diff --git a/AutomatedTesting/Gem/PythonTests/editor/EditorScripts/Menus_FileMenuOptions.py b/AutomatedTesting/Gem/PythonTests/editor/EditorScripts/Menus_FileMenuOptions.py
index 3e174af2bd..734226a9d1 100644
--- a/AutomatedTesting/Gem/PythonTests/editor/EditorScripts/Menus_FileMenuOptions.py
+++ b/AutomatedTesting/Gem/PythonTests/editor/EditorScripts/Menus_FileMenuOptions.py
@@ -9,11 +9,6 @@ remove or modify any license notices. This file is distributed on an "AS IS" BAS
 WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
 """
 
-"""
-C24064528: The File menu options function normally
-C16780778: The File menu options function normally-New view interaction Model enabled
-"""
-
 import os
 import sys
 
@@ -54,7 +49,10 @@ class TestFileMenuOptions(EditorTestHelper):
             ("Save",),
             ("Save As",),
             ("Save Level Statistics",),
-            ("Project Settings", "Project Settings Tool"),
+            ("Edit Project Settings",),
+            ("Edit Platform Settings",),
+            ("New Project",),
+            ("Open Project",),
             ("Show Log File",),
             ("Resave All Slices",),
             ("Exit",),
diff --git a/AutomatedTesting/Gem/PythonTests/editor/test_Menus.py b/AutomatedTesting/Gem/PythonTests/editor/test_Menus.py
index c2da1343de..2b3fdcbdf3 100644
--- a/AutomatedTesting/Gem/PythonTests/editor/test_Menus.py
+++ b/AutomatedTesting/Gem/PythonTests/editor/test_Menus.py
@@ -7,8 +7,6 @@ distribution (the "License"). All use of this software is governed by the Licens
 or, if provided, by the license below or the license accompanying this file. Do not
 remove or modify any license notices. This file is distributed on an "AS IS" BASIS,
 WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
-
-C16780783: Base Edit Menu Options (New Viewport Interaction Model)
 """
 
 import os
@@ -17,6 +15,7 @@ import pytest
 # Bail on the test if ly_test_tools doesn't exist.
 pytest.importorskip('ly_test_tools')
 import ly_test_tools.environment.file_system as file_system
+import ly_test_tools.environment.process_utils as process_utils
 import editor_python_test_tools.hydra_test_utils as hydra
 
 test_directory = os.path.join(os.path.dirname(__file__), "EditorScripts")
@@ -33,6 +32,7 @@ class TestMenus(object):
     def setup_teardown(self, request, workspace, project, level):
         def teardown():
             file_system.delete([os.path.join(workspace.paths.engine_root(), project, "Levels", level)], True, True)
+            process_utils.kill_processes_named("o3de", ignore_extensions=True)  # Kill ProjectManager windows
 
         request.addfinalizer(teardown)
 
@@ -80,8 +80,7 @@ class TestMenus(object):
             expected_lines,
             cfg_args=[level],
             run_python="--runpython",
-            auto_test_mode=True,
-            timeout=log_monitor_timeout,
+            timeout=log_monitor_timeout
         )
 
     @pytest.mark.test_case_id("C16780807")
@@ -107,13 +106,13 @@ class TestMenus(object):
             "Menus_ViewMenuOptions.py",
             expected_lines,
             cfg_args=[level],
-            auto_test_mode=True,
             run_python="--runpython",
-            timeout=log_monitor_timeout,
+            timeout=log_monitor_timeout
         )
 
     @pytest.mark.test_case_id("C16780778")
     @pytest.mark.SUITE_sandbox
+    @pytest.mark.xfail      # LYN-4208
     def test_Menus_FileMenuOptions_Work(self, request, editor, level, launcher_platform):
         expected_lines = [
             "New Level Action triggered",
@@ -122,7 +121,10 @@ class TestMenus(object):
             "Save Action triggered",
             "Save As Action triggered",
             "Save Level Statistics Action triggered",
-            "Project Settings Tool Action triggered",
+            "Edit Project Settings Action triggered",
+            "Edit Platform Settings Action triggered",
+            "New Project Action triggered",
+            "Open Project Action triggered",
             "Show Log File Action triggered",
             "Resave All Slices Action triggered",
             "Exit Action triggered",
@@ -135,7 +137,6 @@ class TestMenus(object):
             "Menus_FileMenuOptions.py",
             expected_lines,
             cfg_args=[level],
-            auto_test_mode=True,
             run_python="--runpython",
-            timeout=log_monitor_timeout,
-        )
\ No newline at end of file
+            timeout=log_monitor_timeout
+        )