1 files changed, 2 insertions, 3 deletions

diff --git a/src/WixToolset.Core/Compiler.cs b/src/WixToolset.Core/Compiler.cs
index 003617cc..5267a232 100644
--- a/src/WixToolset.Core/Compiler.cs
+++ b/src/WixToolset.Core/Compiler.cs
@@ -2467,13 +2467,12 @@ namespace WixToolset.Core
             var isGeneratableGuidOk = "*" == guid;
             if (isGeneratableGuidOk)
             {
-                if (encounteredODBCDataSource)
+                if (encounteredODBCDataSource || ComponentKeyPathType.Directory == keyPathType)
                 {
                     this.Core.Write(ErrorMessages.IllegalComponentWithAutoGeneratedGuid(sourceLineNumbers));
                     isGeneratableGuidOk = false;
                 }
-
-                if (0 < files && ComponentKeyPathType.Registry == keyPathType)
+                else if (0 < files && ComponentKeyPathType.Registry == keyPathType)
                 {
                     this.Core.Write(ErrorMessages.IllegalComponentWithAutoGeneratedGuid(sourceLineNumbers, true));
                     isGeneratableGuidOk = false;