diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 90944ed502..95beda4500 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -207,6 +207,12 @@ Similarly, if running on the command line pass `PROXY_MANUAL_START=true`.
 To log tracing information to the terminal, you can add the `RUST_LOG` environment variable as shown above using the [same format supported by `env_logger`](https://docs.rs/env_logger/latest/env_logger/#enabling-logging).
 The targets are the crate names if you want to trace more or less for specific targets e.g., `RUST_LOG=info,azure_core=trace` to trace information messages by default but detailed traces for the `azure_core` crate.
 
+To log traces from the [Test Proxy] itself, pass `test-proxy=trace` to `RUST_LOG` e.g.,
+
+```sh
+RUST_LOG=info,azure_core=debug,test-proxy=trace cargo test -p azure_security_keyvault_secrets --test secret_client
+```
+
 #### Debugging in Windows
 
 Using the recommended [CodeLLDB] Visual Studio Code extension on Windows will stop at breakpoints but may not pretty print variables e.g.,
diff --git a/sdk/core/azure_core_test/src/proxy/bootstrap.rs b/sdk/core/azure_core_test/src/proxy/bootstrap.rs
index d61b78df7c..1f87b52ad2 100644
--- a/sdk/core/azure_core_test/src/proxy/bootstrap.rs
+++ b/sdk/core/azure_core_test/src/proxy/bootstrap.rs
@@ -72,6 +72,9 @@ pub async fn start(
             .to_str()
             .ok_or_else(|| ErrorKind::Other.into_error())?
             .into(),
+        // Write exceptions to stdout; otherwise,
+        // reading from stderr on a separate thread hangs the process on Windows.
+        "--universal".into(),
     ]);
     options.unwrap_or_default().copy_to(&mut args);
     tracing::debug!(
diff --git a/sdk/core/azure_core_test/src/proxy/mod.rs b/sdk/core/azure_core_test/src/proxy/mod.rs
index 233fa179f7..36482d26f5 100644
--- a/sdk/core/azure_core_test/src/proxy/mod.rs
+++ b/sdk/core/azure_core_test/src/proxy/mod.rs
@@ -29,7 +29,7 @@ use serde::Serializer;
 use std::process::ExitStatus;
 use std::{fmt, str::FromStr, sync::Arc};
 #[cfg(not(target_arch = "wasm32"))]
-use tokio::process::Child;
+use tokio::{io::Lines, process::Child};
 
 const ABSTRACTION_IDENTIFIER: HeaderName = HeaderName::from_static("x-abstraction-identifier");
 const RECORDING_ID: HeaderName = HeaderName::from_static("x-recording-id");
@@ -76,36 +76,26 @@ impl Proxy {
                 )
             })?;
 
-        let mut stdout = command
-            .stdout
-            .take()
-            .ok_or_else(|| azure_core::Error::message(ErrorKind::Io, "no stdout pipe"))?;
-        // Take stderr now but we won't listen until after start up, such that messages should buffer.
-        let mut stderr = command
-            .stderr
-            .take()
-            .ok_or_else(|| azure_core::Error::message(ErrorKind::Io, "no stderr pipe"))?;
+        let mut stdout = BufReader::new(
+            command
+                .stdout
+                .take()
+                .ok_or_else(|| azure_core::Error::message(ErrorKind::Io, "no stdout pipe"))?,
+        )
+        .lines();
         self.command = Some(command);
 
         // Wait until the service is listening on a port.
         self.wait_till_listening(&mut stdout).await?;
 
-        // Then spawn a thread to keep pumping messages to stdout and stderr.
+        // Then spawn a thread to keep pumping messages to stdout.
         // The pipe will be closed when the process is shut down, which will terminate the task.
         tokio::spawn(async move {
-            let mut reader = BufReader::new(&mut stdout).lines();
-            while let Some(line) = reader.next_line().await.unwrap_or(None) {
+            while let Some(line) = stdout.next_line().await.unwrap_or(None) {
                 // Trace useful lines that test-proxy writes to stdout.
                 trace_line(Level::TRACE, &line);
             }
         });
-        tokio::spawn(async move {
-            let mut reader = BufReader::new(&mut stderr).lines();
-            while let Some(line) = reader.next_line().await.unwrap_or(None) {
-                // Trace useful lines that test-proxy writes to stdout.
-                trace_line(Level::ERROR, &line);
-            }
-        });
 
         if let Some(endpoint) = &self.endpoint {
             self.client = Some(Client::new(endpoint.clone())?);
@@ -153,10 +143,12 @@ impl Proxy {
         Ok(ExitStatus::default())
     }
 
-    async fn wait_till_listening(&mut self, stdout: &mut ChildStdout) -> Result<()> {
+    async fn wait_till_listening(
+        &mut self,
+        stdout: &mut Lines<BufReader<ChildStdout>>,
+    ) -> Result<()> {
         let pid = self.command.as_ref().and_then(Child::id);
-        let mut reader = BufReader::new(stdout).lines();
-        while let Some(line) = reader.next_line().await? {
+        while let Some(line) = stdout.next_line().await? {
             const RUNNING_PATTERN: &str = "Running proxy version is Azure.Sdk.Tools.TestProxy ";
             const LISTENING_PATTERN: &str = "Now listening on: ";