diff --git a/sway-core/src/semantic_analysis/ast_node/declaration/auto_impl.rs b/sway-core/src/semantic_analysis/ast_node/declaration/auto_impl.rs
index ec83074bcec..c756c2e8946 100644
--- a/sway-core/src/semantic_analysis/ast_node/declaration/auto_impl.rs
+++ b/sway-core/src/semantic_analysis/ast_node/declaration/auto_impl.rs
@@ -628,12 +628,12 @@ where
             let method_name = decl.name.as_str();
 
             if args_types == "()" {
-                code.push_str(&format!("if method_name == \"{method_name}\" {{
+                code.push_str(&format!("if _method_name == \"{method_name}\" {{
                     let result_{method_name}: raw_slice = encode::<{return_type}>(__contract_entry_{method_name}());
                     __contract_ret(result_{method_name}.ptr(), result_{method_name}.len::<u8>());
                 }}\n"));
             } else {
-                code.push_str(&format!("if method_name == \"{method_name}\" {{
+                code.push_str(&format!("if _method_name == \"{method_name}\" {{
                     let args: {args_types} = decode_second_param::<{args_types}>();
                     let result_{method_name}: raw_slice = encode::<{return_type}>(__contract_entry_{method_name}({expanded_args}));
                     __contract_ret(result_{method_name}.ptr(), result_{method_name}.len::<u8>());
@@ -641,14 +641,6 @@ where
             }
         }
 
-        let att: String = match (reads, writes) {
-            (true, true) => "#[storage(read, write)]",
-            (true, false) => "#[storage(read)]",
-            (false, true) => "#[storage(write)]",
-            (false, false) => "",
-        }
-        .into();
-
         let fallback = if let Some(fallback_fn) = fallback_fn {
             let fallback_fn = engines.de().get(&fallback_fn);
             let Some(return_type) = Self::generate_type(engines, fallback_fn.return_type.type_id)
@@ -659,16 +651,32 @@ where
                 return Err(err);
             };
             let method_name = fallback_fn.name.as_str();
-
+            match fallback_fn.purity {
+                Purity::Pure => {}
+                Purity::Reads => reads = true,
+                Purity::Writes => writes = true,
+                Purity::ReadsWrites => {
+                    reads = true;
+                    writes = true;
+                }
+            }
             format!("let result: raw_slice = encode::<{return_type}>({method_name}()); __contract_ret(result.ptr(), result.len::<u8>());")
         } else {
             // as the old encoding does
             format!("__revert({});", MISMATCHED_SELECTOR_REVERT_CODE)
         };
 
