diff --git a/CHANGELOG.prerelease.md b/CHANGELOG.prerelease.md
index 2ad71c357e65..baec48071eda 100644
--- a/CHANGELOG.prerelease.md
+++ b/CHANGELOG.prerelease.md
@@ -1,3 +1,12 @@
+## 8.5.0-alpha.18
+
+- Addon Test: Clarify message when `vitest` detects missing deps - [#29763](https://github.com/storybookjs/storybook/pull/29763), thanks @ndelangen!
+- Addon Test: Refactor test addon to include stories automatically - [#29367](https://github.com/storybookjs/storybook/pull/29367), thanks @yannbf!
+- Addon Test: Replace `glob` with `tinyglobby` - [#29817](https://github.com/storybookjs/storybook/pull/29817), thanks @ghengeveld!
+- Addon Test: Support Storybook environment variables in Vitest - [#29792](https://github.com/storybookjs/storybook/pull/29792), thanks @ghengeveld!
+- Composition: Hide contextMenu on composed storybooks - [#29803](https://github.com/storybookjs/storybook/pull/29803), thanks @ndelangen!
+- Vue: Properly resolve Vite plugin - [#29795](https://github.com/storybookjs/storybook/pull/29795), thanks @tobiasdiez!
+
 ## 8.5.0-alpha.17
 
 - CLI: Fix new-frameworks automigration - [#29804](https://github.com/storybookjs/storybook/pull/29804), thanks @yannbf!
diff --git a/code/.storybook/vitest.config.ts b/code/.storybook/vitest.config.ts
index 05205f3e762a..4b177f409281 100644
--- a/code/.storybook/vitest.config.ts
+++ b/code/.storybook/vitest.config.ts
@@ -34,20 +34,13 @@ export default mergeConfig(
     ],
     test: {
       name: 'storybook-ui',
-      include: [
-        '../addons/**/*.{story,stories}.?(c|m)[jt]s?(x)',
-        // '../core/template/stories/**/*.{story,stories}.?(c|m)[jt]s?(x)',
-        '../core/src/manager/**/*.{story,stories}.?(c|m)[jt]s?(x)',
-        '../core/src/preview-api/**/*.{story,stories}.?(c|m)[jt]s?(x)',
-        '../core/src/components/{brand,components}/**/*.{story,stories}.?(c|m)[jt]s?(x)',
-      ],
       exclude: [
         ...defaultExclude,
         '../node_modules/**',
         '**/__mockdata__/**',
         '../**/__mockdata__/**',
-        // expected to fail in Vitest because of fetching /iframe.html to cause ECONNREFUSED
-        '**/Zoom.stories.tsx',
+        '**/Zoom.stories.tsx', // expected to fail in Vitest because of fetching /iframe.html to cause ECONNREFUSED
+        '**/lib/blocks/src/**', // won't work because of https://github.com/storybookjs/storybook/issues/29783
       ],
       // TODO: bring this back once portable stories support @storybook/core/preview-api hooks
       // @ts-expect-error this type does not exist but the property does!
diff --git a/code/addons/test/package.json b/code/addons/test/package.json
index d26462ebdb52..29d77a92968c 100644
--- a/code/addons/test/package.json
+++ b/code/addons/test/package.json
@@ -111,6 +111,7 @@
     "semver": "^7.6.3",
     "slash": "^5.0.0",
     "strip-ansi": "^7.1.0",
+    "tinyglobby": "^0.2.10",
     "ts-dedent": "^2.2.0",
     "typescript": "^5.3.2",
     "vitest": "^2.1.3"
diff --git a/code/addons/test/src/node/test-manager.ts b/code/addons/test/src/node/test-manager.ts
index 3660081de58c..139fffa3ef6b 100644
--- a/code/addons/test/src/node/test-manager.ts
+++ b/code/addons/test/src/node/test-manager.ts
@@ -56,6 +56,13 @@ export class TestManager {
         this.coverage = payload.config.coverage;
         await this.restartVitest({ watchMode: this.watchMode, coverage: this.coverage });
       } catch (e) {
+        const isV8 = e.message?.includes('@vitest/coverage-v8');
+        const isIstanbul = e.message?.includes('@vitest/coverage-istanbul');
+
+        if (e.message?.includes('Error: Failed to load url') && (isIstanbul || isV8)) {
+          const coveragePackage = isIstanbul ? 'coverage-istanbul' : 'coverage-v8';
+          e.message = `Please install the @vitest/${coveragePackage} package to run with coverage`;
+        }
         this.reportFatalError('Failed to change coverage mode', e);
       }
     }
diff --git a/code/addons/test/src/node/vitest-manager.ts b/code/addons/test/src/node/vitest-manager.ts
index 59aba03e7c71..0296945b43c9 100644
--- a/code/addons/test/src/node/vitest-manager.ts
+++ b/code/addons/test/src/node/vitest-manager.ts
@@ -83,6 +83,14 @@ export class VitestManager {
     try {
       await this.vitest.init();
     } catch (e) {
+      const isV8 = e.message?.includes('@vitest/coverage-v8');
+      const isIstanbul = e.message?.includes('@vitest/coverage-istanbul');
+
+      if (e.message?.includes('Error: Failed to load url') && (isIstanbul || isV8)) {
+        const coveragePackage = isIstanbul ? 'coverage-istanbul' : 'coverage-v8';
+        e.message = `Please install the @vitest/${coveragePackage} package to run with coverage`;
+      }
+
       this.testManager.reportFatalError('Failed to init Vitest', e);
     }
 
