diff --git a/README.md b/README.md
index d2d0765d9..74aa608b9 100644
--- a/README.md
+++ b/README.md
@@ -15,3 +15,7 @@ All components are modularized, including all their dependencies.
 In case a dependency is (sadly) not modularized yet, module information is manually added using [moditect](https://github.com/moditect/moditect-gradle-plugin).
 These dependency generation rules are accumulated in the [X-Pipe dependencies](https://github.com/xpipe-io/xpipe_java_deps)
 repository, which is shared between all components and integrated as a git submodule.
+
+Some unit tests depend on a connection to an X-Pipe daemon to properly function.
+To launch the installed daemon, it is required that the `XPIPE_HOME` environment variable
+is set or the `xpipe` / `xpipe.exe` CLI executable is added to the `PATH` variable.
diff --git a/api/build.gradle b/api/build.gradle
index c80b96920..aec245a1c 100644
--- a/api/build.gradle
+++ b/api/build.gradle
@@ -28,7 +28,10 @@ dependencies {
 }
 
 def canTestWithDev = findProject(':app') != null
-def daemonCommand = canTestWithDev ? "cmd.exe /c \"$rootDir\\gradlew.bat\" :app:run" : 'xpipe.exe'
+def home = System.getenv('XPIPE_HOME')
+String daemonCommand = canTestWithDev ?
+        "cmd.exe /c \\\"$rootDir\\gradlew.bat\\\" :app:run" :
+        "cmd.exe /c \\\"$home\\app\\xpipe.exe\\\""
 
 test {
     workingDir = rootDir
@@ -40,11 +43,12 @@ test {
             " -Dio.xpipe.app.dataDir=$projectDir/local/" +
             " -Dio.xpipe.storage.persist=false" +
             " -Dio.xpipe.app.writeSysOut=true" +
+            " -Dio.xpipe.app.writeLogs=true" +
             // " -Dio.xpipe.beacon.debugOutput=true" +
             " -Dio.xpipe.app.logLevel=trace"
 
     // API properties
     // systemProperty 'io.xpipe.beacon.debugOutput', "true"
-    // systemProperty 'io.xpipe.beacon.debugExecOutput', "true"
+    systemProperty 'io.xpipe.beacon.debugExecOutput', "true"
     systemProperty "io.xpipe.beacon.port", "21722"
 }
diff --git a/api/src/test/java/io/xpipe/api/test/ConnectionFactory.java b/api/src/test/java/io/xpipe/api/test/ConnectionFactory.java
index 6790da803..4a6f24191 100644
--- a/api/src/test/java/io/xpipe/api/test/ConnectionFactory.java
+++ b/api/src/test/java/io/xpipe/api/test/ConnectionFactory.java
@@ -18,7 +18,7 @@ public class ConnectionFactory {
             throw new AssertionError();
         }
 
-        XPipeConnection.waitForStartup();
+        XPipeConnection.waitForStartup().orElseThrow();
         if (!BeaconServer.isRunning()) {
             throw new AssertionError();
         }
diff --git a/beacon/src/main/java/io/xpipe/beacon/BeaconServer.java b/beacon/src/main/java/io/xpipe/beacon/BeaconServer.java
index 98887efda..075492143 100644
--- a/beacon/src/main/java/io/xpipe/beacon/BeaconServer.java
+++ b/beacon/src/main/java/io/xpipe/beacon/BeaconServer.java
@@ -33,6 +33,10 @@ public class BeaconServer {
 
     private static void startFork(String custom) throws IOException {
         boolean print = BeaconConfig.execDebugEnabled();
+        if (print) {
+            System.out.println("Executing custom daemon launch command: " + custom);
+        }
+        System.out.println(System.getenv());
         var proc = Runtime.getRuntime().exec(custom);
         new Thread(null, () -> {
             try {
@@ -44,10 +48,29 @@ public class BeaconServer {
                         System.out.println("[xpiped] " + line);
                     }
                 }
-            } catch (IOException ioe) {
+            } catch (Exception ioe) {
                 ioe.printStackTrace();
             }
-        }, "daemon fork").start();
+        }, "daemon fork sysout").start();
+
+        new Thread(null, () -> {
+            try {
+                InputStreamReader isr = new InputStreamReader(proc.getErrorStream());
+                BufferedReader br = new BufferedReader(isr);
+                String line;
+                while ((line = br.readLine()) != null) {
+                    if (print) {
+                        System.err.println("[xpiped] " + line);
+                    }
+                }
+                int exit = proc.waitFor();
+                if (exit != 0) {
+                    System.err.println("Daemon launch command failed");
+                }
+            } catch (Exception ioe) {
+                ioe.printStackTrace();
+            }
+        }, "daemon fork syserr").start();
     }
 
     public static boolean tryStart() throws Exception {
@@ -57,10 +80,10 @@ public class BeaconServer {
             return true;
         }
 
