diff --git a/torchrec/distributed/train_pipeline/train_pipelines.py b/torchrec/distributed/train_pipeline/train_pipelines.py
index f7b94b37b..2da7c3e86 100644
--- a/torchrec/distributed/train_pipeline/train_pipelines.py
+++ b/torchrec/distributed/train_pipeline/train_pipelines.py
@@ -269,6 +269,7 @@ def progress(self, dataloader_iter: Iterator[In]) -> Out:
 
                 # Mandatory dynamo configuration for Torchrec PT2 compilation
                 torch._dynamo.config.capture_scalar_outputs = True
+                torch._dynamo.config.enable_trace_contextlib = False
                 torch._dynamo.config.capture_dynamic_output_shape_ops = True
                 torch._dynamo.config.force_unspec_int_unbacked_size_like_on_torchrec_kjt = (
                     True