diff --git a/backend/src/hatchling/builders/wheel.py b/backend/src/hatchling/builders/wheel.py
index 711d6e81f..1b1440742 100644
--- a/backend/src/hatchling/builders/wheel.py
+++ b/backend/src/hatchling/builders/wheel.py
@@ -170,17 +170,13 @@ def __init__(self, *args: Any, **kwargs: Any) -> None:
 
     @cached_property
     def default_file_selection_options(self) -> FileSelectionOptions:
-        if include := self.target_config.get('include', self.build_config.get('include', [])):
-            return FileSelectionOptions(include, [], [], [])
+        include = self.target_config.get('include', self.build_config.get('include', []))
+        exclude = self.target_config.get('exclude', self.build_config.get('exclude', []))
+        packages = self.target_config.get('packages', self.build_config.get('packages', []))
+        only_include = self.target_config.get('only-include', self.build_config.get('only-include', []))
 
-        if exclude := self.target_config.get('exclude', self.build_config.get('exclude', [])):
-            return FileSelectionOptions([], exclude, [], [])
-
-        if packages := self.target_config.get('packages', self.build_config.get('packages', [])):
-            return FileSelectionOptions([], [], packages, [])
-
-        if only_include := self.target_config.get('only-include', self.build_config.get('only-include', [])):
-            return FileSelectionOptions([], [], [], only_include)
+        if include or packages or only_include:
+            return FileSelectionOptions(include, exclude, packages, only_include)
 
         for project_name in (
             self.builder.normalize_file_name_component(self.builder.metadata.core.raw_name),
@@ -188,16 +184,16 @@ def default_file_selection_options(self) -> FileSelectionOptions:
         ):
             if os.path.isfile(os.path.join(self.root, project_name, '__init__.py')):
                 normalized_project_name = self.get_raw_fs_path_name(self.root, project_name)
-                return FileSelectionOptions([], [], [normalized_project_name], [])
+                return FileSelectionOptions([], exclude, [normalized_project_name], [])
 
             if os.path.isfile(os.path.join(self.root, 'src', project_name, '__init__.py')):
                 normalized_project_name = self.get_raw_fs_path_name(os.path.join(self.root, 'src'), project_name)
-                return FileSelectionOptions([], [], [f'src/{normalized_project_name}'], [])
+                return FileSelectionOptions([], exclude, [f'src/{normalized_project_name}'], [])
 
             module_file = f'{project_name}.py'
             if os.path.isfile(os.path.join(self.root, module_file)):
                 normalized_project_name = self.get_raw_fs_path_name(self.root, module_file)
-                return FileSelectionOptions([], [], [], [module_file])
+                return FileSelectionOptions([], exclude, [], [module_file])
 
             from glob import glob
 
@@ -205,11 +201,11 @@ def default_file_selection_options(self) -> FileSelectionOptions:
             if len(possible_namespace_packages) == 1:
                 relative_path = os.path.relpath(possible_namespace_packages[0], self.root)
                 namespace = relative_path.split(os.sep)[0]
-                return FileSelectionOptions([], [], [namespace], [])
+                return FileSelectionOptions([], exclude, [namespace], [])
 
         if self.build_artifact_spec is not None or self.get_force_include():
             self.set_exclude_all()
-            return FileSelectionOptions([], [], [], [])
+            return FileSelectionOptions([], exclude, [], [])
 
         message = (
             'Unable to determine which files to ship inside the wheel using the following heuristics: '
diff --git a/docs/history/hatchling.md b/docs/history/hatchling.md
index 238f2decd..077f8bb76 100644
--- a/docs/history/hatchling.md
+++ b/docs/history/hatchling.md
@@ -8,6 +8,10 @@ The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.0.0/),
 
 ## Unreleased
 
+***Fixed:***
+
+- Fix regression in 1.19.1 that allowed `exclude` to count toward inclusion selection, thus bypassing the default inclusion selection heuristics
+
 ## [1.19.1](https://github.com/pypa/hatch/releases/tag/hatchling-v1.19.1) - 2023-12-12 ## {: #hatchling-v1.19.1 }
 
