diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 571ac187e5..80d46786f3 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -264,12 +264,8 @@ jobs:
       - name: Regenerate fourslash tests and update failing test list
         run: |
           set -x
-          echo "" > ./internal/fourslash/_scripts/failingTests.txt
           npm run convertfourslash >/dev/null 2>&1 || true
-          npx hereby test >/dev/null || true
-          npx hereby baseline-accept || true
           npm run updatefailing >/dev/null 2>&1 || true
-          npx hereby baseline-accept || true
           rm -rf testdata/baselines/reference/fourslash || true
           npx hereby test >/dev/null || true
           npx hereby baseline-accept || true
diff --git a/internal/fourslash/_scripts/updateFailing.mts b/internal/fourslash/_scripts/updateFailing.mts
index f9a98379e8..1deee36182 100644
--- a/internal/fourslash/_scripts/updateFailing.mts
+++ b/internal/fourslash/_scripts/updateFailing.mts
@@ -1,43 +1,137 @@
 import * as cp from "child_process";
 import * as fs from "fs";
 import path from "path";
+import * as readline from "readline";
 import which from "which";
 
 const failingTestsPath = path.join(import.meta.dirname, "failingTests.txt");
 const crashingTestsPath = path.join(import.meta.dirname, "crashingTests.txt");
 
-function main() {
+interface TestEvent {
+    Time?: string;
+    Action: string;
+    Package?: string;
+    Test?: string;
+    Output?: string;
+    Elapsed?: number;
+}
+
+async function main() {
     const go = which.sync("go");
-    let testOutput: string;
+
+    let testProcess: cp.ChildProcess;
     try {
         // Run tests with TSGO_FOURSLASH_IGNORE_FAILING=1 to run all tests including those in failingTests.txt
-        testOutput = cp.execFileSync(go, ["test", "-v", "./internal/fourslash/tests/gen"], {
-            encoding: "utf-8",
+        testProcess = cp.spawn(go, ["test", "-json", "./internal/fourslash/tests/gen"], {
+            stdio: ["ignore", "pipe", "pipe"],
             env: { ...process.env, TSGO_FOURSLASH_IGNORE_FAILING: "1" },
         });
     }
     catch (error) {
-        testOutput = (error as { stdout: string; }).stdout as string;
+        throw new Error("Failed to spawn test process: " + error);
     }
-    const panicRegex = /^panic/m;
-    if (panicRegex.test(testOutput)) {
-        throw new Error("Unrecovered panic detected in tests\n" + testOutput);
+
+    if (!testProcess.stdout || !testProcess.stderr) {
+        throw new Error("Test process stdout or stderr is null");
     }
-    const failRegex = /--- FAIL: ([\S]+)/gm;
+
     const failingTests: string[] = [];
-    const crashingRegex = /^=== (?:NAME|CONT)  ([\S]+)\n.*InternalError.*$/gm;
     const crashingTests: string[] = [];
-    let match;
+    const testOutputs = new Map<string, string[]>();
+    const allOutputs: string[] = [];
+    let hadPanic = false;
 
-    while ((match = failRegex.exec(testOutput)) !== null) {
-        failingTests.push(match[1]);
-    }
-    while ((match = crashingRegex.exec(testOutput)) !== null) {
-        crashingTests.push(match[1]);
-    }
+    const rl = readline.createInterface({
+        input: testProcess.stdout,
+        crlfDelay: Infinity,
+    });
+
+    rl.on("line", line => {
+        try {
+            const event: TestEvent = JSON.parse(line);
+
+            // Collect output for each test
+            if (event.Action === "output" && event.Output) {
+                allOutputs.push(event.Output);
+                if (event.Test) {
+                    if (!testOutputs.has(event.Test)) {
+                        testOutputs.set(event.Test, []);
+                    }
+                    testOutputs.get(event.Test)!.push(event.Output);
+                }
+
+                // Check for panics
+                if (/^panic/m.test(event.Output)) {
+                    hadPanic = true;
+                }
+            }
+
+            // Process failed tests
+            if (event.Action === "fail" && event.Test) {
+                const outputs = testOutputs.get(event.Test) || [];
 
-    fs.writeFileSync(failingTestsPath, failingTests.sort((a, b) => a.localeCompare(b, "en-US")).join("\n") + "\n", "utf-8");
-    fs.writeFileSync(crashingTestsPath, crashingTests.sort((a, b) => a.localeCompare(b, "en-US")).join("\n") + "\n", "utf-8");
+                // Check if this is a crashing test (contains InternalError)
+                const hasCrash = outputs.some(line => line.includes("InternalError"));
+                if (hasCrash) {
+                    crashingTests.push(event.Test);
+                }
+
+                // A test is only considered a baseline-only failure if ALL error messages
+                // are baseline-related. Any non-baseline error message means it's a real failure.
+                const baselineMessagePatterns = [
+                    /^\s*baseline\.go:\d+: the baseline file .* has changed\./,
+                    /^\s*baseline\.go:\d+: new baseline created at /,
+                    /^\s*baseline\.go:\d+: the baseline file .* does not exist in the TypeScript submodule/,
+                    /^\s*baseline\.go:\d+: the baseline file .* does not match the reference in the TypeScript submodule/,
+                ];
+
+                // Check each output line that looks like an error message
+                // Error messages from Go tests typically contain ".go:" with a line number
+                const errorLines = outputs.filter(line => /^\s*\w+\.go:\d+:/.test(line));
+
+                // If there are no error lines, it's a real failure.
+                // If all error lines match baseline patterns, it's a baseline-only failure
+                const isBaselineOnlyFailure = errorLines.length > 0 &&
+                    errorLines.every(line => baselineMessagePatterns.some(pattern => pattern.test(line)));
+
+                if (!isBaselineOnlyFailure) {
+                    failingTests.push(event.Test);
+                }
+            }
+        }
+        catch (e) {
+            // Not JSON, possibly stderr or other output - ignore
+        }
+    });
+
+    testProcess.stderr.on("data", data => {
+        // Check stderr for panics too
+        const output = data.toString();
+        allOutputs.push(output);
+        if (/^panic/m.test(output)) {
+            hadPanic = true;
+        }
+    });
+
+    await new Promise<void>((resolve, reject) => {
+        testProcess.on("close", code => {
+            if (hadPanic) {
+                reject(new Error("Unrecovered panic detected in tests\n" + allOutputs.join("")));
+                return;
+            }
+
+            fs.writeFileSync(failingTestsPath, failingTests.sort((a, b) => a.localeCompare(b, "en-US")).join("\n") + "\n", "utf-8");
+            fs.writeFileSync(crashingTestsPath, crashingTests.sort((a, b) => a.localeCompare(b, "en-US")).join("\n") + "\n", "utf-8");
+            resolve();
+        });
+
+        testProcess.on("error", error => {
+            reject(error);
+        });
+    });
 }
 
-main();
+main().catch(error => {
+    console.error("Error:", error);
+    process.exit(1);
+});