diff --git a/server/jetstream_cluster.go b/server/jetstream_cluster.go
index 328f8fecd4..92551d4d33 100644
--- a/server/jetstream_cluster.go
+++ b/server/jetstream_cluster.go
@@ -2261,7 +2261,12 @@ func (js *jetStream) monitorStream(mset *stream, sa *streamAssignment, sendSnaps
 	// Make sure to stop the raft group on exit to prevent accidental memory bloat.
 	// This should be below the checkInMonitor call though to avoid stopping it out
 	// from underneath the one that is running since it will be the same raft node.
-	defer n.Stop()
+	defer func() {
+		// We might be closing during shutdown, don't pre-emptively stop here since we'll still want to install snapshots.
+		if !mset.closed.Load() {
+			n.Stop()
+		}
+	}()
 
 	qch, mqch, lch, aq, uch, ourPeerId := n.QuitC(), mset.monitorQuitC(), n.LeadChangeC(), n.ApplyQ(), mset.updateC(), meta.ID()
 
@@ -3133,13 +3138,10 @@ func (js *jetStream) applyStreamEntries(mset *stream, ce *CommittedEntry, isReco
 				}
 			}
 
-			if !isRecovering && !mset.IsLeader() {
+			if isRecovering || !mset.IsLeader() {
 				if err := mset.processSnapshot(ss); err != nil {
 					return err
 				}
-			} else if isRecovering {
-				// On recovery, reset CLFS/FAILED.
-				mset.setCLFS(ss.Failed)
 			}
 		} else if e.Type == EntryRemovePeer {
 			js.mu.RLock()
diff --git a/server/stream.go b/server/stream.go
index fc5af3c36f..5ddac6c1bc 100644
--- a/server/stream.go
+++ b/server/stream.go
@@ -5340,6 +5340,10 @@ func (mset *stream) stop(deleteFlag, advisory bool) error {
 
 	// Kick monitor and collect consumers first.
 	mset.mu.Lock()
+
+	// Mark closed.
+	mset.closed.Store(true)
+
 	// Signal to the monitor loop.
 	// Can't use qch here.
 	if mset.mqch != nil {
@@ -5400,9 +5404,6 @@ func (mset *stream) stop(deleteFlag, advisory bool) error {
 		mset.sendDeleteAdvisoryLocked()
 	}
 
-	// Mark closed.
-	mset.closed.Store(true)
-
 	// Quit channel, do this after sending the delete advisory
 	if mset.qch != nil {
 		close(mset.qch)