diff --git a/cli/lsp/language_server.rs b/cli/lsp/language_server.rs
index faad942950..50cc0326e3 100644
--- a/cli/lsp/language_server.rs
+++ b/cli/lsp/language_server.rs
@@ -345,11 +345,12 @@ fn create_lsp_structs(
     registry_url.clone(),
     npm_cache.clone(),
     http_client,
-    progress_bar,
+    progress_bar.clone(),
   );
   let resolution = NpmResolution::new(api.clone(), None, None);
   let fs_resolver = create_npm_fs_resolver(
     npm_cache.clone(),
+    &progress_bar,
     registry_url.clone(),
     resolution.clone(),
     None,
@@ -609,6 +610,7 @@ impl Inner {
           resolution.clone(),
           create_npm_fs_resolver(
             self.npm_cache.clone(),
+            &ProgressBar::new(ProgressBarStyle::TextOnly),
             self.npm_api.base_url().clone(),
             resolution,
             None,
diff --git a/cli/npm/resolvers/local.rs b/cli/npm/resolvers/local.rs
index 3e2710165f..5a026f0a82 100644
--- a/cli/npm/resolvers/local.rs
+++ b/cli/npm/resolvers/local.rs
@@ -11,6 +11,8 @@ use std::path::PathBuf;
 
 use crate::util::fs::symlink_dir;
 use crate::util::fs::LaxSingleProcessFsFlag;
+use crate::util::progress_bar::ProgressBar;
+use crate::util::progress_bar::ProgressMessagePrompt;
 use async_trait::async_trait;
 use deno_ast::ModuleSpecifier;
 use deno_core::anyhow::bail;
@@ -42,6 +44,7 @@ use super::common::NpmPackageFsResolver;
 #[derive(Debug, Clone)]
 pub struct LocalNpmPackageResolver {
   cache: NpmCache,
+  progress_bar: ProgressBar,
   resolution: NpmResolution,
   registry_url: Url,
   root_node_modules_path: PathBuf,
@@ -51,12 +54,14 @@ pub struct LocalNpmPackageResolver {
 impl LocalNpmPackageResolver {
   pub fn new(
     cache: NpmCache,
+    progress_bar: ProgressBar,
     registry_url: Url,
     node_modules_folder: PathBuf,
     resolution: NpmResolution,
   ) -> Self {
     Self {
       cache,
+      progress_bar,
       resolution,
       registry_url,
       root_node_modules_url: Url::from_directory_path(&node_modules_folder)
@@ -200,8 +205,14 @@ impl NpmPackageFsResolver for LocalNpmPackageResolver {
   }
 
   async fn cache_packages(&self) -> Result<(), AnyError> {
-    sync_resolver_with_fs(self).await?;
-    Ok(())
+    sync_resolution_with_fs(
+      &self.resolution.snapshot(),
+      &self.cache,
+      &self.progress_bar,
+      &self.registry_url,
+      &self.root_node_modules_path,
+    )
+    .await
   }
 
   fn ensure_read_permission(
@@ -217,22 +228,11 @@ impl NpmPackageFsResolver for LocalNpmPackageResolver {
   }
 }
 
-async fn sync_resolver_with_fs(
-  resolver: &LocalNpmPackageResolver,
-) -> Result<(), AnyError> {
-  sync_resolution_with_fs(
-    &resolver.resolution.snapshot(),
-    &resolver.cache,
-    &resolver.registry_url,
-    &resolver.root_node_modules_path,
-  )
-  .await
-}
-
 /// Creates a pnpm style folder structure.
 async fn sync_resolution_with_fs(
   snapshot: &NpmResolutionSnapshot,
   cache: &NpmCache,
+  progress_bar: &ProgressBar,
   registry_url: &Url,
   root_node_modules_dir_path: &Path,
 ) -> Result<(), AnyError> {
@@ -252,6 +252,8 @@ async fn sync_resolution_with_fs(
   )
   .await;
 
+  let pb_clear_guard = progress_bar.clear_guard(); // prevent flickering
+
   // 1. Write all the packages out the .deno directory.
   //
   // Copy (hardlink in future) <global_registry_cache>/<package_id>/ to
@@ -277,6 +279,7 @@ async fn sync_resolution_with_fs(
       .should_use_for_npm_package(&package.pkg_id.nv.name)
       || !initialized_file.exists()
     {
+      let pb = progress_bar.clone();
       let cache = cache.clone();
       let registry_url = registry_url.clone();
       let package = package.clone();
@@ -284,6 +287,10 @@ async fn sync_resolution_with_fs(
         cache
           .ensure_package(&package.pkg_id.nv, &package.dist, &registry_url)
           .await?;
+        let pb_guard = pb.update_with_prompt(
+          ProgressMessagePrompt::Initialize,
+          &package.pkg_id.nv.to_string(),
+        );
         let sub_node_modules = folder_path.join("node_modules");
         let package_path =
           join_package_name(&sub_node_modules, &package.pkg_id.nv.name);
@@ -297,6 +304,8 @@ async fn sync_resolution_with_fs(
         copy_dir_recursive(&cache_folder, &package_path)?;
         // write out a file that indicates this folder has been initialized
         fs::write(initialized_file, "")?;
+        // finally stop showing the progress bar
+        drop(pb_guard); // explicit for clarity
         Ok(())
       });
       if sync_download {
@@ -411,6 +420,7 @@ async fn sync_resolution_with_fs(
   }
 
   drop(single_process_lock);
+  drop(pb_clear_guard);
 
