diff --git a/services/director-v2/src/simcore_service_director_v2/modules/dynamic_sidecar/docker_service_specs/sidecar.py b/services/director-v2/src/simcore_service_director_v2/modules/dynamic_sidecar/docker_service_specs/sidecar.py
index 4632e6eb65b..a8c64a16ba8 100644
--- a/services/director-v2/src/simcore_service_director_v2/modules/dynamic_sidecar/docker_service_specs/sidecar.py
+++ b/services/director-v2/src/simcore_service_director_v2/modules/dynamic_sidecar/docker_service_specs/sidecar.py
@@ -58,6 +58,7 @@ def _get_environment_variables(
         "DY_SIDECAR_USER_ID": f"{scheduler_data.user_id}",
         "DYNAMIC_SIDECAR_COMPOSE_NAMESPACE": compose_namespace,
         "DYNAMIC_SIDECAR_LOG_LEVEL": app_settings.DYNAMIC_SERVICES.DYNAMIC_SIDECAR.DYNAMIC_SIDECAR_LOG_LEVEL,
+        "DIRECTOR_V2_LOG_FORMAT_LOCAL_DEV_ENABLED": f"{app_settings.DIRECTOR_V2_LOG_FORMAT_LOCAL_DEV_ENABLED}",
         "POSTGRES_DB": f"{app_settings.POSTGRES.POSTGRES_DB}",
         "POSTGRES_ENDPOINT": f"{app_settings.POSTGRES.POSTGRES_HOST}:{app_settings.POSTGRES.POSTGRES_PORT}",
         "POSTGRES_HOST": f"{app_settings.POSTGRES.POSTGRES_HOST}",
diff --git a/services/director-v2/tests/unit/test_modules_dynamic_sidecar_docker_service_specs_sidecar.py b/services/director-v2/tests/unit/test_modules_dynamic_sidecar_docker_service_specs_sidecar.py
index d16057dcc7e..b698a9c7bc0 100644
--- a/services/director-v2/tests/unit/test_modules_dynamic_sidecar_docker_service_specs_sidecar.py
+++ b/services/director-v2/tests/unit/test_modules_dynamic_sidecar_docker_service_specs_sidecar.py
@@ -26,6 +26,7 @@
     "DY_SIDECAR_USER_SERVICES_HAVE_INTERNET_ACCESS",
     "DYNAMIC_SIDECAR_COMPOSE_NAMESPACE",
     "DYNAMIC_SIDECAR_LOG_LEVEL",
+    "DIRECTOR_V2_LOG_FORMAT_LOCAL_DEV_ENABLED",
     "POSTGRES_DB",
     "POSTGRES_ENDPOINT",
     "POSTGRES_HOST",
diff --git a/services/director-v2/tests/unit/with_dbs/test_modules_dynamic_sidecar_docker_service_specs.py b/services/director-v2/tests/unit/with_dbs/test_modules_dynamic_sidecar_docker_service_specs.py
index 9b38e77a1d7..03328724774 100644
--- a/services/director-v2/tests/unit/with_dbs/test_modules_dynamic_sidecar_docker_service_specs.py
+++ b/services/director-v2/tests/unit/with_dbs/test_modules_dynamic_sidecar_docker_service_specs.py
@@ -187,6 +187,7 @@ def expected_dynamic_sidecar_spec(
                     "DY_SIDECAR_USER_SERVICES_HAVE_INTERNET_ACCESS": "False",
                     "FORWARD_ENV_DISPLAY": ":0",
                     "DYNAMIC_SIDECAR_LOG_LEVEL": "DEBUG",
+                    "DIRECTOR_V2_LOG_FORMAT_LOCAL_DEV_ENABLED": "False",
                     "POSTGRES_DB": "test",
                     "POSTGRES_HOST": "localhost",
                     "POSTGRES_PORT": "5432",
@@ -420,6 +421,7 @@ def test_get_dynamic_proxy_spec(
     # TODO: finish test when working on https://github.com/ITISFoundation/osparc-simcore/issues/2454
 
 
+@pytest.mark.testit
 async def test_merge_dynamic_sidecar_specs_with_user_specific_specs(
     mocked_catalog_service_api: respx.MockRouter,
     minimal_app: FastAPI,