diff --git a/eng/pipelines/libraries/helix.yml b/eng/pipelines/libraries/helix.yml
index f63792367fe78b..269a13055a0c36 100644
--- a/eng/pipelines/libraries/helix.yml
+++ b/eng/pipelines/libraries/helix.yml
@@ -13,6 +13,11 @@ parameters:
   extraHelixArguments: ''
   shouldContinueOnError: false
   scenarios: ''
+  # When false, Helix work item and test failures do not fail the build, so the "Send to Helix"
+  # step still succeeds. Unlike shouldContinueOnError (which only marks the build as
+  # partiallySucceeded), this produces a fully successful build. Scheduled builds with
+  # always:false set this so that flaky tests don't cause AzDO to re-queue the same commit daily.
+  failOnTestFailures: true
 
 steps:
   - script: $(_msbuildCommand) $(_warnAsErrorParamHelixOverride) -restore
@@ -26,6 +31,8 @@ steps:
             /p:TestScope=${{ parameters.testScope }}
             /p:TestRunNamePrefixSuffix=${{ parameters.testRunNamePrefixSuffix }}
             /p:HelixBuild=$(Build.BuildNumber)
+            /p:FailOnWorkItemFailure=${{ parameters.failOnTestFailures }}
+            /p:FailOnTestFailure=${{ parameters.failOnTestFailures }}
             ${{ parameters.extraHelixArguments }}
             /bl:$(Build.SourcesDirectory)/artifacts/log/$(_BuildConfig)/SendToHelix.binlog
     displayName: Send to Helix
diff --git a/eng/pipelines/libraries/outerloop.yml b/eng/pipelines/libraries/outerloop.yml
index 14d26e86dd0b2f..b710d294539155 100644
--- a/eng/pipelines/libraries/outerloop.yml
+++ b/eng/pipelines/libraries/outerloop.yml
@@ -52,6 +52,11 @@ extends:
                     testScope: outerloop
                     creator: dotnet-bot
                     testRunNamePrefixSuffix: CoreCLR_$(_BuildConfig)
+                    # On scheduled runs (always:false) don't fail the build on Helix work item or
+                    # test failures, so flaky outerloop tests don't keep AzDO re-queueing the same
+                    # commit. The Send to Helix step fully succeeds (not partiallySucceeded).
+                    ${{ if eq(variables['Build.Reason'], 'Schedule') }}:
+                      failOnTestFailures: false
 
         - ${{ if eq(variables['isRollingBuild'], false) }}:
           - template: /eng/pipelines/common/platform-matrix.yml
@@ -81,6 +86,9 @@ extends:
                       testScope: outerloop
                       creator: dotnet-bot
                       testRunNamePrefixSuffix: CoreCLR_$(_BuildConfig)
+                      # Don't fail scheduled builds on Helix work item/test failures (see above).
+                      ${{ if eq(variables['Build.Reason'], 'Schedule') }}:
+                        failOnTestFailures: false
 
         - ${{ if eq(variables['includeWindowsOuterloop'], true) }}:
           - template: /eng/pipelines/common/platform-matrix.yml
@@ -106,3 +114,6 @@ extends:
                       testScope: outerloop
                       creator: dotnet-bot
                       extraHelixArguments: /p:BuildTargetFramework=net48
+                      # Don't fail scheduled builds on Helix work item/test failures (see above).
+                      ${{ if eq(variables['Build.Reason'], 'Schedule') }}:
+                        failOnTestFailures: false