diff --git a/invokeai/backend/model_manager/download/model_queue.py b/invokeai/backend/model_manager/download/model_queue.py
index 2aded8d3ae..1c2e976616 100644
--- a/invokeai/backend/model_manager/download/model_queue.py
+++ b/invokeai/backend/model_manager/download/model_queue.py
@@ -217,8 +217,8 @@ class ModelDownloadQueue(DownloadQueue):
                 return
 
         assert isinstance(job, DownloadJobRepoID)
-        self._update_job_status(job, DownloadJobStatus.RUNNING)
         self._lock.acquire()  # prevent status from being updated while we are setting up subqueue
+        self._update_job_status(job, DownloadJobStatus.RUNNING)
         try:
             job.subqueue = self.__class__(
                 event_handlers=[subdownload_event],
diff --git a/invokeai/backend/model_manager/download/queue.py b/invokeai/backend/model_manager/download/queue.py
index 2b3a351e1d..b36066c90f 100644
--- a/invokeai/backend/model_manager/download/queue.py
+++ b/invokeai/backend/model_manager/download/queue.py
@@ -402,7 +402,8 @@ class DownloadQueue(DownloadQueueBase):
                     raise excp
                 except Exception as excp:
                     job.error = excp
-                    self._update_job_status(job, DownloadJobStatus.ERROR)
+                    if job.status != DownloadJobStatus.ERROR:  # let handlers know, but don't cause infinite recursion
+                        self._update_job_status(job, DownloadJobStatus.ERROR)
 
     def _download_path(self, job: DownloadJobBase):
         """Call when the source is a Path or pathlike object."""
diff --git a/tests/AC_model_manager/test_model_install_service.py b/tests/AC_model_manager/test_model_install_service.py
index 8f7c9b8378..055f9eeeae 100644
--- a/tests/AC_model_manager/test_model_install_service.py
+++ b/tests/AC_model_manager/test_model_install_service.py
@@ -55,7 +55,7 @@ def test_install(datadir: Path):
         mm_install = ModelInstallService(config=config, store=mm_store, event_bus=event_bus)
 
         source = datadir / TEST_MODEL
-        job = mm_install.install_model(source=source)
+        mm_install.install_model(source)
         id_map = mm_install.wait_for_installs()
         print(id_map)
         assert source in id_map, "model did not install; id_map empty"