   Ok(())
 }
diff --git a/cli/npm/resolvers/mod.rs b/cli/npm/resolvers/mod.rs
index 49a3c46f76..61b020885b 100644
--- a/cli/npm/resolvers/mod.rs
+++ b/cli/npm/resolvers/mod.rs
@@ -27,6 +27,7 @@ use std::sync::Arc;
 
 use crate::args::Lockfile;
 use crate::util::fs::canonicalize_path_maybe_not_exists;
+use crate::util::progress_bar::ProgressBar;
 
 use self::common::NpmPackageFsResolver;
 use self::local::LocalNpmPackageResolver;
@@ -276,6 +277,7 @@ impl RequireNpmResolver for NpmPackageResolver {
 
 pub fn create_npm_fs_resolver(
   cache: NpmCache,
+  progress_bar: &ProgressBar,
   registry_url: Url,
   resolution: NpmResolution,
   maybe_node_modules_path: Option<PathBuf>,
@@ -283,6 +285,7 @@ pub fn create_npm_fs_resolver(
   match maybe_node_modules_path {
     Some(node_modules_folder) => Arc::new(LocalNpmPackageResolver::new(
       cache,
+      progress_bar.clone(),
       registry_url,
       node_modules_folder,
       resolution,
diff --git a/cli/proc_state.rs b/cli/proc_state.rs
index 3d7130e5a0..52afcd6313 100644
--- a/cli/proc_state.rs
+++ b/cli/proc_state.rs
@@ -239,6 +239,7 @@ impl ProcState {
     );
     let npm_fs_resolver = create_npm_fs_resolver(
       npm_cache,
+      &progress_bar,
       npm_registry_url,
       npm_resolution.clone(),
       cli_options.node_modules_dir_path(),
diff --git a/cli/tests/integration/npm_tests.rs b/cli/tests/integration/npm_tests.rs
index 6a66db35fe..49095b6dfd 100644
--- a/cli/tests/integration/npm_tests.rs
+++ b/cli/tests/integration/npm_tests.rs
@@ -7,6 +7,7 @@ use util::assert_contains;
 use util::env_vars_for_npm_tests;
 use util::env_vars_for_npm_tests_no_sync_download;
 use util::http_server;
+use util::TestContextBuilder;
 
 // NOTE: See how to make test npm packages at ./testdata/npm/README.md
 
@@ -101,7 +102,7 @@ itest!(conditional_exports {
 itest!(conditional_exports_node_modules_dir {
     args:
       "run --allow-read --node-modules-dir $TESTDATA/npm/conditional_exports/main.js",
-    output: "npm/conditional_exports/main.out",
+    output: "npm/conditional_exports/main_node_modules.out",
     envs: env_vars_for_npm_tests(),
     http_server: true,
     temp_cwd: true,
@@ -729,7 +730,7 @@ itest!(node_modules_dir_require_added_node_modules_folder {
 
 itest!(node_modules_dir_with_deps {
   args: "run --allow-read --allow-env --node-modules-dir $TESTDATA/npm/cjs_with_deps/main.js",
-  output: "npm/cjs_with_deps/main.out",
+  output: "npm/cjs_with_deps/main_node_modules.out",
   envs: env_vars_for_npm_tests(),
   http_server: true,
   temp_cwd: true,
@@ -1392,39 +1393,26 @@ fn auto_discover_lock_file() {
 
 #[test]
 fn peer_deps_with_copied_folders_and_lockfile() {
-  let _server = http_server();
+  let context = TestContextBuilder::for_npm()
+    .use_sync_npm_download()
+    .use_separate_deno_dir() // the "npm" folder means something in the deno dir, so use a separate folder
+    .use_copy_temp_dir("npm/peer_deps_with_copied_folders")
+    .cwd("npm/peer_deps_with_copied_folders")
+    .build();
 
-  let deno_dir = util::new_deno_dir();
-  let temp_dir = util::TempDir::new();
+  let deno_dir = context.deno_dir();
+  let temp_dir = context.temp_dir();
+  let temp_dir_sub_path =
+    temp_dir.path().join("npm/peer_deps_with_copied_folders");
 
   // write empty config file
-  temp_dir.write("deno.json", "{}");
-  let test_folder_path = test_util::testdata_path()
-    .join("npm")
-    .join("peer_deps_with_copied_folders");
-  let main_contents =
-    std::fs::read_to_string(test_folder_path.join("main.ts")).unwrap();
-  temp_dir.write("./main.ts", main_contents);
+  temp_dir.write("npm/peer_deps_with_copied_folders/deno.json", "{}");
 
