diff --git a/.github/scripts/run-nightly-e2e.sh b/.github/scripts/run-nightly-e2e.sh
index fe4fb7e355..e2c9942884 100755
--- a/.github/scripts/run-nightly-e2e.sh
+++ b/.github/scripts/run-nightly-e2e.sh
@@ -136,7 +136,7 @@ wait_for_port 1986 "the E2E mock-server manager"
 
 phase "Starting Metro"
 EXPO_PUBLIC_ENV=e2e \
-  NODE_ENV=test \
+  NODE_ENV=development \
   RN_SRC_EXT=e2e.ts,e2e.tsx \
   pnpm exec expo start --dev-client --clear --port 8081 \
   >"$artifact_dir/metro.log" 2>&1 &
diff --git a/.github/workflows/nightly-e2e.yml b/.github/workflows/nightly-e2e.yml
index 1b2a5282a5..c6ed99e8d8 100644
--- a/.github/workflows/nightly-e2e.yml
+++ b/.github/workflows/nightly-e2e.yml
@@ -42,7 +42,7 @@ jobs:
         run: |
           mkdir -p artifacts/ios
           echo "Installing dependencies" > artifacts/ios/phase.txt
-          cp .env.example .env.test
+          cp .env.example .env.development
           cp google-services.json.example google-services.json
 
       - name: Set up Expo project
@@ -167,7 +167,7 @@ jobs:
         run: |
           mkdir -p artifacts/android
           echo "Installing dependencies" > artifacts/android/phase.txt
-          cp .env.example .env.test
+          cp .env.example .env.development
           cp google-services.json.example google-services.json
 
       - name: Set up Expo project
diff --git a/babel.config.js b/babel.config.js
index 1a11b2cb1f..c29a1d2e44 100644
--- a/babel.config.js
+++ b/babel.config.js
@@ -1,6 +1,8 @@
+/**
+ * @param {import("@babel/core").ConfigAPI} api
+ * @returns {import("@babel/core").InputOptions}
+ */
 module.exports = function (api) {
-  api.cache(true)
-  const isTestEnv = process.env.NODE_ENV === 'test'
   return {
     presets: [
       [
@@ -10,7 +12,7 @@ module.exports = function (api) {
           native: {
             // Disable ESM -> CJS compilation because Metro takes care of it.
             // However, we need it in Jest tests since those run without Metro.
-            disableImportExportTransform: !isTestEnv,
+            disableImportExportTransform: !api.env('test'),
           },
         },
       ],
@@ -29,15 +31,15 @@ module.exports = function (api) {
           },
         },
       ],
+
+      // cannot use `env` field because it will put them after
+      // the `react-native-worklets/plugin` plugin
+      ...(api.env('test')
+        ? ['@babel/plugin-transform-class-static-block']
+        : []),
+      ...(api.env('production') ? ['transform-remove-console'] : []),
+
       'react-native-worklets/plugin', // NOTE: this plugin MUST be last
     ],
-    env: {
-      production: {
-        plugins: ['transform-remove-console'],
-      },
-      test: {
-        plugins: ['@babel/plugin-transform-class-static-block'],
-      },
-    },
   }
 }
diff --git a/eas.json b/eas.json
index 5bf4e25513..996b0512d6 100644
--- a/eas.json
+++ b/eas.json
@@ -28,7 +28,7 @@
       },
       "env": {
         "EXPO_PUBLIC_ENV": "e2e",
-        "NODE_ENV": "test",
+        "NODE_ENV": "development",
         "RN_SRC_EXT": "e2e.ts,e2e.tsx"
       }
     },
diff --git a/package.json b/package.json
index 14e5d356f3..3c85f00f56 100644
--- a/package.json
+++ b/package.json
@@ -67,9 +67,9 @@
     "typecheck:android": "tsc --project ./tsconfig.check.android.json",
     "typecheck:web": "tsc --project ./tsconfig.check.web.json",
     "e2e:mock-server": "cd dev-env && pnpm start",
-    "e2e:build": "EXPO_PUBLIC_ENV=e2e NODE_ENV=test RN_SRC_EXT=e2e.ts,e2e.tsx expo run:ios",
-    "e2e:build-android": "EXPO_PUBLIC_ENV=e2e NODE_ENV=test RN_SRC_EXT=e2e.ts,e2e.tsx expo run:android",
-    "e2e:start": "EXPO_PUBLIC_ENV=e2e NODE_ENV=test RN_SRC_EXT=e2e.ts,e2e.tsx expo start -c",
+    "e2e:build": "EXPO_PUBLIC_ENV=e2e NODE_ENV=development RN_SRC_EXT=e2e.ts,e2e.tsx expo run:ios",
+    "e2e:build-android": "EXPO_PUBLIC_ENV=e2e NODE_ENV=development RN_SRC_EXT=e2e.ts,e2e.tsx expo run:android",
+    "e2e:start": "EXPO_PUBLIC_ENV=e2e NODE_ENV=development RN_SRC_EXT=e2e.ts,e2e.tsx expo start -c",
     "e2e:run": "maestro test",
     "perf:test": "NODE_ENV=test maestro test",
     "perf:test:run": "NODE_ENV=test maestro test __e2e__/perf-test.yml",