diff --git a/compiler/apps/playground/yarn.lock b/compiler/apps/playground/yarn.lock
index 232d37448e..b0a3a09589 100644
--- a/compiler/apps/playground/yarn.lock
+++ b/compiler/apps/playground/yarn.lock
@@ -854,23 +854,11 @@
   resolved "https://registry.yarnpkg.com/@types/node/-/node-18.11.9.tgz#02d013de7058cea16d36168ef2fc653464cfbad4"
   integrity sha512-CRpX21/kGdzjOpFsZSkcrXMGIBWMGNIHXXBVFSH+ggkftxg+XYP20TESbh+zFvFj3EQOl5byk0HTRn1IL6hbqg==
 
-"@types/react-dom@19.1.9":
-  version "19.1.9"
-  resolved "https://registry.yarnpkg.com/@types/react-dom/-/react-dom-19.1.9.tgz#5ab695fce1e804184767932365ae6569c11b4b4b"
-  integrity sha512-qXRuZaOsAdXKFyOhRBg6Lqqc0yay13vN7KrIg4L7N4aaHN68ma9OK3NE1BoDFgFOTfM7zg+3/8+2n8rLUH3OKQ==
-
 "@types/react-dom@19.2":
   version "19.2.2"
   resolved "https://registry.npmjs.org/@types/react-dom/-/react-dom-19.2.2.tgz#a4cc874797b7ddc9cb180ef0d5dc23f596fc2332"
   integrity sha512-9KQPoO6mZCi7jcIStSnlOWn2nEF3mNmyr3rIAsGnAbQKYbRLyqmeSc39EVgtxXVia+LMT8j3knZLAZAh+xLmrw==
 
-"@types/react@19.1.12":
-  version "19.1.12"
-  resolved "https://registry.yarnpkg.com/@types/react/-/react-19.1.12.tgz#7bfaa76aabbb0b4fe0493c21a3a7a93d33e8937b"
-  integrity sha512-cMoR+FoAf/Jyq6+Df2/Z41jISvGZZ2eTlnsaJRptmZ76Caldwy1odD4xTr/gNV9VLj0AWgg/nmkevIyUfIIq5w==
-  dependencies:
-    csstype "^3.0.2"
-
 "@types/react@19.2":
   version "19.2.2"
   resolved "https://registry.npmjs.org/@types/react/-/react-19.2.2.tgz#ba123a75d4c2a51158697160a4ea2ff70aa6bf36"
@@ -3982,16 +3970,7 @@ stop-iteration-iterator@^1.1.0:
     es-errors "^1.3.0"
     internal-slot "^1.1.0"
 
-"string-width-cjs@npm:string-width@^4.2.0":
-  version "4.2.3"
-  resolved "https://registry.yarnpkg.com/string-width/-/string-width-4.2.3.tgz#269c7117d27b05ad2e536830a8ec895ef9c6d010"
-  integrity sha512-wKyQRQpjJ0sIp62ErSZdGsjMJWsap5oRNihHhu6G7JVO/9jIB6UyevL+tXuOqrng8j/cxKTWyWUwvSTriiZz/g==
-  dependencies:
-    emoji-regex "^8.0.0"
-    is-fullwidth-code-point "^3.0.0"
-    strip-ansi "^6.0.1"
-
-string-width@^4.1.0, string-width@^4.2.0, string-width@^4.2.3:
+"string-width-cjs@npm:string-width@^4.2.0", string-width@^4.1.0, string-width@^4.2.0, string-width@^4.2.3:
   version "4.2.3"
   resolved "https://registry.yarnpkg.com/string-width/-/string-width-4.2.3.tgz#269c7117d27b05ad2e536830a8ec895ef9c6d010"
   integrity sha512-wKyQRQpjJ0sIp62ErSZdGsjMJWsap5oRNihHhu6G7JVO/9jIB6UyevL+tXuOqrng8j/cxKTWyWUwvSTriiZz/g==
@@ -4095,14 +4074,7 @@ string.prototype.trimstart@^1.0.8:
     define-properties "^1.2.1"
     es-object-atoms "^1.0.0"
 
-"strip-ansi-cjs@npm:strip-ansi@^6.0.1":
-  version "6.0.1"
-  resolved "https://registry.yarnpkg.com/strip-ansi/-/strip-ansi-6.0.1.tgz#9e26c63d30f53443e9489495b2105d37b67a85d9"
-  integrity sha512-Y38VPSHcqkFrCpFnQ9vuSXmquuv5oXOKpGeT6aGrr3o3Gc9AlVa6JBfUSOCnbxGGZF+/0ooI7KrPuUSztUdU5A==
-  dependencies:
-    ansi-regex "^5.0.1"
-
-strip-ansi@^6.0.0, strip-ansi@^6.0.1:
+"strip-ansi-cjs@npm:strip-ansi@^6.0.1", strip-ansi@^6.0.0, strip-ansi@^6.0.1:
   version "6.0.1"
   resolved "https://registry.yarnpkg.com/strip-ansi/-/strip-ansi-6.0.1.tgz#9e26c63d30f53443e9489495b2105d37b67a85d9"
   integrity sha512-Y38VPSHcqkFrCpFnQ9vuSXmquuv5oXOKpGeT6aGrr3o3Gc9AlVa6JBfUSOCnbxGGZF+/0ooI7KrPuUSztUdU5A==
@@ -4523,16 +4495,7 @@ word-wrap@^1.2.5:
   resolved "https://registry.yarnpkg.com/word-wrap/-/word-wrap-1.2.5.tgz#d2c45c6dd4fbce621a66f136cbe328afd0410b34"
   integrity sha512-BN22B5eaMMI9UMtjrGd5g5eCYPpCPDUy0FJXbYsaT5zYxjFOckS53SQDE3pWkVoWpHXVb3BrYcEN4Twa55B5cA==
 
