diff --git a/packages/nx/bin/init-local.ts b/packages/nx/bin/init-local.ts
index 1a6b157fd6..363b77c12c 100644
--- a/packages/nx/bin/init-local.ts
+++ b/packages/nx/bin/init-local.ts
@@ -14,6 +14,12 @@ export async function initLocal(workspace: WorkspaceTypeAndRoot) {
   process.env.NX_CLI_SET = 'true';
 
   try {
+    // In case Nx Cloud forcibly exits while the TUI is running, ensure the terminal is restored etc.
+    process.on('exit', (...args) => {
+      if (typeof globalThis.tuiOnProcessExit === 'function') {
+        globalThis.tuiOnProcessExit(...args);
+      }
+    });
     performance.mark('init-local');
 
     if (workspace.type !== 'nx' && shouldDelegateToAngularCLI()) {
diff --git a/packages/nx/bin/nx.ts b/packages/nx/bin/nx.ts
index c9cc6e5ec5..d2fe60eee6 100644
--- a/packages/nx/bin/nx.ts
+++ b/packages/nx/bin/nx.ts
@@ -22,13 +22,6 @@ import { setupWorkspaceContext } from '../src/utils/workspace-context';
 import { daemonClient } from '../src/daemon/client/client';
 import { removeDbConnections } from '../src/utils/db-connection';
 
-// In case Nx Cloud forcibly exits while the TUI is running, ensure the terminal is restored etc.
-process.on('exit', (...args) => {
-  if (typeof globalThis.tuiOnProcessExit === 'function') {
-    globalThis.tuiOnProcessExit(...args);
-  }
-});
-
 async function main() {
   if (
     process.argv[2] !== 'report' &&