diff --git a/code/core/package.json b/code/core/package.json
index e8f6e3b21cbb..390f37270f11 100644
--- a/code/core/package.json
+++ b/code/core/package.json
@@ -220,7 +220,7 @@
     "@babel/parser": "^7.26.9",
     "@babel/traverse": "^7.26.9",
     "@babel/types": "^7.26.8",
-    "@clack/prompts": "1.0.0-alpha.6",
+    "@clack/prompts": "1.0.0-alpha.7",
     "@devtools-ds/object-inspector": "^1.1.2",
     "@discoveryjs/json-ext": "^0.5.3",
     "@emotion/cache": "^11.14.0",
diff --git a/code/core/src/node-logger/prompts/prompt-functions.ts b/code/core/src/node-logger/prompts/prompt-functions.ts
index 30182d843900..731f557a11bf 100644
--- a/code/core/src/node-logger/prompts/prompt-functions.ts
+++ b/code/core/src/node-logger/prompts/prompt-functions.ts
@@ -1,5 +1,4 @@
-import { logger } from '../../client-logger';
-import { shouldLog } from '../logger';
+import { error, log, shouldLog } from '../logger';
 import { wrapTextForClack, wrapTextForClackHint } from '../wrap-utils';
 import { getPromptProvider } from './prompt-config';
 import type {
@@ -129,6 +128,20 @@ export const spinner = (options: SpinnerOptions): SpinnerInstance => {
           spinnerInstance.stop(message);
         }
       },
+      cancel: (message?: string) => {
+        activeSpinner = null;
+        restoreConsoleLog();
+        if (shouldLog('info')) {
+          spinnerInstance.cancel(message);
+        }
+      },
+      error: (message?: string) => {
+        activeSpinner = null;
+        restoreConsoleLog();
+        if (shouldLog('error')) {
+          spinnerInstance.error(message);
+        }
+      },
       message: (text: string) => {
         if (shouldLog('info')) {
           spinnerInstance.message(text);
@@ -138,7 +151,7 @@ export const spinner = (options: SpinnerOptions): SpinnerInstance => {
 
     return wrappedSpinner;
   } else {
-    const maybeLog = shouldLog('info') ? logger.log : (_: string) => {};
+    const maybeLog = shouldLog('info') ? log : (_: string) => {};
 
     return {
       start: (message) => {
@@ -151,6 +164,18 @@ export const spinner = (options: SpinnerOptions): SpinnerInstance => {
           maybeLog(message);
         }
       },
+      cancel: (message) => {
+        if (message) {
+          maybeLog(message);
+        }
+      },
+      error: (message) => {
+        if (message) {
+          if (shouldLog('error')) {
+            error(message);
+          }
+        }
+      },
       message: (message) => {
         maybeLog(message);
       },
@@ -199,7 +224,7 @@ export const taskLog = (options: TaskLogOptions): TaskLogInstance => {
 
     return wrappedTaskLog;
   } else {
-    const maybeLog = shouldLog('info') ? logger.log : (_: string) => {};
+    const maybeLog = shouldLog('info') ? log : (_: string) => {};
 
     return {
       message: (message: string) => {
diff --git a/code/core/src/node-logger/prompts/prompt-provider-base.ts b/code/core/src/node-logger/prompts/prompt-provider-base.ts
index b9b2bd9b54c9..54a1615e0890 100644
--- a/code/core/src/node-logger/prompts/prompt-provider-base.ts
+++ b/code/core/src/node-logger/prompts/prompt-provider-base.ts
@@ -46,6 +46,8 @@ export interface PromptOptions {
 export interface SpinnerInstance {
   start: (message?: string) => void;
   stop: (message?: string) => void;
+  cancel: (message?: string) => void;
+  error: (message?: string) => void;
   message: (text: string) => void;
 }
 
diff --git a/code/core/src/node-logger/prompts/prompt-provider-clack.ts b/code/core/src/node-logger/prompts/prompt-provider-clack.ts
index 38880c47dfca..a103c3db1ff4 100644
--- a/code/core/src/node-logger/prompts/prompt-provider-clack.ts
+++ b/code/core/src/node-logger/prompts/prompt-provider-clack.ts
@@ -105,6 +105,14 @@ export class ClackPromptProvider extends PromptProvider {
         logTracker.addLog('info', `${spinnerId}-stop: ${message}`);
         task.stop(message);
       },
+      cancel: (message) => {
+        logTracker.addLog('info', `${spinnerId}-cancel: ${message}`);
+        task.cancel(message);
+      },
+      error: (message) => {
+        logTracker.addLog('error', `${spinnerId}-error: ${message}`);
+        task.error(message);
+      },
     };
   }
 
diff --git a/code/core/src/node-logger/tasks.ts b/code/core/src/node-logger/tasks.ts
index cbd5b67569e5..de9ed3192521 100644
--- a/code/core/src/node-logger/tasks.ts
+++ b/code/core/src/node-logger/tasks.ts
@@ -158,12 +158,12 @@ export const executeTaskWithSpinner = async (
 
     if (isAborted) {
       logTracker.addLog('info', `${intro} aborted`);
-      task.stop(CLI_COLORS.warning(`${intro} aborted`));
+      task.cancel(CLI_COLORS.warning(`${intro} aborted`));
       return;
     }
     const errorMessage = err instanceof Error ? (err.stack ?? err.message) : String(err);
     logTracker.addLog('error', error, { error: errorMessage });
-    task.stop(CLI_COLORS.error(error));
+    task.error(CLI_COLORS.error(error));
     throw err;
   } finally {
     cleanup?.();
diff --git a/code/lib/create-storybook/src/scaffold-new-project.ts b/code/lib/create-storybook/src/scaffold-new-project.ts
index 11db471d014c..5e12c445d030 100644
--- a/code/lib/create-storybook/src/scaffold-new-project.ts
+++ b/code/lib/create-storybook/src/scaffold-new-project.ts
@@ -179,7 +179,7 @@ export const scaffoldNewProject = async (
       cwd: targetDir,
     });
   } catch (e) {
-    spinner.stop(
+    spinner.error(
       `Failed to create a new "${projectDisplayName}" project with ${packageManagerName}`
     );
     throw new GenerateNewProjectOnInitError({
diff --git a/code/yarn.lock b/code/yarn.lock
index 1d672ebd3d2b..de0ed9916a16 100644
--- a/code/yarn.lock
+++ b/code/yarn.lock
@@ -2104,24 +2104,24 @@ __metadata:
   languageName: node
   linkType: hard
 
-"@clack/core@npm:1.0.0-alpha.6":
-  version: 1.0.0-alpha.6
-  resolution: "@clack/core@npm:1.0.0-alpha.6"
+"@clack/core@npm:1.0.0-alpha.7":
+  version: 1.0.0-alpha.7
+  resolution: "@clack/core@npm:1.0.0-alpha.7"
   dependencies:
     picocolors: "npm:^1.0.0"
     sisteransi: "npm:^1.0.5"
-  checksum: 10c0/5d8949d74bccda55d31510f481a93828f8341e2ecfde1c5809cdd3e5b4d9f2c8fd74e34a3a38062b73fcf8897178edceaa3f884b48943b6473991e878e69eda2
+  checksum: 10c0/e3d706101c57252d41c77abfb16d1f163bc9e4b81cacbc70c022a859c500ceb7024049d8ff907c8869dcaa9e141e4ef6bb57b83c46027fcdc188072f7b0cc728
   languageName: node
   linkType: hard
 
-"@clack/prompts@npm:1.0.0-alpha.6":
-  version: 1.0.0-alpha.6
-  resolution: "@clack/prompts@npm:1.0.0-alpha.6"
+"@clack/prompts@npm:1.0.0-alpha.7":
+  version: 1.0.0-alpha.7
+  resolution: "@clack/prompts@npm:1.0.0-alpha.7"
   dependencies:
-    "@clack/core": "npm:1.0.0-alpha.6"
+    "@clack/core": "npm:1.0.0-alpha.7"
     picocolors: "npm:^1.0.0"
     sisteransi: "npm:^1.0.5"
-  checksum: 10c0/c6a18a805aba72ffc879d7870dda28596f5081ccba30808e0e1d7f7cd9c3fad93101ff252de3e0001de564fbe8d162ebd637de2c7c06c39c12301d2d876c9544
+  checksum: 10c0/21f657868fe538e260f0c79026cca909b51013ad8017a6951869c976dded786383b604db616fed2a799b40c300f7df672fa3e7f4c2e1484819c7fc482b2bd9bb
   languageName: node
   linkType: hard
 
@@ -25878,7 +25878,7 @@ __metadata:
     "@babel/parser": "npm:^7.26.9"
     "@babel/traverse": "npm:^7.26.9"
     "@babel/types": "npm:^7.26.8"
-    "@clack/prompts": "npm:1.0.0-alpha.6"
+    "@clack/prompts": "npm:1.0.0-alpha.7"
     "@devtools-ds/object-inspector": "npm:^1.1.2"
     "@discoveryjs/json-ext": "npm:^0.5.3"
     "@emotion/cache": "npm:^11.14.0"
diff --git a/scripts/tasks/sandbox-parts.ts b/scripts/tasks/sandbox-parts.ts
index 98e3de51ab48..631f27488efa 100644
--- a/scripts/tasks/sandbox-parts.ts
+++ b/scripts/tasks/sandbox-parts.ts
@@ -198,7 +198,7 @@ export const init: Task['run'] = async (
   await executeCLIStep(steps.init, {
     cwd,
     optionValues: {
-      loglevel: debug ? 'debug' : 'info',
+      loglevel: 'debug',
       yes: true,
       ...extra,
       ...(template.initOptions || {}),