-"wrap-ansi-cjs@npm:wrap-ansi@^7.0.0":
-  version "7.0.0"
-  resolved "https://registry.yarnpkg.com/wrap-ansi/-/wrap-ansi-7.0.0.tgz#67e145cff510a6a6984bdf1152911d69d2eb9e43"
-  integrity sha512-YVGIj2kamLSTxw6NsZjoBxfSwsn0ycdesmc4p+Q21c5zPuZ1pl+NfxVdxPtdHvmNVOQ6XSYG4AUtyt/Fi7D16Q==
-  dependencies:
-    ansi-styles "^4.0.0"
-    string-width "^4.1.0"
-    strip-ansi "^6.0.0"
-
-wrap-ansi@^7.0.0:
+"wrap-ansi-cjs@npm:wrap-ansi@^7.0.0", wrap-ansi@^7.0.0:
   version "7.0.0"
   resolved "https://registry.yarnpkg.com/wrap-ansi/-/wrap-ansi-7.0.0.tgz#67e145cff510a6a6984bdf1152911d69d2eb9e43"
   integrity sha512-YVGIj2kamLSTxw6NsZjoBxfSwsn0ycdesmc4p+Q21c5zPuZ1pl+NfxVdxPtdHvmNVOQ6XSYG4AUtyt/Fi7D16Q==
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
index a83b22651e..0c777f8770 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Entrypoint/Pipeline.ts
@@ -277,7 +277,7 @@ function runWithEnvironment(
     }
 
     if (env.config.validateNoDerivedComputationsInEffects_exp) {
-      validateNoDerivedComputationsInEffects_exp(hir);
+      env.logErrors(validateNoDerivedComputationsInEffects_exp(hir));
     }
 
     if (env.config.validateNoSetStateInEffects) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts b/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts
index c6b684a52d..334fe43a89 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts
+++ b/compiler/packages/babel-plugin-react-compiler/src/Validation/ValidateNoDerivedComputationsInEffects_exp.ts
@@ -5,6 +5,7 @@
  * LICENSE file in the root directory of this source tree.
  */
 
+import {Result} from '../Utils/Result';
 import {CompilerDiagnostic, CompilerError, Effect} from '..';
 import {ErrorCategory} from '../CompilerError';
 import {
@@ -35,6 +36,11 @@ type DerivationMetadata = {
   sourcesIds: Set<IdentifierId>;
 };
 
+// type setStateKey = {
+//   id: IdentifierId;
+//   usageType: 'all' | 'effect';
+// };
+
 type ValidationContext = {
   readonly functions: Map<IdentifierId, FunctionExpression>;
   readonly errors: CompilerError;
@@ -42,6 +48,9 @@ type ValidationContext = {
   readonly effects: Set<HIRFunction>;
   readonly setStateCache: Map<string | undefined | null, Array<Place>>;
   readonly effectSetStateCache: Map<string | undefined | null, Array<Place>>;
+  // These should replace the setStateCache and effectSetStateCache once we have
+  readonly setStateLoads: Map<IdentifierId, IdentifierId | null>;
+  readonly setStateUsages: Map<IdentifierId, SourceLocation>;
 };
 
 class DerivationCache {
@@ -146,7 +155,7 @@ class DerivationCache {
  */
 export function validateNoDerivedComputationsInEffects_exp(
   fn: HIRFunction,
-): void {
+): Result<void, CompilerError> {
   const functions: Map<IdentifierId, FunctionExpression> = new Map();
   const derivationCache = new DerivationCache();
   const errors = new CompilerError();
@@ -158,6 +167,9 @@ export function validateNoDerivedComputationsInEffects_exp(
     Array<Place>
   > = new Map();
 
+  const setStateLoads: Map<IdentifierId, IdentifierId> = new Map();
+  const setStateUsages: Map<IdentifierId, SourceLocation> = new Map();
+
   const context: ValidationContext = {
     functions,
     errors,
@@ -165,6 +177,8 @@ export function validateNoDerivedComputationsInEffects_exp(
     effects,
     setStateCache,
     effectSetStateCache,
+    setStateLoads,
+    setStateUsages,
   };
 
   if (fn.fnType === 'Hook') {
@@ -192,6 +206,7 @@ export function validateNoDerivedComputationsInEffects_exp(
 
   let isFirstPass = true;
   do {
+    console.log('NEW ------------------------------------------------------');
     for (const block of fn.body.blocks.values()) {
       recordPhiDerivations(block, context);
       for (const instr of block.instructions) {
@@ -206,9 +221,8 @@ export function validateNoDerivedComputationsInEffects_exp(
     validateEffect(effect, context);
   }
 
-  if (errors.hasAnyErrors()) {
-    throw errors;
-  }
+  console.log('SetStateLoads', context.setStateLoads);
+  return errors.asResult();
 }
 
 function recordPhiDerivations(
@@ -251,11 +265,29 @@ function joinValue(
   return 'fromPropsAndState';
 }
 
