diff --git a/binaries/daemon/src/lib.rs b/binaries/daemon/src/lib.rs
index 9b9e81ff..bb6a3aa9 100644
--- a/binaries/daemon/src/lib.rs
+++ b/binaries/daemon/src/lib.rs
@@ -379,7 +379,10 @@ impl Daemon {
                     Some(dataflow) => {
                         dataflow
                             .pending_nodes
-                            .handle_external_all_nodes_ready(success)
+                            .handle_external_all_nodes_ready(
+                                success,
+                                &mut dataflow.cascading_errors,
+                            )
                             .await?;
                         if success {
                             tracing::info!("coordinator reported that all nodes are ready, starting dataflow `{dataflow_id}`");
@@ -633,6 +636,7 @@ impl Daemon {
                                 &node_id,
                                 &mut self.coordinator_connection,
                                 &self.clock,
+                                &mut dataflow.cascading_errors,
                             )
                             .await?;
                     }
@@ -739,11 +743,11 @@ impl Daemon {
                                 reply_sender,
                                 &mut self.coordinator_connection,
                                 &self.clock,
+                                &mut dataflow.cascading_errors,
                             )
                             .await?;
                         match status {
-                            DataflowStatus::AllNodesReady { cascading_errors } => {
-                                dataflow.cascading_errors.extend(cascading_errors);
+                            DataflowStatus::AllNodesReady => {
                                 tracing::info!(
                                     "all nodes are ready, starting dataflow `{dataflow_id}`"
                                 );
@@ -994,7 +998,12 @@ impl Daemon {
 
         dataflow
             .pending_nodes
-            .handle_node_stop(node_id, &mut self.coordinator_connection, &self.clock)
+            .handle_node_stop(
+                node_id,
+                &mut self.coordinator_connection,
+                &self.clock,
+                &mut dataflow.cascading_errors,
+            )
             .await?;
 
         Self::handle_outputs_done(
diff --git a/binaries/daemon/src/pending.rs b/binaries/daemon/src/pending.rs
index 87bba6e9..599ff85b 100644
--- a/binaries/daemon/src/pending.rs
+++ b/binaries/daemon/src/pending.rs
@@ -61,12 +61,13 @@ impl PendingNodes {
         reply_sender: oneshot::Sender<DaemonReply>,
         coordinator_connection: &mut Option<TcpStream>,
         clock: &HLC,
+        cascading_errors: &mut BTreeSet<NodeId>,
     ) -> eyre::Result<DataflowStatus> {
         self.waiting_subscribers
             .insert(node_id.clone(), reply_sender);
         self.local_nodes.remove(&node_id);
 
-        self.update_dataflow_status(coordinator_connection, clock)
+        self.update_dataflow_status(coordinator_connection, clock, cascading_errors)
             .await
     }
 
@@ -75,17 +76,22 @@ impl PendingNodes {
         node_id: &NodeId,
         coordinator_connection: &mut Option<TcpStream>,
         clock: &HLC,
+        cascading_errors: &mut BTreeSet<NodeId>,
     ) -> eyre::Result<()> {
         if self.local_nodes.remove(node_id) {
             tracing::warn!("node `{node_id}` exited before initializing dora connection");
             self.exited_before_subscribe.insert(node_id.clone());
-            self.update_dataflow_status(coordinator_connection, clock)
+            self.update_dataflow_status(coordinator_connection, clock, cascading_errors)
                 .await?;
         }
         Ok(())
     }
 
-    pub async fn handle_external_all_nodes_ready(&mut self, success: bool) -> eyre::Result<()> {
+    pub async fn handle_external_all_nodes_ready(
+        &mut self,
+        success: bool,
+        cascading_errors: &mut BTreeSet<NodeId>,
+    ) -> eyre::Result<()> {
         if !self.local_nodes.is_empty() {
             bail!("received external `all_nodes_ready` event before local nodes were ready");
         }
@@ -94,7 +100,8 @@ impl PendingNodes {
         } else {
             Some("some nodes failed to initialize on remote machines".to_string())
         };
-        self.answer_subscribe_requests(external_error).await;
+        self.answer_subscribe_requests(external_error, cascading_errors)
+            .await;
 
         Ok(())
     }
@@ -103,6 +110,7 @@ impl PendingNodes {
         &mut self,
         coordinator_connection: &mut Option<TcpStream>,
         clock: &HLC,
+        cascading_errors: &mut BTreeSet<NodeId>,
     ) -> eyre::Result<DataflowStatus> {
         if self.local_nodes.is_empty() {
             if self.external_nodes {
@@ -113,8 +121,8 @@ impl PendingNodes {
                 }
                 Ok(DataflowStatus::Pending)
             } else {
-                let cascading_errors = self.answer_subscribe_requests(None).await;
-                Ok(DataflowStatus::AllNodesReady { cascading_errors })
+                self.answer_subscribe_requests(None, cascading_errors).await;
+                Ok(DataflowStatus::AllNodesReady)
             }
         } else {
             Ok(DataflowStatus::Pending)
@@ -124,7 +132,8 @@ impl PendingNodes {
     async fn answer_subscribe_requests(
         &mut self,
         external_error: Option<String>,
-    ) -> BTreeSet<NodeId> {
+        cascading_errors: &mut BTreeSet<NodeId>,
+    ) {
         let result = if self.exited_before_subscribe.is_empty() {
             match external_error {
                 Some(err) => Err(err),
@@ -150,14 +159,12 @@ impl PendingNodes {
         };
         // answer all subscribe requests
         let subscribe_replies = std::mem::take(&mut self.waiting_subscribers);
-        let mut cascading_errors = BTreeSet::new();
         for (node_id, reply_sender) in subscribe_replies.into_iter() {
             if result.is_err() {
                 cascading_errors.insert(node_id);
             }
             let _ = reply_sender.send(DaemonReply::Result(result.clone()));
         }
-        cascading_errors
     }
 
     async fn report_nodes_ready(
@@ -190,6 +197,6 @@ impl PendingNodes {
 }
 
 pub enum DataflowStatus {
-    AllNodesReady { cascading_errors: BTreeSet<NodeId> },
+    AllNodesReady,
     Pending,
 }