diff --git a/code/addons/test/src/postinstall.ts b/code/addons/test/src/postinstall.ts
index f6772f7691c1..3ea45bd01bf7 100644
--- a/code/addons/test/src/postinstall.ts
+++ b/code/addons/test/src/postinstall.ts
@@ -336,8 +336,6 @@ export default async function postInstall(options: PostinstallOptions) {
     // If there's an existing config, we create a workspace file so we can run Storybook tests alongside.
     const extension = extname(rootConfig);
     const browserWorkspaceFile = resolve(dirname(rootConfig), `vitest.workspace${extension}`);
-    // to be set in vitest config
-    const vitestSetupFilePath = relative(dirname(browserWorkspaceFile), vitestSetupFile);
 
     logger.line(1);
     logger.plain(`${step} Creating a Vitest project workspace file:`);
@@ -355,6 +353,7 @@ export default async function postInstall(options: PostinstallOptions) {
           {
             extends: '${viteConfigFile ? relative(dirname(browserWorkspaceFile), viteConfigFile) : ''}',
             plugins: [
+              // The plugin will run tests for the stories defined in your Storybook config 
               // See options at: https://storybook.js.org/docs/writing-tests/vitest-plugin#storybooktest
               storybookTest({ configDir: '${options.configDir}' }),${vitestInfo.frameworkPluginDocs + vitestInfo.frameworkPluginCall}
             ],
@@ -366,9 +365,7 @@ export default async function postInstall(options: PostinstallOptions) {
                 name: 'chromium',
                 provider: 'playwright',
               },
-              // Make sure to adjust this pattern to match your stories files.
-              include: ['**/*.stories.?(m)[jt]s?(x)'],
-              setupFiles: ['${vitestSetupFilePath}'],
+              setupFiles: ['./.storybook/vitest.setup.ts'],
             },
           },
         ]);
@@ -393,6 +390,7 @@ export default async function postInstall(options: PostinstallOptions) {
         // More info at: https://storybook.js.org/docs/writing-tests/vitest-plugin
         export default defineConfig({
           plugins: [
+            // The plugin will run tests for the stories defined in your Storybook config 
             // See options at: https://storybook.js.org/docs/writing-tests/vitest-plugin#storybooktest
             storybookTest({ configDir: '${options.configDir}' }),${vitestInfo.frameworkPluginDocs + vitestInfo.frameworkPluginCall}
           ],
@@ -404,8 +402,6 @@ export default async function postInstall(options: PostinstallOptions) {
               name: 'chromium',
               provider: 'playwright',
             },
-            // Make sure to adjust this pattern to match your stories files.
-            include: ['**/*.stories.?(m)[jt]s?(x)'],
             setupFiles: ['${vitestSetupFilePath}'],
           },
         });
diff --git a/code/addons/test/src/vitest-plugin/index.ts b/code/addons/test/src/vitest-plugin/index.ts
index b93eed96ddcf..111e53fd2a8f 100644
--- a/code/addons/test/src/vitest-plugin/index.ts
+++ b/code/addons/test/src/vitest-plugin/index.ts
@@ -4,13 +4,16 @@ import type { Plugin } from 'vitest/config';
 import {
   getInterpretedFile,
   loadAllPresets,
+  normalizeStories,
   validateConfigurationFiles,
 } from 'storybook/internal/common';
+import { StoryIndexGenerator } from 'storybook/internal/core-server';
 import { readConfig, vitestTransform } from 'storybook/internal/csf-tools';
 import { MainFileMissingError } from 'storybook/internal/server-errors';
-import type { StoriesEntry } from 'storybook/internal/types';
+import type { DocsOptions, StoriesEntry } from 'storybook/internal/types';
 
 import { join, resolve } from 'pathe';
+import { convertPathToPattern } from 'tinyglobby';
 
 import type { InternalOptions, UserOptions } from './types';
 
@@ -51,8 +54,6 @@ export const storybookTest = (options?: UserOptions): Plugin => {
   process.env.__STORYBOOK_URL__ = storybookUrl;
   process.env.__STORYBOOK_SCRIPT__ = finalOptions.storybookScript;
 
-  let stories: StoriesEntry[];
-
   if (!finalOptions.configDir) {
     finalOptions.configDir = resolve(join(process.cwd(), '.storybook'));
   } else {
@@ -60,6 +61,8 @@ export const storybookTest = (options?: UserOptions): Plugin => {
   }
 
   let previewLevelTags: string[];
+  let storiesGlobs: StoriesEntry[];
+  let storiesFiles: string[];
 
   return {
     name: 'vite-plugin-storybook-test',
@@ -82,20 +85,49 @@ export const storybookTest = (options?: UserOptions): Plugin => {
         packageJson: {},
       });
 
-      stories = await presets.apply('stories', []);
+      const workingDir = process.cwd();
+      const directories = {
+        configDir,
+        workingDir,
+      };
+      storiesGlobs = await presets.apply('stories');
+      const indexers = await presets.apply('experimental_indexers', []);
+      const docsOptions = await presets.apply<DocsOptions>('docs', {});
+      const normalizedStories = normalizeStories(await storiesGlobs, directories);
+
+      const generator = new StoryIndexGenerator(normalizedStories, {
+        ...directories,
+        indexers: indexers,
+        docs: docsOptions,
+        workingDir,
+      });
+
+      await generator.initialize();
+
+      storiesFiles = generator.storyFileNames();
+
       previewLevelTags = await extractTagsFromPreview(configDir);
 
       const framework = await presets.apply('framework', undefined);
       const frameworkName = typeof framework === 'string' ? framework : framework.name;
+      const storybookEnv = await presets.apply('env', {});
 