+        let att: String = match (reads, writes) {
+            (true, true) => "#[storage(read, write)]",
+            (true, false) => "#[storage(read)]",
+            (false, true) => "#[storage(write)]",
+            (false, false) => "",
+        }
+        .into();
+
         let code = format!(
             "{att} pub fn __entry() {{
-            let method_name = decode_first_param::<str>();
+            let _method_name = decode_first_param::<str>();
             {code}
             {fallback}
         }}"
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/Forc.lock b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/Forc.lock
new file mode 100644
index 00000000000..12307cc26e2
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/Forc.lock
@@ -0,0 +1,16 @@
+[[package]]
+name = "core"
+source = "path+from-root-542D0E8F1D1E5950"
+
+[[package]]
+name = "fallback_only"
+source = "member"
+dependencies = [
+    "core",
+    "std",
+]
+
+[[package]]
+name = "std"
+source = "path+from-root-542D0E8F1D1E5950"
+dependencies = ["core"]
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/Forc.toml b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/Forc.toml
new file mode 100644
index 00000000000..77de98da60e
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/Forc.toml
@@ -0,0 +1,10 @@
+[project]
+authors = ["Fuel Labs <contact@fuel.sh>"]
+entry = "main.sw"
+license = "Apache-2.0"
+name = "fallback_only"
+implicit-std = false
+
+[dependencies]
+core = { path = "../../../../../../../sway-lib-core" }
+std = { path = "../../../../../../../sway-lib-std" }
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/json_abi_oracle.json b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/json_abi_oracle.json
new file mode 100644
index 00000000000..a6eb72514c0
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/json_abi_oracle.json
@@ -0,0 +1,8 @@
+{
+  "configurables": [],
+  "encoding": "1",
+  "functions": [],
+  "loggedTypes": [],
+  "messagesTypes": [],
+  "types": []
+}
\ No newline at end of file
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/json_abi_oracle_new_encoding.json b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/json_abi_oracle_new_encoding.json
new file mode 100644
index 00000000000..a6eb72514c0
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/json_abi_oracle_new_encoding.json
@@ -0,0 +1,8 @@
+{
+  "configurables": [],
+  "encoding": "1",
+  "functions": [],
+  "loggedTypes": [],
+  "messagesTypes": [],
+  "types": []
+}
\ No newline at end of file
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/src/main.sw
new file mode 100644
index 00000000000..4b5825ff662
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/src/main.sw
@@ -0,0 +1,15 @@
+contract;
+
+use std::execution::run_external;
+use std::constants::ZERO_B256;
+
+#[namespace(SRC1822)]
+storage {
+    target: ContractId = ContractId::from(ZERO_B256),
+}
+
+#[fallback]
+#[storage(read)]
+fn fallback() {
+    run_external(storage.target.read())
+}
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/test.toml b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/test.toml
new file mode 100644
index 00000000000..69ea02c237e
--- /dev/null
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/language/fallback_only/test.toml
@@ -0,0 +1,3 @@
+category = "compile"
+validate_abi = true
+expected_warnings = 0
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/array_of_structs_caller/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/array_of_structs_caller/src/main.sw
index e99d0f50bf4..3c21ef0ea89 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/array_of_structs_caller/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/array_of_structs_caller/src/main.sw
@@ -4,9 +4,9 @@ use array_of_structs_abi::{Id, TestContract, Wrapper};
 use std::hash::*;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0x7fae96947a8cad59cc2a25239f9f80897955d4c1b10d31510681f15842b93265;
+const CONTRACT_ID = 0x14ed3cd06c2947248f69d54bfa681fe40d26267be84df7e19e253622b7921bbe;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0xe47e8943692557f67104afff960cb54e2d6d74b24aeefd8c2efeccad4e093bc0;
+const CONTRACT_ID = 0xa5c32c71e9e1ecb39b04182b4e8b0582d1685dea7accbee94dc3be867a68c93f;
 
 fn main() -> u64 {
     let addr = abi(TestContract, CONTRACT_ID);
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/asset_ops_test/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/asset_ops_test/src/main.sw
index 54c4d688835..6fd9a584687 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/asset_ops_test/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/asset_ops_test/src/main.sw
@@ -7,14 +7,14 @@ use std::constants::DEFAULT_SUB_ID;
 use test_fuel_coin_abi::*;
 
 #[cfg(experimental_new_encoding = false)]
-const FUEL_COIN_CONTRACT_ID = 0x9e84e7e3006c94d5e23545829dbc926f50f90c6809c6e599ecddbf9a119e8104;
+const FUEL_COIN_CONTRACT_ID = 0x4c7b43ef5a097d7cfb87600a4234e33311eeeeb8081e5ea7bb6d9a1f8555c9c4;
 #[cfg(experimental_new_encoding = true)]
-const FUEL_COIN_CONTRACT_ID = 0x47844008800c6f17ae24a30425094d733ca7a767cf2a915c8d5f73e3ff8f952b;
+const FUEL_COIN_CONTRACT_ID = 0x5ad3dfd3def1db21312d64d274ec34924fc62b8126be51b8000b0c20a953c27a;
 
 #[cfg(experimental_new_encoding = false)]
-const BALANCE_CONTRACT_ID = 0x3b8cb681056f61a41e138b8884d7e3bb9332fbd7a8e38e3e0b0ada766cabfa4e;
+const BALANCE_CONTRACT_ID = 0x3120fdd1b99c0c611308aff43a99746cc2c661c69c22aa56331d5f3ce5534ee9;
 #[cfg(experimental_new_encoding = true)]
-const BALANCE_CONTRACT_ID = 0xd354c2c31bb641863d03eaf320488ae276386ce60ef2e561258efef617dab462;
+const BALANCE_CONTRACT_ID = 0x2393ab4d437acea9f3e916ddd728218ac2dca45dcfabe3b2fe83926a4dc0e737;
 
 fn main() -> bool {
     let default_gas = 1_000_000_000_000;
@@ -65,4 +65,4 @@ fn main() -> bool {
     assert(balance_test_contract_balance == 3);
 
