diff --git a/backend/src/main/scala/sbt/internal/inc/bloop/internal/BloopIncremental.scala b/backend/src/main/scala/sbt/internal/inc/bloop/internal/BloopIncremental.scala
index d7a9e19d3b..83a9a78805 100644
--- a/backend/src/main/scala/sbt/internal/inc/bloop/internal/BloopIncremental.scala
+++ b/backend/src/main/scala/sbt/internal/inc/bloop/internal/BloopIncremental.scala
@@ -82,7 +82,10 @@ object BloopIncremental {
     val setOfSources = sources.toSet
     val incremental = new BloopNameHashing(log, uniqueInputs, options, profiler.profileRun, tracer)
     val initialChanges = incremental.detectInitialChanges(setOfSources, previous, current, lookup, converter, output)
-    def isJrt(path: Path) = path.getFileSystem.provider().getScheme == "jrt"
+    def ignore(path: Path) = {
+      val scheme = path.getFileSystem.provider().getScheme
+      scheme == "jrt" || scheme == "jar"
+    }
     val binaryChanges = new DependencyChanges {
       val modifiedLibraries = initialChanges.libraryDeps.toArray
 
@@ -90,8 +93,13 @@ object BloopIncremental {
         .map(converter.toPath(_))
         .collect {
           // jrt path is neither a jar nor a normal file
-          case path if !isJrt(path) =>
-            path.toFile()
+          case path if !ignore(path) =>
+            try path.toFile()
+            catch {
+              case e: UnsupportedOperationException =>
+                System.err.println(s"Error converting $path (provider scheme ${path.getFileSystem.provider().getScheme}) to a file: $e")
+                throw e
+            }
         }
         .distinct
       val modifiedClasses = initialChanges.external.allModified.toArray
diff --git a/frontend/src/main/scala/bloop/Bloop.scala b/frontend/src/main/scala/bloop/Bloop.scala
index 58d9ccc5ac..d9f1e515db 100644
--- a/frontend/src/main/scala/bloop/Bloop.scala
+++ b/frontend/src/main/scala/bloop/Bloop.scala
@@ -213,7 +213,17 @@ object Bloop {
     }
 
     val server =
-      new NGServer(address, poolSize, heartbeatMs, in, out, err, javaLogger, domainSocketProvider)
+      new NGServer(
+        address,
+        poolSize,
+        heartbeatMs,
+        in,
+        out,
+        err,
+        javaLogger,
+        domainSocketProvider,
+        false
+      )
     registerAliases(server)
     ProxySetup.init()
     server
diff --git a/project/Dependencies.scala b/project/Dependencies.scala
index 24d63680c1..ad357f1cef 100644
--- a/project/Dependencies.scala
+++ b/project/Dependencies.scala
@@ -36,7 +36,7 @@ object Dependencies {
   import sbt.librarymanagement.syntax.stringToOrganization
   val zinc = "org.scala-sbt" %% "zinc" % zincVersion
   val bsp4s = "ch.epfl.scala" %% "bsp4s" % bspVersion
-  val nailgun = "io.github.alexarchambault.bleep" % "nailgun-server" % "1.0.3"
+  val nailgun = "io.github.alexarchambault.bleep" % "nailgun-server" % "1.0.4"
   val javaDebug = "ch.epfl.scala" % "com-microsoft-java-debug-core" % javaDebugVersion
 
   val libraryManagement = "org.scala-sbt" %% "librarymanagement-ivy" % lmVersion