+function maybeRecordSetState(instr: Instruction, context: ValidationContext) {
+  for (const operand of eachInstructionLValue(instr)) {
+    if (isSetStateType(operand.identifier)) {
+      if (instr.value.kind === 'LoadLocal') {
+        context.setStateLoads.set(
+          operand.identifier.id,
+          instr.value.place.identifier.id,
+        );
+      } else {
+        context.setStateLoads.set(operand.identifier.id, null);
+      }
+    }
+  }
+}
+
 function recordInstructionDerivations(
   instr: Instruction,
   context: ValidationContext,
   isFirstPass: boolean,
 ): void {
+  // WIP
+  maybeRecordSetState(instr, context);
+
   let typeOfValue: TypeOfValue = 'ignored';
   const sources: Set<IdentifierId> = new Set();
   const {lvalue, value} = instr;
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-conditionally-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-conditionally-in-effect.expect.md
new file mode 100644
index 0000000000..e5ad779091
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-conditionally-in-effect.expect.md
@@ -0,0 +1,85 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+function Component({value, enabled}) {
+  const [localValue, setLocalValue] = useState('');
+
+  useEffect(() => {
+    if (enabled) {
+      setLocalValue(value);
+    } else {
+      setLocalValue('disabled');
+    }
+  }, [value, enabled]);
+
+  return <div>{localValue}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{value: 'test', enabled: true}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+function Component(t0) {
+  const $ = _c(6);
+  const { value, enabled } = t0;
+  const [localValue, setLocalValue] = useState("");
+  let t1;
+  let t2;
+  if ($[0] !== enabled || $[1] !== value) {
+    t1 = () => {
+      if (enabled) {
+        setLocalValue(value);
+      } else {
+        setLocalValue("disabled");
+      }
+    };
+
+    t2 = [value, enabled];
+    $[0] = enabled;
+    $[1] = value;
+    $[2] = t1;
+    $[3] = t2;
+  } else {
+    t1 = $[2];
+    t2 = $[3];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[4] !== localValue) {
+    t3 = <div>{localValue}</div>;
+    $[4] = localValue;
+    $[5] = t3;
+  } else {
+    t3 = $[5];
+  }
+  return t3;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ value: "test", enabled: true }],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":16,"column":1,"index":378},"filename":"derived-state-conditionally-in-effect.ts"},"fnName":"Component","memoSlots":6,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div>test</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-conditionally-in-effect.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-conditionally-in-effect.js
similarity index 86%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-conditionally-in-effect.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-conditionally-in-effect.js
index 2ccd52500c..fb65cbfeb8 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-conditionally-in-effect.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-conditionally-in-effect.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({value, enabled}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-default-props.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-default-props.expect.md
new file mode 100644
index 0000000000..b66161af0e
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-default-props.expect.md
@@ -0,0 +1,77 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+export default function Component({input = 'empty'}) {
+  const [currInput, setCurrInput] = useState(input);
+  const localConst = 'local const';
+
+  useEffect(() => {
+    setCurrInput(input + localConst);
+  }, [input, localConst]);
+
+  return <div>{currInput}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{input: 'test'}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+export default function Component(t0) {
+  const $ = _c(5);
+  const { input: t1 } = t0;
+  const input = t1 === undefined ? "empty" : t1;
+  const [currInput, setCurrInput] = useState(input);
+  let t2;
+  let t3;
+  if ($[0] !== input) {
+    t2 = () => {
+      setCurrInput(input + "local const");
+    };
+    t3 = [input, "local const"];
+    $[0] = input;
+    $[1] = t2;
+    $[2] = t3;
+  } else {
+    t2 = $[1];
+    t3 = $[2];
+  }
+  useEffect(t2, t3);
+  let t4;
+  if ($[3] !== currInput) {
+    t4 = <div>{currInput}</div>;
+    $[3] = currInput;
+    $[4] = t4;
+  } else {
+    t4 = $[4];
+  }
+  return t4;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ input: "test" }],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":15,"index":122},"end":{"line":13,"column":1,"index":372},"filename":"derived-state-from-default-props.ts"},"fnName":"Component","memoSlots":5,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div>testlocal const</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-default-props.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-default-props.js
similarity index 86%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-default-props.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-default-props.js
index 1a0f5126e7..1de911c9b3 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-default-props.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-default-props.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 export default function Component({input = 'empty'}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-local-state-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-local-state-in-effect.expect.md
new file mode 100644
index 0000000000..f0346371af
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-local-state-in-effect.expect.md
@@ -0,0 +1,76 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+
+import {useEffect, useState} from 'react';
+
+function Component({shouldChange}) {
+  const [count, setCount] = useState(0);
+
+  useEffect(() => {
+    if (shouldChange) {
+      setCount(count + 1);
+    }
+  }, [count]);
+
+  return <div>{count}</div>;
+}
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+
+import { useEffect, useState } from "react";
+
+function Component(t0) {
+  const $ = _c(7);
+  const { shouldChange } = t0;
+  const [count, setCount] = useState(0);
+  let t1;
+  if ($[0] !== count || $[1] !== shouldChange) {
+    t1 = () => {
+      if (shouldChange) {
+        setCount(count + 1);
+      }
+    };
+    $[0] = count;
+    $[1] = shouldChange;
+    $[2] = t1;
+  } else {
+    t1 = $[2];
+  }
+  let t2;
+  if ($[3] !== count) {
+    t2 = [count];
+    $[3] = count;
+    $[4] = t2;
+  } else {
+    t2 = $[4];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[5] !== count) {
+    t3 = <div>{count}</div>;
+    $[5] = count;
+    $[6] = t3;
+  } else {
+    t3 = $[6];
+  }
+  return t3;
+}
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":5,"column":0,"index":108},"end":{"line":15,"column":1,"index":310},"filename":"derived-state-from-local-state-in-effect.ts"},"fnName":"Component","memoSlots":7,"memoBlocks":3,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: exception) Fixture not implemented
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-local-state-in-effect.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-local-state-in-effect.js
similarity index 79%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-local-state-in-effect.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-local-state-in-effect.js
index 9568e49002..79e65e4849 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-local-state-in-effect.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-local-state-in-effect.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 
 import {useEffect, useState} from 'react';
 
