritedSdk(project, sdk)
-
-  removeTransferredRoots(module, currentSdk)
-  module.pythonSdk = sdk
-  transferRoots(module, sdk)
-
-  module.excludeInnerVirtualEnv(sdk)
-}
-
 @Service
 private class LogCollectorService(val coroutineScope: CoroutineScope)
 
diff --git a/python/src/com/jetbrains/python/sdk/PySdkFromEnvironmentVariable.kt b/python/src/com/jetbrains/python/sdk/PySdkFromEnvironmentVariable.kt
index 1a36552176cf..3d2c1f6046e2 100644
--- a/python/src/com/jetbrains/python/sdk/PySdkFromEnvironmentVariable.kt
+++ b/python/src/com/jetbrains/python/sdk/PySdkFromEnvironmentVariable.kt
@@ -32,7 +32,7 @@ object PySdkFromEnvironmentVariable {
     EDT.assertIsEdt()
     val moduleSdk = PythonSdkUtil.findPythonSdk(module)
     if (pythonPath != projectSdk?.homePath || pythonPath != moduleSdk?.homePath) {
-      switchToSdk(module, sdk, moduleSdk)
+      module.pythonSdk = sdk
     }
   }
 }
diff --git a/python/src/com/jetbrains/python/sdk/PySdkPopupFactory.kt b/python/src/com/jetbrains/python/sdk/PySdkPopupFactory.kt
index e0e2cac997ed..b62be2253e12 100644
--- a/python/src/com/jetbrains/python/sdk/PySdkPopupFactory.kt
+++ b/python/src/com/jetbrains/python/sdk/PySdkPopupFactory.kt
@@ -60,35 +60,36 @@ class PySdkPopupFactory(val module: Module) {
 
     val interpreterList = PyConfigurableInterpreterList.getInstance(module.project)
     val moduleSdksByTypes = SlowOperations.knownIssue("PY-76167").use {
-      groupModuleSdksByTypes(interpreterList.getAllPythonSdks(module.project, module, false), module) {
+      groupModuleSdksByTypes(interpreterList.getAllPythonSdks(module), module) {
         !it.sdkSeemsValid || !LanguageLevel.SUPPORTED_LEVELS.contains(PythonSdkType.getLanguageLevelForSdk(it))
       }
     }
 
     val currentSdk = module.pythonSdk
-    val model = interpreterList.model
     val targetModuleSitsOn = PythonInterpreterTargetEnvironmentFactory.getTargetModuleResidesOn(module)
     PyRenderedSdkType.entries.forEachIndexed { index, type ->
-      if (type in moduleSdksByTypes) {
-        if (index != 0) group.addSeparator()
-        group.addAll(moduleSdksByTypes
-                       .getValue(type)
-                       .filter {
-                         targetModuleSitsOn == null ||
-                         targetModuleSitsOn.codeCouldProbablyBeRunWithConfig(it.targetAdditionalData?.targetEnvironmentConfiguration)
-                       }
-                       .mapNotNull { model.findSdk(it) }
-                       .map { SwitchToSdkAction(it, currentSdk) })
+      if (index != 0) group.addSeparator()
+      val sdksByType = moduleSdksByTypes[type]?.distinctBy {
+        it.sdkAdditionalData?.javaClass to it.homePath
+      } ?: return@forEachIndexed
+
+      val uniqueSdks = if (type == PyRenderedSdkType.REMOTE) {
+        sdksByType.filter {
+          targetModuleSitsOn == null ||
+          targetModuleSitsOn.codeCouldProbablyBeRunWithConfig(it.targetAdditionalData?.targetEnvironmentConfiguration)
+        }
       }
+      else {
+        sdksByType.distinctBy { it.sdkAdditionalData?.javaClass to it.homePath }
+      }
+
+      val actions = uniqueSdks.map { SwitchToSdkAction(it, currentSdk) }
+      group.addAll(actions)
     }
 
     if (moduleSdksByTypes.isNotEmpty()) group.addSeparator()
     val addNewInterpreterPopupGroup = DefaultActionGroup(PyBundle.message("python.sdk.action.add.new.interpreter.text"), true)
-    addNewInterpreterPopupGroup.addAll(collectAddInterpreterActions(ModuleOrProject.ModuleAndProject(module)) { sdk ->
-      SlowOperations.knownIssue("PY-76167").use {
-        switchToSdk(module, sdk, currentSdk)
-      }
-    })
+    addNewInterpreterPopupGroup.addAll(collectAddInterpreterActions(ModuleOrProject.ModuleAndProject(module)) { })
     ActionManager.getInstance().getAction("Python.NewInterpreter.Extra")?.let {
       addNewInterpreterPopupGroup.add(it)
     }
@@ -123,7 +124,7 @@ class PySdkPopupFactory(val module: Module) {
       presentation.icon = icon(sdk)
     }
 
