diff --git a/runtime/connection_cache.go b/runtime/connection_cache.go
index 3369509d0ed..a4587ccd3ce 100644
--- a/runtime/connection_cache.go
+++ b/runtime/connection_cache.go
@@ -197,14 +197,20 @@ func (c *connectionCache) get(ctx context.Context, instanceID, driver string, co
 	var err error
 	select {
 	case <-conn.ready:
-		err = conn.err
 	case <-ctx.Done():
 		err = ctx.Err() // Will always be non-nil, ensuring releaseConn is called
 	}
+
+	// Lock again for accessing conn
+	c.lock.Lock()
+	defer c.lock.Unlock()
+
+	if err == nil {
+		err = conn.err
+	}
+
 	if err != nil {
-		c.lock.Lock()
 		c.releaseConn(key, conn)
-		c.lock.Unlock()
 		return nil, nil, err
 	}
 
diff --git a/runtime/connection_cache_test.go b/runtime/connection_cache_test.go
index 8132b0bfda6..eef58fa5904 100644
--- a/runtime/connection_cache_test.go
+++ b/runtime/connection_cache_test.go
@@ -195,15 +195,18 @@ func TestConnectionCacheMultipleConfigs(t *testing.T) {
 func TestConnectionCacheParallelCalls(t *testing.T) {
 	ctx := context.Background()
 
-	c := newConnectionCache(10, zap.NewNop(), newTestRuntimeWithInst(t), activity.NewNoopClient())
-	defer c.Close()
-
 	m := &mockDriver{}
 	drivers.Register("mock_driver", m)
 	defer func() {
 		delete(drivers.Drivers, "mock_driver")
 	}()
 
+	rt := newTestRuntimeWithInst(t)
+	defer rt.Close()
+
+	c := newConnectionCache(10, zap.NewNop(), rt, activity.NewNoopClient())
+	defer c.Close()
+
 	var wg sync.WaitGroup
 	wg.Add(10)
 	// open 10 connections and verify no error
@@ -224,16 +227,18 @@ func TestConnectionCacheParallelCalls(t *testing.T) {
 func TestConnectionCacheBlockingCalls(t *testing.T) {
 	ctx := context.Background()
 
-	rt := newTestRuntimeWithInst(t)
-	c := newConnectionCache(10, zap.NewNop(), rt, activity.NewNoopClient())
-	defer c.Close()
-
 	m := &mockDriver{}
 	drivers.Register("mock_driver", m)
 	defer func() {
 		delete(drivers.Drivers, "mock_driver")
 	}()
 
+	rt := newTestRuntimeWithInst(t)
+	defer rt.Close()
+
+	c := newConnectionCache(10, zap.NewNop(), rt, activity.NewNoopClient())
+	defer c.Close()
+
 	var wg sync.WaitGroup
 	wg.Add(12)
 	// open 1 slow connection
diff --git a/runtime/controller_test.go b/runtime/controller_test.go
index b1a13057d6a..74a27818095 100644
--- a/runtime/controller_test.go
+++ b/runtime/controller_test.go
@@ -1020,6 +1020,9 @@ func TestWatch(t *testing.T) {
 		require.NoError(t, err)
 	}
 
+	// Make sure there's time for the watcher to start
+	awaitIdle()
+
 	testruntime.PutFiles(t, rt, id, map[string]string{
 		"/data/foo.csv": `a,b,c,d,e
 1,2,3,4,5
diff --git a/runtime/drivers/registry.go b/runtime/drivers/registry.go
index a3fc6f4a586..86a52df1928 100644
--- a/runtime/drivers/registry.go
+++ b/runtime/drivers/registry.go
@@ -61,6 +61,7 @@ type Instance struct {
 // ResolveVariables returns the final resolved variables
 func (i *Instance) ResolveVariables() map[string]string {
 	r := make(map[string]string, len(i.ProjectVariables))
+
 	// set ProjectVariables first i.e. Project defaults
 	for k, v := range i.ProjectVariables {
 		r[k] = v
diff --git a/runtime/reconcilers/project_parser.go b/runtime/reconcilers/project_parser.go
index 71e04f8fb31..00f7219e94a 100644
--- a/runtime/reconcilers/project_parser.go
+++ b/runtime/reconcilers/project_parser.go
@@ -286,6 +286,10 @@ func (r *ProjectParserReconciler) reconcileProjectConfig(ctx context.Context, pa
 		return err
 	}
 
+	// Shallow clone for editing
+	tmp := *inst
+	inst = &tmp
+
 	conns := make([]*runtimev1.Connector, 0, len(parser.RillYAML.Connectors))
 	for _, c := range parser.RillYAML.Connectors {
 		conns = append(conns, &runtimev1.Connector{
diff --git a/runtime/testruntime/reconcile.go b/runtime/testruntime/reconcile.go
index 9f2e4e1d635..22c935dd07d 100644
--- a/runtime/testruntime/reconcile.go
+++ b/runtime/testruntime/reconcile.go
@@ -111,9 +111,14 @@ func RequireReconcileState(t testing.TB, rt *runtime.Runtime, id string, lenReso
 		}
 	}
 
+	var names []string
+	for _, r := range rs {
+		names = append(names, fmt.Sprintf("%s/%s", r.Meta.Name.Kind, r.Meta.Name.Name))
+	}
+
 	require.Equal(t, lenParseErrs, len(parseErrs), "parse errors: %s", strings.Join(parseErrs, "\n"))
 	require.Equal(t, lenReconcileErrs, len(reconcileErrs), "reconcile errors: %s", strings.Join(reconcileErrs, "\n"))
-	require.Equal(t, lenResources, len(rs), "resources")
+	require.Equal(t, lenResources, len(rs), "resources: %s", strings.Join(names, "\n"))
 }
 
 func RequireResource(t testing.TB, rt *runtime.Runtime, id string, a *runtimev1.Resource) {