diff --git a/analysis/analysis-api-standalone/analysis-api-standalone-base/src/org/jetbrains/kotlin/analysis/api/standalone/base/project/structure/StandaloneProjectFactory.kt b/analysis/analysis-api-standalone/analysis-api-standalone-base/src/org/jetbrains/kotlin/analysis/api/standalone/base/project/structure/StandaloneProjectFactory.kt
index 4150e4498da..38f0f0e032a 100644
--- a/analysis/analysis-api-standalone/analysis-api-standalone-base/src/org/jetbrains/kotlin/analysis/api/standalone/base/project/structure/StandaloneProjectFactory.kt
+++ b/analysis/analysis-api-standalone/analysis-api-standalone-base/src/org/jetbrains/kotlin/analysis/api/standalone/base/project/structure/StandaloneProjectFactory.kt
@@ -67,6 +67,9 @@ object StandaloneProjectFactory {
 
             registerService(ExternalAnnotationsManager::class.java, MockExternalAnnotationsManager())
             registerService(InferredAnnotationsManager::class.java, MockInferredAnnotationsManager())
+
+            // The Java language level must be configured before Java source files are parsed. See `findJvmRootsForJavaFiles`.
+            setupHighestLanguageLevel()
         }
     }
 
@@ -85,8 +88,6 @@ object StandaloneProjectFactory {
 
         project.registerService(ProjectStructureProvider::class.java, projectStructureProvider)
         initialiseVirtualFileFinderServices(environment, modules, sourceFiles, languageVersionSettings, jdkHome)
-
-        project.setupHighestLanguageLevel()
     }
 
     private fun initialiseVirtualFileFinderServices(
@@ -153,6 +154,10 @@ object StandaloneProjectFactory {
         project.registerService(VirtualFileFinderFactory::class.java, finderFactory)
     }
 
+    /**
+     * Note that [findJvmRootsForJavaFiles] parses the given [files] because it needs access to each file's package name. To avoid parsing
+     * errors, [registerJavaPsiFacade] ensures that the Java language level is configured before [findJvmRootsForJavaFiles] is called.
+     */
     fun findJvmRootsForJavaFiles(files: List<PsiJavaFile>): List<PsiDirectory> {
         if (files.isEmpty()) return emptyList()
         val result = mutableSetOf<PsiDirectory>()
diff --git a/compiler/testData/diagnostics/tests/testsWithJava17/jvmRecord/javaRecordWithGeneric.kt b/compiler/testData/diagnostics/tests/testsWithJava17/jvmRecord/javaRecordWithGeneric.kt
index 55e00598d75..148b33530c1 100644
--- a/compiler/testData/diagnostics/tests/testsWithJava17/jvmRecord/javaRecordWithGeneric.kt
+++ b/compiler/testData/diagnostics/tests/testsWithJava17/jvmRecord/javaRecordWithGeneric.kt
@@ -1,5 +1,4 @@
 // FIR_IDENTICAL
-// FIR_IDE_IGNORE
 
 // FILE: MyInterface.java
 public interface MyInterface<T> {
diff --git a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.fir.kt b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.fir.kt
index 304f755e1d7..cce64dd75a8 100644
--- a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.fir.kt
+++ b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.fir.kt
@@ -1,4 +1,3 @@
-// FIR_IDE_IGNORE
 // !DIAGNOSTICS: -UNUSED_VARIABLE
 // ISSUE: KT-41215, KT-43551
 
diff --git a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.kt b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.kt
index fb5ce8ae65f..0ae9771eb1f 100644
--- a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.kt
+++ b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedClassExhaustiveness.kt
@@ -1,4 +1,3 @@
-// FIR_IDE_IGNORE
 // !DIAGNOSTICS: -UNUSED_VARIABLE
 // ISSUE: KT-41215, KT-43551
 
diff --git a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.fir.kt b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.fir.kt
index 9be489d07b9..3e478edc7ec 100644
--- a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.fir.kt
+++ b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.fir.kt
@@ -1,4 +1,3 @@
-// FIR_IDE_IGNORE
 // !DIAGNOSTICS: -UNUSED_VARIABLE
 // ISSUE: KT-41215, KT-43551
 
diff --git a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.kt b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.kt
index 2507439998f..3419f18de62 100644
--- a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.kt
+++ b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/javaSealedInterfaceExhaustiveness.kt
@@ -1,4 +1,3 @@
-// FIR_IDE_IGNORE
 // !DIAGNOSTICS: -UNUSED_VARIABLE
 // ISSUE: KT-41215, KT-43551
 
diff --git a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaClass.kt b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaClass.kt
index 3f41af6b282..3445a30bc29 100644
--- a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaClass.kt
+++ b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaClass.kt
@@ -1,4 +1,3 @@
-// FIR_IDE_IGNORE
 // FIR_IDENTICAL
 // ISSUE: KT-41215
 
diff --git a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaInterface.kt b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaInterface.kt
index 46d1a3068fd..d138fedc8da 100644
--- a/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaInterface.kt
+++ b/compiler/testData/diagnostics/tests/testsWithJava17/sealedClasses/kotlinInheritsJavaInterface.kt
@@ -1,4 +1,3 @@
-// FIR_IDE_IGNORE
 // FIR_IDENTICAL
 // ISSUE: KT-41215