-  let deno = util::deno_cmd_with_deno_dir(&deno_dir)
-    .current_dir(temp_dir.path())
-    .arg("run")
-    .arg("-A")
-    .arg("main.ts")
-    .envs(env_vars_for_npm_tests())
-    .stdout(Stdio::piped())
-    .stderr(Stdio::piped())
-    .spawn()
-    .unwrap();
-  let output = deno.wait_with_output().unwrap();
-  assert!(output.status.success());
+  let output = context.new_command().args("run -A main.ts").run();
+  output.assert_exit_code(0);
+  output.assert_matches_file("npm/peer_deps_with_copied_folders/main.out");
 
-  let expected_output =
-    std::fs::read_to_string(test_folder_path.join("main.out")).unwrap();
-
-  assert_eq!(String::from_utf8(output.stderr).unwrap(), expected_output);
-
-  assert!(temp_dir.path().join("deno.lock").exists());
+  assert!(temp_dir_sub_path.join("deno.lock").exists());
   let grandchild_path = deno_dir
     .path()
     .join("npm")
@@ -1437,52 +1425,26 @@ fn peer_deps_with_copied_folders_and_lockfile() {
   assert!(grandchild_path.join("1.0.0_1").exists()); // copy folder, which is hardlinked
 
   // run again
-  let deno = util::deno_cmd_with_deno_dir(&deno_dir)
-    .current_dir(temp_dir.path())
-    .arg("run")
-    .arg("-A")
-    .arg("main.ts")
-    .envs(env_vars_for_npm_tests())
-    .stdout(Stdio::piped())
-    .stderr(Stdio::piped())
-    .spawn()
-    .unwrap();
-  let output = deno.wait_with_output().unwrap();
-  assert_eq!(String::from_utf8(output.stderr).unwrap(), "1\n2\n");
-  assert!(output.status.success());
+  let output = context.new_command().args("run -A main.ts").run();
+  output.assert_exit_code(0);
+  output.assert_matches_text("1\n2\n");
 
-  let deno = util::deno_cmd_with_deno_dir(&deno_dir)
-    .current_dir(temp_dir.path())
-    .arg("run")
-    .arg("--reload")
-    .arg("-A")
-    .arg("main.ts")
-    .envs(env_vars_for_npm_tests())
-    .stdout(Stdio::piped())
-    .stderr(Stdio::piped())
-    .spawn()
-    .unwrap();
-  let output = deno.wait_with_output().unwrap();
-  assert_eq!(String::from_utf8(output.stderr).unwrap(), expected_output);
-  assert!(output.status.success());
+  // run with reload
+  let output = context.new_command().args("run -A --reload main.ts").run();
+  output.assert_exit_code(0);
+  output.assert_matches_file("npm/peer_deps_with_copied_folders/main.out");
 
   // now run with local node modules
-  let deno = util::deno_cmd_with_deno_dir(&deno_dir)
-    .current_dir(temp_dir.path())
-    .arg("run")
-    .arg("--node-modules-dir")
-    .arg("-A")
-    .arg("main.ts")
-    .envs(env_vars_for_npm_tests())
-    .stdout(Stdio::piped())
-    .stderr(Stdio::piped())
-    .spawn()
-    .unwrap();
-  let output = deno.wait_with_output().unwrap();
-  assert_eq!(String::from_utf8(output.stderr).unwrap(), "1\n2\n");
-  assert!(output.status.success());
+  let output = context
+    .new_command()
+    .args("run -A --node-modules-dir main.ts")
+    .run();
+  output.assert_exit_code(0);
+  output.assert_matches_file(
+    "npm/peer_deps_with_copied_folders/main_node_modules.out",
+  );
 
-  let deno_folder = temp_dir.path().join("node_modules").join(".deno");
+  let deno_folder = temp_dir_sub_path.join("node_modules").join(".deno");
   assert!(deno_folder
     .join("@denotest+peer-dep-test-grandchild@1.0.0")
     .exists());
@@ -1491,55 +1453,32 @@ fn peer_deps_with_copied_folders_and_lockfile() {
     .exists()); // copy folder
 
   // now again run with local node modules
-  let deno = util::deno_cmd_with_deno_dir(&deno_dir)
-    .current_dir(temp_dir.path())
-    .arg("run")
-    .arg("--node-modules-dir")
-    .arg("-A")
-    .arg("main.ts")
-    .envs(env_vars_for_npm_tests())
-    .stdout(Stdio::piped())
-    .stderr(Stdio::piped())
-    .spawn()
-    .unwrap();
-  let output = deno.wait_with_output().unwrap();
-  assert!(output.status.success());
-  assert_eq!(String::from_utf8(output.stderr).unwrap(), "1\n2\n");
+  let output = context
+    .new_command()
+    .args("run -A --node-modules-dir main.ts")
+    .run();
+  output.assert_exit_code(0);
+  output.assert_matches_text("1\n2\n");
 
