diff --git a/coderd/rbac/authz.go b/coderd/rbac/authz.go
index 42625b07c3e0a..f97f593d20b50 100644
--- a/coderd/rbac/authz.go
+++ b/coderd/rbac/authz.go
@@ -395,6 +395,7 @@ func (a RegoAuthorizer) Prepare(ctx context.Context, subject Subject, action Act
 
 	prepared, err := a.newPartialAuthorizer(ctx, subject, action, objectType)
 	if err != nil {
+		err = correctCancelError(err)
 		return nil, xerrors.Errorf("new partial authorizer: %w", err)
 	}