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-local-state-and-component-scope.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-local-state-and-component-scope.expect.md
new file mode 100644
index 0000000000..994925af24
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-local-state-and-component-scope.expect.md
@@ -0,0 +1,114 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+function Component({firstName}) {
+  const [lastName, setLastName] = useState('Doe');
+  const [fullName, setFullName] = useState('John');
+
+  const middleName = 'D.';
+
+  useEffect(() => {
+    setFullName(firstName + ' ' + middleName + ' ' + lastName);
+  }, [firstName, middleName, lastName]);
+
+  return (
+    <div>
+      <input value={lastName} onChange={e => setLastName(e.target.value)} />
+      <div>{fullName}</div>
+    </div>
+  );
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{firstName: 'John'}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+function Component(t0) {
+  const $ = _c(12);
+  const { firstName } = t0;
+  const [lastName, setLastName] = useState("Doe");
+  const [fullName, setFullName] = useState("John");
+  let t1;
+  let t2;
+  if ($[0] !== firstName || $[1] !== lastName) {
+    t1 = () => {
+      setFullName(firstName + " " + "D." + " " + lastName);
+    };
+    t2 = [firstName, "D.", lastName];
+    $[0] = firstName;
+    $[1] = lastName;
+    $[2] = t1;
+    $[3] = t2;
+  } else {
+    t1 = $[2];
+    t2 = $[3];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[4] === Symbol.for("react.memo_cache_sentinel")) {
+    t3 = (e) => setLastName(e.target.value);
+    $[4] = t3;
+  } else {
+    t3 = $[4];
+  }
+  let t4;
+  if ($[5] !== lastName) {
+    t4 = <input value={lastName} onChange={t3} />;
+    $[5] = lastName;
+    $[6] = t4;
+  } else {
+    t4 = $[6];
+  }
+  let t5;
+  if ($[7] !== fullName) {
+    t5 = <div>{fullName}</div>;
+    $[7] = fullName;
+    $[8] = t5;
+  } else {
+    t5 = $[8];
+  }
+  let t6;
+  if ($[9] !== t4 || $[10] !== t5) {
+    t6 = (
+      <div>
+        {t4}
+        {t5}
+      </div>
+    );
+    $[9] = t4;
+    $[10] = t5;
+    $[11] = t6;
+  } else {
+    t6 = $[11];
+  }
+  return t6;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ firstName: "John" }],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":20,"column":1,"index":542},"filename":"derived-state-from-prop-local-state-and-component-scope.ts"},"fnName":"Component","memoSlots":12,"memoBlocks":5,"memoValues":6,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div><input value="Doe"><div>John D. Doe</div></div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-local-state-and-component-scope.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-local-state-and-component-scope.js
similarity index 90%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-local-state-and-component-scope.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-local-state-and-component-scope.js
index 3090ef0041..f25e20863d 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-local-state-and-component-scope.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-local-state-and-component-scope.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({firstName}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.expect.md
index ef817a3ebf..6981482545 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.expect.md
@@ -2,7 +2,7 @@
 ## Input
 
 ```javascript
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({initialName}) {
@@ -29,7 +29,7 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import { useEffect, useState } from "react";
 
 function Component(t0) {
@@ -79,6 +79,12 @@ export const FIXTURE_ENTRYPOINT = {
 };
 
 ```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":16,"column":1,"index":359},"filename":"derived-state-from-prop-setter-call-outside-effect-no-error.ts"},"fnName":"Component","memoSlots":6,"memoBlocks":3,"memoValues":4,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
       
 ### Eval output
 (kind: ok) <div><input value="John"></div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.js
index 502402be51..6df5f2eed6 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-call-outside-effect-no-error.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({initialName}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.expect.md
index 2924de0da6..b5100dc2a6 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.expect.md
@@ -2,7 +2,7 @@
 ## Input
 
 ```javascript
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function MockComponent({onSet}) {
@@ -28,7 +28,7 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import { useEffect, useState } from "react";
 
 function MockComponent(t0) {
@@ -80,6 +80,13 @@ export const FIXTURE_ENTRYPOINT = {
 };
 
 ```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":6,"column":1,"index":211},"filename":"derived-state-from-prop-setter-used-outside-effect-no-error.ts"},"fnName":"MockComponent","memoSlots":2,"memoBlocks":1,"memoValues":1,"prunedMemoBlocks":0,"prunedMemoValues":0}
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":8,"column":0,"index":213},"end":{"line":15,"column":1,"index":402},"filename":"derived-state-from-prop-setter-used-outside-effect-no-error.ts"},"fnName":"Component","memoSlots":4,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
       
