diff --git a/command/cliconfig/provider_installation.go b/command/cliconfig/provider_installation.go
index 3d4919950..6ef8833fc 100644
--- a/command/cliconfig/provider_installation.go
+++ b/command/cliconfig/provider_installation.go
@@ -229,13 +229,17 @@ type ProviderInstallationLocation interface {
 	providerInstallationLocation()
 }
 
-type configProviderInstallationDirect [0]byte
+type providerInstallationDirect [0]byte
 
-func (i configProviderInstallationDirect) providerInstallationLocation() {}
+func (i providerInstallationDirect) providerInstallationLocation() {}
 
 // ProviderInstallationDirect is a ProviderInstallationSourceLocation
 // representing installation from a provider's origin registry.
-var ProviderInstallationDirect ProviderInstallationLocation = configProviderInstallationDirect{}
+var ProviderInstallationDirect ProviderInstallationLocation = providerInstallationDirect{}
+
+func (i providerInstallationDirect) GoString() string {
+	return "cliconfig.ProviderInstallationDirect"
+}
 
 // ProviderInstallationFilesystemMirror is a ProviderInstallationSourceLocation
 // representing installation from a particular local filesystem mirror. The
@@ -244,6 +248,10 @@ type ProviderInstallationFilesystemMirror string
 
 func (i ProviderInstallationFilesystemMirror) providerInstallationLocation() {}
 
+func (i ProviderInstallationFilesystemMirror) GoString() string {
+	return fmt.Sprintf("cliconfig.ProviderInstallationFilesystemMirror(%q)", i)
+}
+
 // ProviderInstallationNetworkMirror is a ProviderInstallationSourceLocation
 // representing installation from a particular local network mirror. The
 // string value is the HTTP base URL exactly as written in the configuration,
@@ -251,3 +259,7 @@ func (i ProviderInstallationFilesystemMirror) providerInstallationLocation() {}
 type ProviderInstallationNetworkMirror string
 
 func (i ProviderInstallationNetworkMirror) providerInstallationLocation() {}
+
+func (i ProviderInstallationNetworkMirror) GoString() string {
+	return fmt.Sprintf("cliconfig.ProviderInstallationNetworkMirror(%q)", i)
+}
diff --git a/command/e2etest/testdata/custom-provider-install-method/cliconfig.tfrc b/command/e2etest/testdata/custom-provider-install-method/cliconfig.tfrc
index a0c015e23..4b4dbefa7 100644
--- a/command/e2etest/testdata/custom-provider-install-method/cliconfig.tfrc
+++ b/command/e2etest/testdata/custom-provider-install-method/cliconfig.tfrc
@@ -2,4 +2,7 @@ provider_installation {
   filesystem_mirror {
     path = "./fs-mirror"
   }
+  direct {
+    exclude = ["example.com/*/*"]
+  }
 }
diff --git a/provider_source.go b/provider_source.go
index bdda08bd3..b65dbf439 100644
--- a/provider_source.go
+++ b/provider_source.go
@@ -39,6 +39,7 @@ func explicitProviderSource(config *cliconfig.ProviderInstallation, services *di
 	var diags tfdiags.Diagnostics
 	var searchRules []getproviders.MultiSourceSelector
 
+	log.Printf("[DEBUG] Explicit provider installation configuration is set")
 	for _, methodConfig := range config.Methods {
 		source, moreDiags := providerSourceForCLIConfigLocation(methodConfig.Location, services)
 		diags = diags.Append(moreDiags)
@@ -53,14 +54,16 @@ func explicitProviderSource(config *cliconfig.ProviderInstallation, services *di
 				"Invalid provider source inclusion patterns",
 				fmt.Sprintf("CLI config specifies invalid provider inclusion patterns: %s.", err),
 			))
+			continue
 		}
-		exclude, err := getproviders.ParseMultiSourceMatchingPatterns(methodConfig.Include)
+		exclude, err := getproviders.ParseMultiSourceMatchingPatterns(methodConfig.Exclude)
 		if err != nil {
 			diags = diags.Append(tfdiags.Sourceless(
 				tfdiags.Error,
 				"Invalid provider source exclusion patterns",
 				fmt.Sprintf("CLI config specifies invalid provider exclusion patterns: %s.", err),
 			))
+			continue
 		}
 
 		searchRules = append(searchRules, getproviders.MultiSourceSelector{
@@ -68,6 +71,8 @@ func explicitProviderSource(config *cliconfig.ProviderInstallation, services *di
 			Include: include,
 			Exclude: exclude,
 		})
+
+		log.Printf("[TRACE] Selected provider installation method %#v with includes %s and excludes %s", methodConfig.Location, include, exclude)
 	}
 
 	return getproviders.MultiSource(searchRules), diags