diff --git a/packages/cli/knip-report.md b/packages/cli/knip-report.md
index 60ccba435c..bfb5537db1 100644
--- a/packages/cli/knip-report.md
+++ b/packages/cli/knip-report.md
@@ -58,18 +58,12 @@
 | @rspack/dev-server           | package.json | error    |
 | @rspack/core                 | package.json | error    |
 
-## Unlisted dependencies (10)
+## Unlisted dependencies (4)
 
-| Name                   | Location                                                                                         | Severity |
-| :--------------------- | :----------------------------------------------------------------------------------------------- | :------- |
-| @testing-library/react | templates/default-react-plugin-package/src/components/ExampleComponent/ExampleComponent.test.tsx | error    |
-| react                  | templates/default-react-plugin-package/src/components/ExampleComponent/ExampleComponent.test.tsx | error    |
-| @material-ui/core      | templates/default-react-plugin-package/src/components/ExampleComponent/ExampleComponent.tsx      | error    |
-| react                  | templates/default-react-plugin-package/src/components/ExampleComponent/ExampleComponent.tsx      | error    |
-| supertest              | templates/default-backend-plugin/src/router.test.ts                                              | error    |
-| express-promise-router | templates/default-backend-plugin/src/router.ts                                                   | error    |
-| react-dom              | src/lib/bundler/hasReactDomClient.ts                                                             | error    |
-| react-dom              | src/lib/bundler/config.ts                                                                        | error    |
-| react                  | src/lib/bundler/config.ts                                                                        | error    |
-| react                  | src/lib/bundler/server.ts                                                                        | error    |
+| Name      | Location                             | Severity |
+| :-------- | :----------------------------------- | :------- |
+| react-dom | src/lib/bundler/hasReactDomClient.ts | error    |
+| react-dom | src/lib/bundler/config.ts            | error    |
+| react     | src/lib/bundler/config.ts            | error    |
+| react     | src/lib/bundler/server.ts            | error    |
 
diff --git a/packages/create-app/knip-report.md b/packages/create-app/knip-report.md
index 0afa527ab0..864a5956ef 100644
--- a/packages/create-app/knip-report.md
+++ b/packages/create-app/knip-report.md
@@ -6,62 +6,3 @@
 | :-------------------- | :----------- | :------- |
 | @types/command-exists | package.json | error    |
 
-## Unlisted dependencies (54)
-
-| Name                                             | Location                                                                 | Severity |
-| :----------------------------------------------- | :----------------------------------------------------------------------- | :------- |
-| @backstage/plugin-techdocs-module-addons-contrib | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-techdocs-react                 | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-catalog-graph                  | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-kubernetes                     | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-api-docs                       | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-techdocs                       | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/core-components                       | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-catalog                        | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/catalog-model                         | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-org                            | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @material-ui/core                                | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| react                                            | templates/default-app/packages/app/src/components/catalog/EntityPage.tsx | error    |
-| @backstage/plugin-catalog-react                  | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @backstage/plugin-search-react                   | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @backstage/plugin-techdocs                       | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @backstage/core-components                       | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @backstage/core-plugin-api                       | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @backstage/plugin-catalog                        | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @backstage/plugin-search                         | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @material-ui/core                                | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| react                                            | templates/default-app/packages/app/src/components/search/SearchPage.tsx  | error    |
-| @material-ui/core                                | templates/default-app/packages/app/src/components/Root/LogoFull.tsx      | error    |
-| @material-ui/core                                | templates/default-app/packages/app/src/components/Root/LogoIcon.tsx      | error    |
-| react                                            | templates/default-app/packages/app/src/components/Root/LogoFull.tsx      | error    |
-| react                                            | templates/default-app/packages/app/src/components/Root/LogoIcon.tsx      | error    |
-| @backstage/plugin-user-settings                  | templates/default-app/packages/app/src/components/Root/Root.tsx          | error    |
-| @backstage/core-components                       | templates/default-app/packages/app/src/components/Root/Root.tsx          | error    |
-| @backstage/plugin-search                         | templates/default-app/packages/app/src/components/Root/Root.tsx          | error    |
-| @backstage/plugin-org                            | templates/default-app/packages/app/src/components/Root/Root.tsx          | error    |
-| @material-ui/icons                               | templates/default-app/packages/app/src/components/Root/Root.tsx          | error    |
-| @material-ui/core                                | templates/default-app/packages/app/src/components/Root/Root.tsx          | error    |
-| react                                            | templates/default-app/packages/app/src/components/Root/Root.tsx          | error    |
-| @testing-library/react                           | templates/default-app/packages/app/src/App.test.tsx                      | error    |
-| react                                            | templates/default-app/packages/app/src/App.test.tsx                      | error    |
-| @backstage/plugin-techdocs-module-addons-contrib | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-permission-react               | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-catalog-import                 | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-techdocs-react                 | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-catalog-common                 | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-user-settings                  | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-catalog-graph                  | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-scaffolder                     | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/integration-react                     | templates/default-app/packages/app/src/apis.ts                           | error    |
-| @backstage/plugin-api-docs                       | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-techdocs                       | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/core-components                       | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/core-plugin-api                       | templates/default-app/packages/app/src/apis.ts                           | error    |
-| @backstage/plugin-catalog                        | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-search                         | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/app-defaults                          | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/core-app-api                          | templates/default-app/packages/app/src/App.tsx                           | error    |
-| @backstage/plugin-org                            | templates/default-app/packages/app/src/App.tsx                           | error    |
-| react-router-dom                                 | templates/default-app/packages/app/src/App.tsx                           | error    |
-| react                                            | templates/default-app/packages/app/src/App.tsx                           | error    |
-
diff --git a/packages/repo-tools/src/commands/knip-reports/knip-extractor.ts b/packages/repo-tools/src/commands/knip-reports/knip-extractor.ts
index 5238a951c9..019d6a7ebc 100644
--- a/packages/repo-tools/src/commands/knip-reports/knip-extractor.ts
+++ b/packages/repo-tools/src/commands/knip-reports/knip-extractor.ts
@@ -68,20 +68,20 @@ async function generateKnipConfig({ knipConfigPath }: KnipConfigOptions) {
           'src/routes.ts',
           'src/run.ts',
         ],
+        ignore: [
+          '.eslintrc.js',
+          'config.d.ts',
+          'knexfile.js',
+          'node_modules/**',
+          'dist/**',
+          '{fixtures,migrations,templates}/**',
+        ],
       },
     },
     jest: {
-      entry: ['src/setupTests.ts', '**/*.test.{ts,tsx}'],
+      entry: ['src/setupTests.ts', 'src/**/*.test.{ts,tsx}'],
     },
     storybook: { entry: 'src/components/**/*.stories.tsx' },
-    ignore: [
-      '.eslintrc.js',
-      'config.d.ts',
-      'knexfile.js',
-      'node_modules/**',
-      'dist/**',
-      '{fixtures,migrations,templates}/**',
-    ],
     ignoreDependencies: [
       // these is reported as a referenced optional peerDependencies
       // TBD: investigate what triggers these