       // If we end up needing to know if we are running in browser mode later
       // const isRunningInBrowserMode = config.plugins.find((plugin: Plugin) =>
       //   plugin.name?.startsWith('vitest:browser')
       // )
+
       config.test ??= {};
 
+      config.test.include ??= [];
+      config.test.include.push(...storiesFiles.map((path) => convertPathToPattern(path)));
+
+      config.test.exclude ??= [];
+      config.test.exclude.push('**/*.mdx');
+
       config.test.env ??= {};
       config.test.env = {
+        ...storybookEnv,
         ...config.test.env,
         // To be accessed by the setup file
         __STORYBOOK_URL__: storybookUrl,
@@ -104,6 +136,8 @@ export const storybookTest = (options?: UserOptions): Plugin => {
         __VITEST_SKIP_TAGS__: finalOptions.tags.skip.join(','),
       };
 
+      config.envPrefix = Array.from(new Set([...(config.envPrefix || []), 'STORYBOOK_', 'VITE_']));
+
       if (config.test.browser) {
         config.test.browser.screenshotFailures ??= false;
       }
@@ -163,13 +197,13 @@ export const storybookTest = (options?: UserOptions): Plugin => {
         return code;
       }
 
-      if (id.match(/(story|stories)\.[cm]?[jt]sx?$/)) {
+      if (storiesFiles.includes(id)) {
         return vitestTransform({
           code,
           fileName: id,
           configDir: finalOptions.configDir,
           tagsFilter: finalOptions.tags,
-          stories,
+          stories: storiesGlobs,
           previewLevelTags,
         });
       }
diff --git a/code/core/src/core-server/index.ts b/code/core/src/core-server/index.ts
index 4906ddd9b1f5..3163e70875ea 100644
--- a/code/core/src/core-server/index.ts
+++ b/code/core/src/core-server/index.ts
@@ -6,3 +6,4 @@ export * from './build-static';
 export * from './build-dev';
 export * from './withTelemetry';
 export { default as build } from './standalone';
+export { StoryIndexGenerator } from './utils/StoryIndexGenerator';
diff --git a/code/core/src/manager/components/sidebar/Tree.tsx b/code/core/src/manager/components/sidebar/Tree.tsx
index 0a22df1cb420..d08ab8ffc4d7 100644
--- a/code/core/src/manager/components/sidebar/Tree.tsx
+++ b/code/core/src/manager/components/sidebar/Tree.tsx
@@ -273,7 +273,10 @@ const Node = React.memo<NodeProps>(function Node({
   ]);
 
   const id = createId(item.id, refId);
-  const contextMenu = useContextMenu(item, statusLinks, api);
+  const contextMenu =
+    refId === 'storybook_internal'
+      ? useContextMenu(item, statusLinks, api)
+      : { node: null, onMouseEnter: () => {} };
 
   if (item.type === 'story' || item.type === 'docs') {
     const LeafNode = item.type === 'docs' ? DocumentNode : StoryNode;
diff --git a/code/core/src/types/modules/core-common.ts b/code/core/src/types/modules/core-common.ts
index 07372bc308dd..3254723fc4ee 100644
--- a/code/core/src/types/modules/core-common.ts
+++ b/code/core/src/types/modules/core-common.ts
@@ -71,6 +71,7 @@ export interface Presets {
   apply(extension: 'babel', config?: {}, args?: any): Promise<any>;
   apply(extension: 'swc', config?: {}, args?: any): Promise<any>;
   apply(extension: 'entries', config?: [], args?: any): Promise<unknown>;
+  apply(extension: 'env', config?: {}, args?: any): Promise<any>;
   apply(extension: 'stories', config?: [], args?: any): Promise<StoriesEntry[]>;
   apply(extension: 'managerEntries', config: [], args?: any): Promise<string[]>;
   apply(extension: 'refs', config?: [], args?: any): Promise<StorybookConfigRaw['refs']>;
diff --git a/code/frameworks/vue3-vite/src/plugins/vue-component-meta.ts b/code/frameworks/vue3-vite/src/plugins/vue-component-meta.ts
index 2f3c13b59897..82c9f4dc3109 100644
--- a/code/frameworks/vue3-vite/src/plugins/vue-component-meta.ts
+++ b/code/frameworks/vue3-vite/src/plugins/vue-component-meta.ts
@@ -3,7 +3,7 @@ import { dirname, join, parse, relative, resolve } from 'node:path';
 
 import findPackageJson from 'find-package-json';
 import MagicString from 'magic-string';
-import type { ModuleNode, PluginOption } from 'vite';
+import type { ModuleNode, Plugin } from 'vite';
 import {
   type ComponentMeta,
   type MetaCheckerOptions,
@@ -21,7 +21,7 @@ type MetaSource = {
 } & ComponentMeta &
   MetaCheckerOptions['schema'];
 
-export async function vueComponentMeta(tsconfigPath = 'tsconfig.json'): Promise<PluginOption> {
+export async function vueComponentMeta(tsconfigPath = 'tsconfig.json'): Promise<Plugin> {
   const { createFilter } = await import('vite');
 