   // now ensure it works with reloading
-  let deno = util::deno_cmd_with_deno_dir(&deno_dir)
-    .current_dir(temp_dir.path())
-    .arg("run")
-    .arg("--node-modules-dir")
-    .arg("--reload")
-    .arg("-A")
-    .arg("main.ts")
-    .envs(env_vars_for_npm_tests())
-    .stdout(Stdio::piped())
-    .stderr(Stdio::piped())
-    .spawn()
-    .unwrap();
-  let output = deno.wait_with_output().unwrap();
-  assert!(output.status.success());
-  assert_eq!(String::from_utf8(output.stderr).unwrap(), expected_output);
+  let output = context
+    .new_command()
+    .args("run -A --reload --node-modules-dir main.ts")
+    .run();
+  output.assert_exit_code(0);
+  output.assert_matches_file(
+    "npm/peer_deps_with_copied_folders/main_node_modules_reload.out",
+  );
 
   // now ensure it works with reloading and no lockfile
-  let deno = util::deno_cmd_with_deno_dir(&deno_dir)
-    .current_dir(temp_dir.path())
-    .arg("run")
-    .arg("--node-modules-dir")
-    .arg("--no-lock")
-    .arg("--reload")
-    .arg("-A")
-    .arg("main.ts")
-    .envs(env_vars_for_npm_tests())
-    .stdout(Stdio::piped())
-    .stderr(Stdio::piped())
-    .spawn()
-    .unwrap();
-  let output = deno.wait_with_output().unwrap();
-  assert_eq!(String::from_utf8(output.stderr).unwrap(), expected_output,);
-  assert!(output.status.success());
+  let output = context
+    .new_command()
+    .args("run -A --reload --node-modules-dir --no-lock main.ts")
+    .run();
+  output.assert_exit_code(0);
+  output.assert_matches_file(
+    "npm/peer_deps_with_copied_folders/main_node_modules_reload.out",
+  );
 }
 