 ***Fixed:***
diff --git a/tests/backend/builders/test_wheel.py b/tests/backend/builders/test_wheel.py
index ecd6682c0..8eb9d470f 100644
--- a/tests/backend/builders/test_wheel.py
+++ b/tests/backend/builders/test_wheel.py
@@ -34,8 +34,36 @@ def test_default_versions(isolation):
 
 
 class TestDefaultFileSelection:
+    def test_already_defined(self, temp_dir):
+        config = {
+            'project': {'name': 'my-app', 'version': '0.0.1'},
+            'tool': {
+                'hatch': {
+                    'build': {
+                        'targets': {
+                            'wheel': {
+                                'include': ['foo'],
+                                'exclude': ['bar'],
+                                'packages': ['foo', 'bar', 'baz'],
+                                'only-include': ['baz'],
+                            }
+                        }
+                    }
+                }
+            },
+        }
+        builder = WheelBuilder(str(temp_dir), config=config)
+
+        assert builder.config.default_include() == ['foo']
+        assert builder.config.default_exclude() == ['bar']
+        assert builder.config.default_packages() == ['foo', 'bar', 'baz']
+        assert builder.config.default_only_include() == ['baz']
+
     def test_flat_layout(self, temp_dir):
-        config = {'project': {'name': 'my-app', 'version': '0.0.1'}}
+        config = {
+            'project': {'name': 'my-app', 'version': '0.0.1'},
+            'tool': {'hatch': {'build': {'targets': {'wheel': {'exclude': ['foobarbaz']}}}}},
+        }
         builder = WheelBuilder(str(temp_dir), config=config)
 
         flat_root = temp_dir / 'my_app' / '__init__.py'
@@ -54,12 +82,15 @@ def test_flat_layout(self, temp_dir):
         namespace_root.touch()
 
         assert builder.config.default_include() == []
-        assert builder.config.default_exclude() == []
+        assert builder.config.default_exclude() == ['foobarbaz']
         assert builder.config.default_packages() == ['my_app']
         assert builder.config.default_only_include() == []
 
     def test_src_layout(self, temp_dir):
-        config = {'project': {'name': 'my-app', 'version': '0.0.1'}}
+        config = {
+            'project': {'name': 'my-app', 'version': '0.0.1'},
+            'tool': {'hatch': {'build': {'targets': {'wheel': {'exclude': ['foobarbaz']}}}}},
+        }
         builder = WheelBuilder(str(temp_dir), config=config)
 
         src_root = temp_dir / 'src' / 'my_app' / '__init__.py'
@@ -74,12 +105,15 @@ def test_src_layout(self, temp_dir):
         namespace_root.touch()
 
         assert builder.config.default_include() == []
-        assert builder.config.default_exclude() == []
+        assert builder.config.default_exclude() == ['foobarbaz']
         assert builder.config.default_packages() == ['src/my_app']
         assert builder.config.default_only_include() == []
 
     def test_single_module(self, temp_dir):
-        config = {'project': {'name': 'my-app', 'version': '0.0.1'}}
+        config = {
+            'project': {'name': 'my-app', 'version': '0.0.1'},
+            'tool': {'hatch': {'build': {'targets': {'wheel': {'exclude': ['foobarbaz']}}}}},
+        }
         builder = WheelBuilder(str(temp_dir), config=config)
 
         single_module_root = temp_dir / 'my_app.py'
@@ -90,12 +124,15 @@ def test_single_module(self, temp_dir):
         namespace_root.touch()
 
         assert builder.config.default_include() == []
-        assert builder.config.default_exclude() == []
+        assert builder.config.default_exclude() == ['foobarbaz']
         assert builder.config.default_packages() == []
         assert builder.config.default_only_include() == ['my_app.py']
 
     def test_namespace(self, temp_dir):
-        config = {'project': {'name': 'my-app', 'version': '0.0.1'}}
+        config = {
+            'project': {'name': 'my-app', 'version': '0.0.1'},
+            'tool': {'hatch': {'build': {'targets': {'wheel': {'exclude': ['foobarbaz']}}}}},
+        }
         builder = WheelBuilder(str(temp_dir), config=config)
 
         namespace_root = temp_dir / 'ns' / 'my_app' / '__init__.py'
@@ -103,12 +140,15 @@ def test_namespace(self, temp_dir):
         namespace_root.touch()
 
         assert builder.config.default_include() == []
-        assert builder.config.default_exclude() == []
+        assert builder.config.default_exclude() == ['foobarbaz']
         assert builder.config.default_packages() == ['ns']
         assert builder.config.default_only_include() == []
 
     def test_default_error(self, temp_dir):
-        config = {'project': {'name': 'my-app', 'version': '0.0.1'}}
+        config = {
+            'project': {'name': 'my-app', 'version': '0.0.1'},
+            'tool': {'hatch': {'build': {'targets': {'wheel': {'exclude': ['foobarbaz']}}}}},
+        }
         builder = WheelBuilder(str(temp_dir), config=config)
 
         for method in (