diff --git a/packages/playwright/src/index.ts b/packages/playwright/src/index.ts
index 6dbf290d66..9a159c984a 100644
--- a/packages/playwright/src/index.ts
+++ b/packages/playwright/src/index.ts
@@ -261,7 +261,6 @@ const playwrightFixtures: Fixtures<TestFixtures, WorkerFixtures> = ({
           title: renderApiCall(apiName, params),
           apiName,
           params,
-          canNestByTime: true,
         });
         userData.userObject = step;
         out.stepId = step.stepId;
diff --git a/packages/playwright/src/worker/testInfo.ts b/packages/playwright/src/worker/testInfo.ts
index bca8e8d96b..fac773f394 100644
--- a/packages/playwright/src/worker/testInfo.ts
+++ b/packages/playwright/src/worker/testInfo.ts
@@ -44,9 +44,6 @@ export interface TestStepInternal {
   infectParentStepsWithError?: boolean;
   box?: boolean;
   isStage?: boolean;
-  // TODO: this сould be decided based on the category, but pw:api
-  // is from a different abstraction layer.
-  canNestByTime?: boolean;
 }
 
 export type TestStage = {
@@ -255,11 +252,6 @@ export class TestInfoImpl implements TestInfo {
       parentStep = this._findLastStageStep();
     } else {
       parentStep = zones.zoneData<TestStepInternal>('stepZone');
-      if (!parentStep && data.canNestByTime) {
-        // API steps (but not test.step calls) can be nested by time, instead of by stack.
-        // However, do not nest chains of route.continue by checking the title.
-        parentStep = this._findLastNonFinishedStep(step => step.title !== data.title);
-      }
       if (!parentStep) {
         // If no parent step on stack, assume the current stage as parent.
         parentStep = this._findLastStageStep();
diff --git a/tests/playwright-test/playwright.trace.spec.ts b/tests/playwright-test/playwright.trace.spec.ts
index 642a3555ca..e4a1efe4d7 100644
--- a/tests/playwright-test/playwright.trace.spec.ts
+++ b/tests/playwright-test/playwright.trace.spec.ts
@@ -1216,9 +1216,9 @@ test('should not nest top level expect into unfinished api calls ', {
     '    browserContext.newPage',
     'page.route',
     'page.goto',
-    '  route.fetch',
-    '    page.unrouteAll',
+    'route.fetch',
     'expect.toBeVisible',
+    'page.unrouteAll',
     'After Hooks',
     '  fixture: page',
     '  fixture: context',
diff --git a/tests/playwright-test/test-step.spec.ts b/tests/playwright-test/test-step.spec.ts
index c35070c945..f7538de3e9 100644
--- a/tests/playwright-test/test-step.spec.ts
+++ b/tests/playwright-test/test-step.spec.ts
@@ -542,7 +542,7 @@ fixture   |  fixture: browser
 `);
 });
 
-test('should nest page.continue inside page.goto steps', async ({ runInlineTest }) => {
+test('should not nest page.continue inside page.goto steps', async ({ runInlineTest }) => {
   const result = await runInlineTest({
     'reporter.ts': stepIndentReporter,
     'playwright.config.ts': `module.exports = { reporter: './reporter', };`,
@@ -566,7 +566,7 @@ fixture   |  fixture: page
 pw:api    |    browserContext.newPage
 pw:api    |page.route @ a.test.ts:4
 pw:api    |page.goto(http://localhost:1234) @ a.test.ts:5
-pw:api    |  route.fulfill @ a.test.ts:4
+pw:api    |route.fulfill @ a.test.ts:4
 hook      |After Hooks
 fixture   |  fixture: page
 fixture   |  fixture: context
@@ -1154,7 +1154,7 @@ pw:api    |    browserContext.newPage
 fixture   |  fixture: request
 pw:api    |    apiRequest.newContext
 pw:api    |page.waitForNavigation @ a.test.ts:5
-pw:api    |  page.goto(data:text/html,<button></button>) @ a.test.ts:6
+pw:api    |page.goto(data:text/html,<button></button>) @ a.test.ts:6
 pw:api    |page.click(button) @ a.test.ts:8
 pw:api    |locator.getByRole('button').click @ a.test.ts:9
 pw:api    |apiRequestContext.get(http://localhost2) @ a.test.ts:10