diff --git a/.devcontainer/devcontainer-lock.json b/.devcontainer/devcontainer-lock.json
deleted file mode 100644
index a3500695..00000000
--- a/.devcontainer/devcontainer-lock.json
+++ /dev/null
@@ -1,9 +0,0 @@
-{
-  "features": {
-    "ghcr.io/devcontainers/features/docker-in-docker:2": {
-      "version": "2.7.1",
-      "resolved": "ghcr.io/devcontainers/features/docker-in-docker@sha256:f6a73ee06601d703db7d95d03e415cab229e78df92bb5002e8559bcfc047fec6",
-      "integrity": "sha256:f6a73ee06601d703db7d95d03e415cab229e78df92bb5002e8559bcfc047fec6"
-    }
-  }
-}
diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index a706161e..a359181f 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -2,7 +2,7 @@
     "name": "Python 3",
     "image": "mcr.microsoft.com/devcontainers/python:1-3.10-bookworm",
     "features": {
-        "ghcr.io/devcontainers/features/docker-in-docker:2": {}
+        "ghcr.io/devcontainers/features/docker-in-docker:2.12.0": {}
     },
     "forwardPorts": [1433],
     "postStartCommand": "/bin/bash ./.devcontainer/setup_odbc.sh & /bin/bash ./.devcontainer/setup_env.sh",
diff --git a/.gitignore b/.gitignore
index 1e5f776c..d11d5ddc 100644
--- a/.gitignore
+++ b/.gitignore
@@ -97,4 +97,4 @@ env.bak/
 venv.bak/
 .mise.toml
 
-**devcontainer-lock.json**
+devcontainer-lock.json
diff --git a/CHANGELOG.md b/CHANGELOG.md
index 9beac3fb..a5a9742f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,5 +1,9 @@
 # Changelog
 
+### v1.8.4
+
+- Minor fix to tests with CTEs which do not start on first line. https://github.com/dbt-msft/dbt-sqlserver/issues/560
+
 ### v1.8.3
 
 - Minor fix in no lock behaviour https://github.com/dbt-msft/dbt-sqlserver/pull/557
diff --git a/dbt/adapters/sqlserver/__version__.py b/dbt/adapters/sqlserver/__version__.py
index eaf9d19e..f2493fc9 100644
--- a/dbt/adapters/sqlserver/__version__.py
+++ b/dbt/adapters/sqlserver/__version__.py
@@ -1 +1 @@
-version = "1.8.3"
+version = "1.8.4"
diff --git a/dbt/include/sqlserver/macros/materializations/tests.sql b/dbt/include/sqlserver/macros/materializations/tests.sql
index 36d79af7..a0d79bb2 100644
--- a/dbt/include/sqlserver/macros/materializations/tests.sql
+++ b/dbt/include/sqlserver/macros/materializations/tests.sql
@@ -7,40 +7,23 @@
     EXEC('CREATE SCHEMA [{{ target.schema }}]')
   END
 
-  {% set with_statement_pattern = 'with .+ as\s*\(' %}
-  {% set re = modules.re %}
-  {% set is_match = re.search(with_statement_pattern, main_sql, re.IGNORECASE) %}
+  {% set testview %}
+    [{{ target.schema }}.testview_{{ range(1300, 19000) | random }}]
+  {% endset %}
 
-  {% if is_match %}
-    {% set testview %}
-      [{{ target.schema }}.testview_{{ range(1300, 19000) | random }}]
-    {% endset %}
+  {% set sql = main_sql.replace("'", "''")%}
+  EXEC('create view {{testview}} as {{ sql }};')
+  select
+    {{ "top (" ~ limit ~ ')' if limit != none }}
+    {{ fail_calc }} as failures,
+    case when {{ fail_calc }} {{ warn_if }}
+      then 'true' else 'false' end as should_warn,
+    case when {{ fail_calc }} {{ error_if }}
+      then 'true' else 'false' end as should_error
+  from (
+    select * from {{testview}}
+  ) dbt_internal_test;
 
-    {% set sql = main_sql.replace("'", "''")%}
-    EXEC('create view {{testview}} as {{ sql }};')
-    select
-      {{ "top (" ~ limit ~ ')' if limit != none }}
-      {{ fail_calc }} as failures,
-      case when {{ fail_calc }} {{ warn_if }}
-        then 'true' else 'false' end as should_warn,
-      case when {{ fail_calc }} {{ error_if }}
-        then 'true' else 'false' end as should_error
-    from (
-      select * from {{testview}}
-    ) dbt_internal_test;
+  EXEC('drop view {{testview}};')
 
-    EXEC('drop view {{testview}};')
-
-  {% else -%}
-    select
-      {{ "top (" ~ limit ~ ')' if limit != none }}
-      {{ fail_calc }} as failures,
-      case when {{ fail_calc }} {{ warn_if }}
-        then 'true' else 'false' end as should_warn,
-      case when {{ fail_calc }} {{ error_if }}
-        then 'true' else 'false' end as should_error
-    from (
-      {{ main_sql }}
-    ) dbt_internal_test
-  {%- endif -%}
 {%- endmacro %}
diff --git a/tests/functional/adapter/mssql/test_test_with.py b/tests/functional/adapter/mssql/test_test_with.py
index 6cf6476a..83e1d7fc 100644
--- a/tests/functional/adapter/mssql/test_test_with.py
+++ b/tests/functional/adapter/mssql/test_test_with.py
@@ -84,6 +84,20 @@
 {% endtest %}
 """
 
+with_test_multiline = """
+{% test with_test_multiline(model, field) %}
+-- comments
+with
+
+test_sample AS (
+    SELECT {{ field }} FROM {{ model }}
+    GROUP BY {{ field }}
+    HAVING COUNT(*) > 2
+)
+SELECT * FROM test_sample
+{% endtest %}
+"""
+
 
 class BaseSQLTestWith:
     @pytest.fixture(scope="class")
@@ -99,6 +113,7 @@ def macros(self):
             "with_statement_pass.sql": with_test_pass_sql,
             "with_statement_fail.sql": with_test_fail_sql,
             "with_statement_comments.sql": with_test_with_comments_sql,
+            "with_test_multiline.sql": with_test_multiline,
         }
 
     @pytest.fixture(scope="class")