-    override fun actionPerformed(e: AnActionEvent) = switchToSdk(module, sdk, currentSdk)
+    override fun actionPerformed(e: AnActionEvent) = run { module.pythonSdk = sdk }
   }
 
   private inner class InterpreterSettingsAction : DumbAwareAction(PyBundle.messagePointer("python.sdk.popup.interpreter.settings")) {
diff --git a/python/src/com/jetbrains/python/sdk/PyTransferredSdkRoots.kt b/python/src/com/jetbrains/python/sdk/PyTransferredSdkRoots.kt
index 1a1b098b07ac..33434b2a7520 100644
--- a/python/src/com/jetbrains/python/sdk/PyTransferredSdkRoots.kt
+++ b/python/src/com/jetbrains/python/sdk/PyTransferredSdkRoots.kt
@@ -172,6 +172,32 @@ private fun updateRootsForModulesWithInheritedSdk(project: Project, sdk: Sdk?, a
   }
 }
 
+/**
+ * Handles transferred roots and virtualenv exclusion when a module's Python SDK changes.
+ * Registered as a listener for [PySdkListener.TOPIC].
+ *
+ * Note: cannot use the public [removeTransferredRoots] for `prevSdk` because its guard
+ * `module.pythonSdk == sdk` fails — by the time the listener fires, the SDK is already changed.
+ */
+internal class PySdkTransferredRootsListener : PySdkListener {
+  override fun moduleSdkUpdated(module: Module, prevSdk: Sdk?, newSdk: Sdk?) {
+    if (prevSdk != null) {
+      val oldPaths = getPathsToTransfer(prevSdk)
+      if (oldPaths.isNotEmpty()) {
+        runInEdt {
+          val rootsToRemove = TransferredRootsDetector(module.project).detect(module, oldPaths, oldPaths)
+          removeTransferredRoots(module, rootsToRemove)
+        }
+      }
+    }
+
+    if (newSdk != null) {
+      transferRoots(module, newSdk)
+      module.excludeInnerVirtualEnv(newSdk)
+    }
+  }
+}
+
 private object ModuleRootAndDepOps {
   val LOG = thisLogger()
 }
diff --git a/python/src/com/jetbrains/python/sdk/evolution/advancedActions.kt b/python/src/com/jetbrains/python/sdk/evolution/advancedActions.kt
index 95ecc53c9519..29035260998e 100644
--- a/python/src/com/jetbrains/python/sdk/evolution/advancedActions.kt
+++ b/python/src/com/jetbrains/python/sdk/evolution/advancedActions.kt
@@ -7,12 +7,9 @@ import com.intellij.python.sdk.ui.evolution.ui.EvoSelectSdkProvider
 import com.intellij.python.sdk.ui.evolution.ui.components.EvoTreeLazyNodeElement
 import com.intellij.python.sdk.ui.evolution.ui.components.EvoTreeLeafElement
 import com.intellij.python.sdk.ui.evolution.ui.components.EvoTreeSection
-import com.intellij.util.SlowOperations
 import com.jetbrains.python.Result
 import com.jetbrains.python.sdk.ModuleOrProject
 import com.jetbrains.python.sdk.collectAddInterpreterActions
-import com.jetbrains.python.sdk.pythonSdk
-import com.jetbrains.python.sdk.switchToSdk
 
 
 internal class AdvancedSelectSdkProvider() : EvoSelectSdkProvider {
@@ -21,11 +18,7 @@ internal class AdvancedSelectSdkProvider() : EvoSelectSdkProvider {
     icon = AllIcons.Toolwindows.ToolWindowInternal
   ) {
 
-    val baseIdeActions = collectAddInterpreterActions(ModuleOrProject.ModuleAndProject(evoModuleSdk.module)) { sdk ->
-      SlowOperations.knownIssue("PY-76167").use {
-        switchToSdk(evoModuleSdk.module, sdk, evoModuleSdk.module.pythonSdk)
-      }
-    }
+    val baseIdeActions = collectAddInterpreterActions(ModuleOrProject.ModuleAndProject(evoModuleSdk.module)) { }
 
     val section = EvoTreeSection(
       label = null,