diff --git a/apps/chat-e2e/src/tests/selectUploadFolder.test.ts b/apps/chat-e2e/src/tests/selectUploadFolder.test.ts
index 5064bc5c7..570663c7d 100644
--- a/apps/chat-e2e/src/tests/selectUploadFolder.test.ts
+++ b/apps/chat-e2e/src/tests/selectUploadFolder.test.ts
@@ -575,7 +575,6 @@ dialTest(
     attachFilesModal,
     selectFolderModal,
     selectFolders,
-    toast,
   }) => {
     setTestIds('EPMRTC-3017', 'EPMRTC-3246');
 
@@ -607,15 +606,17 @@ dialTest(
           { isHttpMethodTriggered: false },
         );
         await expect
-          .soft(toast.getElementLocator(), ExpectedMessages.errorToastIsShown)
+          .soft(
+            await selectFolderModal.getErrorContainer(),
+            ExpectedMessages.errorToastIsShown,
+          )
           .toBeVisible();
         expect
           .soft(
-            await toast.getElementContent(),
+            await selectFolderModal.getErrorMessage(),
             ExpectedMessages.errorMessageContentIsValid,
           )
           .toBe(ExpectedConstants.nameWithDotErrorMessage);
-        await selectFolders.getEditFolderInputActions().clickCancelButton();
       },
     );
 
diff --git a/apps/chat-e2e/src/ui/selectors/chatSelectors.ts b/apps/chat-e2e/src/ui/selectors/chatSelectors.ts
index 271d6251c..d6f2b6422 100644
--- a/apps/chat-e2e/src/ui/selectors/chatSelectors.ts
+++ b/apps/chat-e2e/src/ui/selectors/chatSelectors.ts
@@ -102,6 +102,7 @@ export const ErrorLabelSelectors = {
   notAllowedModel: '[data-qa="not-allowed-model-error"]',
   fieldError: '.text-error',
   errorText: '[data-qa="error-text"]',
+  errorContainer: '[data-qa="error-message-container"]',
 };
 
 export const ImportExportSelectors = {
diff --git a/apps/chat-e2e/src/ui/webElements/selectFolderModal.ts b/apps/chat-e2e/src/ui/webElements/selectFolderModal.ts
index b2cb5cd54..414d52edc 100644
--- a/apps/chat-e2e/src/ui/webElements/selectFolderModal.ts
+++ b/apps/chat-e2e/src/ui/webElements/selectFolderModal.ts
@@ -104,4 +104,16 @@ export class SelectFolderModal extends BaseElement {
       await this.selectFolderButton.click();
     }
   }
+
+  public async getErrorMessage() {
+    return this.getChildElementBySelector(
+      ErrorLabelSelectors.errorText,
+    ).getElementContent();
+  }
+
+  public async getErrorContainer() {
+    return this.getChildElementBySelector(
+      ErrorLabelSelectors.errorContainer,
+    ).getElementLocator();
+  }
 }
diff --git a/apps/chat/src/components/Common/ErrorMessage.tsx b/apps/chat/src/components/Common/ErrorMessage.tsx
index 72de2e59f..71adf3cf3 100644
--- a/apps/chat/src/components/Common/ErrorMessage.tsx
+++ b/apps/chat/src/components/Common/ErrorMessage.tsx
@@ -26,6 +26,7 @@ export const ErrorMessage = ({ error, type = MessageType.ERROR }: Props) => {
         'flex w-full gap-3 rounded border p-3',
         isErrorMessage ? 'border-error bg-error' : 'border-warning bg-warning',
       )}
+      data-qa="error-message-container"
     >
       <span
         className={classNames(
diff --git a/apps/chat/src/components/Common/SelectFolder/SelectFolderList.tsx b/apps/chat/src/components/Common/SelectFolder/SelectFolderList.tsx
index 2950827d7..c4d3bec9e 100644
--- a/apps/chat/src/components/Common/SelectFolder/SelectFolderList.tsx
+++ b/apps/chat/src/components/Common/SelectFolder/SelectFolderList.tsx
@@ -92,6 +92,7 @@ export const SelectFolderList = <T extends Conversation | Prompt | DialFile>({
                               ? FeatureType.File
                               : FeatureType.Prompt
                         }
+                        skipFolderRenameValidation
                         maxDepth={MAX_CONVERSATION_AND_PROMPT_FOLDERS_DEPTH}
                         currentFolder={folder}
                         highlightedFolders={highlightedFolders}