 itest!(info_peer_deps {
diff --git a/cli/tests/testdata/npm/cjs_with_deps/main_node_modules.out b/cli/tests/testdata/npm/cjs_with_deps/main_node_modules.out
new file mode 100644
index 0000000000..1ae22f5107
--- /dev/null
+++ b/cli/tests/testdata/npm/cjs_with_deps/main_node_modules.out
@@ -0,0 +1,43 @@
+Download http://localhost:4545/npm/registry/chalk
+Download http://localhost:4545/npm/registry/chai
+Download http://localhost:4545/npm/registry/ansi-styles
+Download http://localhost:4545/npm/registry/supports-color
+Download http://localhost:4545/npm/registry/assertion-error
+Download http://localhost:4545/npm/registry/check-error
+Download http://localhost:4545/npm/registry/deep-eql
+Download http://localhost:4545/npm/registry/get-func-name
+Download http://localhost:4545/npm/registry/loupe
+Download http://localhost:4545/npm/registry/pathval
+Download http://localhost:4545/npm/registry/type-detect
+Download http://localhost:4545/npm/registry/color-convert
+Download http://localhost:4545/npm/registry/has-flag
+Download http://localhost:4545/npm/registry/color-name
+Download http://localhost:4545/npm/registry/ansi-styles/ansi-styles-4.3.0.tgz
+Initialize ansi-styles@4.3.0
+Download http://localhost:4545/npm/registry/assertion-error/assertion-error-1.1.0.tgz
+Initialize assertion-error@1.1.0
+Download http://localhost:4545/npm/registry/chai/chai-4.3.6.tgz
+Initialize chai@4.3.6
+Download http://localhost:4545/npm/registry/chalk/chalk-4.1.2.tgz
+Initialize chalk@4.1.2
+Download http://localhost:4545/npm/registry/check-error/check-error-1.0.2.tgz
+Initialize check-error@1.0.2
+Download http://localhost:4545/npm/registry/color-convert/color-convert-2.0.1.tgz
+Initialize color-convert@2.0.1
+Download http://localhost:4545/npm/registry/color-name/color-name-1.1.4.tgz
+Initialize color-name@1.1.4
+Download http://localhost:4545/npm/registry/deep-eql/deep-eql-3.0.1.tgz
+Initialize deep-eql@3.0.1
+Download http://localhost:4545/npm/registry/get-func-name/get-func-name-2.0.0.tgz
+Initialize get-func-name@2.0.0
+Download http://localhost:4545/npm/registry/has-flag/has-flag-4.0.0.tgz
+Initialize has-flag@4.0.0
+Download http://localhost:4545/npm/registry/loupe/loupe-2.3.4.tgz
+Initialize loupe@2.3.4
+Download http://localhost:4545/npm/registry/pathval/pathval-1.1.1.tgz
+Initialize pathval@1.1.1
+Download http://localhost:4545/npm/registry/supports-color/supports-color-7.2.0.tgz
+Initialize supports-color@7.2.0
+Download http://localhost:4545/npm/registry/type-detect/type-detect-4.0.8.tgz
+Initialize type-detect@4.0.8
+chalk cjs loads
diff --git a/cli/tests/testdata/npm/cjs_yargs/main.out b/cli/tests/testdata/npm/cjs_yargs/main.out
index ded92a4da5..6aa34bce88 100644
--- a/cli/tests/testdata/npm/cjs_yargs/main.out
+++ b/cli/tests/testdata/npm/cjs_yargs/main.out
@@ -25,30 +25,56 @@ Download http://localhost:4545/npm/registry/p-limit
 Download http://localhost:4545/npm/registry/color-name
 Download http://localhost:4545/npm/registry/p-try
 Download http://localhost:4545/npm/registry/ansi-regex/ansi-regex-5.0.1.tgz
+Initialize ansi-regex@5.0.1
 Download http://localhost:4545/npm/registry/ansi-styles/ansi-styles-4.3.0.tgz
+Initialize ansi-styles@4.3.0
 Download http://localhost:4545/npm/registry/camelcase/camelcase-5.3.1.tgz
+Initialize camelcase@5.3.1
 Download http://localhost:4545/npm/registry/cliui/cliui-6.0.0.tgz
+Initialize cliui@6.0.0
 Download http://localhost:4545/npm/registry/color-convert/color-convert-2.0.1.tgz
+Initialize color-convert@2.0.1
 Download http://localhost:4545/npm/registry/color-name/color-name-1.1.4.tgz
+Initialize color-name@1.1.4
 Download http://localhost:4545/npm/registry/decamelize/decamelize-1.2.0.tgz
+Initialize decamelize@1.2.0
 Download http://localhost:4545/npm/registry/emoji-regex/emoji-regex-8.0.0.tgz
+Initialize emoji-regex@8.0.0
 Download http://localhost:4545/npm/registry/find-up/find-up-4.1.0.tgz
+Initialize find-up@4.1.0
 Download http://localhost:4545/npm/registry/get-caller-file/get-caller-file-2.0.5.tgz
+Initialize get-caller-file@2.0.5
 Download http://localhost:4545/npm/registry/is-fullwidth-code-point/is-fullwidth-code-point-3.0.0.tgz
+Initialize is-fullwidth-code-point@3.0.0
 Download http://localhost:4545/npm/registry/locate-path/locate-path-5.0.0.tgz
+Initialize locate-path@5.0.0
 Download http://localhost:4545/npm/registry/p-limit/p-limit-2.3.0.tgz
+Initialize p-limit@2.3.0
 Download http://localhost:4545/npm/registry/p-locate/p-locate-4.1.0.tgz
+Initialize p-locate@4.1.0
 Download http://localhost:4545/npm/registry/p-try/p-try-2.2.0.tgz
+Initialize p-try@2.2.0
 Download http://localhost:4545/npm/registry/path-exists/path-exists-4.0.0.tgz
+Initialize path-exists@4.0.0
 Download http://localhost:4545/npm/registry/require-directory/require-directory-2.1.1.tgz
+Initialize require-directory@2.1.1
 Download http://localhost:4545/npm/registry/require-main-filename/require-main-filename-2.0.0.tgz
+Initialize require-main-filename@2.0.0
 Download http://localhost:4545/npm/registry/set-blocking/set-blocking-2.0.0.tgz
+Initialize set-blocking@2.0.0
 Download http://localhost:4545/npm/registry/string-width/string-width-4.2.3.tgz
+Initialize string-width@4.2.3
 Download http://localhost:4545/npm/registry/strip-ansi/strip-ansi-6.0.1.tgz
+Initialize strip-ansi@6.0.1
 Download http://localhost:4545/npm/registry/which-module/which-module-2.0.0.tgz
+Initialize which-module@2.0.0
 Download http://localhost:4545/npm/registry/wrap-ansi/wrap-ansi-6.2.0.tgz
+Initialize wrap-ansi@6.2.0
 Download http://localhost:4545/npm/registry/y18n/y18n-4.0.3.tgz
+Initialize y18n@4.0.3
 Download http://localhost:4545/npm/registry/yargs/yargs-15.4.1.tgz
+Initialize yargs@15.4.1
 Download http://localhost:4545/npm/registry/yargs-parser/yargs-parser-18.1.3.tgz
+Initialize yargs-parser@18.1.3
 start server on :8000
 [WILDCARD]
diff --git a/cli/tests/testdata/npm/conditional_exports/main_node_modules.out b/cli/tests/testdata/npm/conditional_exports/main_node_modules.out
new file mode 100644
index 0000000000..525f31d5c6
--- /dev/null
+++ b/cli/tests/testdata/npm/conditional_exports/main_node_modules.out
@@ -0,0 +1,18 @@
+Download http://localhost:4545/npm/registry/@denotest/conditional-exports
+Download http://localhost:4545/npm/registry/supports-esm
+Download http://localhost:4545/npm/registry/has-package-exports
+Download http://localhost:4545/npm/registry/@ljharb/has-package-exports-patterns
+Download http://localhost:4545/npm/registry/@denotest/conditional-exports/1.0.0.tgz
+Initialize @denotest/conditional-exports@1.0.0
+Download http://localhost:4545/npm/registry/@ljharb/has-package-exports-patterns/has-package-exports-patterns-0.0.2.tgz
+Initialize @ljharb/has-package-exports-patterns@0.0.2
+Download http://localhost:4545/npm/registry/has-package-exports/has-package-exports-1.3.0.tgz
+Initialize has-package-exports@1.3.0
+Download http://localhost:4545/npm/registry/supports-esm/supports-esm-1.0.0.tgz
