diff --git a/frontend/src/components/ProxyHostForm.tsx b/frontend/src/components/ProxyHostForm.tsx
index 39ec4822..e430c93a 100644
--- a/frontend/src/components/ProxyHostForm.tsx
+++ b/frontend/src/components/ProxyHostForm.tsx
@@ -511,18 +511,25 @@ export default function ProxyHostForm({ host, onSubmit, onCancel }: ProxyHostFor
   }
 
   return (
-    <div className="fixed inset-0 bg-black/50 flex items-center justify-center p-4 z-50">
-      <div
-        className="bg-dark-card rounded-lg border border-gray-800 max-w-2xl w-full max-h-[90vh] overflow-y-auto"
-        role="dialog"
-        aria-modal="true"
-        aria-labelledby="proxy-host-form-title"
-      >
-        <div className="p-6 border-b border-gray-800">
-          <h2 id="proxy-host-form-title" className="text-2xl font-bold text-white">
-            {host ? 'Edit Proxy Host' : 'Add Proxy Host'}
-          </h2>
-        </div>
+    <>
+      {/* Layer 1: Background overlay (z-40) */}
+      <div className="fixed inset-0 bg-black/50 z-40" onClick={onCancel} />
+      
+      {/* Layer 2: Form container (z-50, pointer-events-none) */}
+      <div className="fixed inset-0 flex items-center justify-center p-4 pointer-events-none z-50">
+        
+        {/* Layer 3: Form content (pointer-events-auto) */}
+        <div 
+          className="bg-dark-card rounded-lg border border-gray-800 max-w-2xl w-full max-h-[90vh] overflow-y-auto pointer-events-auto"
+          role="dialog"
+          aria-modal="true"
+          aria-labelledby="proxy-host-form-title"
+        >
+          <div className="p-6 border-b border-gray-800">
+            <h2 id="proxy-host-form-title" className="text-2xl font-bold text-white">
+              {host ? 'Edit Proxy Host' : 'Add Proxy Host'}
+            </h2>
+          </div>
 
         <form onSubmit={handleSubmit} className="p-6 space-y-6">
           {error && (
diff --git a/playwright.config.js b/playwright.config.js
index 1c0230de..9ae76b33 100644
--- a/playwright.config.js
+++ b/playwright.config.js
@@ -198,7 +198,7 @@ export default defineConfig({
         ...devices['Desktop Chrome'],
         storageState: STORAGE_STATE,
       },
-      dependencies: ['setup', 'security-tests'],
+      dependencies: ['setup'],
     },
 
     {