diff --git a/scripts/dev-runner-paths.mjs b/scripts/dev-runner-paths.mjs
index 274be549..efea8f51 100644
--- a/scripts/dev-runner-paths.mjs
+++ b/scripts/dev-runner-paths.mjs
@@ -21,6 +21,9 @@ export function shouldTrackDevServerPath(relativePath) {
   const segments = normalizedPath.split("/");
   const basename = segments.at(-1) ?? normalizedPath;
 
+  if (segments.includes(".paperclip")) {
+    return false;
+  }
   if (ignoredTestConfigBasenames.has(basename)) {
     return false;
   }
diff --git a/server/src/__tests__/dev-runner-paths.test.ts b/server/src/__tests__/dev-runner-paths.test.ts
index 76b35203..6f9a5b80 100644
--- a/server/src/__tests__/dev-runner-paths.test.ts
+++ b/server/src/__tests__/dev-runner-paths.test.ts
@@ -2,7 +2,12 @@ import { describe, expect, it } from "vitest";
 import { shouldTrackDevServerPath } from "../../../scripts/dev-runner-paths.mjs";
 
 describe("shouldTrackDevServerPath", () => {
-  it("ignores common test file paths", () => {
+  it("ignores repo-local Paperclip state and common test file paths", () => {
+    expect(
+      shouldTrackDevServerPath(
+        ".paperclip/worktrees/PAP-712-for-project-configuration-get-rid-of-the-overview-tab-for-now/.agents/skills/paperclip",
+      ),
+    ).toBe(false);
     expect(shouldTrackDevServerPath("server/src/__tests__/health.test.ts")).toBe(false);
     expect(shouldTrackDevServerPath("packages/shared/src/lib/foo.test.ts")).toBe(false);
     expect(shouldTrackDevServerPath("packages/shared/src/lib/foo.spec.tsx")).toBe(false);