+Initialize supports-esm@1.0.0
+{ hello: "from esm" }
+{ hello: "from foo" }
+{ hello: "from esm client" }
+{ hello: "from esm client foo" }
+{ hello: "from esm client bar" }
+true
diff --git a/cli/tests/testdata/npm/mixed_case_package_name/local.out b/cli/tests/testdata/npm/mixed_case_package_name/local.out
index b61be3d354..d21377fd6f 100644
--- a/cli/tests/testdata/npm/mixed_case_package_name/local.out
+++ b/cli/tests/testdata/npm/mixed_case_package_name/local.out
@@ -1,7 +1,9 @@
 Download http://localhost:4545/npm/registry/@denotest/MixedCase
 Download http://localhost:4545/npm/registry/@denotest/CAPITALS
 Download http://localhost:4545/npm/registry/@denotest/CAPITALS/1.0.0.tgz
+Initialize @denotest/CAPITALS@1.0.0
 Download http://localhost:4545/npm/registry/@denotest/MixedCase/1.0.0.tgz
+Initialize @denotest/MixedCase@1.0.0
 5
 true
 true
diff --git a/cli/tests/testdata/npm/peer_deps_with_copied_folders/main_node_modules.out b/cli/tests/testdata/npm/peer_deps_with_copied_folders/main_node_modules.out
new file mode 100644
index 0000000000..6cbadb8e7a
--- /dev/null
+++ b/cli/tests/testdata/npm/peer_deps_with_copied_folders/main_node_modules.out
@@ -0,0 +1,7 @@
+Initialize @denotest/peer-dep-test-child@1.0.0
+Initialize @denotest/peer-dep-test-child@2.0.0
+Initialize @denotest/peer-dep-test-grandchild@1.0.0
+Initialize @denotest/peer-dep-test-peer@1.0.0
+Initialize @denotest/peer-dep-test-peer@2.0.0
+1
+2
diff --git a/cli/tests/testdata/npm/peer_deps_with_copied_folders/main_node_modules_reload.out b/cli/tests/testdata/npm/peer_deps_with_copied_folders/main_node_modules_reload.out
new file mode 100644
index 0000000000..91a59e1837
--- /dev/null
+++ b/cli/tests/testdata/npm/peer_deps_with_copied_folders/main_node_modules_reload.out
@@ -0,0 +1,15 @@
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-child
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-grandchild
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-peer
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-child/1.0.0.tgz
+Initialize @denotest/peer-dep-test-child@1.0.0
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-child/2.0.0.tgz
+Initialize @denotest/peer-dep-test-child@2.0.0
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-grandchild/1.0.0.tgz
+Initialize @denotest/peer-dep-test-grandchild@1.0.0
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-peer/1.0.0.tgz
+Initialize @denotest/peer-dep-test-peer@1.0.0
+Download http://localhost:4545/npm/registry/@denotest/peer-dep-test-peer/2.0.0.tgz
+Initialize @denotest/peer-dep-test-peer@2.0.0
+1
+2
diff --git a/cli/tests/testdata/package_json/basic/lib.bench.out b/cli/tests/testdata/package_json/basic/lib.bench.out
index 589f17655d..b16d9e7acf 100644
--- a/cli/tests/testdata/package_json/basic/lib.bench.out
+++ b/cli/tests/testdata/package_json/basic/lib.bench.out
@@ -1,5 +1,6 @@
 Download http://localhost:4545/npm/registry/@denotest/esm-basic
 Download http://localhost:4545/npm/registry/@denotest/esm-basic/1.0.0.tgz
+Initialize @denotest/esm-basic@1.0.0
 Check file:///[WILDCARD]/lib.bench.ts
 cpu: [WILDCARD]
 runtime: [WILDCARD]
diff --git a/cli/tests/testdata/package_json/basic/lib.test.out b/cli/tests/testdata/package_json/basic/lib.test.out
index f0fe896120..fa1cbb0f70 100644
--- a/cli/tests/testdata/package_json/basic/lib.test.out
+++ b/cli/tests/testdata/package_json/basic/lib.test.out
@@ -1,5 +1,6 @@
 Download http://localhost:4545/npm/registry/@denotest/esm-basic
 Download http://localhost:4545/npm/registry/@denotest/esm-basic/1.0.0.tgz
+Initialize @denotest/esm-basic@1.0.0
 Check file://[WILDCARD]/lib.test.ts
 running 1 test from [WILDCARD]lib.test.ts
 should add ... ok ([WILDCARD])
diff --git a/cli/tests/testdata/package_json/basic/main.cache.out b/cli/tests/testdata/package_json/basic/main.cache.out
index 4be62e9eb7..1c729e2a33 100644
--- a/cli/tests/testdata/package_json/basic/main.cache.out
+++ b/cli/tests/testdata/package_json/basic/main.cache.out
@@ -1,2 +1,3 @@
 Download http://localhost:4545/npm/registry/@denotest/esm-basic
 Download http://localhost:4545/npm/registry/@denotest/esm-basic/1.0.0.tgz
+Initialize @denotest/esm-basic@1.0.0
diff --git a/cli/tests/testdata/package_json/basic/main.check.out b/cli/tests/testdata/package_json/basic/main.check.out
index 09c3773144..a506cb0edd 100644
--- a/cli/tests/testdata/package_json/basic/main.check.out
+++ b/cli/tests/testdata/package_json/basic/main.check.out
@@ -1,3 +1,4 @@
 Download http://localhost:4545/npm/registry/@denotest/esm-basic
 Download http://localhost:4545/npm/registry/@denotest/esm-basic/1.0.0.tgz
+Initialize @denotest/esm-basic@1.0.0
 Check file://[WILDCARD]/main.ts
diff --git a/cli/tests/testdata/package_json/invalid_value/ok.ts.out b/cli/tests/testdata/package_json/invalid_value/ok.ts.out
index 3c7e2792f3..17d9bba007 100644
--- a/cli/tests/testdata/package_json/invalid_value/ok.ts.out
+++ b/cli/tests/testdata/package_json/invalid_value/ok.ts.out
@@ -1,3 +1,4 @@
 Download http://localhost:4545/npm/registry/@denotest/esm-basic
 Download http://localhost:4545/npm/registry/@denotest/esm-basic/1.0.0.tgz
+Initialize @denotest/esm-basic@1.0.0
 2
diff --git a/cli/tests/testdata/task/both/package_json_selected.out b/cli/tests/testdata/task/both/package_json_selected.out
index 435145debe..06b735c9da 100644
--- a/cli/tests/testdata/task/both/package_json_selected.out
+++ b/cli/tests/testdata/task/both/package_json_selected.out
@@ -1,5 +1,6 @@
 Download http://localhost:4545/npm/registry/@denotest/bin
 Download http://localhost:4545/npm/registry/@denotest/bin/1.0.0.tgz
+Initialize @denotest/bin@1.0.0
 Warning Currently only basic package.json `scripts` are supported. Programs like `rimraf` or `cross-env` will not work correctly. This will be fixed in the upcoming release.
 Task bin cli-esm testing this out "asdf"
 testing
diff --git a/cli/tests/testdata/task/package_json/bin.out b/cli/tests/testdata/task/package_json/bin.out
index d8594a243c..fac6921156 100644
--- a/cli/tests/testdata/task/package_json/bin.out
+++ b/cli/tests/testdata/task/package_json/bin.out
@@ -1,6 +1,8 @@
 Download http://localhost:4545/npm/registry/@denotest/bin
 Download http://localhost:4545/npm/registry/@denotest/bin/0.5.0.tgz
+Initialize @denotest/bin@0.5.0
 Download http://localhost:4545/npm/registry/@denotest/bin/1.0.0.tgz
+Initialize @denotest/bin@1.0.0
 Warning Currently only basic package.json `scripts` are supported. Programs like `rimraf` or `cross-env` will not work correctly. This will be fixed in the upcoming release.
 Task bin @denotest/bin hi && cli-esm testing this out && npx cli-cjs test "extra"
 hi
diff --git a/cli/util/progress_bar/mod.rs b/cli/util/progress_bar/mod.rs
index 2568710795..65bc00efd0 100644
--- a/cli/util/progress_bar/mod.rs
+++ b/cli/util/progress_bar/mod.rs
@@ -27,6 +27,7 @@ mod renderer;
 pub enum ProgressMessagePrompt {
   Download,
   Blocking,
+  Initialize,
 }
 
