diff --git a/packages/playwright-test/src/experimentalLoader.ts b/packages/playwright-test/src/experimentalLoader.ts
index c9e8c416fa..67c18f0631 100644
--- a/packages/playwright-test/src/experimentalLoader.ts
+++ b/packages/playwright-test/src/experimentalLoader.ts
@@ -42,9 +42,6 @@ async function load(moduleUrl: string, context: { format?: string }, defaultLoad
   if (!moduleUrl.startsWith('file://'))
     return defaultLoad(moduleUrl, context, defaultLoad);
 
-  if (!moduleUrl.startsWith('file://'))
-    return defaultLoad(moduleUrl, context, defaultLoad);
-
   const filename = url.fileURLToPath(moduleUrl);
   // Bail for node_modules.
   if (belongsToNodeModules(filename))
diff --git a/packages/playwright-test/src/transform.ts b/packages/playwright-test/src/transform.ts
index 0d67f5c1d9..4d97b8cd14 100644
--- a/packages/playwright-test/src/transform.ts
+++ b/packages/playwright-test/src/transform.ts
@@ -245,12 +245,16 @@ export function wrapFunctionWithLocation<A extends any[], R>(func: (location: Lo
   };
 }
 
+// This will catch the playwright-test package as well
+const kPlaywrightInternalPrefix = path.resolve(__dirname, '../../playwright');
+const kPlaywrightCoveragePrefix = path.resolve(__dirname, '../../../tests/config/coverage.js');
+
 export function belongsToNodeModules(file: string) {
   if (file.includes(`${path.sep}node_modules${path.sep}`))
     return true;
-  if (file.includes(`${path.sep}playwright${path.sep}packages${path.sep}playwright`))
+  if (file.startsWith(kPlaywrightInternalPrefix))
     return true;
-  if (file.includes(`${path.sep}playwright${path.sep}tests${path.sep}config${path.sep}coverage.js`))
+  if (file.startsWith(kPlaywrightCoveragePrefix))
     return true;
   return false;
 }