diff --git a/CHANGELOG.md b/CHANGELOG.md
index 36937b9a..bab2337e 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -9,6 +9,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixed
 - Fixed a bug where interop deployment manager would in some cases fail because it tried to load unrelated items from the repo (#977)
+- Fixed bug causing compilation errors when first adding an IRIS Interoperability BPL or BR (#984)
 
 ## [2.17.0] - 2026-06-22
 
diff --git a/cls/SourceControl/Git/Extension.cls b/cls/SourceControl/Git/Extension.cls
index 7f8e6d53..a97dc07e 100644
--- a/cls/SourceControl/Git/Extension.cls
+++ b/cls/SourceControl/Git/Extension.cls
@@ -597,9 +597,15 @@ Method CheckBusinessProcessesAndRules(InternalName As %String) As %Status
     //       so we have to add them like this
     if (##class(SourceControl.Git.Utils).Type(InternalName) = "cls") {
         set name = $piece(InternalName,".CLS",1)
-        set exists = ##class(%Dictionary.CompiledClass).%ExistsId(name)
-        if (exists && ($classmethod(name,"%Extends","Ens.BusinessProcess") || $classmethod(name,"%Extends","Ens.Rule.Definition"))) {
-            do ..AddToSourceControl(InternalName)
+        if '##class(%Dictionary.CompiledClass).%ExistsId(name) quit
+        if '$system.CLS.IsMthd(name, "%Extends") quit
+        try {
+            if ($classmethod(name,"%Extends","Ens.BusinessProcess") || $classmethod(name,"%Extends","Ens.Rule.Definition")) {
+                do ..AddToSourceControl(InternalName)
+            }
+        } catch err {
+            // even if compiled class exists, we can get CLASS DOES NOT EXIST - ignore these
+            if '(err.AsStatus() [ "CLASS DOES NOT EXIST") throw err
         }
     }
 }
diff --git a/cls/SourceControl/Git/Utils.cls b/cls/SourceControl/Git/Utils.cls
index fc21b519..1d516c93 100644
--- a/cls/SourceControl/Git/Utils.cls
+++ b/cls/SourceControl/Git/Utils.cls
@@ -2455,6 +2455,7 @@ ClassMethod GitStatus(ByRef files, IncludeAllFiles = 0)
     set list = $listfromstring(lines, $char(0))
     set pointer = 0
     while $listnext(list, pointer, item) {
+        continue:item=""
         set operation = $zstrip($extract(item, 1, 2), "<>W")
         set externalName = $extract(item, 4, *)
         set internalName = ..NameToInternalName(externalName,0,0)