diff --git a/.coveragerc b/.coveragerc
deleted file mode 100644
index d637030a4a..0000000000
--- a/.coveragerc
+++ /dev/null
@@ -1,40 +0,0 @@
-# .coveragerc to control coverage.py
-[run]
-source = linearmodels
-branch = True
-omit =
-    */results/*
-    */_version.py
-    */conftest.py
-
-[report]
-# Regexes for lines to exclude from consideration
-exclude_lines =
-    # Have to re-enable the standard pragma
-    pragma: no cover
-
-    # Don't complain if tests don't hit defensive assertion code:
-    raise AssertionError
-    raise NotImplementedError
-    except NotImplementedError
-    raise ImportError
-
-    # Ignore failure messages
-    pytest.xfail
-    # Ignore ImportError protection
-    except ImportError
-
-    # Ignore pass
-    pass
-
-    # Don't complain if non-runnable code isn't run:
-    if 0:
-    if __name__ == .__main__.:
-
-    # Ignore type checking code
-    if TYPE_CHECKING
-
-    # Cython function declarations
-    cdef
-
-ignore_errors = True
diff --git a/ci/azure_template_posix.yml b/ci/azure_template_posix.yml
index 55ee539a23..0e5bf7da24 100644
--- a/ci/azure_template_posix.yml
+++ b/ci/azure_template_posix.yml
@@ -23,7 +23,7 @@ jobs:
         PANDAS: 1.3.0
         STATSMODELS: 0.13.1
         XARRAY: 0.21.0
-        FORMULAIC: 1.0.2
+        FORMULAIC: 1.2.1
         test.wheel: true
       python310_mid_sdist:
         python.version: '3.10'
@@ -33,7 +33,7 @@ jobs:
         STATSMODELS: 0.13.1
         XARRAY: 2022.6.0
         XXHASH: true
-        FORMULAIC: 1.0.2
+        FORMULAIC: 1.2.1
         test.sdist: true
       python310_recent_wheel:
         python.version: '3.10'
@@ -42,16 +42,13 @@ jobs:
         PANDAS: 2.0.0
         STATSMODELS: 0.14.0
         XARRAY: 2023.4.0
-        FORMULAIC: 1.1.0
+        FORMULAIC: 1.2.1
         test.wheel: true
       python310_latest:
         python.version: '3.10'
-        FORMULAIC: 1.2.0
+        FORMULAIC: 1.2.1
         XXHASH: true
         PYARROW: true
-      python310_no_cython:
-        python.version: '3.10'
-        BUILD_FLAGS: '-Csetup-args=-Dno-binary=true'
       python311_latest:
         python.version: '3.11'
         XXHASH: true
@@ -60,6 +57,11 @@ jobs:
         python.version: '3.12'
         XXHASH: true
         PYARROW: true
+      python312_latest_no_binary:
+        python.version: '3.12'
+        XXHASH: true
+        PYARROW: true
+        BUILD_FLAGS: '-Csetup-args=-Dno-binary=true'
       python313_latest:
         python.version: '3.13'
         XXHASH: true
@@ -69,8 +71,8 @@ jobs:
         python.version: '3.12'
         XXHASH: true
         LM_TEST_COPY_ON_WRITE: 1
-      python312_pre:
-        python.version: '3.12'
+      python313_pre:
+        python.version: '3.13'
         pip.pre: true
     maxParallel: 10
 
@@ -119,8 +121,8 @@ jobs:
     condition: eq(variables['test.wheel'], 'true')
 
   - script: |
-      echo python -m pip install --no-build-isolation -vv -e . ${FLAGS}
-      python -m pip install --no-build-isolation -vv -e . ${FLAGS}
+      echo python -m pip install --no-build-isolation -vv -e . ${BUILD_FLAGS}
+      python -m pip install --no-build-isolation -vv -e . ${BUILD_FLAGS}
     displayName: 'Install linearmodels (editable)'
     condition: and(ne(variables['test.wheel'], 'true'), ne(variables['test.sdist'], 'true'))
 
@@ -135,21 +137,17 @@ jobs:
 
