diff --git a/.github/workflows/run_tests.yaml b/.github/workflows/run_tests.yaml
index 61d7ce134..c41d4bca2 100644
--- a/.github/workflows/run_tests.yaml
+++ b/.github/workflows/run_tests.yaml
@@ -45,7 +45,7 @@ jobs:
           pip install pip-audit
           pip-audit || true
       - name: Setup environment
-        run: python launch.py --skip-torch-cuda-test --do-not-download-clip --exit
+        run: python launch.py --skip-prepare-environment --skip-torch-cuda-test --exit
         env:
           PIP_DISABLE_PIP_VERSION_CHECK: "1"
           PIP_PROGRESS_BAR: "off"
@@ -54,10 +54,7 @@ jobs:
           PYTHONUNBUFFERED: "1"
       - name: Smoke startup
         run: |
-          python launch.py --skip-prepare-environment --skip-torch-cuda-test --test-server --do-not-download-clip --no-half --disable-opt-split-attention --use-cpu all --api-server-stop --port 7860 &
-          wait-for-it --service 127.0.0.1:7860 -t 60
-          curl -s -X POST http://127.0.0.1:7860/sdapi/v1/server-stop || true
-          wait
+          python launch.py --skip-prepare-environment --skip-torch-cuda-test --test-server --use-cpu all --exit
       - name: Print installed packages
         run: pip freeze
       - name: Start test server
diff --git a/docs/milestones/M01/M01_toolcalls.md b/docs/milestones/M01/M01_toolcalls.md
index 87e2c2ab6..b307428f1 100644
--- a/docs/milestones/M01/M01_toolcalls.md
+++ b/docs/milestones/M01/M01_toolcalls.md
@@ -12,3 +12,5 @@
 | 2025-03-07 | run | git push, CI run 22809624907 | Tests failed at Setup env (CLIP pkg_resources) | done |
 | 2025-03-07 | search_replace | Add PIP_NO_BUILD_ISOLATION for CLIP build | .github/workflows/run_tests.yaml | done (reverted - env not passed to pip subprocess) |
 | 2025-03-07 | search_replace | Add --no-build-isolation to clip install in launch_utils | modules/launch_utils.py | done |
+| 2025-03-07 | search_replace | Add --exit when skip_prepare_environment in launch.py | launch.py | done |
+| 2025-03-07 | search_replace | Use --skip-prepare-environment for Setup and Smoke | .github/workflows/run_tests.yaml | done |
diff --git a/launch.py b/launch.py
index f83820d25..34cc3086a 100644
--- a/launch.py
+++ b/launch.py
@@ -1,3 +1,5 @@
+import sys
+
 from modules import launch_utils
 
 args = launch_utils.args
@@ -37,6 +39,9 @@ def main():
     with launch_utils.startup_timer.subcategory("prepare environment"):
         if not args.skip_prepare_environment:
             prepare_environment()
+        elif "--exit" in sys.argv:
+            print("Exiting because of --exit argument (skipped prepare environment)")
+            exit(0)
 
     if args.test_server:
         configure_for_tests()