Thanks to @sixtyvividtails who corrected a mistake I made in the earlier version of the post
Updated post
One of a less known paths that is being searched when the libraries are loaded is C:\Windows\System.
Anytime the search for a library kicks off, the following system directories are being searched:
- C:\Windows\System32\
- C:\Windows\System\
We can clearly see this in Procmon when we try to test the POC from my post about UpdateAPI.dll:

So, that old 16-bit legacy path is still there, even if practically no one is using it today. As such, we can use this path to drop at least some of the payloads there.