Wix 4 - Public Documents property not working

Question

First time working with WIX. I needed a simple deployment solution with an msi package for a small desktop application.

I work on a Windows 10 pro station, Visual Studio 2022 , installed Heatwave's extension for Wix 4, started a new "msi package" project and I got the WixToolset.Util package (4.0.1) from Nuget in order to use the "WIX_DIR_COMMON_DOCUMENTS" property for some of the apps files that need to be in the C:\Users\Public\Documents folder.

The problem: What ever I tried, I continuously get the following error when I try to build.
"Error WIX0094 The identifier 'Property:WIX_DIR_COMMON_DOCUMENTS' could not be found. Ensure you have typed the reference correctly and that all the necessary inputs are provided to the linker."
Removing the property and it's references, the project builds perfectly.

What I tried: I checked for typos, I uninstalled and reinstalled the packages, I changed the source code schema URIs because by default it uses Microsoft's and not wixtoolset, cleaning the project, restarting VS, many other tricks I found online, nothing.... I have also installed the WixToolset.UI package for the UI and it works fine so my guess is that it's not a generic package installation conflict.

chatGPT suggestions for the problem were not that helpful since it's dataset was built prior to the release of Wix 4 but it did help as per providing a backup solution: creating a custom dll with a function inside to return the folder needed and call this function on a custom action in the installer.

Not bad, but I don't want to just go for it, since I believe I probably have overlooked something and hopefully someone will point it out.

Thx in advance!

Edit: I am sharing the code from the main wxs project file as requested.

    <Wix xmlns="http://wixtoolset.org/schemas/v4/wxs"
 xmlns:ui="http://wixtoolset.org/schemas/v4/wxs/ui"
 xmlns:util="http://wixtoolset.org/schemas/v4/wxs/util">    
  <Package Name="App" 
           Manufacturer="Company" 
           Version="1.0.0.0" 
           UpgradeCode="xxxxxxxxxxxx"
           Compressed="yes">
    <MajorUpgrade DowngradeErrorMessage="!(loc.DowngradeError)" />        
    <WixVariable Id="WixUILicenseRtf" Value="$(var.ProjectDir)\Eula.rtf" />
    <PropertyRef Id="WIX_DIR_COMMON_DOCUMENTS" />
    <ui:WixUI
        Id="WixUI_Minimal"
        InstallDirectory="INSTALLFOLDER"
    />
    <Feature Id="Main">
      <ComponentGroupRef Id="ABC" />
      <ComponentGroupRef Id="ABCD" />
    </Feature>    
  </Package>
</Wix>

Update: I tried the same thing on another workstation, new wix msi package project, nothing but the WixToolSet.Util package 4.0.2 from nuget and the WIX_DIR_COMMON_DOCUMENTS property declared and I get the same exact error on build. What do I miss??