diff --git a/packages/scene-composer/jest.config.ts b/packages/scene-composer/jest.config.ts
index 1d288940e..09e79ad17 100644
--- a/packages/scene-composer/jest.config.ts
+++ b/packages/scene-composer/jest.config.ts
@@ -29,7 +29,7 @@ export default merge.recursive(tsPreset, awsuiPreset, {
     '^.+\\.(js|jsx)$': 'babel-jest',
     '\\.(ts|tsx)$': 'ts-jest',
   },
-  transformIgnorePatterns: ['<rootDir>/build', '<rootDir>/coverage'],
+  transformIgnorePatterns: ['<rootDir>/build', '<rootDir>/coverage', '<rootDir>/dist'],
   testPathIgnorePatterns: ['node_modules', 'dist'],
   moduleDirectories: ['node_modules', '<rootDir>'],
   moduleFileExtensions: ['ts', 'tsx', 'js', 'jsx'],
diff --git a/packages/scene-composer/package.json b/packages/scene-composer/package.json
index bd064be16..e31795ce1 100644
--- a/packages/scene-composer/package.json
+++ b/packages/scene-composer/package.json
@@ -152,10 +152,10 @@
   "jest": {
     "coverageThreshold": {
       "global": {
-        "lines": 77.42,
-        "statements": 76.59,
-        "functions": 76.5,
-        "branches": 62.85,
+        "lines": 77.48,
+        "statements": 76.62,
+        "functions": 76.53,
+        "branches": 63.02,
         "branchesTrue": 100
       }
     }
diff --git a/packages/scene-composer/src/components/three-fiber/EntityGroup/index.tsx b/packages/scene-composer/src/components/three-fiber/EntityGroup/index.tsx
index f0c46aee2..ff38185ca 100644
--- a/packages/scene-composer/src/components/three-fiber/EntityGroup/index.tsx
+++ b/packages/scene-composer/src/components/three-fiber/EntityGroup/index.tsx
@@ -52,6 +52,7 @@ const EntityGroup = ({ node }: IEntityGroupProps) => {
 
   const onClick = useCallback(
     (e) => {
+      e.stopPropagation(); // the most nested object in the click scope should get selected, and not bubble up to the parent.
       if (selectedSceneNodeRef === nodeRef) {
         setSelectedSceneNodeRef(undefined);
       } else {