 impl ProgressMessagePrompt {
@@ -34,6 +35,9 @@ impl ProgressMessagePrompt {
     match self {
       ProgressMessagePrompt::Download => colors::green("Download").to_string(),
       ProgressMessagePrompt::Blocking => colors::cyan("Blocking").to_string(),
+      ProgressMessagePrompt::Initialize => {
+        colors::green("Initialize").to_string()
+      }
     }
   }
 }
@@ -251,7 +255,7 @@ impl DrawThreadRenderer for ProgressBarInner {
 
 #[derive(Clone, Debug)]
 pub struct ProgressBar {
-  inner: Option<ProgressBarInner>,
+  inner: ProgressBarInner,
 }
 
 impl ProgressBar {
@@ -262,17 +266,14 @@ impl ProgressBar {
 
   pub fn new(style: ProgressBarStyle) -> Self {
     Self {
-      inner: match Self::are_supported() {
-        true => Some(ProgressBarInner::new(match style {
-          ProgressBarStyle::DownloadBars => {
-            Arc::new(renderer::BarProgressBarRenderer)
-          }
-          ProgressBarStyle::TextOnly => {
-            Arc::new(renderer::TextOnlyProgressBarRenderer)
-          }
-        })),
-        false => None,
-      },
+      inner: ProgressBarInner::new(match style {
+        ProgressBarStyle::DownloadBars => {
+          Arc::new(renderer::BarProgressBarRenderer)
+        }
+        ProgressBarStyle::TextOnly => {
+          Arc::new(renderer::TextOnlyProgressBarRenderer)
+        }
+      }),
     }
   }
 