 ### Eval output
 (kind: ok) <div>Mock Component</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.js
index d33af16ec5..43b5a8c52a 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-setter-used-outside-effect-no-error.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function MockComponent({onSet}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-with-side-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-with-side-effect.expect.md
new file mode 100644
index 0000000000..667de94718
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-with-side-effect.expect.md
@@ -0,0 +1,77 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+function Component({value}) {
+  const [localValue, setLocalValue] = useState('');
+
+  useEffect(() => {
+    setLocalValue(value);
+    document.title = `Value: ${value}`;
+  }, [value]);
+
+  return <div>{localValue}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{value: 'test'}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+function Component(t0) {
+  const $ = _c(5);
+  const { value } = t0;
+  const [localValue, setLocalValue] = useState("");
+  let t1;
+  let t2;
+  if ($[0] !== value) {
+    t1 = () => {
+      setLocalValue(value);
+      document.title = `Value: ${value}`;
+    };
+    t2 = [value];
+    $[0] = value;
+    $[1] = t1;
+    $[2] = t2;
+  } else {
+    t1 = $[1];
+    t2 = $[2];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[3] !== localValue) {
+    t3 = <div>{localValue}</div>;
+    $[3] = localValue;
+    $[4] = t3;
+  } else {
+    t3 = $[4];
+  }
+  return t3;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ value: "test" }],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":13,"column":1,"index":327},"filename":"derived-state-from-prop-with-side-effect.ts"},"fnName":"Component","memoSlots":5,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div>test</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-with-side-effect.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-with-side-effect.js
similarity index 84%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-with-side-effect.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-with-side-effect.js
index 88c66ce1ef..5bb963daac 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-with-side-effect.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-prop-with-side-effect.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({value}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.expect.md
index 4d0b6663e3..e88d5833a9 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.expect.md
@@ -2,7 +2,7 @@
 ## Input
 
 ```javascript
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState, useRef} from 'react';
 
 export default function Component({test}) {
@@ -27,7 +27,7 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import { useEffect, useState, useRef } from "react";
 
 export default function Component(t0) {
@@ -68,6 +68,12 @@ export const FIXTURE_ENTRYPOINT = {
 };
 
 ```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":15,"index":130},"end":{"line":14,"column":1,"index":328},"filename":"derived-state-from-ref-and-state-no-error.ts"},"fnName":"Component","memoSlots":5,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
       
 ### Eval output
 (kind: ok) nulltestString
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.js
index 6b24f73ac7..18ad2bdca1 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/derived-state-from-ref-and-state-no-error.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState, useRef} from 'react';
 
 export default function Component({test}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-local-function-call.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-local-function-call.expect.md
new file mode 100644
index 0000000000..6194ee9af9
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-local-function-call.expect.md
@@ -0,0 +1,92 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+function Component({propValue}) {
+  const [value, setValue] = useState(null);
+
+  function localFunction() {
+    console.log('local function');
+  }
+
+  useEffect(() => {
+    setValue(propValue);
+    localFunction();
+  }, [propValue]);
+
+  return <div>{value}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{propValue: 'test'}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+function Component(t0) {
+  const $ = _c(6);
+  const { propValue } = t0;
+  const [value, setValue] = useState(null);
+  let t1;
+  if ($[0] === Symbol.for("react.memo_cache_sentinel")) {
+    t1 = function localFunction() {
+      console.log("local function");
+    };
+    $[0] = t1;
+  } else {
+    t1 = $[0];
+  }
+  const localFunction = t1;
+  let t2;
+  let t3;
+  if ($[1] !== propValue) {
+    t2 = () => {
+      setValue(propValue);
+      localFunction();
+    };
+    t3 = [propValue];
+    $[1] = propValue;
+    $[2] = t2;
+    $[3] = t3;
+  } else {
+    t2 = $[2];
+    t3 = $[3];
+  }
+  useEffect(t2, t3);
+  let t4;
+  if ($[4] !== value) {
+    t4 = <div>{value}</div>;
+    $[4] = value;
+    $[5] = t4;
+  } else {
+    t4 = $[5];
+  }
+  return t4;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ propValue: "test" }],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":17,"column":1,"index":371},"filename":"effect-contains-local-function-call.ts"},"fnName":"Component","memoSlots":6,"memoBlocks":3,"memoValues":4,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div>test</div>
+logs: ['local function']
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.effect-contains-local-function-call.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-local-function-call.js
similarity index 86%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.effect-contains-local-function-call.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-local-function-call.js
index 1efb3177e5..a6442b3647 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.effect-contains-local-function-call.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-local-function-call.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({propValue}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.expect.md
index c83ea552a6..74391e86ad 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.expect.md
@@ -2,7 +2,7 @@
 ## Input
 
 ```javascript
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({propValue, onChange}) {
@@ -25,7 +25,7 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import { useEffect, useState } from "react";
 
 function Component(t0) {
@@ -70,6 +70,13 @@ export const FIXTURE_ENTRYPOINT = {
 };
 
 ```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":12,"column":1,"index":306},"filename":"effect-contains-prop-function-call-no-error.ts"},"fnName":"Component","memoSlots":7,"memoBlocks":3,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":16,"column":41,"index":402},"end":{"line":16,"column":49,"index":410},"filename":"effect-contains-prop-function-call-no-error.ts"},"fnName":null,"memoSlots":0,"memoBlocks":0,"memoValues":0,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
       
 ### Eval output
 (kind: ok) <div>test</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.js
index 512df7cb36..f19e9518d6 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-contains-prop-function-call-no-error.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({propValue, onChange}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.expect.md
index e17f1e26f6..e26643723d 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.expect.md
@@ -2,7 +2,7 @@
 ## Input
 
 ```javascript
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({propValue}) {
@@ -25,7 +25,7 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import { useEffect, useState } from "react";
 
 function Component(t0) {
@@ -65,6 +65,12 @@ export const FIXTURE_ENTRYPOINT = {
 };
 
 ```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":12,"column":1,"index":298},"filename":"effect-with-global-function-call-no-error.ts"},"fnName":"Component","memoSlots":5,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
       
