diff --git a/features/src/rapids-build-utils/devcontainer-feature.json b/features/src/rapids-build-utils/devcontainer-feature.json
index aed128d8..c00199b8 100644
--- a/features/src/rapids-build-utils/devcontainer-feature.json
+++ b/features/src/rapids-build-utils/devcontainer-feature.json
@@ -1,7 +1,7 @@
 {
   "name": "NVIDIA RAPIDS devcontainer build utilities",
   "id": "rapids-build-utils",
-  "version": "26.8.7",
+  "version": "26.8.8",
   "description": "A feature to install the RAPIDS devcontainer build utilities",
   "containerEnv": {
     "BASH_ENV": "/etc/bash.bash_env"
diff --git a/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-conda-dependencies.sh b/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-conda-dependencies.sh
index e9b2ecb8..139cdb61 100755
--- a/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-conda-dependencies.sh
+++ b/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-conda-dependencies.sh
@@ -25,16 +25,45 @@
 . rapids-generate-docstring;
 
 _generate_env_yaml() {
-    if rapids-dependency-file-generator "$@" 2>/dev/null \
-     | grep -v '^#' 2>/dev/null \
-     | tee "$file" 1>/dev/null; then
-        echo "$file"
+    local file="$1";
+    local status;
+    shift;
+
+    if rapids-dependency-file-generator "$@" > "${file}.generated"; then
+        if sed '/^#/d' "${file}.generated" > "$file"; then
+            return 0;
+        else
+            status=$?;
+            echo "Failed to filter generated conda environment for ${file##*/}" 1>&2;
+            return "${status}";
+        fi
+    else
+        status=$?;
+        echo "Failed to generate conda environment for ${file##*/}" 1>&2;
+        return "${status}";
     fi
 }
 
+_list_contains() {
+    local requested_value="$1";
+    shift;
+
+    local value;
+    for value in "$@"; do
+        if test "${requested_value}" == "${value}"; then
+            return 0;
+        fi
+    done
+
+    return 1;
+}
+
 _generate_env_yamls() {
     local i;
     local j;
+    local generation_failed=0;
+    local -a generated_files=();
+    local -a generation_pids=();
 
     for ((i=0; i < ${repos_length:-0}; i+=1)); do
 
@@ -48,6 +77,20 @@ _generate_env_yamls() {
         && test -n "${path:+x}" \
         && test -f ~/"${path}/dependencies.yaml"; then
 
+            local config=~/"${path}/dependencies.yaml";
+            local available_file_keys_output;
+            local -a available_file_keys=();
+
+            if available_file_keys_output="$(yq -r '.files | keys | .[]' "${config}")"; then
+                if test -n "${available_file_keys_output:+x}"; then
+                    readarray -t available_file_keys <<< "${available_file_keys_output}";
+                fi
+            else
+                echo "Failed to read dependency file keys from ${config}" 1>&2;
+                generation_failed=1;
+                continue;
+            fi
+
             echo "Generating ${name}'s repo conda env yml" 1>&2;
 
             local dependency_keys=("${key[@]}");
@@ -69,12 +112,20 @@ _generate_env_yamls() {
             local keyi;
 
             for ((keyi=0; keyi < ${#keys[@]}; keyi+=1)); do
+                if ! _list_contains "${keys[$keyi]}" "${available_file_keys[@]}"; then
+                    continue;
+                fi
                 local file="${tmpdir}/${name}.${keys[$keyi]}.env.yaml";
-                _generate_env_yaml                         \
+                if _list_contains "${file}" "${generated_files[@]}"; then
+                    continue;
+                fi
+                generated_files+=("${file}");
+                _generate_env_yaml "${file}"               \
                     --file-key "${keys[$keyi]}"            \
                     --output conda                         \
-                    --config ~/"${path}/dependencies.yaml" \
+                    --config "${config}"                   \
                     --matrix "${matrix_selectors}"         &
+                generation_pids+=("$!");
             done
 
             local cpp_length="${repo}_cpp_length";
@@ -89,12 +140,20 @@ _generate_env_yamls() {
                 local keyi;
 
