diff --git a/packages/launchpad/cypress/e2e/scaffold-project.cy.ts b/packages/launchpad/cypress/e2e/scaffold-project.cy.ts
index 38efdae2f4da..dda36061fc76 100644
--- a/packages/launchpad/cypress/e2e/scaffold-project.cy.ts
+++ b/packages/launchpad/cypress/e2e/scaffold-project.cy.ts
@@ -44,6 +44,13 @@ function scaffoldAndOpenE2EProject (opts: {
   cy.contains('E2E Testing').click()
   cy.contains('We added the following files to your project:')
   cy.contains('Continue').click()
+  // Going through the loading of config
+  cy.get('[data-cy="loading-spinner"]')
+  cy.get('[data-cy="loading-spinner"]').should('not.exist')
+  // No errrors were encountered
+  cy.get('[data-testid="error-header"]').should('not.exist')
+  // Asserts that we've made it through the flow
+  cy.contains('Choose a Browser')
 }
 
 function scaffoldAndOpenCTProject (opts: {
diff --git a/packages/server/lib/plugins/child/run_require_async_child.js b/packages/server/lib/plugins/child/run_require_async_child.js
index 378bbf5ef217..2c4aba824600 100644
--- a/packages/server/lib/plugins/child/run_require_async_child.js
+++ b/packages/server/lib/plugins/child/run_require_async_child.js
@@ -1,6 +1,7 @@
 require('graceful-fs').gracefulify(require('fs'))
 const stripAnsi = require('strip-ansi')
 const debug = require('debug')(`cypress:lifecycle:child:run_require_async_child:${process.pid}`)
+const { pathToFileURL } = require('url')
 const tsNodeUtil = require('./ts_node')
 const util = require('../util')
 const { RunPlugins } = require('./run_plugins')
@@ -97,12 +98,10 @@ function run (ipc, file, projectRoot) {
     //   3a. Yes: Use bundleRequire
     //   3b. No: Continue through to `await import(configFile)`
     // 4. Use node's dynamic import to import the configFile
-    let originalError
 
     try {
       return require(file)
     } catch (err) {
-      originalError = err
       if (!err.stack.includes('[ERR_REQUIRE_ESM]') && !err.stack.includes('SyntaxError: Cannot use import statement outside a module')) {
         throw err
       }
@@ -124,16 +123,10 @@ function run (ipc, file, projectRoot) {
         debug(`User doesn't have esbuild. Going to use native node imports.`)
 
         // We cannot replace the initial `require` with `await import` because
-        // Certain modules cannot be dynamically imported. If this throws, however, we want
-        // to show the original error that was thrown, because that's ultimately the source of the problem
-        try {
-          return await import(file)
-        } catch (e) {
-          // If we aren't able to import the file at all, throw the original error, since that has more accurate information
-          // of what failed to begin with
-          debug('esbuild fallback for loading config failed, throwing original error. node import error: %o', e)
-          throw originalError
-        }
+        // Certain modules cannot be dynamically imported.
+
+        // pathToFileURL for windows interop: https://github.com/nodejs/node/issues/31710
+        return await import(pathToFileURL(file).href)
       }
 
       throw err
diff --git a/system-tests/__snapshots__/config_modules_spec.ts.js b/system-tests/__snapshots__/config_modules_spec.ts.js
deleted file mode 100644
index 7b06c15a4063..000000000000
--- a/system-tests/__snapshots__/config_modules_spec.ts.js
+++ /dev/null
@@ -1,3 +0,0 @@
-exports['cypress config with esm and cjs / does not support modules and ts without esbuild in config-cjs-and-esm/config-with-ts-module'] = `
-STDOUT_ERROR_VALIDATED
-`
diff --git a/system-tests/test/config_modules_spec.ts b/system-tests/test/config_modules_spec.ts
index d6490f8d814b..fc727a36c8ea 100644
--- a/system-tests/test/config_modules_spec.ts
+++ b/system-tests/test/config_modules_spec.ts
@@ -32,13 +32,6 @@ describe('cypress config with esm and cjs', function () {
       spec: 'app.cy.js',
       browser: 'chrome',
       expectedExitCode: 1,
-      snapshot: true,
-      onStdout (stdout) {
-        expect(stdout).to.include('nearest parent package.json contains "type": "module" which defines all .ts files in that package scope as ES modules')
-
-        // Need to make this stable b/c of filepaths, and snapshot: true is needed to invoke onStdout
-        return 'STDOUT_ERROR_VALIDATED'
-      },
     })
   })