   // exclude stories, virtual modules and storybook internals
diff --git a/code/frameworks/vue3-vite/src/plugins/vue-docgen.ts b/code/frameworks/vue3-vite/src/plugins/vue-docgen.ts
index 502264f88f14..c8b9268d0f46 100644
--- a/code/frameworks/vue3-vite/src/plugins/vue-docgen.ts
+++ b/code/frameworks/vue3-vite/src/plugins/vue-docgen.ts
@@ -1,8 +1,8 @@
 import MagicString from 'magic-string';
-import type { PluginOption } from 'vite';
+import type { Plugin } from 'vite';
 import { parse } from 'vue-docgen-api';
 
-export async function vueDocgen(): Promise<PluginOption> {
+export async function vueDocgen(): Promise<Plugin> {
   const { createFilter } = await import('vite');
 
   const include = /\.(vue)$/;
diff --git a/code/frameworks/vue3-vite/src/plugins/vue-template.ts b/code/frameworks/vue3-vite/src/plugins/vue-template.ts
index 325bc20341b4..22751c20222b 100644
--- a/code/frameworks/vue3-vite/src/plugins/vue-template.ts
+++ b/code/frameworks/vue3-vite/src/plugins/vue-template.ts
@@ -1,6 +1,6 @@
 import type { Plugin } from 'vite';
 
-export async function templateCompilation() {
+export async function templateCompilation(): Promise<Plugin> {
   return {
     name: 'storybook:vue-template-compilation',
     config: () => ({
diff --git a/code/frameworks/vue3-vite/src/preset.ts b/code/frameworks/vue3-vite/src/preset.ts
index 8bbaf394d442..d565b947587c 100644
--- a/code/frameworks/vue3-vite/src/preset.ts
+++ b/code/frameworks/vue3-vite/src/preset.ts
@@ -2,7 +2,7 @@ import { dirname, join } from 'node:path';
 
 import type { PresetProperty } from 'storybook/internal/types';
 
-import type { PluginOption } from 'vite';
+import type { Plugin } from 'vite';
 
 import { vueComponentMeta } from './plugins/vue-component-meta';
 import { vueDocgen } from './plugins/vue-docgen';
@@ -18,7 +18,7 @@ export const core: PresetProperty<'core'> = {
 };
 
 export const viteFinal: StorybookConfig['viteFinal'] = async (config, options) => {
-  const plugins: PluginOption[] = [templateCompilation()];
+  const plugins: Plugin[] = [await templateCompilation()];
 
   const framework = await options.presets.apply('framework');
   const frameworkOptions: FrameworkOptions =
diff --git a/code/frameworks/vue3-vite/src/vite-plugin.ts b/code/frameworks/vue3-vite/src/vite-plugin.ts
index eb2a3345e937..8b90ffe73ffa 100644
--- a/code/frameworks/vue3-vite/src/vite-plugin.ts
+++ b/code/frameworks/vue3-vite/src/vite-plugin.ts
@@ -1,5 +1,7 @@
+import type { Plugin } from 'vite';
+
 import { templateCompilation } from './plugins/vue-template';
 
-export const storybookVuePlugin = () => {
+export const storybookVuePlugin = (): Promise<Plugin>[] => {
   return [templateCompilation()];
 };
diff --git a/code/package.json b/code/package.json
index b030cd2c70a9..d85d0a6817c0 100644
--- a/code/package.json
+++ b/code/package.json
@@ -293,5 +293,6 @@
         "Dependency Upgrades"
       ]
     ]
-  }
+  },
+  "deferredNextVersion": "8.5.0-alpha.18"
 }
diff --git a/code/yarn.lock b/code/yarn.lock
index 2be3e8503969..389084993441 100644
--- a/code/yarn.lock
+++ b/code/yarn.lock
@@ -6633,6 +6633,7 @@ __metadata:
     semver: "npm:^7.6.3"
     slash: "npm:^5.0.0"
     strip-ansi: "npm:^7.1.0"
+    tinyglobby: "npm:^0.2.10"
     ts-dedent: "npm:^2.2.0"
     typescript: "npm:^5.3.2"
     vitest: "npm:^2.1.3"
@@ -15758,7 +15759,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"fdir@npm:^6.2.0":
+"fdir@npm:^6.2.0, fdir@npm:^6.4.2":
   version: 6.4.2
   resolution: "fdir@npm:6.4.2"
   peerDependencies:
@@ -23192,6 +23193,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"picomatch@npm:^4.0.2":
+  version: 4.0.2
+  resolution: "picomatch@npm:4.0.2"
+  checksum: 10c0/7c51f3ad2bb42c776f49ebf964c644958158be30d0a510efd5a395e8d49cb5acfed5b82c0c5b365523ce18e6ab85013c9ebe574f60305892ec3fa8eee8304ccc
+  languageName: node
+  linkType: hard
+
 "picoquery@npm:^1.4.0":
   version: 1.4.0
   resolution: "picoquery@npm:1.4.0"
@@ -27703,6 +27711,16 @@ __metadata:
   languageName: node
   linkType: hard
 
