diff --git a/sycl-jit/jit-compiler/lib/rtc/DeviceCompilation.cpp b/sycl-jit/jit-compiler/lib/rtc/DeviceCompilation.cpp
index 0f59cdf572f33..f839560360f9a 100644
--- a/sycl-jit/jit-compiler/lib/rtc/DeviceCompilation.cpp
+++ b/sycl-jit/jit-compiler/lib/rtc/DeviceCompilation.cpp
@@ -819,11 +819,12 @@ jit_compiler::parseUserArgs(View<const char *> UserArgs) {
   // Check for options that are unsupported because they would interfere with
   // the in-memory pipeline.
   Arg *UnsupportedArg =
-      AL.getLastArg(OPT_Action_Group,     // Actions like -c or -S
-                    OPT_Link_Group,       // Linker flags
-                    OPT_o,                // Output file
-                    OPT_fsycl_targets_EQ, // AoT compilation
-                    OPT_fsycl_link_EQ,    // SYCL linker
+      AL.getLastArg(OPT_Action_Group,       // Actions like -c or -S
+                    OPT_Link_Group,         // Linker flags
+                    OPT_o,                  // Output file
+                    OPT_fsycl_targets_EQ,   // AoT compilation
+                    OPT_offload_targets_EQ, // AoT compilation
+                    OPT_fsycl_link_EQ,      // SYCL linker
                     OPT_fno_sycl_device_code_split_esimd, // invoke_simd
                     OPT_fsanitize_EQ                      // Sanitizer
       );
diff --git a/sycl/test-e2e/KernelCompiler/sycl.cpp b/sycl/test-e2e/KernelCompiler/sycl.cpp
index 8220dfb6cd92c..199a0e75e6d32 100644
--- a/sycl/test-e2e/KernelCompiler/sycl.cpp
+++ b/sycl/test-e2e/KernelCompiler/sycl.cpp
@@ -6,8 +6,6 @@
 //
 //===----------------------------------------------------------------------===//
 
-// XFAIL: run-mode
-// XFAIL-TRACKER: https://github.com/intel/llvm/issues/20127
 // REQUIRES: sycl-jit, aspect-usm_device_allocations
 
 // RUN: %{build} -o %t.out