 ### Eval output
 (kind: exception) globalCall is not defined
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.js
index 4cded6dcc8..ae7622d4d0 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/effect-with-global-function-call-no-error.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component({propValue}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-conditionally-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-conditionally-in-effect.expect.md
deleted file mode 100644
index 1fa7f7d795..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-conditionally-in-effect.expect.md
+++ /dev/null
@@ -1,49 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-function Component({value, enabled}) {
-  const [localValue, setLocalValue] = useState('');
-
-  useEffect(() => {
-    if (enabled) {
-      setLocalValue(value);
-    } else {
-      setLocalValue('disabled');
-    }
-  }, [value, enabled]);
-
-  return <div>{localValue}</div>;
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [{value: 'test', enabled: true}],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From props: [value]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.derived-state-conditionally-in-effect.ts:9:6
-   7 |   useEffect(() => {
-   8 |     if (enabled) {
->  9 |       setLocalValue(value);
-     |       ^^^^^^^^^^^^^ This should be computed during render, not in an effect
-  10 |     } else {
-  11 |       setLocalValue('disabled');
-  12 |     }
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-default-props.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-default-props.expect.md
deleted file mode 100644
index f30235a064..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-default-props.expect.md
+++ /dev/null
@@ -1,46 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-export default function Component({input = 'empty'}) {
-  const [currInput, setCurrInput] = useState(input);
-  const localConst = 'local const';
-
-  useEffect(() => {
-    setCurrInput(input + localConst);
-  }, [input, localConst]);
-
-  return <div>{currInput}</div>;
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [{input: 'test'}],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From props: [input]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.derived-state-from-default-props.ts:9:4
-   7 |
-   8 |   useEffect(() => {
->  9 |     setCurrInput(input + localConst);
-     |     ^^^^^^^^^^^^ This should be computed during render, not in an effect
-  10 |   }, [input, localConst]);
-  11 |
-  12 |   return <div>{currInput}</div>;
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-local-state-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-local-state-in-effect.expect.md
deleted file mode 100644
index 779ddafc40..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-local-state-in-effect.expect.md
+++ /dev/null
@@ -1,43 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-
-import {useEffect, useState} from 'react';
-
-function Component({shouldChange}) {
-  const [count, setCount] = useState(0);
-
-  useEffect(() => {
-    if (shouldChange) {
-      setCount(count + 1);
-    }
-  }, [count]);
-
-  return <div>{count}</div>;
-}
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From local state: [count]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.derived-state-from-local-state-in-effect.ts:10:6
-   8 |   useEffect(() => {
-   9 |     if (shouldChange) {
-> 10 |       setCount(count + 1);
-     |       ^^^^^^^^ This should be computed during render, not in an effect
-  11 |     }
-  12 |   }, [count]);
-  13 |
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-local-state-and-component-scope.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-local-state-and-component-scope.expect.md
deleted file mode 100644
index 7b27b556b3..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-local-state-and-component-scope.expect.md
+++ /dev/null
@@ -1,53 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-function Component({firstName}) {
-  const [lastName, setLastName] = useState('Doe');
-  const [fullName, setFullName] = useState('John');
-
-  const middleName = 'D.';
-
-  useEffect(() => {
-    setFullName(firstName + ' ' + middleName + ' ' + lastName);
-  }, [firstName, middleName, lastName]);
-
-  return (
-    <div>
-      <input value={lastName} onChange={e => setLastName(e.target.value)} />
-      <div>{fullName}</div>
-    </div>
-  );
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [{firstName: 'John'}],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From props and local state: [firstName, lastName]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.derived-state-from-prop-local-state-and-component-scope.ts:11:4
-   9 |
-  10 |   useEffect(() => {
-> 11 |     setFullName(firstName + ' ' + middleName + ' ' + lastName);
-     |     ^^^^^^^^^^^ This should be computed during render, not in an effect
-  12 |   }, [firstName, middleName, lastName]);
-  13 |
-  14 |   return (
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-with-side-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-with-side-effect.expect.md
deleted file mode 100644
index 7fadae5667..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.derived-state-from-prop-with-side-effect.expect.md
+++ /dev/null
@@ -1,46 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-function Component({value}) {
-  const [localValue, setLocalValue] = useState('');
-
-  useEffect(() => {
-    setLocalValue(value);
-    document.title = `Value: ${value}`;
-  }, [value]);
-
-  return <div>{localValue}</div>;
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [{value: 'test'}],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From props: [value]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.derived-state-from-prop-with-side-effect.ts:8:4
-   6 |
-   7 |   useEffect(() => {
->  8 |     setLocalValue(value);
-     |     ^^^^^^^^^^^^^ This should be computed during render, not in an effect
-   9 |     document.title = `Value: ${value}`;
-  10 |   }, [value]);
-  11 |
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.effect-contains-local-function-call.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.effect-contains-local-function-call.expect.md
deleted file mode 100644
index aec543fcbf..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.effect-contains-local-function-call.expect.md
+++ /dev/null
@@ -1,50 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-function Component({propValue}) {
-  const [value, setValue] = useState(null);
-
-  function localFunction() {
-    console.log('local function');
-  }
-
-  useEffect(() => {
-    setValue(propValue);
-    localFunction();
-  }, [propValue]);
-
-  return <div>{value}</div>;
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [{propValue: 'test'}],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From props: [propValue]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.effect-contains-local-function-call.ts:12:4
-  10 |
-  11 |   useEffect(() => {
-> 12 |     setValue(propValue);
-     |     ^^^^^^^^ This should be computed during render, not in an effect
-  13 |     localFunction();
-  14 |   }, [propValue]);
-  15 |
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-computation-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-computation-in-effect.expect.md
deleted file mode 100644
index f1f755adfa..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-computation-in-effect.expect.md
+++ /dev/null
@@ -1,48 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-function Component() {
-  const [firstName, setFirstName] = useState('Taylor');
-  const lastName = 'Swift';
-
-  // 🔴 Avoid: redundant state and unnecessary Effect
-  const [fullName, setFullName] = useState('');
-  useEffect(() => {
-    setFullName(firstName + ' ' + lastName);
-  }, [firstName, lastName]);
-
-  return <div>{fullName}</div>;
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From local state: [firstName]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.invalid-derived-computation-in-effect.ts:11:4
-   9 |   const [fullName, setFullName] = useState('');
-  10 |   useEffect(() => {
-> 11 |     setFullName(firstName + ' ' + lastName);
-     |     ^^^^^^^^^^^ This should be computed during render, not in an effect
-  12 |   }, [firstName, lastName]);
-  13 |
-  14 |   return <div>{fullName}</div>;
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-computed-props.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-computed-props.expect.md
deleted file mode 100644
index 3a07889693..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-computed-props.expect.md
+++ /dev/null
@@ -1,46 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-export default function Component(props) {
-  const [displayValue, setDisplayValue] = useState('');
-
-  useEffect(() => {
-    const computed = props.prefix + props.value + props.suffix;
-    setDisplayValue(computed);
-  }, [props.prefix, props.value, props.suffix]);
-
-  return <div>{displayValue}</div>;
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [{prefix: '[', value: 'test', suffix: ']'}],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From props: [props]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.invalid-derived-state-from-computed-props.ts:9:4
-   7 |   useEffect(() => {
