diff --git a/src/engine.rs b/src/engine.rs
index 2f03f16..6c476f0 100644
--- a/src/engine.rs
+++ b/src/engine.rs
@@ -1127,8 +1127,6 @@ impl Engine {
         self.interpreter.set_traces(enable_tracing);
         #[cfg(feature = "azure_policy")]
         let was_prepared = self.prepared;
-        #[cfg(not(feature = "azure_policy"))]
-        let _ = for_target;
 
         // if the data/policies have changed or the interpreter has never been prepared
         if !self.prepared {
@@ -1166,17 +1164,23 @@ impl Engine {
         }
 
         #[cfg(feature = "azure_policy")]
-        if for_target {
-            // Resolve and validate target specifications across all modules.
-            // This must run for target-aware compilation even if generic prepare()
-            // was already called.
-            crate::interpreter::target::resolve::resolve_and_apply_target(&mut self.interpreter)?;
-            // Infer resource types
-            crate::interpreter::target::infer::infer_resource_type(&mut self.interpreter)?;
-        } else if !was_prepared {
-            // Check if any module specifies a target and warn if so.
-            self.warn_if_targets_present();
+        {
+            if for_target {
+                // Resolve and validate target specifications across all modules.
+                // This must run for target-aware compilation even if generic prepare()
+                // was already called.
+                crate::interpreter::target::resolve::resolve_and_apply_target(
+                    &mut self.interpreter,
+                )?;
+                // Infer resource types
+                crate::interpreter::target::infer::infer_resource_type(&mut self.interpreter)?;
+            } else if !was_prepared {
+                // Check if any module specifies a target and warn if so.
+                self.warn_if_targets_present();
+            }
         }
+        #[cfg(not(feature = "azure_policy"))]
+        let _ = for_target;
 
         Ok(())
     }
diff --git a/tests/engine/mod.rs b/tests/engine/mod.rs
index 3fab7dc..ce9a819 100644
--- a/tests/engine/mod.rs
+++ b/tests/engine/mod.rs
@@ -163,7 +163,7 @@ fn prepare_then_compile_for_target() -> Result<()> {
            default allow := false
 
            allow if {
-             input.type == "test_resource"
+               input.type == "test_resource"
            }
         "#
         .to_string(),