-        var launcher = getLauncherExecutable();
-        if (launcher.isPresent()) {
-            // Tell launcher that we launched from an external tool
-            new ProcessBuilder(launcher.get().toString(), "--external")
+        var daemonExecutable = getDaemonExecutable();
+        if (daemonExecutable.isPresent()) {
+            // Tell daemon that we launched from an external tool
+            new ProcessBuilder(daemonExecutable.get().toString(), "--external")
                     .redirectErrorStream(true)
                     .redirectOutput(ProcessBuilder.Redirect.DISCARD)
                     .start();
@@ -76,35 +99,20 @@ public class BeaconServer {
         return res.isSuccess();
     }
 
-    private static Optional<Path> getPortableLauncherExecutable() {
+    private static Optional<Path> getDaemonExecutableFromHome() {
         var env = System.getenv("XPIPE_HOME");
+        if (env == null) {
+            return Optional.empty();
+        }
+
         Path file;
 
         // Prepare for invalid XPIPE_HOME path value
         try {
             if (System.getProperty("os.name").startsWith("Windows")) {
-                file = Path.of(env, "xpipe_launcher.exe");
+                file = Path.of(env, "app", "xpipe.exe");
             } else {
-                file = Path.of(env, "xpipe_launcher");
-            }
-            return Files.exists(file) ? Optional.of(file) : Optional.empty();
-        } catch (Exception ex) {
-            return Optional.empty();
-        }
-    }
-
-    public static Optional<Path> getLauncherExecutable() {
-        var portable = getPortableLauncherExecutable();
-        if (portable.isPresent()) {
-            return portable;
-        }
-
-        try {
-            Path file;
-            if (System.getProperty("os.name").startsWith("Windows")) {
-                file = Path.of(System.getenv("LOCALAPPDATA"), "X-Pipe", "xpipe_launcher.exe");
-            } else {
-                file = Path.of("/opt/xpipe/xpipe_launcher");
+                file = Path.of(env, "app", "bin", "xpipe");
             }
             return Files.exists(file) ? Optional.of(file) : Optional.empty();
         } catch (Exception ex) {
@@ -113,15 +121,21 @@ public class BeaconServer {
     }
 
     public static Optional<Path> getDaemonExecutable() {
-        try {
-            Path file;
-            if (System.getProperty("os.name").startsWith("Windows")) {
-                file = Path.of(System.getenv("LOCALAPPDATA"), "X-Pipe", "app", "xpipe.exe");
-            } else {
-                file = Path.of("/opt/xpipe/bin/xpipe");
-            }
-            return Files.exists(file) ? Optional.of(file) : Optional.empty();
-        } catch (Exception ex) {
+        var home = getDaemonExecutableFromHome();
+        if (home.isPresent()) {
+            return home;
+        }
+
+        Path file;
+        if (System.getProperty("os.name").startsWith("Windows")) {
+            file = Path.of(System.getenv("LOCALAPPDATA"), "X-Pipe", "app", "xpipe.exe");
+        } else {
+            file = Path.of("/opt/xpipe/app/bin/xpipe");
+        }
+
+        if (Files.exists(file)) {
+            return Optional.of(file);
+        } else {
             return Optional.empty();
         }
     }
diff --git a/gradle/wrapper/gradle-wrapper.properties b/gradle/wrapper/gradle-wrapper.properties
index fbce071a3..b1159fc54 100644
--- a/gradle/wrapper/gradle-wrapper.properties
+++ b/gradle/wrapper/gradle-wrapper.properties
@@ -1,5 +1,5 @@
 distributionBase=GRADLE_USER_HOME
 distributionPath=wrapper/dists
-distributionUrl=https\://services.gradle.org/distributions/gradle-7.3-all.zip
+distributionUrl=https\://services.gradle.org/distributions/gradle-7.4-all.zip
 zipStoreBase=GRADLE_USER_HOME
 zipStorePath=wrapper/dists
diff --git a/settings.gradle b/settings.gradle
index df119b379..992233ce8 100644
--- a/settings.gradle
+++ b/settings.gradle
@@ -1,8 +1,8 @@
 rootProject.name = 'xpipe_java'
 
+include 'api'
 include 'core'
 include 'beacon'
-include 'api'
 include 'extension'
 
 include 'sample_extension'