+"tinyglobby@npm:^0.2.10":
+  version: 0.2.10
+  resolution: "tinyglobby@npm:0.2.10"
+  dependencies:
+    fdir: "npm:^6.4.2"
+    picomatch: "npm:^4.0.2"
+  checksum: 10c0/ce946135d39b8c0e394e488ad59f4092e8c4ecd675ef1bcd4585c47de1b325e61ec6adfbfbe20c3c2bfa6fd674c5b06de2a2e65c433f752ae170aff11793e5ef
+  languageName: node
+  linkType: hard
+
 "tinypool@npm:^1.0.0":
   version: 1.0.0
   resolution: "tinypool@npm:1.0.0"
diff --git a/docs/versions/next.json b/docs/versions/next.json
index 37255d98f54a..0fee1f4e6446 100644
--- a/docs/versions/next.json
+++ b/docs/versions/next.json
@@ -1 +1 @@
-{"version":"8.5.0-alpha.17","info":{"plain":"- CLI: Fix new-frameworks automigration - [#29804](https://github.com/storybookjs/storybook/pull/29804), thanks @yannbf!\n- ReactVite: Add `@storybook/test` as optional peer dependency - [#29754](https://github.com/storybookjs/storybook/pull/29754), thanks @yannbf!\n- Vite: Fix preview runtime import - [#29802](https://github.com/storybookjs/storybook/pull/29802), thanks @yannbf!"}}
+{"version":"8.5.0-alpha.18","info":{"plain":"- Addon Test: Clarify message when `vitest` detects missing deps - [#29763](https://github.com/storybookjs/storybook/pull/29763), thanks @ndelangen!\n- Addon Test: Refactor test addon to include stories automatically - [#29367](https://github.com/storybookjs/storybook/pull/29367), thanks @yannbf!\n- Addon Test: Replace `glob` with `tinyglobby` - [#29817](https://github.com/storybookjs/storybook/pull/29817), thanks @ghengeveld!\n- Addon Test: Support Storybook environment variables in Vitest - [#29792](https://github.com/storybookjs/storybook/pull/29792), thanks @ghengeveld!\n- Composition: Hide contextMenu on composed storybooks - [#29803](https://github.com/storybookjs/storybook/pull/29803), thanks @ndelangen!\n- Vue: Properly resolve Vite plugin - [#29795](https://github.com/storybookjs/storybook/pull/29795), thanks @tobiasdiez!"}}
diff --git a/scripts/build-package.ts b/scripts/build-package.ts
index ee6cf109cbe8..8b74b5db9bfc 100644
--- a/scripts/build-package.ts
+++ b/scripts/build-package.ts
@@ -8,6 +8,7 @@ import picocolors from 'picocolors';
 import prompts from 'prompts';
 import windowSize from 'window-size';
 
+import { findMostMatchText } from './utils/diff';
 import { getWorkspaces } from './utils/workspace';
 
 async function run() {
@@ -80,60 +81,79 @@ async function run() {
     tasks[key].value = containsFlag || opts.all;
   });
 
-  let selection;
-  let watchMode = false;
-  let prodMode = false;
-  if (
-    !Object.keys(tasks)
-      .map((key) => tasks[key].value)
-      .filter(Boolean).length
-  ) {
-    selection = await prompts([
-      {
-        type: 'toggle',
-        name: 'watch',
-        message: 'Start in watch mode',
-        initial: false,
-        active: 'yes',
-        inactive: 'no',
-      },
-      {
-        type: 'toggle',
-        name: 'prod',
-        message: 'Start in production mode',
-        initial: false,
-        active: 'yes',
-        inactive: 'no',
-      },
-      {
-        type: 'autocompleteMultiselect',
-        message: 'Select the packages to build',
-        name: 'todo',
-        min: 1,
-        hint: 'You can also run directly with package name like `yarn build core`, or `yarn build --all` for all packages!',
-        // @ts-expect-error @types incomplete
-        optionsPerPage: windowSize.height - 3, // 3 lines for extra info
-        choices: packages.map(({ name: key }) => ({
-          value: key,
-          title: tasks[key].name || key,
-          selected: (tasks[key] && tasks[key].defaultValue) || false,
-        })),
-      },
-    ]).then(({ watch, prod, todo }: { watch: boolean; prod: boolean; todo: Array<string> }) => {
+  let watchMode = process.argv.includes('--watch');
+  let prodMode = process.argv.includes('--prod');
+  let selection = Object.keys(tasks)
+    .map((key) => tasks[key])
+    .filter((item) => !['watch', 'prod'].includes(item.name) && item.value === true);
+
+  // user has passed invalid package name(s) - try to guess the correct package name(s)
+  if ((!selection.length && main.args.length >= 1) || selection.length !== main.args.length) {
+    const suffixList = Object.values(tasks)
+      .filter((t) => t.name.includes('@storybook'))
+      .map((t) => t.suffix);
+
+    for (const arg of main.args) {
+      if (!suffixList.includes(arg)) {
+        const matchText = findMostMatchText(suffixList, arg);
+
+        if (matchText) {
+          console.log(
+            `${picocolors.red('Error')}: ${picocolors.cyan(
+              arg
+            )} is not a valid package name, Did you mean ${picocolors.cyan(matchText)}?`
+          );
+        }
+      }
+    }
+
+    process.exit(0);
+  }
+
+  if (!selection.length) {
+    selection = await prompts(
+      [
+        {
+          type: 'toggle',
+          name: 'watch',
+          message: 'Start in watch mode',
+          initial: false,
+          active: 'yes',
+          inactive: 'no',
+        },
+        {
+          type: 'toggle',
+          name: 'prod',
+          message: 'Start in production mode',
+          initial: false,
+          active: 'yes',
+          inactive: 'no',
+        },
+        {
+          type: 'autocompleteMultiselect',
+          message: 'Select the packages to build',
+          name: 'todo',
+          min: 1,
+          hint: 'You can also run directly with package name like `yarn build core`, or `yarn build --all` for all packages!',
+          // @ts-expect-error @types incomplete
+          optionsPerPage: windowSize.height - 3, // 3 lines for extra info
+          choices: packages.map(({ name: key }) => ({
+            value: key,
+            title: tasks[key].name || key,
+            selected: (tasks[key] && tasks[key].defaultValue) || false,
+          })),
+        },
+      ],
+      { onCancel: () => process.exit(0) }
+    ).then(({ watch, prod, todo }: { watch: boolean; prod: boolean; todo: Array<string> }) => {
       watchMode = watch;
       prodMode = prod;
       return todo?.map((key) => tasks[key]);
     });
-  } else {
-    // hits here when running yarn build --packagename
-    watchMode = process.argv.includes('--watch');
-    prodMode = process.argv.includes('--prod');
-    selection = Object.keys(tasks)
-      .map((key) => tasks[key])
-      .filter((item) => !['watch', 'prod'].includes(item.name) && item.value === true);
   }
 
