diff --git a/src/manifest/dbtWorkspaceFolder.ts b/src/manifest/dbtWorkspaceFolder.ts
index 00428a002..34bb6a2d8 100755
--- a/src/manifest/dbtWorkspaceFolder.ts
+++ b/src/manifest/dbtWorkspaceFolder.ts
@@ -82,11 +82,14 @@ export class DBTWorkspaceFolder implements Disposable {
   }
 
   async discoverProjects() {
+    // Ignore dbt_packages and venv/site-packages/dbt project folders
+    const excludePattern = "**/{dbt_packages,site-packages}";
     const dbtProjectFiles = await workspace.findFiles(
       new RelativePattern(
         this.workspaceFolder,
         `**/${DBTProject.DBT_PROJECT_FILE}`,
       ),
+      new RelativePattern(this.workspaceFolder, excludePattern),
     );
     this.dbtTerminal.info(
       "discoverProjects",
diff --git a/src/webview_provider/newLineagePanel.ts b/src/webview_provider/newLineagePanel.ts
index 7b4d38db6..ada8156f8 100644
--- a/src/webview_provider/newLineagePanel.ts
+++ b/src/webview_provider/newLineagePanel.ts
@@ -460,6 +460,11 @@ export class NewLineagePanel
         .getProject()
         ?.throwDiagnosticsErrorIfAvailable();
     } catch (err) {
+      this.dbtTerminal.error(
+        "Lineage:getMissingLineageMessage",
+        (err as Error).message,
+        err,
+      );
       return { message: (err as Error).message, type: "error" };
     }
 
@@ -476,6 +481,7 @@ export class NewLineagePanel
     const aiEnabled = this.altimate.enabled();
     const event = this.queryManifestService.getEventByCurrentProject();
     if (!event?.event) {
+      this.dbtTerminal.info("Lineage:getStartingNode", "No event found");
       return {
         aiEnabled,
         missingLineageMessage: this.getMissingLineageMessage(),
@@ -485,6 +491,10 @@ export class NewLineagePanel
     const tableName = this.getFilename();
     const _node = nodeMetaMap.lookupByBaseName(tableName);
     if (!_node) {
+      this.dbtTerminal.info(
+        "Lineage:getStartingNode",
+        `No node found for ${tableName}`,
+      );
       return {
         aiEnabled,
         missingLineageMessage: this.getMissingLineageMessage(),