How to avoid DTO Models replication Pattern?

C# SOLUTION-1

• Project-1: CodeFirstEntityFramework (Models are defined within this)
• Project-2: WebAPIs referenced the CodeFirstEntityFramework Models are available
• Project-3: Web Application Core Referenced the CodeFirstEntityFramework Model Definitions are available and used Web APIs with Authentication

Is this a good Pattern? OR C# SOLUTION-2

• Project-1: Class Library ModelsClassLib Define Models Only
• Project-2: CodeFirstEntityFramework refrence ModelsClassLib
• Project-3: WebAPIs referenced the CodeFirstEntityFramework
• Project-4: Web Application Core UI uses the WebAPIs

Wherever Models are needed I will reference ModelsClassLib instead of replicating the Models in place of DTOModel Objects. Question: Is this recommended? Is this a Good Practice?