diff --git a/code_to_optimize/code_directories/simple_tracer_e2e/workload.py b/code_to_optimize/code_directories/simple_tracer_e2e/workload.py
index 1fe6af823..2dfe2ba8a 100644
--- a/code_to_optimize/code_directories/simple_tracer_e2e/workload.py
+++ b/code_to_optimize/code_directories/simple_tracer_e2e/workload.py
@@ -1,4 +1,6 @@
 from concurrent.futures import ThreadPoolExecutor
+
+
 def funcA(number):
     k = 0
     for i in range(number * 100):
@@ -9,6 +11,7 @@ def funcA(number):
     # Use a generator expression directly in join for more efficiency
     return " ".join(str(i) for i in range(number))
 
+
 def test_threadpool() -> None:
     pool = ThreadPoolExecutor(max_workers=3)
     args = list(range(10, 31, 10))
@@ -19,4 +22,4 @@ def test_threadpool() -> None:
 
 
 if __name__ == "__main__":
-    test_threadpool()
\ No newline at end of file
+    test_threadpool()
diff --git a/codeflash/tracer.py b/codeflash/tracer.py
index eb4df84d4..5d1240868 100644
--- a/codeflash/tracer.py
+++ b/codeflash/tracer.py
@@ -247,14 +247,18 @@ def tracer_logic(self, frame: FrameType, event: str) -> None:
             return
         if self.timeout is not None and (time.time() - self.start_time) > self.timeout:
             sys.setprofile(None)
+            threading.setprofile(None)
             console.print(f"Codeflash: Timeout reached! Stopping tracing at {self.timeout} seconds.")
             return
         code = frame.f_code
+
         file_name = Path(code.co_filename).resolve()
         # TODO : It currently doesn't log the last return call from the first function
 
         if code.co_name in self.ignored_functions:
             return
+        if not file_name.is_relative_to(self.project_root):
+            return
         if not file_name.exists():
             return
         if self.functions and code.co_name not in self.functions:
diff --git a/tests/scripts/end_to_end_test_tracer_replay.py b/tests/scripts/end_to_end_test_tracer_replay.py
index 58662448e..ffd3f0b5a 100644
--- a/tests/scripts/end_to_end_test_tracer_replay.py
+++ b/tests/scripts/end_to_end_test_tracer_replay.py
@@ -10,7 +10,7 @@ def run_test(expected_improvement_pct: int) -> bool:
         min_improvement_x=0.1,
         expected_unit_tests=1,
         coverage_expectations=[
-            CoverageExpectation(function_name="funcA", expected_coverage=100.0, expected_lines=[3, 4, 5, 7, 10]),
+            CoverageExpectation(function_name="funcA", expected_coverage=100.0, expected_lines=[5, 6, 7, 9, 12]),
         ],
     )
     cwd = (
diff --git a/tests/scripts/end_to_end_test_utilities.py b/tests/scripts/end_to_end_test_utilities.py
index c961b6fd1..fda917020 100644
--- a/tests/scripts/end_to_end_test_utilities.py
+++ b/tests/scripts/end_to_end_test_utilities.py
@@ -202,8 +202,8 @@ def run_trace_test(cwd: pathlib.Path, config: TestConfig, expected_improvement_p
         return False
 
     functions_traced = re.search(r"Traced (\d+) function calls successfully and replay test created at - (.*)$", stdout)
-    if not functions_traced or int(functions_traced.group(1)) != 5:
-        logging.error("Expected 5 traced functions")
+    if not functions_traced or int(functions_traced.group(1)) != 4:
+        logging.error("Expected 4 traced functions")
         return False
 
     replay_test_path = pathlib.Path(functions_traced.group(2))