-  selection?.filter(Boolean).forEach(async (v) => {
+  console.log('Building selected packages...');
+  selection.forEach(async (v) => {
     const command = (await readJSON(resolve('../code', v.location, 'package.json'))).scripts?.prep
       .split(posix.sep)
       .join(sep);
diff --git a/scripts/package.json b/scripts/package.json
index ee3aff691838..ae72fcc9783a 100644
--- a/scripts/package.json
+++ b/scripts/package.json
@@ -105,6 +105,7 @@
     "danger": "^12.3.3",
     "dataloader": "^2.2.2",
     "detect-port": "^1.6.1",
+    "diff-match-patch-es": "^0.1.0",
     "ejs": "^3.1.10",
     "ejs-lint": "^2.0.0",
     "es-toolkit": "^1.22.0",
diff --git a/scripts/tasks/sandbox-parts.ts b/scripts/tasks/sandbox-parts.ts
index 27b73c36de4e..920b31857a8b 100644
--- a/scripts/tasks/sandbox-parts.ts
+++ b/scripts/tasks/sandbox-parts.ts
@@ -498,14 +498,11 @@ export async function setupVitest(details: TemplateDetails, options: PassedOptio
           test: {
             name: "storybook",
             pool: "threads",
-            include: [
-              "src/**/*.{story,stories}.?(c|m)[jt]s?(x)",
-              "template-stories/**/*.{story,stories}.?(c|m)[jt]s?(x)",
-            ],
             exclude: [
               ...defaultExclude,
               // TODO: investigate TypeError: Cannot read properties of null (reading 'useContext')
               "**/*argtypes*",
+              ${template.expected.renderer === '@storybook/svelte' ? '"**/*.stories.svelte",' : ''}
             ],
             /**
              * TODO: Either fix or acknowledge limitation of:
diff --git a/scripts/utils/diff.ts b/scripts/utils/diff.ts
new file mode 100644
index 000000000000..a07dce4abe20
--- /dev/null
+++ b/scripts/utils/diff.ts
@@ -0,0 +1,35 @@
+import { diff } from 'diff-match-patch-es';
+
+function matchTextScore(text: string, pattern: string) {
+  const result = diff(text, pattern);
+
+  if (!result.length) {
+    return 0;
+  }
+
+  return result.reduce((pre, cur) => {
+    const [matchIndex, matchText] = cur;
+
+    if (matchIndex === 0) {
+      return pre + matchText.length;
+    }
+
+    return pre;
+  }, 0);
+}
+
+export function findMostMatchText(list: string[], pattern: string) {
+  let maxScore = 0;
+  let result = '';
+
+  for (const text of list) {
+    const score = matchTextScore(text, pattern);
+
+    if (score > maxScore) {
+      maxScore = score;
+      result = text;
+    }
+  }
+
+  return result !== '' ? result : null;
+}
diff --git a/scripts/yarn.lock b/scripts/yarn.lock
index 015159a4b042..3f740c74a6a4 100644
--- a/scripts/yarn.lock
+++ b/scripts/yarn.lock
@@ -83,11 +83,9 @@ __metadata:
   linkType: hard
 
 "@babel/helper-environment-visitor@npm:^7.22.20":
-  version: 7.24.7
-  resolution: "@babel/helper-environment-visitor@npm:7.24.7"
-  dependencies:
-    "@babel/types": "npm:^7.24.7"
-  checksum: 10c0/36ece78882b5960e2d26abf13cf15ff5689bf7c325b10a2895a74a499e712de0d305f8d78bb382dd3c05cfba7e47ec98fe28aab5674243e0625cd38438dd0b2d
+  version: 7.22.20
+  resolution: "@babel/helper-environment-visitor@npm:7.22.20"
+  checksum: 10c0/e762c2d8f5d423af89bd7ae9abe35bd4836d2eb401af868a63bbb63220c513c783e25ef001019418560b3fdc6d9a6fb67e6c0b650bcdeb3a2ac44b5c3d2bdd94
   languageName: node
   linkType: hard
 
