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I sometimes have patched plugins in my IDE that lead to errors when Buckminster tries to install from there. I would like to switch it off because the resulting error messages are confusing ("Artifact X is a folder but the repository is an archive or remote location"). See newsgroup thread "ERROR [0002] : Artifact is a folder but the repository is an archive or remote location." for more details.
Don't know what you mean with "tries to install from there". Did you try setting buckminster.download.source=false ?