diff --git a/pkg/collector/python/init_windows.go b/pkg/collector/python/init_windows.go
index 04d18175df1f7..47fed549c783f 100644
--- a/pkg/collector/python/init_windows.go
+++ b/pkg/collector/python/init_windows.go
@@ -9,8 +9,10 @@ package python
 
 import (
 	"os"
+	"path/filepath"
 
 	pkgconfigsetup "github.com/DataDog/datadog-agent/pkg/config/setup"
+	"github.com/DataDog/datadog-agent/pkg/util/winutil"
 )
 
 // Any platform-specific initialization belongs here.
@@ -21,5 +23,25 @@ func initializePlatform() error {
 		os.Unsetenv("PYTHONPATH")
 	}
 
+	// get program data directory and set PYTHONPYCACHEPREFIX
+	pd, err := winutil.GetProgramDataDir()
+	if err != nil {
+		return err
+	}
+	pycache := filepath.Join(pd, "python-cache")
+
+	// check if path exists
+	if _, err := os.Stat(pycache); os.IsNotExist(err) {
+		// create the directory
+		if err := os.MkdirAll(pycache, 0755); err != nil {
+			return err
+		}
+	} else if err != nil {
+		return err
+	}
+	// TODO check if we have access to the directory ?
+
+	os.Setenv("PYTHONPYCACHEPREFIX", pycache)
+
 	return nil
 }
diff --git a/tools/windows/DatadogAgentInstaller/CustomActions/ConfigureUserCustomActions.cs b/tools/windows/DatadogAgentInstaller/CustomActions/ConfigureUserCustomActions.cs
index 1447f8a080fd0..817f118b0c797 100644
--- a/tools/windows/DatadogAgentInstaller/CustomActions/ConfigureUserCustomActions.cs
+++ b/tools/windows/DatadogAgentInstaller/CustomActions/ConfigureUserCustomActions.cs
@@ -586,9 +586,6 @@ private List<string> PathsWithAgentAccess()
                 // agent needs to be able to write to run/
                 // agent needs to be able to create auth_token
                 _session.Property("APPLICATIONDATADIRECTORY"),
-                // allow agent to write __pycache__
-                Path.Combine(_session.Property("PROJECTLOCATION"), "embedded2"),
-                Path.Combine(_session.Property("PROJECTLOCATION"), "embedded3"),
             };
         }