diff --git a/Tools/LyTestTools/ly_test_tools/_internal/pytest_plugin/test_tools_fixtures.py b/Tools/LyTestTools/ly_test_tools/_internal/pytest_plugin/test_tools_fixtures.py
index c4249441b0..e09b1ab54c 100755
--- a/Tools/LyTestTools/ly_test_tools/_internal/pytest_plugin/test_tools_fixtures.py
+++ b/Tools/LyTestTools/ly_test_tools/_internal/pytest_plugin/test_tools_fixtures.py
@@ -29,7 +29,7 @@ import ly_test_tools.environment.file_system
 import ly_test_tools.launchers.launcher_helper
 import ly_test_tools.launchers.platforms.base
 import ly_test_tools.environment.watchdog
-from ly_test_tools import ALL_PLATFORM_OPTIONS, HOST_OS_PLATFORM
+from ly_test_tools import ALL_PLATFORM_OPTIONS, HOST_OS_PLATFORM, HOST_OS_DEDICATED_SERVER
 
 logger = logging.getLogger(__name__)
 
@@ -260,7 +260,7 @@ def dedicated_launcher(request, workspace, crash_log_watchdog):
     return _dedicated_launcher(
         request=request,
         workspace=workspace,
-        launcher_platform=get_fixture_argument(request, 'launcher_platform', HOST_OS_PLATFORM),
+        launcher_platform=get_fixture_argument(request, 'launcher_platform', HOST_OS_DEDICATED_SERVER),
         level=get_fixture_argument(request, 'level', ''))
 
 
diff --git a/Tools/LyTestTools/ly_test_tools/launchers/platforms/base.py b/Tools/LyTestTools/ly_test_tools/launchers/platforms/base.py
index 6b53c1f8f3..36746b510f 100755
--- a/Tools/LyTestTools/ly_test_tools/launchers/platforms/base.py
+++ b/Tools/LyTestTools/ly_test_tools/launchers/platforms/base.py
@@ -70,7 +70,7 @@ class Launcher(object):
 
         return config_dict
 
-    def setup(self, backupFiles = True, launch_ap = True):
+    def setup(self, backupFiles=True, launch_ap=True):
         """
         Perform setup of this launcher, must be called before launching.
         Subclasses should call its parent's setup() before calling its own code, unless it changes configuration files
@@ -193,7 +193,7 @@ class Launcher(object):
         """
         raise NotImplementedError("There is no binary file for this launcher")
 
-    def start(self, backupFiles = True, launch_ap = True):
+    def start(self, backupFiles=True, launch_ap=None):
         """
         Automatically prepare and launch the application
         When called using "with launcher.start():" it will automatically call stop() when block exits
@@ -203,14 +203,14 @@ class Launcher(object):
         """
         return _Application(self, backupFiles, launch_ap=launch_ap)
 
-    def _start_impl(self, backupFiles = True, launch_ap=True):
+    def _start_impl(self, backupFiles = True, launch_ap=None):
         """
         Implementation of start(), intended to be called via context manager in _Application
 
         :param backupFiles: Bool to backup settings files
         :return None:
         """
-        self.setup(backupFiles, launch_ap=launch_ap)
+        self.setup(backupFiles=backupFiles, launch_ap=launch_ap)
         self.launch()
 
     def stop(self):
@@ -326,7 +326,7 @@ class _Application(object):
     """
     Context-manager for opening an application, enables using both "launcher.start()" and "with launcher.start()"
     """
-    def __init__(self, launcher, backupFiles = True, launch_ap = True):
+    def __init__(self, launcher, backupFiles = True, launch_ap=None):
         """
         Called during both "launcher.start()" and "with launcher.start()"
 
@@ -334,7 +334,7 @@ class _Application(object):
         :return None:
         """
         self.launcher = launcher
-        launcher._start_impl(backupFiles, launch_ap=launch_ap)
+        launcher._start_impl(backupFiles, launch_ap)
 
     def __enter__(self):
         """
diff --git a/Tools/LyTestTools/ly_test_tools/launchers/platforms/win/launcher.py b/Tools/LyTestTools/ly_test_tools/launchers/platforms/win/launcher.py
index 800771c9bc..138d788b9f 100755
--- a/Tools/LyTestTools/ly_test_tools/launchers/platforms/win/launcher.py
+++ b/Tools/LyTestTools/ly_test_tools/launchers/platforms/win/launcher.py
@@ -42,21 +42,26 @@ class WinLauncher(Launcher):
         assert self.workspace.project is not None
         return os.path.join(self.workspace.paths.build_directory(), f"{self.workspace.project}.GameLauncher.exe")
 
-    def setup(self, backupFiles = True, launch_ap = True):
+    def setup(self, backupFiles=True, launch_ap=True):
         """
         Perform setup of this launcher, must be called before launching.
         Subclasses should call its parent's setup() before calling its own code, unless it changes configuration files
 
         :param backupFiles: Bool to backup setup files
+        :param lauch_ap: Bool to lauch the asset processor
         :return: None
         """
         # Backup
         if backupFiles:
             self.backup_settings()
 
+        # Base setup defaults to None
+        if launch_ap is None:
+            launch_ap = True
+
         # Modify and re-configure
         self.configure_settings()
-        super(WinLauncher, self).setup(launch_ap=launch_ap)
+        super(WinLauncher, self).setup(backupFiles, launch_ap)
 
     def launch(self):
         """
@@ -177,6 +182,21 @@ class WinLauncher(Launcher):
 
 class DedicatedWinLauncher(WinLauncher):
 
+    def setup(self, backupFiles=True, launch_ap=False):
+        """
+        Perform setup of this launcher, must be called before launching.
+        Subclasses should call its parent's setup() before calling its own code, unless it changes configuration files
+
+        :param backupFiles: Bool to backup setup files
+        :param lauch_ap: Bool to lauch the asset processor
+        :return: None
+        """
+        # Base setup defaults to None
+        if launch_ap is None:
+            launch_ap = False
+
+        super(DedicatedWinLauncher, self).setup(backupFiles, launch_ap)
+
     def binary_path(self):
         """
         Return full path to the dedicated server launcher for the build directory.