diff --git a/README.md b/README.md
index 28598d0..b9341b5 100644
--- a/README.md
+++ b/README.md
@@ -255,7 +255,6 @@ func _on_plugin_updated(plugin):
 
 ## Known Limitations
 
-- Godot always show errors from plugin repositories in `./plugged` even with `.gdignore` (See [#32](https://github.com/imjp94/gd-plug/issues/32))
 - Sometimes random .import files will be unable to remove, while the reason behind it still remains unknown.
   - Workaround: Read output for those .import files that failed to remove, and manually delete them.
 - `autoload` script references in project setting are not cleared as plugin uninstalled.
diff --git a/addons/gd-plug/plug.gd b/addons/gd-plug/plug.gd
index 8b20175..cdcc31b 100644
--- a/addons/gd-plug/plug.gd
+++ b/addons/gd-plug/plug.gd
@@ -5,7 +5,7 @@ signal updated(plugin)
 
 const VERSION = "0.2.6"
 const DEFAULT_PLUGIN_URL = "https://git::@github.com/%s.git"
-const DEFAULT_PLUG_DIR = "res://.plugged"
+const DEFAULT_PLUG_DIR = "res://addons/gd-plug/.plugged"
 const DEFAULT_CONFIG_PATH = DEFAULT_PLUG_DIR + "/index.cfg"
 const DEFAULT_USER_PLUG_SCRIPT_PATH = "res://plug.gd"
 const DEFAULT_BASE_PLUG_SCRIPT_PATH = "res://addons/gd-plug/plug.gd"
@@ -594,10 +594,12 @@ func directory_copy_recursively(from, to, args={}):
 				dest_files += directory_copy_recursively(source, dest, args)
 			else:
 				for include_key in include:
-					if include_key in source:
+					var include_path = DEFAULT_PLUG_DIR + "/" + include_key
+					if include_path in source:
 						var is_excluded = false
 						for exclude_key in exclude:
-							if exclude_key in source:
+							var exclude_path = DEFAULT_PLUG_DIR + "/" + exclude_key
+							if exclude_path in source:
 								is_excluded = true
 								break
 						if not is_excluded: