diff --git a/code/core/src/core-server/utils/StoryIndexGenerator.test.ts b/code/core/src/core-server/utils/StoryIndexGenerator.test.ts
index 4c3bb0817bd6..82f12b110064 100644
--- a/code/core/src/core-server/utils/StoryIndexGenerator.test.ts
+++ b/code/core/src/core-server/utils/StoryIndexGenerator.test.ts
@@ -1,3 +1,4 @@
+import { existsSync } from 'node:fs';
 import { join } from 'node:path';
 
 import { beforeEach, describe, expect, it, vi } from 'vitest';
@@ -1997,6 +1998,28 @@ describe('StoryIndexGenerator', () => {
     });
 
     describe('warnings', () => {
+      it('does not match directories that have story-like names', async () => {
+        const specifier: NormalizedStoriesSpecifier = normalizeStoriesEntry(
+          './src/**/*.stories.tsx',
+          options
+        );
+
+        const files = await StoryIndexGenerator.findMatchingFiles(
+          specifier,
+          options.workingDir,
+          true
+        );
+        const storyLikeDirectory = join(
+          options.workingDir,
+          './src/__screenshots__/Button.stories.tsx'
+        );
+        const storyLikeDirectoryFile = join(storyLikeDirectory, 'Primary.png');
+
+        expect(existsSync(storyLikeDirectoryFile)).toBe(true);
+        expect(Object.keys(files)).not.toContain(storyLikeDirectory);
+        expect(Object.keys(files)).not.toContain(storyLikeDirectoryFile);
+      });
+
       it('when entries do not match any files', async () => {
         const generator = new StoryIndexGenerator(
           [normalizeStoriesEntry('./src/docs2/wrong.js', options)],
diff --git a/code/core/src/core-server/utils/StoryIndexGenerator.ts b/code/core/src/core-server/utils/StoryIndexGenerator.ts
index 3848861d4fa5..2cab59229dc5 100644
--- a/code/core/src/core-server/utils/StoryIndexGenerator.ts
+++ b/code/core/src/core-server/utils/StoryIndexGenerator.ts
@@ -167,11 +167,11 @@ export class StoryIndexGenerator {
     // eslint-disable-next-line depend/ban-dependencies
     const { globby } = await import('globby');
 
-    // Execute globby within the new CWD to ensure `ignore` patterns work correctly.
     const files = await globby(globPattern, {
       absolute: true,
       cwd: globCwd,
       ...commonGlobOptions(globPattern),
+      onlyFiles: true,
     });
 
     if (files.length === 0 && !ignoreWarnings) {
diff --git a/code/core/src/core-server/utils/__mockdata__/src/__screenshots__/Button.stories.tsx/Primary.png b/code/core/src/core-server/utils/__mockdata__/src/__screenshots__/Button.stories.tsx/Primary.png
new file mode 100644
index 000000000000..b97e4a75e2ca
--- /dev/null
+++ b/code/core/src/core-server/utils/__mockdata__/src/__screenshots__/Button.stories.tsx/Primary.png
@@ -0,0 +1 @@
+mock screenshot fixture