diff --git a/src/dune_engine/sub_dirs.ml b/src/dune_engine/sub_dirs.ml
index 0cfdecf211f5..ec9f9efde9b6 100644
--- a/src/dune_engine/sub_dirs.ml
+++ b/src/dune_engine/sub_dirs.ml
@@ -313,7 +313,7 @@ let decode_includes ~context =
     let* loc = loc in
     let* name, path =
       plain_string (fun ~loc s ->
-          (Atom (loc, Dune_lang.Atom.of_string s), s :: path))
+          (Dune_lang.Ast.atom_or_quoted_string loc s, s :: path))
     in
     let+ nodes = fields (decode ~context ~path ~inside_include) in
     let required_version = (2, 7) in
diff --git a/test/blackbox-tests/test-cases/subdir-stanza/gh4907.t b/test/blackbox-tests/test-cases/subdir-stanza/gh4907.t
index 2a3998957b8e..8b3618a882cd 100644
--- a/test/blackbox-tests/test-cases/subdir-stanza/gh4907.t
+++ b/test/blackbox-tests/test-cases/subdir-stanza/gh4907.t
@@ -3,72 +3,6 @@
   > (lang dune 3.0)
   > EOF
   $ cat <<EOF >dune
-  > (subdir "foo bar" (rule with-stout-to (echo foo) ./foo))
+  > (subdir "foo bar" (rule (with-stdout-to foo (echo foo))))
   > EOF
   $ dune build
-  Internal error, please report upstream including the contents of _build/log.
-  Description:
-    ("Dune_lang.Atom.of_string got invalid atom", { atom = "foo bar" })
-  Raised at Stdune__Code_error.raise in file
-    "otherlibs/stdune-unstable/code_error.ml", line 11, characters 30-62
-  Called from Dune_engine__Sub_dirs.decode_includes.subdir.(fun) in file
-    "src/dune_engine/sub_dirs.ml", line 316, characters 22-48
-  Called from Dune_lang__Decoder.next in file "src/dune_lang/decoder.ml"
-    (inlined), line 282, characters 22-28
-  Called from Dune_lang__Decoder.plain_string in file
-    "src/dune_lang/decoder.ml", line 339, characters 2-208
-  Called from Dune_lang__Decoder.(>>=) in file "src/dune_lang/decoder.ml", line
-    137, characters 17-28
-  Called from Dune_lang__Decoder.multi_field.loop in file
-    "src/dune_lang/decoder.ml", line 666, characters 25-39
-  Called from Dune_lang__Decoder.multi_field in file
-    "src/dune_lang/decoder.ml", line 669, characters 12-55
-  Called from Dune_lang__Decoder.and+ in file "src/dune_lang/decoder.ml", line
-    153, characters 17-28
-  Called from Dune_lang__Decoder.(>>|) in file "src/dune_lang/decoder.ml", line
-    141, characters 17-28
-  Called from Dune_lang__Decoder.fields in file "src/dune_lang/decoder.ml",
-    line 674, characters 21-53
-  Called from Dune_lang__Decoder.enter.(fun) in file
-    "src/dune_lang/decoder.ml", line 368, characters 19-28
-  Called from Dune_lang__Decoder.next_with_user_context in file
-    "src/dune_lang/decoder.ml" (inlined), line 288, characters 22-51
-  Called from Dune_lang__Decoder.enter in file "src/dune_lang/decoder.ml", line
-    364, characters 2-242
-  Called from Dune_lang__Decoder.(>>=) in file "src/dune_lang/decoder.ml", line
-    137, characters 17-28
-  Called from Dune_lang__Decoder.parse in file "src/dune_lang/decoder.ml", line
-    255, characters 13-29
-  Called from Dune_engine__Source_tree.Dune_file.load_plain in file
-    "src/dune_engine/source_tree.ml", line 89, characters 8-103
-  Called from Dune_engine__Source_tree.Dune_file.load.(fun) in file
-    "src/dune_engine/source_tree.ml", line 111, characters 22-66
-  Called from Stdune__Exn.protectx in file "otherlibs/stdune-unstable/exn.ml",
-    line 12, characters 8-11
-  Re-raised at Stdune__Exn.protectx in file "otherlibs/stdune-unstable/exn.ml",
-    line 18, characters 4-11
-  Called from Fiber.O.(>>|).(fun) in file "src/fiber/fiber.ml", line 288,
-    characters 36-41
-  Called from Fiber.Execution_context.apply in file "src/fiber/fiber.ml", line
-    182, characters 9-14
-  Re-raised at Stdune__Exn.raise_with_backtrace in file
-    "otherlibs/stdune-unstable/exn.ml", line 36, characters 27-56
-  Called from Fiber.Execution_context.run_jobs in file "src/fiber/fiber.ml",
-    line 204, characters 8-13
-  Re-raised at Stdune__Exn.raise_with_backtrace in file
-    "otherlibs/stdune-unstable/exn.ml", line 36, characters 27-56
-  Called from Fiber.Execution_context.run_jobs in file "src/fiber/fiber.ml",
-    line 204, characters 8-13
-  Re-raised at Stdune__Exn.raise_with_backtrace in file
-    "otherlibs/stdune-unstable/exn.ml", line 36, characters 27-56
-  Called from Fiber.Execution_context.run_jobs in file "src/fiber/fiber.ml",
-    line 204, characters 8-13
-  -> required by ("find-dir-raw", ".")
-  -> required by ("<unnamed>", ())
-  
-  I must not crash.  Uncertainty is the mind-killer. Exceptions are the
-  little-death that brings total obliteration.  I will fully express my cases. 
-  Execution will pass over me and through me.  And when it has gone past, I
-  will unwind the stack along its path.  Where the cases are handled there will
-  be nothing.  Only I will remain.
-  [1]