-   8 |     const computed = props.prefix + props.value + props.suffix;
->  9 |     setDisplayValue(computed);
-     |     ^^^^^^^^^^^^^^^ This should be computed during render, not in an effect
-  10 |   }, [props.prefix, props.value, props.suffix]);
-  11 |
-  12 |   return <div>{displayValue}</div>;
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-destructured-props.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-destructured-props.expect.md
deleted file mode 100644
index b28692c67b..0000000000
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-destructured-props.expect.md
+++ /dev/null
@@ -1,47 +0,0 @@
-
-## Input
-
-```javascript
-// @validateNoDerivedComputationsInEffects_exp
-import {useEffect, useState} from 'react';
-
-export default function Component({props}) {
-  const [fullName, setFullName] = useState(
-    props.firstName + ' ' + props.lastName
-  );
-
-  useEffect(() => {
-    setFullName(props.firstName + ' ' + props.lastName);
-  }, [props.firstName, props.lastName]);
-
-  return <div>{fullName}</div>;
-}
-
-export const FIXTURE_ENTRYPOINT = {
-  fn: Component,
-  params: [{props: {firstName: 'John', lastName: 'Doe'}}],
-};
-
-```
-
-
-## Error
-
-```
-Found 1 error:
-
-Error: You might not need an effect. Derive values in render, not effects.
-
-Derived values (From props: [props]) should be computed during render, rather than in effects. Using an effect triggers an additional render which can hurt performance and user experience, potentially briefly showing stale values to the user.
-
-error.invalid-derived-state-from-destructured-props.ts:10:4
-   8 |
-   9 |   useEffect(() => {
-> 10 |     setFullName(props.firstName + ' ' + props.lastName);
-     |     ^^^^^^^^^^^ This should be computed during render, not in an effect
-  11 |   }, [props.firstName, props.lastName]);
-  12 |
-  13 |   return <div>{fullName}</div>;
-```
-          
-      
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-computation-in-effect.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-computation-in-effect.expect.md
new file mode 100644
index 0000000000..e8259c4f4d
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-computation-in-effect.expect.md
@@ -0,0 +1,79 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+function Component() {
+  const [firstName, setFirstName] = useState('Taylor');
+  const lastName = 'Swift';
+
+  // 🔴 Avoid: redundant state and unnecessary Effect
+  const [fullName, setFullName] = useState('');
+  useEffect(() => {
+    setFullName(firstName + ' ' + lastName);
+  }, [firstName, lastName]);
+
+  return <div>{fullName}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+function Component() {
+  const $ = _c(5);
+  const [firstName] = useState("Taylor");
+
+  const [fullName, setFullName] = useState("");
+  let t0;
+  let t1;
+  if ($[0] !== firstName) {
+    t0 = () => {
+      setFullName(firstName + " " + "Swift");
+    };
+    t1 = [firstName, "Swift"];
+    $[0] = firstName;
+    $[1] = t0;
+    $[2] = t1;
+  } else {
+    t0 = $[1];
+    t1 = $[2];
+  }
+  useEffect(t0, t1);
+  let t2;
+  if ($[3] !== fullName) {
+    t2 = <div>{fullName}</div>;
+    $[3] = fullName;
+    $[4] = t2;
+  } else {
+    t2 = $[4];
+  }
+  return t2;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":0,"index":107},"end":{"line":15,"column":1,"index":445},"filename":"invalid-derived-computation-in-effect.ts"},"fnName":"Component","memoSlots":5,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div>Taylor Swift</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-computation-in-effect.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-computation-in-effect.js
similarity index 87%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-computation-in-effect.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-computation-in-effect.js
index 17779a5b4c..e29ece67bd 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-computation-in-effect.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-computation-in-effect.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 function Component() {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-computed-props.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-computed-props.expect.md
new file mode 100644
index 0000000000..d380052f24
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-computed-props.expect.md
@@ -0,0 +1,78 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+export default function Component(props) {
+  const [displayValue, setDisplayValue] = useState('');
+
+  useEffect(() => {
+    const computed = props.prefix + props.value + props.suffix;
+    setDisplayValue(computed);
+  }, [props.prefix, props.value, props.suffix]);
+
+  return <div>{displayValue}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{prefix: '[', value: 'test', suffix: ']'}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+export default function Component(props) {
+  const $ = _c(7);
+  const [displayValue, setDisplayValue] = useState("");
+  let t0;
+  let t1;
+  if ($[0] !== props.prefix || $[1] !== props.suffix || $[2] !== props.value) {
+    t0 = () => {
+      const computed = props.prefix + props.value + props.suffix;
+      setDisplayValue(computed);
+    };
+    t1 = [props.prefix, props.value, props.suffix];
+    $[0] = props.prefix;
+    $[1] = props.suffix;
+    $[2] = props.value;
+    $[3] = t0;
+    $[4] = t1;
+  } else {
+    t0 = $[3];
+    t1 = $[4];
+  }
+  useEffect(t0, t1);
+  let t2;
+  if ($[5] !== displayValue) {
+    t2 = <div>{displayValue}</div>;
+    $[5] = displayValue;
+    $[6] = t2;
+  } else {
+    t2 = $[6];
+  }
+  return t2;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ prefix: "[", value: "test", suffix: "]" }],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":15,"index":122},"end":{"line":13,"column":1,"index":409},"filename":"invalid-derived-state-from-computed-props.ts"},"fnName":"Component","memoSlots":7,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div>[test]</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-computed-props.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-computed-props.js
similarity index 87%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-computed-props.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-computed-props.js
index 24afa944fc..39648ef8d5 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-computed-props.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-computed-props.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 export default function Component(props) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-destructured-props.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-destructured-props.expect.md
new file mode 100644
index 0000000000..ca71e84992
--- /dev/null
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-destructured-props.expect.md
@@ -0,0 +1,80 @@
+
+## Input
+
+```javascript
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import {useEffect, useState} from 'react';
+
+export default function Component({props}) {
+  const [fullName, setFullName] = useState(
+    props.firstName + ' ' + props.lastName
+  );
+
+  useEffect(() => {
+    setFullName(props.firstName + ' ' + props.lastName);
+  }, [props.firstName, props.lastName]);
+
+  return <div>{fullName}</div>;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{props: {firstName: 'John', lastName: 'Doe'}}],
+};
+
+```
+
+## Code
+
+```javascript
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
+import { useEffect, useState } from "react";
+
+export default function Component(t0) {
+  const $ = _c(6);
+  const { props } = t0;
+  const [fullName, setFullName] = useState(
+    props.firstName + " " + props.lastName,
+  );
+  let t1;
+  let t2;
+  if ($[0] !== props.firstName || $[1] !== props.lastName) {
+    t1 = () => {
+      setFullName(props.firstName + " " + props.lastName);
+    };
+    t2 = [props.firstName, props.lastName];
+    $[0] = props.firstName;
+    $[1] = props.lastName;
+    $[2] = t1;
+    $[3] = t2;
+  } else {
+    t1 = $[2];
+    t2 = $[3];
+  }
+  useEffect(t1, t2);
+  let t3;
+  if ($[4] !== fullName) {
+    t3 = <div>{fullName}</div>;
+    $[4] = fullName;
+    $[5] = t3;
+  } else {
+    t3 = $[5];
+  }
+  return t3;
+}
+
+export const FIXTURE_ENTRYPOINT = {
+  fn: Component,
+  params: [{ props: { firstName: "John", lastName: "Doe" } }],
+};
+
+```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":15,"index":122},"end":{"line":14,"column":1,"index":397},"filename":"invalid-derived-state-from-destructured-props.ts"},"fnName":"Component","memoSlots":6,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
+      
+### Eval output
+(kind: ok) <div>John Doe</div>
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-destructured-props.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-destructured-props.js
similarity index 87%
rename from compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-destructured-props.js
rename to compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-destructured-props.js
index bdfb47a2c6..3f662f13f7 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/error.invalid-derived-state-from-destructured-props.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/invalid-derived-state-from-destructured-props.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState} from 'react';
 
