diff --git a/src/kernels/execution/cellExecutionMessageHandler.ts b/src/kernels/execution/cellExecutionMessageHandler.ts
index 7b43ab60efd..7b136309471 100644
--- a/src/kernels/execution/cellExecutionMessageHandler.ts
+++ b/src/kernels/execution/cellExecutionMessageHandler.ts
@@ -967,7 +967,7 @@ export class CellExecutionMessageHandler implements IDisposable {
             return;
         }
 
-        if (msg.parent_header.msg_id === 'comm_msg' && msg.header.msg_type === 'stream') {
+        if (msg.parent_header.msg_type === 'comm_msg' && msg.header.msg_type === 'stream') {
             // Fix for https://github.com/microsoft/vscode-jupyter/issues/15996
             // We're not interested in stream messages that are part of comm messages.
             return;
@@ -1237,5 +1237,5 @@ function doesNotebookRendererSupportRenderingNestedOutputsInWidgets() {
     if (!version) {
         return false;
     }
-    return version.compare(new SemVer('1.0.23')) >= 0;
+    return version.compare(new SemVer('1.1.0')) >= 0;
 }
diff --git a/src/test/datascience/widgets/notebooks/button_widget_comm_msg.ipynb b/src/test/datascience/widgets/notebooks/button_widget_comm_msg.ipynb
index cf18cfd63f5..83f3bb0c4ce 100644
--- a/src/test/datascience/widgets/notebooks/button_widget_comm_msg.ipynb
+++ b/src/test/datascience/widgets/notebooks/button_widget_comm_msg.ipynb
@@ -9,11 +9,13 @@
     "import ipywidgets as widgets\n",
     "from IPython.display import display\n",
     "button = widgets.Button(description=\"Click Me!\")\n",
+    "out = widgets.Output()\n",
     "\n",
     "display(button)\n",
     "\n",
     "def on_button_clicked(b):\n",
-    "    print(\"Button clicked.\")\n",
+    "    with out:\n",
+    "        print(\"Button clicked.\")\n",
     "\n",
     "button.on_click(on_button_clicked)"
    ]
@@ -24,7 +26,16 @@
    "metadata": {},
    "outputs": [],
    "source": [
-    "display(button)"
+    "button"
+   ]
+  },
+  {
+   "cell_type": "code",
+   "execution_count": null,
+   "metadata": {},
+   "outputs": [],
+   "source": [
+    "out"
    ]
   }
  ],
diff --git a/src/test/datascience/widgets/notebooks/interactive_button.ipynb b/src/test/datascience/widgets/notebooks/interactive_button.ipynb
deleted file mode 100644
index 742dd5b15ab..00000000000
--- a/src/test/datascience/widgets/notebooks/interactive_button.ipynb
+++ /dev/null
@@ -1,28 +0,0 @@
-{
- "cells": [
-  {
-   "cell_type": "code",
-   "execution_count": null,
-   "metadata": {},
-   "outputs": [],
-   "source": [
-    "from IPython.display import display\n",
-    "from ipywidgets import widgets, interactive\n",
-    "button = widgets.Button(description=\"Click Me!\")\n",
-    "def on_button_clicked(b):\n",
-    "    print(\"Button clicked\")\n",
-    "\n",
-    "display(button)\n",
-    "button.on_click(on_button_clicked)\n"
-   ]
-  }
- ],
- "metadata": {
-  "language_info": {
-   "name": "python"
-  },
-  "orig_nbformat": 4
- },
- "nbformat": 4,
- "nbformat_minor": 2
-}
diff --git a/src/test/datascience/widgets/standardWidgets.vscode.common.test.ts b/src/test/datascience/widgets/standardWidgets.vscode.common.test.ts
index 1b78327037e..2790232f95a 100644
--- a/src/test/datascience/widgets/standardWidgets.vscode.common.test.ts
+++ b/src/test/datascience/widgets/standardWidgets.vscode.common.test.ts
@@ -31,8 +31,7 @@ import {
     runCell,
     selectDefaultController,
     waitForCellExecutionToComplete,
-    waitForExecutionCompletedSuccessfully,
-    waitForTextOutput
+    waitForExecutionCompletedSuccessfully
 } from '../notebook/helper';
 import { hideOutputPanel, initializeWidgetComms, Utils } from './commUtils';
 import { WidgetRenderingTimeoutForTests } from './constants';
@@ -245,15 +244,17 @@ suite('Standard IPyWidget Tests @widgets', function () {
                 },
                 editor
             );
-            const [cell0, cell1] = window.activeNotebookEditor!.notebook.getCells();
+            const [cell0, cell1, cell2] = window.activeNotebookEditor!.notebook.getCells();
 
             await executeCellAndWaitForOutput(cell0, comms);
             await executeCellAndWaitForOutput(cell1, comms);
+            await executeCellAndWaitForOutput(cell2, comms);
             await assertOutputContainsHtml(cell0, comms, ['Click Me!', '<button']);
+            await assertOutputContainsHtml(cell1, comms, ['Click Me!', '<button']);
 
             // Click the button and verify we have output in the same cell.
             await clickWidget(comms, cell0, 'button');
-            await waitForTextOutput(cell0, 'Button clicked.', 1, false);
+            await assertOutputContainsHtml(cell2, comms, ['Button clicked.']);
         });
         test.skip('Widget renders after executing a notebook which was saved after previous execution', async () => {
             // // https://github.com/microsoft/vscode-jupyter/issues/8748
@@ -483,33 +484,6 @@ suite('Standard IPyWidget Tests @widgets', function () {
                 () => `Output doesn't contain text 'Bar' or still contains 'Outside, Inside, Foo', html is ${html}`
             );
         });
-        test('Interactive Button', async () => {
-            await initializeNotebookForWidgetTest(
-                disposables,
-                {
-                    templateFile: 'interactive_button.ipynb'
-                },
-                editor
-            );
-            const cell = window.activeNotebookEditor!.notebook.cellAt(0);
-
-            await executeCellAndWaitForOutput(cell, comms);
-            await assertOutputContainsHtml(cell, comms, ['Click Me!', '<button']);
-
-            // Click the button and verify we have output in other cells
-            await clickWidget(comms, cell, 'button');
-            await waitForCondition(
-                () => {
-                    assert.strictEqual(getTextOutputValue(cell.outputs[1]).trim(), 'Button clicked');
-                    return true;
-                },
-                5_000,
-                () =>
-                    `Expected 'Button clicked' to exist in ${
-                        cell.outputs.length > 1 ? getTextOutputValue(cell.outputs[1]) : '<Only one output>'
-                    }`
-            );
-        });
         test('Interactive Function', async () => {
             await initializeNotebookForWidgetTest(
                 disposables,