diff --git a/packages/cache/__tests__/cacheUtils.test.ts b/packages/cache/__tests__/cacheUtils.test.ts
index 670a8ce5..fb96ab58 100644
--- a/packages/cache/__tests__/cacheUtils.test.ts
+++ b/packages/cache/__tests__/cacheUtils.test.ts
@@ -48,17 +48,7 @@ test('isGhes returns false for github.com', async () => {
   expect(cacheUtils.isGhes()).toBe(false)
 })
 
-test('isGhes returns false for ghe.com', async () => {
-  process.env.GITHUB_SERVER_URL = 'https://github.ghe.com'
-  expect(cacheUtils.isGhes()).toBe(false)
-})
-
 test('isGhes returns true for enterprise URL', async () => {
   process.env.GITHUB_SERVER_URL = 'https://my-enterprise.github.com'
   expect(cacheUtils.isGhes()).toBe(true)
 })
-
-test('isGhes returns false for ghe.localhost', () => {
-  process.env.GITHUB_SERVER_URL = 'https://github.ghe.localhost'
-  expect(cacheUtils.isGhes()).toBe(false)
-})
\ No newline at end of file
diff --git a/packages/cache/src/internal/cacheUtils.ts b/packages/cache/src/internal/cacheUtils.ts
index c1f4564c..64b7dfcf 100644
--- a/packages/cache/src/internal/cacheUtils.ts
+++ b/packages/cache/src/internal/cacheUtils.ts
@@ -7,11 +7,7 @@ import * as path from 'path'
 import * as semver from 'semver'
 import * as util from 'util'
 import {v4 as uuidV4} from 'uuid'
-import {
-  CacheFilename,
-  CompressionMethod,
-  GnuTarPathOnWindows
-} from './constants'
+import {CacheFilename, CompressionMethod} from './constants'
 
 // From https://github.com/actions/toolkit/blob/main/packages/tool-cache/src/tool-cache.ts#L23
 export async function createTempDirectory(): Promise<string> {
@@ -56,12 +52,7 @@ export async function resolvePaths(patterns: string[]): Promise<string[]> {
       .replace(new RegExp(`\\${path.sep}`, 'g'), '/')
     core.debug(`Matched: ${relativeFile}`)
     // Paths are made relative so the tar entries are all relative to the root of the workspace.
-    if (relativeFile === '') {
-      // path.relative returns empty string if workspace and file are equal
-      paths.push('.')
-    } else {
-      paths.push(`${relativeFile}`)
-    }
+    paths.push(`${relativeFile}`)
   }
 
   return paths
@@ -71,15 +62,11 @@ export async function unlinkFile(filePath: fs.PathLike): Promise<void> {
   return util.promisify(fs.unlink)(filePath)
 }
 
-async function getVersion(
-  app: string,
-  additionalArgs: string[] = []
-): Promise<string> {
+async function getVersion(app: string): Promise<string> {
+  core.debug(`Checking ${app} --version`)
   let versionOutput = ''
-  additionalArgs.push('--version')
-  core.debug(`Checking ${app} ${additionalArgs.join(' ')}`)
   try {
-    await exec.exec(`${app}`, additionalArgs, {
+    await exec.exec(`${app} --version`, [], {
       ignoreReturnCode: true,
       silent: true,
       listeners: {
@@ -98,14 +85,23 @@ async function getVersion(
 
 // Use zstandard if possible to maximize cache performance
 export async function getCompressionMethod(): Promise<CompressionMethod> {
-  const versionOutput = await getVersion('zstd', ['--quiet'])
-  const version = semver.clean(versionOutput)
-  core.debug(`zstd version: ${version}`)
-
-  if (versionOutput === '') {
+  if (process.platform === 'win32' && !(await isGnuTarInstalled())) {
+    // Disable zstd due to bug https://github.com/actions/cache/issues/301
     return CompressionMethod.Gzip
-  } else {
+  }
+
+  const versionOutput = await getVersion('zstd')
+  const version = semver.clean(versionOutput)
+
+  if (!versionOutput.toLowerCase().includes('zstd command line interface')) {
+    // zstd is not installed
+    return CompressionMethod.Gzip
+  } else if (!version || semver.lt(version, 'v1.3.2')) {
+    // zstd is installed but using a version earlier than v1.3.2
+    // v1.3.2 is required to use the `--long` options in zstd
     return CompressionMethod.ZstdWithoutLong
+  } else {
+    return CompressionMethod.Zstd
   }
 }
 
@@ -115,12 +111,9 @@ export function getCacheFileName(compressionMethod: CompressionMethod): string {
     : CacheFilename.Zstd
 }
 
-export async function getGnuTarPathOnWindows(): Promise<string> {
-  if (fs.existsSync(GnuTarPathOnWindows)) {
-    return GnuTarPathOnWindows
-  }
+export async function isGnuTarInstalled(): Promise<boolean> {
   const versionOutput = await getVersion('tar')
-  return versionOutput.toLowerCase().includes('gnu tar') ? io.which('tar') : ''
+  return versionOutput.toLowerCase().includes('gnu tar')
 }
 
 export function assertDefined<T>(name: string, value?: T): T {
@@ -135,14 +128,5 @@ export function isGhes(): boolean {
   const ghUrl = new URL(
     process.env['GITHUB_SERVER_URL'] || 'https://github.com'
   )
-
-  let githubHosts = [
-    'GITHUB.COM',
-    'GITHUB.GHE.COM',
-    'GITHUB.GHE.LOCALHOST'
-];
-
-  const hostname = ghUrl.hostname.trimEnd().toUpperCase()
-
-  return !githubHosts.includes(hostname)
-}
+  return ghUrl.hostname.toUpperCase() !== 'GITHUB.COM'
+}
\ No newline at end of file