diff --git a/options.c b/options.c
index e222fa58a..3a2ce2bda 100644
--- a/options.c
+++ b/options.c
@@ -2659,7 +2659,8 @@ int parse_arguments(int *argc_p, const char ***argv_p)
 			 * module root -- e.g. a root-owned backup symlink. No-op off a
 			 * daemon (the module-root check only fires when am_daemon). */
 			int save_opr = operator_path_resolve;
-			operator_path_resolve = 1;
+			/* The daemon process is the only case that the files-from path comes from an untrusted argument */
+			operator_path_resolve = am_daemon ? 1 : 0;
 			filesfrom_fd = open_no_attacker_symlinks(files_from, O_RDONLY|O_BINARY, 0);
 			operator_path_resolve = save_opr;
 			if (filesfrom_fd < 0) {
diff --git a/testsuite/files-from-leak_test.py b/testsuite/files-from-leak_test.py
index e7a03725d..b310860e4 100644
--- a/testsuite/files-from-leak_test.py
+++ b/testsuite/files-from-leak_test.py
@@ -179,3 +179,29 @@ def root_owned_backup_symlink():
     test_fail(f"setup failed: backup symlink {files_from} -> {tgt}, not the out-of-module secret")
 
 leak()
+
+# ---- LOCAL COMMAND CONFINEMENT EDGE CASE -----------------------------------
+# A local operator invoking --confine-root should still be able to specify a
+# --files-from file that resides outside the confined boundary. The file is
+# opened locally by the operator, not as an operator-path via a daemon, so
+# it should not trip the path-walker ELOOP block.
+
+local_files_from = root / 'local_files_from.txt'
+local_file = src / 'sub' / 'files-from-local'
+local_file.write_text('local files-from content\n')
+local_files_from.write_text('sub/files-from-local\n')
+
+local_proc = subprocess.run(
+    rsync_argv('-a', f'--confine-root={base}', f'--files-from={local_files_from}',
+               f'{src}/', f'{dest}/'),
+    stdout=subprocess.PIPE, stderr=subprocess.STDOUT, text=True,
+)
+
+copied = dest / 'sub' / 'files-from-local'
+if (local_proc.returncode != 0 or not copied.is_file()
+        or copied.read_text() != 'local files-from content\n'):
+    test_fail(
+        "Local --files-from transfer did not copy the listed file while the "
+        "list was outside --confine-root.\n"
+        f"Output: {local_proc.stdout}"
+    )
diff --git a/testsuite/rrsync-userns-procfs_test.py b/testsuite/rrsync-userns-procfs_test.py
index fa2aaf3dc..7bd1cdb06 100644
--- a/testsuite/rrsync-userns-procfs_test.py
+++ b/testsuite/rrsync-userns-procfs_test.py
@@ -79,8 +79,9 @@
     test_skipped('/proc/self does not expose an overflow uid in this namespace')
 
 base = Path(tempfile.mkdtemp(prefix='rsync-userns-procfs-'))
-src = base / 'src'
-dest = base / 'dest'
+root = base / 'root'
+src = root / 'src'
+dest = root / 'dest'
 outside = base / 'outside'
 makepath(src, dest, outside)
 (src / 'file').write_text('content\n')
@@ -112,22 +113,33 @@
 finally:
     os.close(dest_fd)
 
-outside_list = outside / 'files-from'
-outside_list.write_text('file\n')
-for fd_root in fd_roots:
-    outside_fd = os.open(outside_list, os.O_RDONLY)
-    try:
+backup_dir = root / 'backup'
+backup_dir.symlink_to(outside)
+(dest / 'test').write_text('old_content\n')
+(src / 'test').write_text('new_different_content\n')
+
+(outside / 'test').write_text('existing_backup\n')
+
+# Open an FD pointing to the confined root
+root_fd = os.open(root, os.O_RDONLY | os.O_DIRECTORY)
+try:
+    for fd_root in fd_roots:
         proc = subprocess.run(
-            rsync_argv('-a', f'--confine-root={dest}',
-                       f'--files-from={fd_root}/{outside_fd}',
+            rsync_argv('-a', '--backup', f'--confine-root={root}',
+                       f'--backup-dir={fd_root}/{root_fd}/backup/',
                        str(src) + '/', str(dest) + '/'),
-            pass_fds=(outside_fd,),
+            pass_fds=(root_fd,),
             capture_output=True,
             text=True,
         )
-    finally:
-        os.close(outside_fd)
-    if proc.returncode == 0 or 'failed to open files-from file' not in proc.stderr:
-        test_fail(f'outside {fd_root} pin was not observably refused: '
-                  f'rc={proc.returncode}, stderr={proc.stderr!r}')
+
+        # The transfer must fail because rsync attempts to unlink the pre-existing target file,
+        # forcing the path-walker to evaluate the FD pin + symlink and catching the escape.
+        if proc.returncode == 0:
+            test_fail(f'backup to outside symlink via {fd_root} pin was not observably refused: '
+                      f'rc={proc.returncode}, stderr={proc.stderr!r}')
+finally:
+    os.close(root_fd)
+
 rmtree(base)
+