diff --git a/.vscode/settings.json b/.vscode/settings.json
index fb13c49..6740457 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -7,7 +7,7 @@
       "source.fixAll": "explicit",
       "source.organizeImports": "explicit"
     },
-    "editor.defaultFormatter": "ms-python.black-formatter",
+    "editor.defaultFormatter": "charliermarsh.ruff",
     "editor.formatOnSave": true
   },
   "flake8.importStrategy": "fromEnvironment",
diff --git a/docs/index.md b/docs/index.md
index 810fb61..acf5574 100644
--- a/docs/index.md
+++ b/docs/index.md
@@ -16,7 +16,8 @@ For more information about communication, see the [Ansible communication guide](
 ## Features
 
 - Promotes an "ephemeral" development approach
-- Ensures the current development environment is isolated
+- Ensures the current development environment is isolated by using python virtual
+  environments and redefining ANSIBLE_HOME to point to inside them.
 - Install all collection python requirements
 - Install all collection test requirements
 - Checks for missing system packages
diff --git a/src/ansible_dev_environment/cli.py b/src/ansible_dev_environment/cli.py
index 47223af..58f1681 100644
--- a/src/ansible_dev_environment/cli.py
+++ b/src/ansible_dev_environment/cli.py
@@ -109,21 +109,26 @@ def ensure_isolated(self) -> None:
             self.output.hint(hint)
             errored = True
 
-        home_coll = Path.home() / ".ansible/collections/ansible_collections"
-        if home_coll.exists() and tuple(home_coll.iterdir()):
-            err = f"Collections found in {home_coll}"
-            self.output.error(err)
-            hint = "Run `rm -rf ~/.ansible/collections` to remove them."
-            self.output.hint(hint)
-            errored = True
+        ansible_home: Path
+        if "ANSIBLE_HOME" not in os.environ:
+            ansible_home = Path(os.environ.get("VIRTUAL_ENV", "~/.ansible"))
+            self.output.warning(
+                f"Declaring ANSIBLE_HOME={ansible_home} to ensure isolation from user environment.",
+            )
+            os.environ["ANSIBLE_HOME"] = str(ansible_home)
+        else:
+            ansible_home = Path(os.environ.get("ANSIBLE_HOME", "~/.ansible"))
+            self.output.info(
+                f"Using ANSIBLE_HOME={ansible_home} to ensure isolation from user environment.",
+            )
 
-        usr_coll = Path("/usr/share/ansible/collections")
-        if usr_coll.exists() and tuple(usr_coll.iterdir()):
-            err = f"Collections found in {usr_coll}"
-            self.output.error(err)
-            hint = "Run `sudo rm -rf /usr/share/ansible/collections` to remove them."
-            self.output.hint(hint)
-            errored = True
+        if "ANSIBLE_COLLECTIONS_SCAN_SYS_PATH" not in os.environ:
+            usr_coll = Path("/usr/share/ansible/collections")
+            if usr_coll.exists() and tuple(usr_coll.iterdir()):
+                err = f"Collections found in {usr_coll}, declaring ANSIBLE_COLLECTIONS_SCAN_SYS_PATH=False to ensure isolation."
+                self.output.error(err)
+                hint = "You can also `sudo rm -rf /usr/share/ansible/collections` to remove them or explicitly define ANSIBLE_COLLECTIONS_SCAN_SYS_PATH variable to avoid this message."
+                self.output.hint(hint)
 
         if errored:
             err = "The development environment is not isolated, please resolve the above errors."
diff --git a/tests/unit/test_cli.py b/tests/unit/test_cli.py
index 523728a..0567d18 100644
--- a/tests/unit/test_cli.py
+++ b/tests/unit/test_cli.py
@@ -163,11 +163,10 @@ def test_collections_in_home(
     monkeypatch.setenv("HOME", str(tmp_path))
     collection_root = tmp_path / ".ansible" / "collections" / "ansible_collections"
     (collection_root / "ansible" / "utils").mkdir(parents=True)
-    with pytest.raises(SystemExit):
-        main(dry=True)
+    main(dry=True)
     captured = capsys.readouterr()
-    msg = f"Collections found in {collection_root}"
-    assert msg in captured.err
+    msg = "Declaring ANSIBLE_HOME="
+    assert msg in captured.out
 
 
 def test_collections_in_user(
@@ -219,8 +218,7 @@ def _iterdir(path: Path) -> list[Path] | Generator[Path, None, None]:
         "sys.argv",
         ["ansible-dev-environment", "install", "--venv", "venv"],
     )
-    with pytest.raises(SystemExit):
-        main(dry=True)
+    main(dry=True)
     captured = capsys.readouterr()
     msg = f"Collections found in {usr_path}"
     assert msg in captured.err