   - script: |
       echo "Testing editable install"
-      if [[ ${COVERAGE} == "true" ]]; then
-        export COVERAGE_OPTS="--cov=linearmodels --cov-report xml:coverage.xml --cov-report term"
-      fi
-      echo pytest -m "${PYTEST_PATTERN}" --junitxml=junit/test-results.xml -n auto --durations=25 ${COVERAGE_OPTS} linearmodels/tests
+      export COVERAGE_OPTS="--cov=linearmodels --cov-report xml:coverage.xml --cov-report term"
+      echo pytest -m "${PYTEST_PATTERN}" --junitxml=junit/test-results.xml -n auto --durations=25 ${COVERAGE_OPTS} ${BUILD_FLAGS} linearmodels/tests 
       pytest -m "${PYTEST_PATTERN}" --junitxml=junit/test-results.xml -n auto --durations=25 ${COVERAGE_OPTS} linearmodels/tests
     displayName: 'Run tests (editable)'
     condition: and(and(ne(variables['test.wheel'], 'true'), ne(variables['test.sdist'], 'true')), ne(variables['pip.pre'], 'true'))
 
   - script: |
       echo "Testing pip-pre"
-      if [[ ${COVERAGE} == "true" ]]; then
-        export COVERAGE_OPTS="--cov-config .coveragerc --cov=linearmodels --cov-report xml:coverage.xml --cov-report term"
-      fi
-      echo pytest -m "${PYTEST_PATTERN}" --junitxml=junit/test-results.xml -n auto --durations=25 ${COVERAGE_OPTS} linearmodels/tests
-      pytest -m "${PYTEST_PATTERN}" --junitxml=junit/test-results.xml -n auto --durations=25 ${COVERAGE_OPTS} linearmodels/tests
+      export COVERAGE_OPTS="--cov=linearmodels --cov-report xml:coverage.xml --cov-report term"
+      echo pytest -m "${PYTEST_PATTERN}" --junitxml=junit/test-results.xml -n auto --durations=25 ${COVERAGE_OPTS} ${BUILD_FLAGS} linearmodels/tests
+      pytest -m "${PYTEST_PATTERN}" --junitxml=junit/test-results.xml -n auto --durations=25 ${COVERAGE_OPTS}  linearmodels/tests
     displayName: 'Run tests (pip pre)'
     condition: eq(variables['pip.pre'], 'true')
     continueOnError: true
@@ -163,11 +161,11 @@ jobs:
   - task: PublishCodeCoverageResults@2
     inputs:
       summaryFileLocation: '$(System.DefaultWorkingDirectory)/**/coverage.xml'
-    condition: and(eq(variables['coverage'], 'true'), ne(variables['test.install'], 'true'))
+    condition: and(ne(variables['test.sdist'], 'true'), ne(variables['test.wheel'], 'true'))
 
   - script: |
       curl -Os https://uploader.codecov.io/latest/linux/codecov
       chmod +x codecov
       ./codecov -f coverage.xml -F adder -F subtractor
     displayName: 'Codecov upload'
-    condition: and(eq(variables['coverage'], 'true'), ne(variables['test.install'], 'true'))
+    condition: and(ne(variables['test.sdist'], 'true'), ne(variables['test.wheel'], 'true'))
diff --git a/linearmodels/meson.build b/linearmodels/meson.build
index cdbdc40576..b520c16e9e 100644
--- a/linearmodels/meson.build
+++ b/linearmodels/meson.build
@@ -29,7 +29,6 @@ inc_np = include_directories(incdir_numpy, is_system: true)
 # Copy the main __init__.py to the build dir.
 # Some submodules (linalg, special, optimize) add pxd files to this.
 # Needed to trick Cython, it won't do a relative import outside a package
-_cython_tree = [fs.copyfile('__init__.py')]
 cython_args = [
     '-Xcpow=True',
     '-Xboundscheck=False',
diff --git a/linearmodels/tests/panel/test_data.py b/linearmodels/tests/panel/test_data.py
index 1a8b118abb..8c543c7bd5 100644
--- a/linearmodels/tests/panel/test_data.py
+++ b/linearmodels/tests/panel/test_data.py
@@ -656,7 +656,7 @@ def test_general_demean_oneway(mi_df):
     dm1 = y.demean("time")
     g = DataFrame(y.time_ids, index=y.index)
     dm2 = y.general_demean(g)
-    assert_allclose(dm1.values2d, dm2.values2d)
+    assert_allclose(dm1.values2d, dm2.values2d, atol=1e-10)
 