@@ -102,20 +100,27 @@ __metadata:
   linkType: hard
 
 "@babel/helper-hoist-variables@npm:^7.22.5":
-  version: 7.24.7
-  resolution: "@babel/helper-hoist-variables@npm:7.24.7"
+  version: 7.22.5
+  resolution: "@babel/helper-hoist-variables@npm:7.22.5"
   dependencies:
-    "@babel/types": "npm:^7.24.7"
-  checksum: 10c0/19ee37563bbd1219f9d98991ad0e9abef77803ee5945fd85aa7aa62a67c69efca9a801696a1b58dda27f211e878b3327789e6fd2a6f6c725ccefe36774b5ce95
+    "@babel/types": "npm:^7.22.5"
+  checksum: 10c0/60a3077f756a1cd9f14eb89f0037f487d81ede2b7cfe652ea6869cd4ec4c782b0fb1de01b8494b9a2d2050e3d154d7d5ad3be24806790acfb8cbe2073bf1e208
   languageName: node
   linkType: hard
 
 "@babel/helper-split-export-declaration@npm:^7.22.6":
-  version: 7.24.7
-  resolution: "@babel/helper-split-export-declaration@npm:7.24.7"
+  version: 7.22.6
+  resolution: "@babel/helper-split-export-declaration@npm:7.22.6"
   dependencies:
-    "@babel/types": "npm:^7.24.7"
-  checksum: 10c0/0254577d7086bf09b01bbde98f731d4fcf4b7c3fa9634fdb87929801307c1f6202a1352e3faa5492450fa8da4420542d44de604daf540704ff349594a78184f6
+    "@babel/types": "npm:^7.22.5"
+  checksum: 10c0/d83e4b623eaa9622c267d3c83583b72f3aac567dc393dda18e559d79187961cb29ae9c57b2664137fc3d19508370b12ec6a81d28af73a50e0846819cb21c6e44
+  languageName: node
+  linkType: hard
+
+"@babel/helper-string-parser@npm:^7.23.4":
+  version: 7.23.4
+  resolution: "@babel/helper-string-parser@npm:7.23.4"
+  checksum: 10c0/f348d5637ad70b6b54b026d6544bd9040f78d24e7ec245a0fc42293968181f6ae9879c22d89744730d246ce8ec53588f716f102addd4df8bbc79b73ea10004ac
   languageName: node
   linkType: hard
 
@@ -133,6 +138,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@babel/helper-validator-identifier@npm:^7.22.20":
+  version: 7.22.20
+  resolution: "@babel/helper-validator-identifier@npm:7.22.20"
+  checksum: 10c0/dcad63db345fb110e032de46c3688384b0008a42a4845180ce7cd62b1a9c0507a1bed727c4d1060ed1a03ae57b4d918570259f81724aaac1a5b776056f37504e
+  languageName: node
+  linkType: hard
+
 "@babel/highlight@npm:^7.24.7":
   version: 7.24.7
   resolution: "@babel/highlight@npm:7.24.7"
@@ -145,7 +157,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@babel/parser@npm:^7.20.5, @babel/parser@npm:^7.22.5, @babel/parser@npm:^7.23.0, @babel/parser@npm:^7.24.4, @babel/parser@npm:^7.25.0, @babel/parser@npm:^7.25.3":
+"@babel/parser@npm:^7.20.5, @babel/parser@npm:^7.22.5, @babel/parser@npm:^7.24.4, @babel/parser@npm:^7.25.0, @babel/parser@npm:^7.25.3":
   version: 7.25.3
   resolution: "@babel/parser@npm:7.25.3"
   dependencies:
@@ -156,6 +168,15 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@babel/parser@npm:^7.23.0":
+  version: 7.23.9
+  resolution: "@babel/parser@npm:7.23.9"
+  bin:
+    parser: ./bin/babel-parser.js
+  checksum: 10c0/7df97386431366d4810538db4b9ec538f4377096f720c0591c7587a16f6810e62747e9fbbfa1ff99257fd4330035e4fb1b5b77c7bd3b97ce0d2e3780a6618975
+  languageName: node
+  linkType: hard
+
 "@babel/runtime@npm:^7.12.5, @babel/runtime@npm:^7.15.4, @babel/runtime@npm:^7.23.2":
   version: 7.23.2
   resolution: "@babel/runtime@npm:7.23.2"
@@ -219,7 +240,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@babel/types@npm:^7.17.0, @babel/types@npm:^7.23.0, @babel/types@npm:^7.24.0, @babel/types@npm:^7.24.7, @babel/types@npm:^7.25.0, @babel/types@npm:^7.25.2":
+"@babel/types@npm:^7.17.0, @babel/types@npm:^7.24.0, @babel/types@npm:^7.24.7, @babel/types@npm:^7.25.0, @babel/types@npm:^7.25.2":
   version: 7.25.2
   resolution: "@babel/types@npm:7.25.2"
   dependencies:
@@ -230,6 +251,17 @@ __metadata:
   languageName: node
   linkType: hard
 
+"@babel/types@npm:^7.22.5, @babel/types@npm:^7.23.0, @babel/types@npm:^7.8.3":
+  version: 7.23.9
+  resolution: "@babel/types@npm:7.23.9"
+  dependencies:
+    "@babel/helper-string-parser": "npm:^7.23.4"
+    "@babel/helper-validator-identifier": "npm:^7.22.20"
+    to-fast-properties: "npm:^2.0.0"
+  checksum: 10c0/edc7bb180ce7e4d2aea10c6972fb10474341ac39ba8fdc4a27ffb328368dfdfbf40fca18e441bbe7c483774500d5c05e222cec276c242e952853dcaf4eb884f7
+  languageName: node
+  linkType: hard
+
 "@bcoe/v8-coverage@npm:^0.2.3":
   version: 0.2.3
   resolution: "@bcoe/v8-coverage@npm:0.2.3"
@@ -442,13 +474,20 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@eslint-community/regexpp@npm:^4.10.0, @eslint-community/regexpp@npm:^4.5.1, @eslint-community/regexpp@npm:^4.6.1":
+"@eslint-community/regexpp@npm:^4.10.0":
   version: 4.10.1
   resolution: "@eslint-community/regexpp@npm:4.10.1"
   checksum: 10c0/f59376025d0c91dd9fdf18d33941df499292a3ecba3e9889c360f3f6590197d30755604588786cdca0f9030be315a26b206014af4b65c0ff85b4ec49043de780
   languageName: node
   linkType: hard
 
