diff --git a/src/snowflake/cli/api/console/console.py b/src/snowflake/cli/api/console/console.py
index 79031d23a7..94c80c9cc9 100644
--- a/src/snowflake/cli/api/console/console.py
+++ b/src/snowflake/cli/api/console/console.py
@@ -29,10 +29,6 @@
 INDENTATION_LEVEL: int = 2
 
 
-class CliConsoleNestingProhibitedError(RuntimeError):
-    """CliConsole phase nesting not allowed."""
-
-
 class CliConsole(AbstractConsole):
     """An utility for displaying intermediate output.
 
@@ -70,28 +66,21 @@ def _format_message(self, message: str, output: Output) -> Text:
     @contextmanager
     def phase(self, enter_message: str, exit_message: Optional[str] = None):
         """A context manager for organising steps into logical group."""
-        if self.in_phase:
-            raise CliConsoleNestingProhibitedError("Only one phase allowed at a time.")
-        if self._extra_indent > 0:
-            raise CliConsoleNestingProhibitedError(
-                "Phase cannot be used in an indented block."
-            )
-
         self._print(self._format_message(enter_message, Output.PHASE))
-        self._in_phase = True
+        self._extra_indent += 1
 
         try:
             yield self.step
         finally:
-            self._in_phase = False
+            self._extra_indent -= 1
             if exit_message:
                 self._print(self._format_message(exit_message, Output.PHASE))
 
     @contextmanager
     def indented(self):
         """
-        A context manager for temporarily indenting messages and warnings. Phases and steps cannot be used in indented blocks,
-        but multiple indented blocks can be nested (use sparingly).
+        A context manager for temporarily indenting messages and warnings.
+        Multiple indented blocks can be nested (use sparingly).
         """
         self._extra_indent += 1
         try:
@@ -104,10 +93,6 @@ def step(self, message: str):
 
         If called within a phase, the output will be indented.
         """
-        if self._extra_indent > 0:
-            raise CliConsoleNestingProhibitedError(
-                "Step cannot be used in an indented block."
-            )
         text = self._format_message(message, Output.STEP)
         self._print(text)
 
diff --git a/tests/api/console/test_cli_console_output.py b/tests/api/console/test_cli_console_output.py
index c79dc9b0ee..589b9f35a2 100644
--- a/tests/api/console/test_cli_console_output.py
+++ b/tests/api/console/test_cli_console_output.py
@@ -20,7 +20,6 @@
 import pytest
 from snowflake.cli.api.console.console import (
     CliConsole,
-    CliConsoleNestingProhibitedError,
 )
 
 
@@ -74,12 +73,22 @@ def test_error_messages(cli_console, capsys):
     assert_output_matches("42\n  73\n  ops\nOPS\n", capsys)
 
 
-def test_phase_nesting_not_allowed(cli_console):
+def test_phase_nesting(cli_console, capsys):
     with cli_console.phase("Enter 1"):
-        with pytest.raises(CliConsoleNestingProhibitedError):
-            with cli_console.phase("Enter 2"):
+        with cli_console.phase("Enter 2"):
+            with cli_console.phase("Enter 3"):
                 pass
 
+    expected_output = dedent(
+        f"""\
+    Enter 1
+      Enter 2
+        Enter 3
+    """
+    )
+
+    assert_output_matches(expected_output, capsys)
+
 
 def test_phase_is_cleaned_up_on_exception(cli_console):
     with pytest.raises(RuntimeError):
@@ -91,18 +100,38 @@ def test_phase_is_cleaned_up_on_exception(cli_console):
         pass
 
 
-def test_phase_cannot_be_indented(cli_console):
+def test_phase_inside_indented(cli_console, capsys):
+    cli_console.step("Outside of Indent")
     with cli_console.indented():
-        with pytest.raises(CliConsoleNestingProhibitedError):
-            with cli_console.phase("Enter"):
-                pass
+        cli_console.step("Step In Indent")
+        with cli_console.phase("Phase In Indent"):
+            cli_console.step("Step In Indent + Phase")
 
+    expected_output = dedent(
+        f"""\
+        Outside of Indent
+          Step In Indent
+          Phase In Indent
+            Step In Indent + Phase
+        """
+    )
 
-def test_step_cannot_be_indented(cli_console):
+    assert_output_matches(expected_output, capsys)
+
+
+def test_step_inside_indented(cli_console, capsys):
+    cli_console.step("Outside of Indent")
     with cli_console.indented():
-        with pytest.raises(CliConsoleNestingProhibitedError):
-            with cli_console.step("Operation"):
-                pass
+        cli_console.step("Operation")
+
+    expected_output = dedent(
+        f"""\
+        Outside of Indent
+          Operation
+        """
+    )
+
+    assert_output_matches(expected_output, capsys)
 
 
 def test_indented(cli_console, capsys):
diff --git a/tests_integration/nativeapp/test_validate.py b/tests_integration/nativeapp/test_validate.py
index 6a3efadabb..c435f069a9 100644
--- a/tests_integration/nativeapp/test_validate.py
+++ b/tests_integration/nativeapp/test_validate.py
@@ -144,3 +144,37 @@ def test_nativeapp_validate_with_post_deploy_hooks(
     with nativeapp_teardown(project_dir=Path(temp_dir)):
         result = runner.invoke_with_connection(["app", "validate"])
         assert result.exit_code == 0, result.output
+
+
+@pytest.mark.integration
+def test_nativeapp_validate_with_artifacts_processor(
+    nativeapp_teardown, runner, temp_dir
+):
+    ProjectV2Factory(
+        pdf__entities=dict(
+            pkg=ApplicationPackageEntityModelFactory(
+                identifier="myapp_pkg",
+                artifacts=[
+                    "setup.sql",
+                    "README.md",
+                    "manifest.yml",
+                    # just needs to have the templates processor to nest phases
+                    {"src": "app/*", "dest": "./", "processors": ["templates"]},
+                ],
+            ),
+            app=ApplicationEntityModelFactory(
+                identifier="myapp",
+                fromm__target="pkg",
+            ),
+        ),
+        files={
+            "setup.sql": "CREATE OR ALTER VERSIONED SCHEMA core;",
+            "README.md": "\n",
+            "manifest.yml": "\n",
+            "app/dummy_file.md": "\n",
+        },
+    )
+
+    with nativeapp_teardown(project_dir=Path(temp_dir)):
+        result = runner.invoke_with_connection(["app", "validate"])
+        assert result.exit_code == 0, result.output