diff --git a/server/src/main/kotlin/org/javacs/kt/KotlinTextDocumentService.kt b/server/src/main/kotlin/org/javacs/kt/KotlinTextDocumentService.kt
index ff988545d..cbacca589 100644
--- a/server/src/main/kotlin/org/javacs/kt/KotlinTextDocumentService.kt
+++ b/server/src/main/kotlin/org/javacs/kt/KotlinTextDocumentService.kt
@@ -80,7 +80,10 @@ class KotlinTextDocumentService(
 
     private fun recover(uriString: String, position: Position, recompile: Recompile): Pair<CompiledFile, Int>? {
         val uri = parseURI(uriString)
-        if (!sf.isIncluded(uri)) return null
+        if (!sf.isIncluded(uri)) {
+            LOG.warn("URI is excluded, therefore cannot be recovered: $uri")
+            return null
+        }
         val content = sp.content(uri)
         val offset = offset(content, position.line, position.character)
         val shouldRecompile = when (recompile) {
diff --git a/server/src/main/kotlin/org/javacs/kt/KotlinWorkspaceService.kt b/server/src/main/kotlin/org/javacs/kt/KotlinWorkspaceService.kt
index 609a3b551..6b89473e4 100644
--- a/server/src/main/kotlin/org/javacs/kt/KotlinWorkspaceService.kt
+++ b/server/src/main/kotlin/org/javacs/kt/KotlinWorkspaceService.kt
@@ -140,6 +140,7 @@ class KotlinWorkspaceService(
                 val scripts = config.scripts
                 get("enabled")?.asBoolean?.let { scripts.enabled = it }
                 get("buildScriptsEnabled")?.asBoolean?.let { scripts.buildScriptsEnabled = it }
+                sf.updateExclusions()
             }
 
             // Update code-completion options
diff --git a/server/src/main/kotlin/org/javacs/kt/SourceFiles.kt b/server/src/main/kotlin/org/javacs/kt/SourceFiles.kt
index 68c0f66c8..d7bb84968 100644
--- a/server/src/main/kotlin/org/javacs/kt/SourceFiles.kt
+++ b/server/src/main/kotlin/org/javacs/kt/SourceFiles.kt
@@ -74,7 +74,7 @@ class SourceFiles(
     private val open = mutableSetOf<URI>()
 
     fun open(uri: URI, content: String, version: Int) {
-        if (exclusions.isURIIncluded(uri)) {
+        if (isIncluded(uri)) {
             files[uri] = SourceVersion(content, version, languageOf(uri), isTemporary = false)
             open.add(uri)
         }
@@ -98,7 +98,7 @@ class SourceFiles(
     }
 
     fun edit(uri: URI, newVersion: Int, contentChanges: List<TextDocumentContentChangeEvent>) {
-        if (exclusions.isURIIncluded(uri)) {
+        if (isIncluded(uri)) {
             val existing = files[uri]!!
             var newText = existing.content
 
@@ -143,7 +143,7 @@ class SourceFiles(
         null
     }
 
-    private fun isSource(uri: URI): Boolean = exclusions.isURIIncluded(uri) && languageOf(uri) != null
+    private fun isSource(uri: URI): Boolean = isIncluded(uri) && languageOf(uri) != null
 
     private fun languageOf(uri: URI): Language? {
         val fileName = uri.filePath?.fileName?.toString() ?: return null
@@ -154,6 +154,7 @@ class SourceFiles(
     }
 
     fun addWorkspaceRoot(root: Path) {
+        LOG.info("Searching $root using exclusions: ${exclusions.excludedPatterns}")
         val addSources = findSourceFiles(root)
 
         logAdded(addSources, root)
@@ -187,8 +188,9 @@ class SourceFiles(
             .toSet()
     }
 
-    private fun updateExclusions() {
+    fun updateExclusions() {
         exclusions = SourceExclusions(workspaceRoots, scriptsConfig)
+        LOG.info("Updated exclusions: ${exclusions.excludedPatterns}")
     }
 
     fun isOpen(uri: URI): Boolean = (uri in open)
diff --git a/shared/src/main/kotlin/org/javacs/kt/SourceExclusions.kt b/shared/src/main/kotlin/org/javacs/kt/SourceExclusions.kt
index 17f1d3e86..e86db62f6 100644
--- a/shared/src/main/kotlin/org/javacs/kt/SourceExclusions.kt
+++ b/shared/src/main/kotlin/org/javacs/kt/SourceExclusions.kt
@@ -13,13 +13,15 @@ class SourceExclusions(
     private val workspaceRoots: Collection<Path>,
     private val scriptsConfig: ScriptsConfiguration
 ) {
-	private val excludedPatterns = (listOf(
+	val excludedPatterns = (listOf(
         ".*", "bazel-*", "bin", "build", "node_modules", "target"
     ) + when {
         !scriptsConfig.enabled -> listOf("*.kts")
         !scriptsConfig.buildScriptsEnabled -> listOf("*.gradle.kts")
         else -> emptyList()
     })
+
+    private val exclusionMatchers = excludedPatterns
         .map { FileSystems.getDefault().getPathMatcher("glob:$it") }
 
     /** Finds all non-excluded files recursively. */
@@ -35,10 +37,10 @@ class SourceExclusions(
 
     /** Tests whether the given path is not excluded. */
     fun isPathIncluded(file: Path): Boolean = workspaceRoots.any { file.startsWith(it) }
-        && excludedPatterns.none { pattern ->
+        && exclusionMatchers.none { matcher ->
             workspaceRoots
                 .mapNotNull { if (file.startsWith(it)) it.relativize(file) else null }
                 .flatMap { it } // Extract path segments
-                .any(pattern::matches)
+                .any(matcher::matches)
         }
 }