     true
-}
\ No newline at end of file
+}
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/bal_opcode/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/bal_opcode/src/main.sw
index 669dbde79ec..ab4a296d77b 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/bal_opcode/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/bal_opcode/src/main.sw
@@ -3,9 +3,9 @@ script;
 use balance_test_abi::BalanceTest;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0x3b8cb681056f61a41e138b8884d7e3bb9332fbd7a8e38e3e0b0ada766cabfa4e;
+const CONTRACT_ID = 0x3120fdd1b99c0c611308aff43a99746cc2c661c69c22aa56331d5f3ce5534ee9;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0xd354c2c31bb641863d03eaf320488ae276386ce60ef2e561258efef617dab462;
+const CONTRACT_ID = 0x2393ab4d437acea9f3e916ddd728218ac2dca45dcfabe3b2fe83926a4dc0e737;
 
 fn main() -> bool {
     let balance_test_contract = abi(BalanceTest, CONTRACT_ID);
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_basic_storage/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_basic_storage/src/main.sw
index 0dc56193dd0..feaae60bdad 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_basic_storage/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_basic_storage/src/main.sw
@@ -2,9 +2,9 @@ script;
 use basic_storage_abi::{BasicStorage, Quad};
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0x5c0aef0c1af7601aa6b9fa0fc9efff0e956dcb93f855788222e172e67e717072;
+const CONTRACT_ID = 0x044ab65bcabeebb73c88d8625ce392224c613cb1dae21ebedaa36bf6db1f5f4e;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0x37cdef21aab78b40f27486172cd39a320539de08b625e22d877e2bed6b826250;
+const CONTRACT_ID = 0x70ea1e451bfa81030215e245f8644aef00043b50c16da4c5ab91fd32ff89a9d1;
 
 fn main() -> u64 {
     let addr = abi(BasicStorage, CONTRACT_ID);
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_contract_with_type_aliases/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_contract_with_type_aliases/src/main.sw
index 0c50f4426bd..5616f3c76e5 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_contract_with_type_aliases/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_contract_with_type_aliases/src/main.sw
@@ -3,9 +3,9 @@ script;
 use contract_with_type_aliases_abi::*;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0x9d76ecbf446c30ef659efd1157d67d156de02b1e6c2ac2f9c744125571efa229;
+const CONTRACT_ID = 0x0cbeb6efe3104b460be769bdc4ea101ebf16ccc16f2d7b667ec3e1c7f5ce35b5;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0x4c4bd277507ce1d47cbe793a8db2255ed44da30acacedb5e6aa565f7417ad3c8;
+const CONTRACT_ID = 0x9e03072a3f094ed4b5af0ca6e1c244bafe8ded847d2c04aab331a9236ae7166a;
 
 fn main() {
     let caller = abi(MyContract, CONTRACT_ID);
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_storage_enum/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_storage_enum/src/main.sw
index e639bea8ab7..6828d464e35 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_storage_enum/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/call_storage_enum/src/main.sw
@@ -3,9 +3,9 @@ script;
 use storage_enum_abi::*;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0x0436d54f976e2dee0d77c81abc0d32cc7be985d8e0c97eeba27acd1caffdcea1;
+const CONTRACT_ID = 0x0d2d9546e833c166b64a340f5694fa01ca6bb53c3ec681d6c1ade1b9c0a2bf46;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0xb19179a1379ccc402a3913d5cbaffd13ce7599218b6010b54ffaf22bca68fcf1;
+const CONTRACT_ID = 0x53d4ee67238f0fbbcd2cdf1eff3115da320f3e893c70925d0f05b8cac72dd987;
 
 fn main() -> u64 {
     let caller = abi(StorageEnum, CONTRACT_ID);
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_auth_test/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_auth_test/src/main.sw
index 616d5006d87..b905255791b 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_auth_test/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_auth_test/src/main.sw
@@ -3,9 +3,9 @@ script;
 use auth_testing_abi::AuthTesting;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0xd7ef57c654a7e52ee8b85f34c64fa2f8e1a250eceb446cfe9805b175a0a7680f;
+const CONTRACT_ID = 0xc2eec20491b53aab7232cbd27c31d15417b4e9daf0b89c74cc242ef1295f681f;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0xe453d2444c24bc0972b7a9cd25bdaaacc501bc2cef9e0aa577fffb5984e068f5;
+const CONTRACT_ID = 0xd0b3be215b9f4f9a49af510c8a4f0b1f43ba640a73c6b6ea8a68a37fe71a27af;
 