                 for ((keyi=0; keyi < ${#keys[@]}; keyi+=1)); do
+                    if ! _list_contains "${keys[$keyi]}" "${available_file_keys[@]}"; then
+                        continue;
+                    fi
                     local file="${tmpdir}/${name}.${cpp_name}.${keys[$keyi]}.env.yaml";
-                    _generate_env_yaml                         \
+                    if _list_contains "${file}" "${generated_files[@]}"; then
+                        continue;
+                    fi
+                    generated_files+=("${file}");
+                    _generate_env_yaml "${file}"               \
                         --file-key "${keys[$keyi]}"            \
                         --output conda                         \
-                        --config ~/"${path}/dependencies.yaml" \
+                        --config "${config}"                   \
                         --matrix "${matrix_selectors}"         &
+                    generation_pids+=("$!");
                 done
             done
 
@@ -110,16 +169,43 @@ _generate_env_yamls() {
                 local keyi;
 
                 for ((keyi=0; keyi < ${#keys[@]}; keyi+=1)); do
+                    if ! _list_contains "${keys[$keyi]}" "${available_file_keys[@]}"; then
+                        continue;
+                    fi
                     local file="${tmpdir}/${name}.${py_name}.${keys[$keyi]}.env.yaml";
-                    _generate_env_yaml                         \
+                    if _list_contains "${file}" "${generated_files[@]}"; then
+                        continue;
+                    fi
+                    generated_files+=("${file}");
+                    _generate_env_yaml "${file}"               \
                         --file-key "${keys[$keyi]}"            \
                         --output conda                         \
-                        --config ~/"${path}/dependencies.yaml" \
+                        --config "${config}"                   \
                         --matrix "${matrix_selectors}"         &
+                    generation_pids+=("$!");
                 done
             done
         fi
     done
+
+    local pid;
+    for pid in "${generation_pids[@]}"; do
+        if ! wait "${pid}"; then
+            generation_failed=1;
+        fi
+    done
+
+    if test "${generation_failed}" -ne 0; then
+        echo "Failed to generate one or more conda environment files" 1>&2;
+        return 1;
+    fi
+
+    local file;
+    for file in "${generated_files[@]}"; do
+        if test -s "${file}"; then
+            conda_env_yamls+=("${file}");
+        fi
+    done
 }
 
 _make_conda_dependencies() {
@@ -169,7 +255,10 @@ _make_conda_dependencies() {
     # shellcheck disable=SC2064
     trap "rm -rf '${tmpdir}'" EXIT;
 
-    readarray -t conda_env_yamls < <(_generate_env_yamls);
+    local -a conda_env_yamls=();
+    if ! _generate_env_yamls; then
+        return 1;
+    fi
 
     if test ${#conda_env_yamls[@]} -gt 0; then
 
diff --git a/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-pip-dependencies.sh b/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-pip-dependencies.sh
index 41886b0e..457b9085 100755
--- a/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-pip-dependencies.sh
+++ b/features/src/rapids-build-utils/opt/rapids-build-utils/bin/make-pip-dependencies.sh
@@ -27,16 +27,45 @@
 . rapids-generate-docstring;
 
 _generate_requirements_txt() {
-    if rapids-dependency-file-generator "$@" 2>/dev/null \
-     | grep -v '^#' 2>/dev/null \
-     | tee "$file" 1>/dev/null; then
-        echo "$file"
+    local file="$1";
+    local status;
+    shift;
+
+    if rapids-dependency-file-generator "$@" > "${file}.generated"; then
+        if sed '/^#/d' "${file}.generated" > "$file"; then
+            return 0;
+        else
+            status=$?;
+            echo "Failed to filter generated requirements for ${file##*/}" 1>&2;
+            return "${status}";
+        fi
+    else
+        status=$?;
+        echo "Failed to generate requirements for ${file##*/}" 1>&2;
+        return "${status}";
     fi
 }
 
