diff --git a/assets/test/.vscode/settings.json b/assets/test/.vscode/settings.json
index 500511990..4a09afde5 100644
--- a/assets/test/.vscode/settings.json
+++ b/assets/test/.vscode/settings.json
@@ -6,5 +6,6 @@
         "-Xswiftc",
         "-DTEST_ARGUMENT_SET_VIA_TEST_BUILD_ARGUMENTS_SETTING"
     ],
-    "lldb.verboseLogging": true
+    "lldb.verboseLogging": true,
+    "swift.backgroundCompilation": false
 }
\ No newline at end of file
diff --git a/test/integration-tests/commands/build.test.ts b/test/integration-tests/commands/build.test.ts
index 2fc2e178d..0b5d5e9e2 100644
--- a/test/integration-tests/commands/build.test.ts
+++ b/test/integration-tests/commands/build.test.ts
@@ -29,12 +29,13 @@ import {
     folderInRootWorkspace,
     updateSettings,
 } from "../utilities/testutilities";
-import { pathExists } from "../../../src/utilities/filesystem";
 
 suite("Build Commands", function () {
+    // Default timeout is a bit too short, give it a little bit more time
+    this.timeout(30 * 1000);
+
     let folderContext: FolderContext;
     let workspaceContext: WorkspaceContext;
-    let buildPath: string;
     const uri = testAssetUri("defaultPackage/Sources/PackageExe/main.swift");
     const breakpoints = [
         new vscode.SourceBreakpoint(new vscode.Location(uri, new vscode.Position(2, 0))),
@@ -45,7 +46,6 @@ suite("Build Commands", function () {
             workspaceContext = ctx;
             await waitForNoRunningTasks();
             folderContext = await folderInRootWorkspace("defaultPackage", workspaceContext);
-            buildPath = path.join(folderContext.folder.fsPath, ".build");
             await workspaceContext.focusFolder(folderContext);
             await vscode.window.showTextDocument(uri);
             const settingsTeardown = await updateSettings({
@@ -59,13 +59,6 @@ suite("Build Commands", function () {
         },
     });
 
-    teardown(async () => {
-        // Remove the build directory after each test case
-        if (await pathExists(buildPath)) {
-            await fs.rm(buildPath, { recursive: true, force: true });
-        }
-    });
-
     test("Swift: Run Build", async () => {
         // A breakpoint will have not effect on the Run command.
         vscode.debug.addBreakpoints(breakpoints);
@@ -80,14 +73,14 @@ suite("Build Commands", function () {
         let result = await vscode.commands.executeCommand(Commands.RUN);
         expect(result).to.be.true;
 
+        const buildPath = path.join(folderContext.folder.fsPath, ".build");
         const beforeItemCount = (await fs.readdir(buildPath)).length;
 
         result = await vscode.commands.executeCommand(Commands.CLEAN_BUILD);
         expect(result).to.be.true;
 
         const afterItemCount = (await fs.readdir(buildPath)).length;
-        // This test will run in order after the Swift: Run Build test,
-        // where .build folder is going to be filled with built artifacts.
+        // .build folder is going to be filled with built artifacts after Commands.RUN command
         // After executing the clean command the build directory is guranteed to have less entry.
         expect(afterItemCount).to.be.lessThan(beforeItemCount);
     });
diff --git a/test/integration-tests/commands/dependency.test.ts b/test/integration-tests/commands/dependency.test.ts
index a0f6592e6..55d5543c0 100644
--- a/test/integration-tests/commands/dependency.test.ts
+++ b/test/integration-tests/commands/dependency.test.ts
@@ -36,7 +36,27 @@ suite("Dependency Commmands Test Suite", function () {
     // 15 seconds for each test should be more than enough
     this.timeout(15 * 1000);
 
-    suite("spm Resolve Update Contract Tests", function () {
+    suite("spm Update Contract Tests", function () {
+        let folderContext: FolderContext;
+        let workspaceContext: WorkspaceContext;
+
+        activateExtensionForSuite({
+            async setup(ctx) {
+                workspaceContext = ctx;
+                await waitForNoRunningTasks();
+                folderContext = await folderInRootWorkspace("defaultPackage", workspaceContext);
+                await workspaceContext.focusFolder(folderContext);
+            },
+        });
+
+        test("Contract: spm update", async function () {
+            // Contract: spm update
+            const result = await vscode.commands.executeCommand(Commands.UPDATE_DEPENDENCIES);
+            expect(result).to.be.true;
+        });
+    });
+
+    suite("spm Resolve Contract Tests", function () {
         let folderContext: FolderContext;
         let workspaceContext: WorkspaceContext;
 
@@ -100,10 +120,7 @@ suite("Dependency Commmands Test Suite", function () {
 
             // This will now pass as we have the required library
             const { exitCode, output } = await executeTaskAndWaitForResult(tasks);
-            if (exitCode !== 0) {
-                console.warn("Exit code non zero, command output:\n", output);
-            }
-            expect(exitCode).to.equal(0);
+            expect(exitCode, `${output}`).to.equal(0);
             expect(output).to.include("defaultpackage");
             expect(output).to.include("not used by any target");
         }
@@ -135,23 +152,5 @@ suite("Dependency Commmands Test Suite", function () {
 
             await assertDependencyNoLongerExists();
         });
-
-        test("Contract: spm update", async function () {
-            // This test is flaky, test in CI setting when the below change get merged in and find
-            // out exactly where the command fails.
-            // https://github.com/swiftlang/vscode-swift/pull/1194
-            this.skip();
-            await useLocalDependencyTest();
-
-            // Contract: spm update
-            let result = await vscode.commands.executeCommand(Commands.UPDATE_DEPENDENCIES);
-            expect(result).to.be.true;
-
-            // Clean up
-            result = await vscode.commands.executeCommand(Commands.UNEDIT_DEPENDENCY, item);
-            expect(result).to.be.true;
-
-            await assertDependencyNoLongerExists();
-        });
     });
 });