diff --git a/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.test.tsx b/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.test.tsx
index 48e642cb44..942eef9d82 100644
--- a/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.test.tsx
+++ b/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.test.tsx
@@ -18,7 +18,7 @@ import { Entity } from '@backstage/catalog-model';
 import { CatalogApi, catalogApiRef } from '@backstage/plugin-catalog-react';
 import { renderInTestApp, TestApiProvider } from '@backstage/test-utils';
 import { FieldProps } from '@rjsf/core';
-import userEvent from '@testing-library/user-event';
+import { fireEvent } from '@testing-library/react';
 import React from 'react';
 import { EntityPicker } from './EntityPicker';
 
@@ -92,15 +92,16 @@ describe('<EntityPicker />', () => {
     });
 
     it('updates even if there is not an exact match', async () => {
-      const { getByLabelText } = await renderInTestApp(
+      const { getByRole } = await renderInTestApp(
         <Wrapper>
           <EntityPicker {...props} />
         </Wrapper>,
       );
-      const input = getByLabelText('Entity');
 
-      userEvent.type(input, 'squ');
-      input.blur();
+      const input = getByRole('textbox');
+
+      fireEvent.change(input, { target: { value: 'squ' } });
+      fireEvent.blur(input);
 
       expect(onChange).toHaveBeenCalledWith('squ');
     });
diff --git a/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx b/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx
index 3786d8d4a2..e991d6d097 100644
--- a/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/EntityPicker/EntityPicker.tsx
@@ -43,7 +43,7 @@ export const EntityPicker = (
     formData,
     idSchema,
   } = props;
-  const allowedKinds = uiSchema['ui:options']?.allowedKinds ?? [];
+  const allowedKinds = uiSchema['ui:options']?.allowedKinds;
   const defaultKind = uiSchema['ui:options']?.defaultKind;
 
   const catalogApi = useApi(catalogApiRef);
@@ -85,7 +85,7 @@ export const EntityPicker = (
         onChange={onSelect}
         options={entityRefs || []}
         autoSelect
-        freeSolo={uiSchema['ui:options']?.allowArbitraryValues}
+        freeSolo={uiSchema['ui:options']?.allowArbitraryValues ?? true}
         renderInput={params => (
           <TextField
             {...params}