+"@eslint-community/regexpp@npm:^4.5.1, @eslint-community/regexpp@npm:^4.6.1":
+  version: 4.10.0
+  resolution: "@eslint-community/regexpp@npm:4.10.0"
+  checksum: 10c0/c5f60ef1f1ea7649fa7af0e80a5a79f64b55a8a8fa5086de4727eb4c86c652aedee407a9c143b8995d2c0b2d75c1222bec9ba5d73dbfc1f314550554f0979ef4
+  languageName: node
+  linkType: hard
+
 "@eslint/eslintrc@npm:^2.1.4":
   version: 2.1.4
   resolution: "@eslint/eslintrc@npm:2.1.4"
@@ -1589,6 +1628,7 @@ __metadata:
     danger: "npm:^12.3.3"
     dataloader: "npm:^2.2.2"
     detect-port: "npm:^1.6.1"
+    diff-match-patch-es: "npm:^0.1.0"
     ejs: "npm:^3.1.10"
     ejs-lint: "npm:^2.0.0"
     es-toolkit: "npm:^1.22.0"
@@ -4321,13 +4361,20 @@ __metadata:
   languageName: node
   linkType: hard
 
-"core-js@npm:3.35.0, core-js@npm:^3.8.2":
+"core-js@npm:3.35.0":
   version: 3.35.0
   resolution: "core-js@npm:3.35.0"
   checksum: 10c0/1d545ff4406f2afa5e681f44b45ed5f7f119d158b380234d5aa7787ce7e47fc7a635b98b74c28c766ba8191e3db8c2316ad6ab4ff1ddecbc3fd618413a52c29c
   languageName: node
   linkType: hard
 
+"core-js@npm:^3.8.2":
+  version: 3.33.2
+  resolution: "core-js@npm:3.33.2"
+  checksum: 10c0/d6a56ad3e134846c805ce936788dd58cb51e861f173ed1f830979735d7865ea6f6a5a437076c36c8d8b842ba0384d052998f160774a8da7712f0f51df60167fe
+  languageName: node
+  linkType: hard
+
 "core-util-is@npm:1.0.2":
   version: 1.0.2
   resolution: "core-util-is@npm:1.0.2"
@@ -4828,6 +4875,13 @@ __metadata:
   languageName: node
   linkType: hard
 
+"diff-match-patch-es@npm:^0.1.0":
+  version: 0.1.0
+  resolution: "diff-match-patch-es@npm:0.1.0"
+  checksum: 10c0/c456d10662506f676489c1572af2a48ad52d015a856b74bf16594d39f11c9a352cd763fd66b5a5952c86a18818f4b7de28d55876e7ffd47f5d71282e3a5056a2
+  languageName: node
+  linkType: hard
+
 "diff-sequences@npm:^29.6.3":
   version: 29.6.3
   resolution: "diff-sequences@npm:29.6.3"
@@ -5088,7 +5142,7 @@ __metadata:
   languageName: node
   linkType: hard
 
-"ejs@npm:^3.1.10, ejs@npm:^3.1.7":
+"ejs@npm:^3.1.10":
   version: 3.1.10
   resolution: "ejs@npm:3.1.10"
   dependencies:
@@ -5099,6 +5153,17 @@ __metadata:
   languageName: node
   linkType: hard
 
+"ejs@npm:^3.1.7":
+  version: 3.1.9
+  resolution: "ejs@npm:3.1.9"
+  dependencies:
+    jake: "npm:^10.8.5"
+  bin:
+    ejs: bin/cli.js
+  checksum: 10c0/f0e249c79128810f5f6d5cbf347fc906d86bb9384263db0b2a9004aea649f2bc2d112736de5716c509c80afb4721c47281bd5b57c757d3b63f1bf5ac5f885893
+  languageName: node
+  linkType: hard
+
 "emoji-regex@npm:^10.2.1, emoji-regex@npm:^10.3.0":
   version: 10.3.0
   resolution: "emoji-regex@npm:10.3.0"
@@ -8868,7 +8933,14 @@ __metadata:
   languageName: node
   linkType: hard
 
-"lru-cache@npm:^10.0.1, lru-cache@npm:^10.2.0":
+"lru-cache@npm:^10.0.1":
+  version: 10.0.1
+  resolution: "lru-cache@npm:10.0.1"
+  checksum: 10c0/982dabfb227b9a2daf56d712ae0e72e01115a28c0a2068cd71277bca04568f3417bbf741c6c7941abc5c620fd8059e34f15607f90ebccbfa0a17533322d27a8e
+  languageName: node
+  linkType: hard
+
+"lru-cache@npm:^10.2.0":
   version: 10.2.2
   resolution: "lru-cache@npm:10.2.2"
   checksum: 10c0/402d31094335851220d0b00985084288136136992979d0e015f0f1697e15d1c86052d7d53ae86b614e5b058425606efffc6969a31a091085d7a2b80a8a1e26d6