diff --git a/public/app/core/components/NestedFolderPicker/FolderRepo.tsx b/public/app/core/components/NestedFolderPicker/FolderRepo.tsx
index 153becab1b9..9de19c4fcfe 100644
--- a/public/app/core/components/NestedFolderPicker/FolderRepo.tsx
+++ b/public/app/core/components/NestedFolderPicker/FolderRepo.tsx
@@ -14,13 +14,12 @@ export interface Props {
 }
 
 export const FolderRepo = memo(function FolderRepo({ folder }: Props) {
-  // skip rendering if:
-  // folder is not present
-  // folder have parentUID
-  // folder is not managed
-  // if whole instance is provisioned
-  const isProvisionedInstance = useIsProvisionedInstance();
-  const skipRender = getShouldSkipRender(folder, isProvisionedInstance);
+  // Check if we can skip early without needing the useIsProvisionedInstance query
+  // This reduces RTK Query subscriptions and prevents re-render loops on API errors
+  const canSkipEarly = getCanSkipEarly(folder);
+
+  const isProvisionedInstance = useIsProvisionedInstance({ skip: canSkipEarly });
+  const skipRender = canSkipEarly || isProvisionedInstance;
 
   const { isReadOnlyRepo, repoType } = useGetResourceRepositoryView({
     folderName: skipRender ? undefined : folder?.uid,
@@ -51,11 +50,19 @@ export const FolderRepo = memo(function FolderRepo({ folder }: Props) {
   );
 });
 
-function getShouldSkipRender(folder: FolderDTO | DashboardViewItem | undefined, isProvisionedInstance?: boolean) {
-  // Skip render if parentUID is present, then we should skip rendering. we only display icon for root folders
-  const hasParent = folder && Boolean('parentUID' in folder && folder.parentUID);
-  // Skip render if folder is not managed by Repo
-  const isNotManaged = folder && folder.managedBy !== ManagerKind.Repo;
-
-  return !folder || hasParent || isNotManaged || isProvisionedInstance;
+// Check conditions that don't require the useIsProvisionedInstance hook
+function getCanSkipEarly(folder: FolderDTO | DashboardViewItem | undefined): boolean {
+  if (!folder) {
+    return true;
+  }
+  // Skip render if parentUID is present - we only display icon for root folders
+  const hasParent = Boolean('parentUID' in folder && folder.parentUID);
+  if (hasParent) {
+    return true;
+  }
+  const isNotManaged = folder.managedBy !== ManagerKind.Repo;
+  if (isNotManaged) {
+    return true;
+  }
+  return false;
 }
diff --git a/public/app/features/browse-dashboards/components/BrowseView.tsx b/public/app/features/browse-dashboards/components/BrowseView.tsx
index b28204f4fe2..0b42b79f9ae 100644
--- a/public/app/features/browse-dashboards/components/BrowseView.tsx
+++ b/public/app/features/browse-dashboards/components/BrowseView.tsx
@@ -43,10 +43,10 @@ export function BrowseView({ folderUID, width, height, permissions, isReadOnlyRe
   const selectedItems = useCheckboxSelectionState();
   const childrenByParentUID = useChildrenByParentUIDState();
   const canSelect = canSelectItems(permissions);
-  const isProvisionedInstance = useIsProvisionedInstance();
   const provisioningEnabled = config.featureToggles.provisioning;
   const hasNoRole = contextSrv.user.orgRole === OrgRole.None;
   const { data: settingsData } = useGetFrontendSettingsQuery(!provisioningEnabled || hasNoRole ? skipToken : undefined);
+  const isProvisionedInstance = useIsProvisionedInstance({ settings: settingsData });
   const rootItems = useSelector(rootItemsSelector);
 
   const [, stateManager] = useSearchStateManager();
diff --git a/public/app/features/provisioning/hooks/useGetResourceRepositoryView.ts b/public/app/features/provisioning/hooks/useGetResourceRepositoryView.ts
index d612be620dc..9dc8e2b51c1 100644
--- a/public/app/features/provisioning/hooks/useGetResourceRepositoryView.ts
+++ b/public/app/features/provisioning/hooks/useGetResourceRepositoryView.ts
@@ -34,9 +34,10 @@ export const useGetResourceRepositoryView = ({
   const hasNoRole = contextSrv.user.orgRole === OrgRole.None;
 
   const provisioningEnabled = config.featureToggles.provisioning;
-  const { data: settingsData, isLoading: isSettingsLoading } = useGetFrontendSettingsQuery(
-    !provisioningEnabled || skipQuery || hasNoRole ? skipToken : undefined
-  );
+  const shouldSkipSettings = !provisioningEnabled || skipQuery || hasNoRole || (!name && !folderName);
+  const settingsQueryArg = shouldSkipSettings ? skipToken : undefined;
+
+  const { data: settingsData, isLoading: isSettingsLoading } = useGetFrontendSettingsQuery(settingsQueryArg);
 
   const skipFolderQuery = !folderName || !provisioningEnabled || skipQuery || hasNoRole;
   const { data: folder, isLoading: isFolderLoading } = useGetFolderQuery(
diff --git a/public/app/features/provisioning/hooks/useIsProvisionedInstance.ts b/public/app/features/provisioning/hooks/useIsProvisionedInstance.ts
index 1c4ba12b8e4..61fcbb73da6 100644
--- a/public/app/features/provisioning/hooks/useIsProvisionedInstance.ts
+++ b/public/app/features/provisioning/hooks/useIsProvisionedInstance.ts
@@ -5,13 +5,22 @@ import { config } from '@grafana/runtime';
 import { RepositoryViewList, useGetFrontendSettingsQuery } from 'app/api/clients/provisioning/v0alpha1';
 import { contextSrv } from 'app/core/services/context_srv';
 
-export function useIsProvisionedInstance(settings?: RepositoryViewList) {
+interface UseIsProvisionedInstanceOptions {
+  settings?: RepositoryViewList;
+  skip?: boolean;
+}
+
+export function useIsProvisionedInstance(options: UseIsProvisionedInstanceOptions = {}) {
+  const { settings, skip: skipQuery } = options;
   const hasNoRole = contextSrv.user.orgRole === OrgRole.None;
-  const skip = !config.featureToggles.provisioning || hasNoRole;
+  const skip = !config.featureToggles.provisioning || hasNoRole || skipQuery;
 
   const settingsQuery = useGetFrontendSettingsQuery(settings || skip ? skipToken : undefined);
-  if (!settings) {
-    settings = settingsQuery.data;
+
+  if (settingsQuery.isError) {
+    return false;
   }
-  return settings?.items?.some((item) => item.target === 'instance');
+
+  const effectiveSettings = settings ?? settingsQuery.data;
+  return effectiveSettings?.items?.some((item) => item.target === 'instance');
 }