diff --git a/pkg/app/app.go b/pkg/app/app.go
index f3c53520..feacef32 100644
--- a/pkg/app/app.go
+++ b/pkg/app/app.go
@@ -2346,11 +2346,7 @@ func (a *App) withNeeds(r *Run, c DAGConfig, includeDisabled bool, f func(*state
 	var rels []state.ReleaseSpec
 
 	if len(toRender) > 0 {
-		// toRender already contains the direct and transitive needs depending on the DAG options.
-		// That's why we don't pass in `IncludeNeeds: c.IncludeNeeds(), IncludeTransitiveNeeds: c.IncludeTransitiveNeeds()` here.
-		// Otherwise, in case include-needs=true, it will include the needs of needs, which results in unexpectedly introducing transitive needs,
-		// even if include-transitive-needs=true is unspecified.
-		if _, errs := withDAG(st, r.helm, a.Logger, state.PlanOptions{SelectedReleases: toRender, Reverse: false, SkipNeeds: c.SkipNeeds(), IncludeNeeds: includeNeeds}, a.WrapWithoutSelector(func(subst *state.HelmState, helm helmexec.Interface) []error {
+		if _, errs := withDAG(st, r.helm, a.Logger, state.PlanOptions{SelectedReleases: toRender, Reverse: false, SkipNeeds: c.SkipNeeds(), IncludeNeeds: includeNeeds, IncludeTransitiveNeeds: c.IncludeTransitiveNeeds()}, a.WrapWithoutSelector(func(subst *state.HelmState, helm helmexec.Interface) []error {
 			rels = append(rels, subst.Releases...)
 			return nil
 		})); len(errs) > 0 {
diff --git a/pkg/app/testdata/app_diff_test/include-transitive-needs b/pkg/app/testdata/app_diff_test/include-transitive-needs
index 2e043346..58431a7a 100644
--- a/pkg/app/testdata/app_diff_test/include-transitive-needs
+++ b/pkg/app/testdata/app_diff_test/include-transitive-needs
@@ -1,6 +1,6 @@
 merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
-2 release(s) matching app=test found in helmfile.yaml
+4 release(s) matching app=test found in helmfile.yaml
 
 processing 4 groups of releases in this order:
 GROUP RELEASES
diff --git a/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
index b8b28277..e1982cb0 100644
--- a/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_diff_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
@@ -1,6 +1,6 @@
 merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
-1 release(s) matching name=test3 found in helmfile.yaml
+2 release(s) matching name=test3 found in helmfile.yaml
 
 processing 2 groups of releases in this order:
 GROUP RELEASES
diff --git a/pkg/app/testdata/app_lint_test/include-transitive-needs b/pkg/app/testdata/app_lint_test/include-transitive-needs
index 2e043346..58431a7a 100644
--- a/pkg/app/testdata/app_lint_test/include-transitive-needs
+++ b/pkg/app/testdata/app_lint_test/include-transitive-needs
@@ -1,6 +1,6 @@
 merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
-2 release(s) matching app=test found in helmfile.yaml
+4 release(s) matching app=test found in helmfile.yaml
 
 processing 4 groups of releases in this order:
 GROUP RELEASES
diff --git a/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
index 3a218076..285e8e6f 100644
--- a/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_lint_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
@@ -1,6 +1,6 @@
 merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
-1 release(s) matching name=test3 found in helmfile.yaml
+2 release(s) matching name=test3 found in helmfile.yaml
 
 processing 2 groups of releases in this order:
 GROUP RELEASES
diff --git a/pkg/app/testdata/app_template_test/include-transitive-needs b/pkg/app/testdata/app_template_test/include-transitive-needs
index 2e043346..58431a7a 100644
--- a/pkg/app/testdata/app_template_test/include-transitive-needs
+++ b/pkg/app/testdata/app_template_test/include-transitive-needs
@@ -1,6 +1,6 @@
 merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
-2 release(s) matching app=test found in helmfile.yaml
+4 release(s) matching app=test found in helmfile.yaml
 
 processing 4 groups of releases in this order:
 GROUP RELEASES
diff --git a/pkg/app/testdata/app_template_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need b/pkg/app/testdata/app_template_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
index b8b28277..e1982cb0 100644
--- a/pkg/app/testdata/app_template_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
+++ b/pkg/app/testdata/app_template_test/include-transitive-needs_should_not_fail_on_disabled_transitive_need
@@ -1,6 +1,6 @@
 merged environment: &{default  map[] map[] map[]}
 WARNING: release test2 needs disabled, but disabled is not installed due to installed: false. Either mark disabled as installed or remove disabled from test2's needs
-1 release(s) matching name=test3 found in helmfile.yaml
+2 release(s) matching name=test3 found in helmfile.yaml
 
 processing 2 groups of releases in this order:
 GROUP RELEASES
diff --git a/pkg/state/state.go b/pkg/state/state.go
index 569e5fd1..3fcff3a1 100644
--- a/pkg/state/state.go
+++ b/pkg/state/state.go
@@ -2965,6 +2965,7 @@ func (st *HelmState) SelectReleasesWithNeeds(includeTransitiveNeeds bool) ([]Rel
 }
 
 func markExcludedReleases(releases []ReleaseSpec, selectors []string, values map[string]any, includeTransitiveNeeds bool, includeNeeds bool) ([]Release, error) {
+
 	var filteredReleases []Release
 	filters := []ReleaseFilter{}
 	for _, label := range selectors {
@@ -3093,7 +3094,8 @@ func collectAllNeedsWithTransitives(filteredReleases []Release, allReleases []Re
 
 func unmarkReleases(toUnmark map[string]struct{}, releases []Release) {
 	for i, r := range releases {
-		if _, ok := toUnmark[ReleaseToID(&r.ReleaseSpec)]; ok {
+		releaseID := ReleaseToID(&r.ReleaseSpec)
+		if _, ok := toUnmark[releaseID]; ok {
 			releases[i].Filtered = false
 		}
 	}