diff --git a/core/dbt/config/project.py b/core/dbt/config/project.py
index 42bab656dca..79c5a1e881c 100644
--- a/core/dbt/config/project.py
+++ b/core/dbt/config/project.py
@@ -26,8 +26,8 @@
 from dbt.clients.yaml_helper import load_yaml_text
 from dbt.adapters.contracts.connection import QueryComment
 from dbt.exceptions import (
-    DbtConfigError,
     DbtProjectError,
+    DbtWarnErrorOptionsError,
     ProjectContractBrokenError,
     ProjectContractError,
     DbtRuntimeError,
@@ -846,7 +846,7 @@ def read_project_flags(project_dir: str, profiles_dir: str) -> ProjectFlags:
 
             ProjectFlags.validate(project_flags)
             return ProjectFlags.from_dict(project_flags)
-    except (DbtProjectError, DbtConfigError) as exc:
+    except (DbtProjectError, DbtWarnErrorOptionsError) as exc:
         # We don't want to eat the DbtProjectError for UserConfig to ProjectFlags or
         # DbtConfigError for warn_error_options munging
         raise exc
diff --git a/core/dbt/config/utils.py b/core/dbt/config/utils.py
index daeac6bed40..0bd9f1eb6a5 100644
--- a/core/dbt/config/utils.py
+++ b/core/dbt/config/utils.py
@@ -4,8 +4,8 @@
 from dbt.clients import yaml_helper
 from dbt_common.events.functions import fire_event
 from dbt.events.types import InvalidOptionYAML
-from dbt.exceptions import OptionNotYamlDictError
-from dbt_common.exceptions import DbtConfigError, DbtValidationError
+from dbt.exceptions import DbtWarnErrorOptionsError, OptionNotYamlDictError
+from dbt_common.exceptions import DbtValidationError
 
 
 def parse_cli_vars(var_string: str) -> Dict[str, Any]:
@@ -39,7 +39,7 @@ def exclusive_primary_alt_value_setting(
     alt_options = dictionary.get(alt)
 
     if primary_options and alt_options:
-        raise DbtConfigError(
+        raise DbtWarnErrorOptionsError(
             f"Only `{alt}` or `{primary}` can be specified in `warn_error_options`, not both"
         )
 
diff --git a/core/dbt/exceptions.py b/core/dbt/exceptions.py
index eb4d0b97276..a692fad5389 100644
--- a/core/dbt/exceptions.py
+++ b/core/dbt/exceptions.py
@@ -113,6 +113,10 @@ class DbtProfileError(DbtConfigError):
     pass
 
 
+class DbtWarnErrorOptionsError(DbtConfigError):
+    pass
+
+
 class InvalidSelectorError(DbtRuntimeError):
     def __init__(self, name: str) -> None:
         self.name = name