@@ -285,34 +286,29 @@ impl ProgressBar {
     kind: ProgressMessagePrompt,
     msg: &str,
   ) -> UpdateGuard {
-    match &self.inner {
-      Some(inner) => {
-        let entry = inner.add_entry(kind, msg.to_string());
-        UpdateGuard {
-          maybe_entry: Some(entry),
-        }
+    // only check if progress bars are supported once we go
+    // to update so that we lazily initialize the progress bar
+    if ProgressBar::are_supported() {
+      let entry = self.inner.add_entry(kind, msg.to_string());
+      UpdateGuard {
+        maybe_entry: Some(entry),
       }
-      None => {
-        // if we're not running in TTY, fallback to using logger crate
-        if !msg.is_empty() {
-          log::log!(log::Level::Info, "{} {}", kind.as_text(), msg);
-        }
-        UpdateGuard { maybe_entry: None }
+    } else {
+      // if we're not running in TTY, fallback to using logger crate
+      if !msg.is_empty() {
+        log::log!(log::Level::Info, "{} {}", kind.as_text(), msg);
       }
+      UpdateGuard { maybe_entry: None }
     }
   }
 
   pub fn clear_guard(&self) -> ClearGuard {
-    if let Some(inner) = &self.inner {
-      inner.increment_clear();
-    }
+    self.inner.increment_clear();
     ClearGuard { pb: self.clone() }
   }
 
   fn decrement_clear(&self) {
-    if let Some(inner) = &self.inner {
-      inner.decrement_clear();
-    }
+    self.inner.decrement_clear();
   }
 }
 
diff --git a/test_util/src/builders.rs b/test_util/src/builders.rs
index e72ce9b635..9b300b9113 100644
--- a/test_util/src/builders.rs
+++ b/test_util/src/builders.rs
@@ -30,6 +30,7 @@ use crate::TempDir;
 pub struct TestContextBuilder {
   use_http_server: bool,
   use_temp_cwd: bool,
+  use_separate_deno_dir: bool,
   /// Copies the files at the specified directory in the "testdata" directory
   /// to the temp folder and runs the test from there. This is useful when
   /// the test creates files in the testdata directory (ex. a node_modules folder)
@@ -60,6 +61,15 @@ impl TestContextBuilder {
     self
   }
 
+  /// By default, the temp_dir and the deno_dir will be shared.
+  /// In some cases, that might cause an issue though, so calling
+  /// this will use a separate directory for the deno dir and the
+  /// temp directory.
+  pub fn use_separate_deno_dir(&mut self) -> &mut Self {
+    self.use_separate_deno_dir = true;
+    self
+  }
+
   /// Copies the files at the specified directory in the "testdata" directory
   /// to the temp folder and runs the test from there. This is useful when
   /// the test creates files in the testdata directory (ex. a node_modules folder)
@@ -102,12 +112,17 @@ impl TestContextBuilder {
 
   pub fn build(&self) -> TestContext {
     let deno_dir = new_deno_dir(); // keep this alive for the test
+    let temp_dir = if self.use_separate_deno_dir {
+      TempDir::new()
+    } else {
+      deno_dir.clone()
+    };
     let testdata_dir = if let Some(temp_copy_dir) = &self.copy_temp_dir {
       let test_data_path = testdata_path().join(temp_copy_dir);
-      let temp_copy_dir = deno_dir.path().join(temp_copy_dir);
+      let temp_copy_dir = temp_dir.path().join(temp_copy_dir);
       std::fs::create_dir_all(&temp_copy_dir).unwrap();
       copy_dir_recursive(&test_data_path, &temp_copy_dir).unwrap();
-      deno_dir.path().to_owned()
+      temp_dir.path().to_owned()
     } else {
       testdata_path()
     };
@@ -128,6 +143,7 @@ impl TestContextBuilder {
       use_temp_cwd: self.use_temp_cwd,
       _http_server_guard: http_server_guard,
       deno_dir,
+      temp_dir,
       testdata_dir,
     }
   }
@@ -141,6 +157,7 @@ pub struct TestContext {
   cwd: Option<String>,
   _http_server_guard: Option<Rc<HttpServerGuard>>,
   deno_dir: TempDir,
+  temp_dir: TempDir,
   testdata_dir: PathBuf,
 }
 
@@ -163,6 +180,10 @@ impl TestContext {
     &self.deno_dir
   }
 
+  pub fn temp_dir(&self) -> &TempDir {
+    &self.temp_dir
+  }
+
   pub fn new_command(&self) -> TestCommandBuilder {
     TestCommandBuilder {
       command_name: self.deno_exe.to_string_lossy().to_string(),
@@ -268,7 +289,7 @@ impl TestCommandBuilder {
     let cwd = self.cwd.as_ref().or(self.context.cwd.as_ref());
     let cwd = if self.context.use_temp_cwd {
       assert!(cwd.is_none());
-      self.context.deno_dir.path().to_owned()
+      self.context.temp_dir.path().to_owned()
     } else if let Some(cwd_) = cwd {
       self.context.testdata_dir.join(cwd_)
     } else {