+_list_contains() {
+    local requested_value="$1";
+    shift;
+
+    local value;
+    for value in "$@"; do
+        if test "${requested_value}" == "${value}"; then
+            return 0;
+        fi
+    done
+
+    return 1;
+}
+
 _generate_requirements_txts() {
     local i;
     local j;
+    local generation_failed=0;
+    local -a generated_files=();
+    local -a generation_pids=();
 
     for ((i=0; i < ${repos_length:-0}; i+=1)); do
 
@@ -50,6 +79,20 @@ _generate_requirements_txts() {
         && test -n "${path:+x}" \
         && test -f ~/"${path}/dependencies.yaml"; then
 
+            local config=~/"${path}/dependencies.yaml";
+            local available_file_keys_output;
+            local -a available_file_keys=();
+
+            if available_file_keys_output="$(yq -r '.files | keys | .[]' "${config}")"; then
+                if test -n "${available_file_keys_output:+x}"; then
+                    readarray -t available_file_keys <<< "${available_file_keys_output}";
+                fi
+            else
+                echo "Failed to read dependency file keys from ${config}" 1>&2;
+                generation_failed=1;
+                continue;
+            fi
+
             echo "Generating ${name}'s repo requirements.txt" 1>&2;
 
             local dependency_keys=("${key[@]}");
@@ -71,13 +114,20 @@ _generate_requirements_txts() {
             local keyi;
 
             for ((keyi=0; keyi < ${#keys[@]}; keyi+=1)); do
+                if ! _list_contains "${keys[$keyi]}" "${available_file_keys[@]}"; then
+                    continue;
+                fi
                 local file="${tmpdir}/${name}.${keys[$keyi]}.requirements.txt";
-                pip_reqs_txts+=("${file}");
-                _generate_requirements_txt                 \
+                if _list_contains "${file}" "${generated_files[@]}"; then
+                    continue;
+                fi
+                generated_files+=("${file}");
+                _generate_requirements_txt "${file}"       \
                     --file-key "${keys[$keyi]}"            \
                     --output requirements                  \
-                    --config ~/"${path}/dependencies.yaml" \
+                    --config "${config}"                   \
                     --matrix "${matrix_selectors}"         &
+                generation_pids+=("$!");
             done
 
             local cpp_length="${repo}_cpp_length";
@@ -92,13 +142,20 @@ _generate_requirements_txts() {
                 local keyi;
 
                 for ((keyi=0; keyi < ${#keys[@]}; keyi+=1)); do
+                    if ! _list_contains "${keys[$keyi]}" "${available_file_keys[@]}"; then
+                        continue;
+                    fi
                     local file="${tmpdir}/${name}.${cpp_name}.${keys[$keyi]}.requirements.txt";
-                    pip_reqs_txts+=("${file}");
-                    _generate_requirements_txt                 \
+                    if _list_contains "${file}" "${generated_files[@]}"; then
+                        continue;
+                    fi
+                    generated_files+=("${file}");
+                    _generate_requirements_txt "${file}"       \
                         --file-key "${keys[$keyi]}"            \
                         --output requirements                  \
-                        --config ~/"${path}/dependencies.yaml" \
+                        --config "${config}"                   \
                         --matrix "${matrix_selectors}"         &
+                    generation_pids+=("$!");
                 done
             done
 
@@ -114,17 +171,43 @@ _generate_requirements_txts() {
                 local keyi;
 