 export default function Component({props}) {
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.expect.md b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.expect.md
index 365ee1fef4..9a843d1883 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.expect.md
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.expect.md
@@ -2,7 +2,7 @@
 ## Input
 
 ```javascript
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState, useRef} from 'react';
 
 export default function Component({test}) {
@@ -31,7 +31,7 @@ export const FIXTURE_ENTRYPOINT = {
 ## Code
 
 ```javascript
-import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp
+import { c as _c } from "react/compiler-runtime"; // @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import { useEffect, useState, useRef } from "react";
 
 export default function Component(t0) {
@@ -77,6 +77,12 @@ export const FIXTURE_ENTRYPOINT = {
 };
 
 ```
+
+## Logs
+
+```
+{"kind":"CompileSuccess","fnLoc":{"start":{"line":4,"column":15,"index":130},"end":{"line":18,"column":1,"index":386},"filename":"ref-conditional-in-effect-no-error.ts"},"fnName":"Component","memoSlots":5,"memoBlocks":2,"memoValues":3,"prunedMemoBlocks":0,"prunedMemoValues":0}
+```
       
 ### Eval output
 (kind: ok) 8
\ No newline at end of file
diff --git a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.js b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.js
index ee59ccb78f..3594deaa02 100644
--- a/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.js
+++ b/compiler/packages/babel-plugin-react-compiler/src/__tests__/fixtures/compiler/effect-derived-computations/ref-conditional-in-effect-no-error.js
@@ -1,4 +1,4 @@
-// @validateNoDerivedComputationsInEffects_exp
+// @validateNoDerivedComputationsInEffects_exp @loggerTestOnly
 import {useEffect, useState, useRef} from 'react';
 
 export default function Component({test}) {