diff --git a/sdk/core/azure_core_test/Cargo.toml b/sdk/core/azure_core_test/Cargo.toml
index bd073f9e58..017849e82e 100644
--- a/sdk/core/azure_core_test/Cargo.toml
+++ b/sdk/core/azure_core_test/Cargo.toml
@@ -21,7 +21,7 @@ serde.workspace = true
 tracing.workspace = true
 
 [target.'cfg(not(target_arch = "wasm32"))'.dependencies]
-tokio = { workspace = true, features = ["io-util", "process", "sync"] }
+tokio = { workspace = true, features = ["io-util", "process", "sync", "time"] }
 
 [dev-dependencies]
 clap.workspace = true
diff --git a/sdk/core/azure_core_test/examples/test_proxy.rs b/sdk/core/azure_core_test/examples/test_proxy.rs
index fdc3c9e05c..c9379d7941 100644
--- a/sdk/core/azure_core_test/examples/test_proxy.rs
+++ b/sdk/core/azure_core_test/examples/test_proxy.rs
@@ -14,12 +14,10 @@ async fn main() -> Result<(), Box<dyn std::error::Error>> {
 
     let args = Args::parse();
 
-    tracing_subscriber::fmt()
-        // Default trace level based on command line arguments.
-        .with_max_level(args.trace_level())
-        // RUST_LOG environment variable can override trace level.
-        .with_env_filter(tracing_subscriber::EnvFilter::from_default_env())
-        .init();
+    let filter = tracing_subscriber::EnvFilter::builder()
+        .with_default_directive(args.trace_level().into())
+        .from_env_lossy();
+    tracing_subscriber::fmt().with_env_filter(filter).init();
 
     let mut proxy = proxy::start(env!("CARGO_MANIFEST_DIR"), Some(args.into())).await?;
 
@@ -57,8 +55,8 @@ struct Args {
     verbose: bool,
 }
 
-#[cfg(not(target_arch = "wasm32"))]
 impl Args {
+    #[cfg(not(target_arch = "wasm32"))]
     fn trace_level(&self) -> tracing::level_filters::LevelFilter {
         if self.verbose {
             return tracing::level_filters::LevelFilter::DEBUG;
diff --git a/sdk/core/azure_core_test/src/proxy.rs b/sdk/core/azure_core_test/src/proxy.rs
index f80ee134cb..12f9fdd4bb 100644
--- a/sdk/core/azure_core_test/src/proxy.rs
+++ b/sdk/core/azure_core_test/src/proxy.rs
@@ -9,6 +9,7 @@ use std::{
     path::Path,
     process::{ExitStatus, Stdio},
     sync::Arc,
+    time::Duration,
 };
 use tokio::{
     io::{AsyncBufReadExt, BufReader},
@@ -16,11 +17,12 @@ use tokio::{
 };
 use tracing::{Level, Span};
 
-// cspell:ignore aspnetcore devcert testproxy
+// cspell:ignore aspnetcore devcert teamprojectid testproxy
 const KESTREL_CERT_PATH_ENV: &str = "ASPNETCORE_Kestrel__Certificates__Default__Path";
 const KESTREL_CERT_PASSWORD_ENV: &str = "ASPNETCORE_Kestrel__Certificates__Default__Password";
 const KESTREL_CERT_PASSWORD: &str = "password";
 const PROXY_MANUAL_START: &str = "PROXY_MANUAL_START";
+const SYSTEM_TEAMPROJECTID: &str = "SYSTEM_TEAMPROJECTID";
 
 pub async fn start(
     test_data_dir: impl AsRef<Path>,
@@ -63,7 +65,14 @@ pub async fn start(
 
     // Wait until the service is listening on a port.
     let mut stdout = command.stdout.take();
-    let url = wait_till_listening(&mut stdout).await?;
+    let max_seconds = Duration::from_secs(env::var(SYSTEM_TEAMPROJECTID).map_or(5, |_| 20));
+    let url = tokio::select! {
+        v = wait_till_listening(&mut stdout) => { v? },
+        _ = tokio::time::sleep(max_seconds) => {
+            command.kill().await?;
+            return Err(azure_core::Error::message(ErrorKind::Other, "timeout waiting for test-proxy to start"));
+        },
+    };
 
     Ok(Proxy {
         command: Some(command),
@@ -79,9 +88,6 @@ async fn wait_till_listening(stdout: &mut Option<ChildStdout>) -> Result<Url> {
         ));
     };
 
-    // cspell:ignore teamprojectid
-    let _max_seconds = env::var("SYSTEM_TEAMPROJECTID").map_or(5, |_| 20);
-
     // Wait for the process to respond to requests and check output until pattern: "Now listening on: http://0.0.0.0:60583" (random port).
     let mut reader = BufReader::new(stdout).lines();
     while let Some(line) = reader.next_line().await? {
@@ -90,7 +96,7 @@ async fn wait_till_listening(stdout: &mut Option<ChildStdout>) -> Result<Url> {
         if let Some(idx) = line.find(PATTERN) {
             let idx = idx + PATTERN.len();
             let url = line[idx..].parse()?;
-            tracing::event!(target: crate::SPAN_TARGET, Level::INFO, "listening on {}", url);
+            tracing::event!(target: crate::SPAN_TARGET, Level::INFO, "listening on {url}");
 
             return Ok(url);
         }