                 for ((keyi=0; keyi < ${#keys[@]}; keyi+=1)); do
+                    if ! _list_contains "${keys[$keyi]}" "${available_file_keys[@]}"; then
+                        continue;
+                    fi
                     local file="${tmpdir}/${name}.${py_name}.${keys[$keyi]}.requirements.txt";
-                    pip_reqs_txts+=("${file}");
-                    _generate_requirements_txt                 \
+                    if _list_contains "${file}" "${generated_files[@]}"; then
+                        continue;
+                    fi
+                    generated_files+=("${file}");
+                    _generate_requirements_txt "${file}"       \
                         --file-key "${keys[$keyi]}"            \
                         --output requirements                  \
-                        --config ~/"${path}/dependencies.yaml" \
+                        --config "${config}"                   \
                         --matrix "${matrix_selectors}"         &
+                    generation_pids+=("$!");
                 done
             done
         fi
     done
+
+    local pid;
+    for pid in "${generation_pids[@]}"; do
+        if ! wait "${pid}"; then
+            generation_failed=1;
+        fi
+    done
+
+    if test "${generation_failed}" -ne 0; then
+        echo "Failed to generate one or more requirements files" 1>&2;
+        return 1;
+    fi
+
+    local file;
+    for file in "${generated_files[@]}"; do
+        if test -s "${file}"; then
+            pip_reqs_txts+=("${file}");
+        fi
+    done
 }
 
 _make_pip_dependencies() {
@@ -188,7 +271,10 @@ _make_pip_dependencies() {
 
     eval "$(rapids-list-repos "${OPTS[@]}")";
 
-    readarray -t pip_reqs_txts < <(_generate_requirements_txts);
+    local -a pip_reqs_txts=();
+    if ! _generate_requirements_txts; then
+        return 1;
+    fi
 
     if test ${#requirement[@]} -gt 0 || test ${#pip_reqs_txts[@]} -gt 0; then
 
diff --git a/features/test/rapids-build-utils/test.sh b/features/test/rapids-build-utils/test.sh
index d2593026..c6eaaab5 100644
--- a/features/test/rapids-build-utils/test.sh
+++ b/features/test/rapids-build-utils/test.sh
@@ -2,11 +2,214 @@
 
