diff --git a/typescript/vscode-ext/packages/language-server/src/lib/baml_project_manager.ts b/typescript/vscode-ext/packages/language-server/src/lib/baml_project_manager.ts
index dd4496038..fa1e093a1 100644
--- a/typescript/vscode-ext/packages/language-server/src/lib/baml_project_manager.ts
+++ b/typescript/vscode-ext/packages/language-server/src/lib/baml_project_manager.ts
@@ -377,10 +377,11 @@ class Project {
 
           const out_dir = path.join(this.rootPath(), g.output_dir_relative_to_baml_src)
 
-          const tmpDir = path.join(path.dirname(g.output_dir), path.basename(g.output_dir) + '.tmp')
-          const backupDir = path.join(path.dirname(g.output_dir), path.basename(g.output_dir) + '.bak')
+          const tmpDir = path.join(out_dir + '.tmp')
+          const backupDir = path.join(out_dir + '.bak')
 
           await mkdir(tmpDir, { recursive: true })
+          console.log(`tmpdir ${tmpDir}`)
           await Promise.all(
             g.files.map(async (f) => {
               const fpath = path.join(tmpDir, f.path_in_output_dir)
@@ -393,6 +394,7 @@ class Project {
             await rm(backupDir, { recursive: true, force: true })
           }
           if (existsSync(out_dir)) {
+            console.log('out dir exists')
             const contents = await readdir(out_dir, { withFileTypes: true })
             const contentsWithSafeToRemove = await Promise.all(
               contents.map(async (c) => {
@@ -403,7 +405,7 @@ class Project {
                   return { path: c.name, safeToRemove: false }
                 }
 
-                const handle = await open(path.join(g.output_dir, c.name))
+                const handle = await open(path.join(out_dir, c.name))
                 try {
                   const { bytesRead, buffer } = await handle.read(Buffer.alloc(1024), 0, 1024, 0)
                   const firstNBytes = buffer.subarray(0, bytesRead).toString('utf8')
@@ -420,7 +422,11 @@ class Project {
                 `Output dir ${g.output_dir} contains this file(s) not generated by BAML: ${notSafeToRemove.join(', ')}`,
               )
             }
+            try {
             await rename(out_dir, backupDir)
+            } catch (e) {
+              console.error(`Something happened backing up baml_client to the .bak directory. ${e}`)
+            }
           }
           await rename(tmpDir, out_dir)
 
@@ -429,7 +435,6 @@ class Project {
             // if we remove this, TS will still have the old types, and nextjs will not hot-reload.
             g.files.map((f) => {
               const fpath = path.join(out_dir, f.path_in_output_dir)
-              console.log(`fpath ${fpath}`)
               const currentTime = new Date()
               const newTime = new Date(currentTime.getTime() + 100)
               utimes(fpath, newTime, newTime, (err) => {
@@ -457,6 +462,7 @@ class Project {
         onSuccess(`BAML client generated! (took ${Math.round(endMillis - startMillis)}ms)`)
       }
     } catch (e) {
+      console.error(`Failed to generate BAML client: ${e}`)
       onError(`Failed to generate BAML client: ${e}`)
     }
   }