     g = DataFrame(np.random.randint(0, 10, g.shape), index=y.index)
     dm2 = y.general_demean(g)
@@ -672,7 +672,7 @@ def test_general_demean_twoway(mi_df):
     g = DataFrame(y.entity_ids, index=y.index)
     g["column2"] = Series(y.time_ids.squeeze(), index=y.index)
     dm2 = y.general_demean(g)
-    assert_allclose(dm1.values2d, dm2.values2d)
+    assert_allclose(dm1.values2d, dm2.values2d, atol=1e-10)
 
     g = DataFrame(np.random.randint(0, 10, g.shape), index=y.index)
     dm2 = y.general_demean(g)
@@ -692,16 +692,16 @@ def test_general_unit_weighted_demean_oneway(mi_df):
     weights = PanelData(g).copy()
     weights.dataframe.iloc[:, :] = 1
     dm2 = y.general_demean(g, weights)
-    assert_allclose(dm1.values2d, dm2.values2d)
+    assert_allclose(dm1.values2d, dm2.values2d, atol=1e-10)
     dm3 = y.general_demean(g)
-    assert_allclose(dm3.values2d, dm2.values2d)
+    assert_allclose(dm3.values2d, dm2.values2d, atol=1e-10)
 
     dm1 = y.demean("time")
     g = PanelData(DataFrame(y.time_ids, index=y.index))
     dm2 = y.general_demean(g, weights)
-    assert_allclose(dm1.values2d, dm2.values2d)
+    assert_allclose(dm1.values2d, dm2.values2d, atol=1e-10)
     dm3 = y.general_demean(g)
-    assert_allclose(dm3.values2d, dm2.values2d)
+    assert_allclose(dm3.values2d, dm2.values2d, atol=1e-10)
 
     g = PanelData(DataFrame(np.random.randint(0, 10, g.dataframe.shape), index=y.index))
     dm2 = y.general_demean(g, weights)
@@ -709,7 +709,7 @@ def test_general_unit_weighted_demean_oneway(mi_df):
     g = Categorical(g.dataframe.iloc[:, 0])
     d = get_dummies(g)
     dm1 = y.values2d - d @ lstsq(d, y.values2d, rcond=None)[0]
-    assert_allclose(dm1, dm2.values2d)
+    assert_allclose(dm1, dm2.values2d, atol=1e-10)
     assert_allclose(dm3.values2d, dm2.values2d, atol=1e-10)
 
 
@@ -723,12 +723,12 @@ def test_general_weighted_demean_oneway(mi_df):
     dm1 = y.demean("entity", weights=w)
     g = PanelData(DataFrame(y.entity_ids, index=y.index))
     dm2 = y.general_demean(g, w)
-    assert_allclose(dm1.values2d, dm2.values2d)
+    assert_allclose(dm1.values2d, dm2.values2d, atol=1e-10)
 
     dm1 = y.demean("time", weights=w)
     g = PanelData(DataFrame(y.time_ids, index=y.index))
     dm2 = y.general_demean(g, w)
-    assert_allclose(dm1.values2d, dm2.values2d)
+    assert_allclose(dm1.values2d, dm2.values2d, atol=1e-10)
 
     g = PanelData(DataFrame(np.random.randint(0, 10, g.dataframe.shape), index=y.index))
     dm2 = y.general_demean(g, w)
diff --git a/requirements.txt b/requirements.txt
index 4b23ebff52..01274e83b4 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -5,3 +5,4 @@ statsmodels>=0.13.0
 mypy_extensions>=0.4
 pyhdfe>=0.1
 formulaic>=1.0.2
+wrapt!=2.0.0rc3
\ No newline at end of file