 set -e
 
-# Optional: Import test library
 source dev-container-features-test-lib
 
-# Definition specific tests
-check "TODO" echo "success"
+test_root="$(mktemp -d)"
+trap 'rm -rf "${test_root}"' EXIT
+
+mkdir -p "${test_root}/bin" "${test_root}/home/test-repo"
+
+cat > "${test_root}/bin/devcontainer-utils-parse-args" <<'EOF'
+#!/bin/bash
+
+_print_usage() {
+    :
+}
+
+_parse_args_for_file() {
+    shift
+
+    local -a parsed_keys=()
+    while test "$#" -gt 0; do
+        case "$1" in
+            --skip|--take)
+                shift 2
+                ;;
+            -k|--key)
+                parsed_keys+=("$2")
+                shift 2
+                ;;
+            -m|--manifest)
+                shift 2
+                ;;
+            *)
+                shift
+                ;;
+        esac
+    done
+
+    cat <<'DECLARATIONS'
+declare -a OPTS=()
+declare -a exclude=()
+declare -a include=()
+declare -a key=()
+declare -a matrix_entry=()
+declare -a requirement=()
+DECLARATIONS
+
+    local parsed_key
+    for parsed_key in "${parsed_keys[@]}"; do
+        printf 'key+=(%q)\n' "${parsed_key}"
+    done
+}
+EOF
+chmod +x "${test_root}/bin/devcontainer-utils-parse-args"
+
+cat > "${test_root}/bin/devcontainer-utils-debug-output" <<'EOF'
+#!/bin/bash
+:
+EOF
+chmod +x "${test_root}/bin/devcontainer-utils-debug-output"
+
+cat > "${test_root}/bin/rapids-list-repos" <<'EOF'
+#!/bin/bash
+cat <<'REPOS'
+declare repos_length=1
+declare repos_0_name=dfg-atomic
+declare repos_0_path=test-repo
+REPOS
+EOF
+chmod +x "${test_root}/bin/rapids-list-repos"
+
+cat > "${test_root}/bin/rapids-python-pkg-names" <<'EOF'
+#!/bin/bash
+:
+EOF
+chmod +x "${test_root}/bin/rapids-python-pkg-names"
+
+cat > "${test_root}/bin/rapids-python-conda-pkg-names" <<'EOF'
+#!/bin/bash
+:
+EOF
+chmod +x "${test_root}/bin/rapids-python-conda-pkg-names"
+
+cat > "${test_root}/bin/rapids-dependency-file-generator" <<'EOF'
+#!/bin/bash
+
+set -euo pipefail
+
+file_key=
+output=
+
+while test "$#" -gt 0; do
+    case "$1" in
+        --file-key)
+            file_key="$2"
+            shift 2
+            ;;
+        --output)
+            output="$2"
+            shift 2
+            ;;
+        *)
+            shift
+            ;;
+    esac
+done
+
+printf '%s\n' "${file_key}" >> "${DFG_CALL_LOG}"
+
+if test "${file_key}" == hard_error; then
+    echo partial-output-must-not-escape
+    echo 'mock hard generation failure' 1>&2
+    exit 42
+fi
+
+case "${output}" in
+    requirements)
+        cat <<'REQUIREMENTS'
+# generated
+dfg-atomic-success
+REQUIREMENTS
+        ;;
+    conda)
+        cat <<'CONDA'
+# generated
+name: dfg-atomic
+channels:
+  - conda-forge
+dependencies:
+  - dfg-atomic-success
+CONDA
+        ;;
+    *)
+        echo "unexpected output type: ${output}" 1>&2
+        exit 2
+        ;;
+esac
+EOF
+chmod +x "${test_root}/bin/rapids-dependency-file-generator"
+
+cat > "${test_root}/manifest.yaml" <<'EOF'
+repos:
+  - name: dfg-atomic
+    path: test-repo
+EOF
+
+cat > "${test_root}/home/test-repo/dependencies.yaml" <<'EOF'
+files:
+  success: {}
+  hard_error: {}
+EOF
+
+dependencies_skip_missing_key() {
+    local command="$1"
+    local label="$2"
+    local stdout="${test_root}/${label}-missing.stdout"
+    local stderr="${test_root}/${label}-missing.stderr"
+    local calls="${test_root}/${label}-missing.calls"
+
+    : > "${calls}"
+    if ! env \
+        PATH="${test_root}/bin:${PATH}" \
+        HOME="${test_root}/home" \
+        DFG_CALL_LOG="${calls}" \
+        "${command}" \
+            --manifest "${test_root}/manifest.yaml" \
+            --key success \
+            --key missing \
+            --key success \
+            > "${stdout}" 2> "${stderr}"; then
+        return 1
+    fi
+
+    test -s "${stdout}" \
+        && grep -Fq dfg-atomic-success "${stdout}" \
+        && test "$(wc -l < "${calls}")" -eq 1 \
+        && grep -Fxq success "${calls}" \
+        && ! grep -Fxq missing "${calls}"
+}
+
+dependencies_fail_atomically() {
+    local command="$1"
+    local label="$2"
+    local stdout="${test_root}/${label}-failure.stdout"
+    local stderr="${test_root}/${label}-failure.stderr"
+    local calls="${test_root}/${label}-failure.calls"
+
+    : > "${calls}"
+    if env \
+        PATH="${test_root}/bin:${PATH}" \
+        HOME="${test_root}/home" \
+        DFG_CALL_LOG="${calls}" \
+        "${command}" \
+            --manifest "${test_root}/manifest.yaml" \
+            --key success \
+            --key hard_error \
+            > "${stdout}" 2> "${stderr}"; then
+        return 1
+    fi
+
+    test ! -s "${stdout}" \
+        && grep -Fq 'mock hard generation failure' "${stderr}" \
+        && test "$(wc -l < "${calls}")" -eq 2 \
+        && grep -Fxq success "${calls}" \
+        && grep -Fxq hard_error "${calls}"
+}
+
+check "pip dependencies skip missing keys" dependencies_skip_missing_key rapids-make-pip-dependencies pip
+check "pip dependency failures are atomic" dependencies_fail_atomically rapids-make-pip-dependencies pip
+check "conda dependencies skip missing keys" dependencies_skip_missing_key rapids-make-conda-dependencies conda
+check "conda dependency failures are atomic" dependencies_fail_atomically rapids-make-conda-dependencies conda
 
-# Report result
 reportResults