 // should be false in the case of a script
 fn main() -> bool {
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_context_test/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_context_test/src/main.sw
index 0e892763512..5ea832f9d4d 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_context_test/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/caller_context_test/src/main.sw
@@ -4,9 +4,9 @@ use core::codec::*;
 use context_testing_abi::*;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0xe83ed45906627117f00f60e47140c6100b4b69133389a2dafd35bc3282329385;
+const CONTRACT_ID = 0xc2ec2a4a1b20475700e6793c7f20ad8082294894242b17cf08b5fd7c0d3968ad;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0xf94d4eb2fb56ff3a5b85d6b853a6ea874846b22d71005611b95ed9aefc65b160;
+const CONTRACT_ID = 0xc3ad47dc59ab201f60a87428fbcecdde4f33b0b31eb3aee6670ea924c6fd82fa;
 
 fn main() -> bool {
     let gas: u64 = u64::max();
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/nested_struct_args_caller/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/nested_struct_args_caller/src/main.sw
index 6a4291b741f..d114da650b3 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/nested_struct_args_caller/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/nested_struct_args_caller/src/main.sw
@@ -3,9 +3,9 @@ script;
 use nested_struct_args_abi::*;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0xc615be7b48402210cbec3bc1667ab5a8093d449d5d8d1fdcc26e6f18e7942ea9;
+const CONTRACT_ID = 0x64390eb0cac08d41b6476ad57d711b88846ea35ac800d4fc3c95a551e4039432;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0x8341183f70e4b6a4750b2e5806c2146e4b78d6873fed172767718deb206e3d24;
+const CONTRACT_ID = 0xf12a88781f67f3ce2cdb4994e3571a6b42176c9ce63e3fdeb0247b1f319a8d83;
 
 fn main() -> bool {
     let caller = abi(NestedStructArgs, CONTRACT_ID);
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/storage_access_caller/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/storage_access_caller/src/main.sw
index 2a031d2ca34..3528b245c47 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/storage_access_caller/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/require_contract_deployment/storage_access_caller/src/main.sw
@@ -4,9 +4,9 @@ use storage_access_abi::*;
 use std::hash::*;
 
 #[cfg(experimental_new_encoding = false)]
-const CONTRACT_ID = 0x0a58692bee60559887f0ac181c8a3b14ffb7a3a66256eec3f08e3135bfbecac9;
+const CONTRACT_ID = 0x88732a14508defea37a44d0b0ae9af5c776253215180a1c3288f8d504ebb84db;
 #[cfg(experimental_new_encoding = true)]
-const CONTRACT_ID = 0x8ae216e6df492a4a983c34c5871bbe84c6aafa70fa25f1d76b771d8c8a72a1d7;
+const CONTRACT_ID = 0xdebe2a83a36d9201ec836181ee0e013d6279a1a96dd039f7f701940d83b728e9;
 
 fn main() -> bool {
     let caller = abi(StorageAccess, CONTRACT_ID);
diff --git a/test/src/e2e_vm_tests/test_programs/should_pass/unit_tests/workspace_test/contract_multi_test/src/main.sw b/test/src/e2e_vm_tests/test_programs/should_pass/unit_tests/workspace_test/contract_multi_test/src/main.sw
index 32addc600e2..9aead2df36a 100644
--- a/test/src/e2e_vm_tests/test_programs/should_pass/unit_tests/workspace_test/contract_multi_test/src/main.sw
+++ b/test/src/e2e_vm_tests/test_programs/should_pass/unit_tests/workspace_test/contract_multi_test/src/main.sw
@@ -17,7 +17,7 @@ fn test_foo() {
 
 #[test(should_revert)]
 fn test_fail() {
-    let contract_id = 0x535d1bbf19a6c7e5e2e2906d09b8c959bd211391e7a3c7602c5dab0455f78305;
+    let contract_id = 0xed94087f1dea86a4590624880f80e97522daedb48a2398a37f6aa039599715ef;
     let caller = abi(MyContract, contract_id);
     let result = caller.test_function {}();
     assert(result == false)
@@ -25,7 +25,7 @@ fn test_fail() {
 
 #[test]
 fn test_success() {
-    let contract_id = 0x535d1bbf19a6c7e5e2e2906d09b8c959bd211391e7a3c7602c5dab0455f78305;
+    let contract_id = 0xed94087f1dea86a4590624880f80e97522daedb48a2398a37f6aa039599715ef;
     let caller = abi(MyContract, contract_id);
     let result = caller.test_function {}();
     assert(result == true)