diff --git a/agent/proxycfg/state.go b/agent/proxycfg/state.go
index b30db1b305..71e2182e29 100644
--- a/agent/proxycfg/state.go
+++ b/agent/proxycfg/state.go
@@ -336,6 +336,7 @@ func (s *state) initWatchesConnectProxy(snap *ConfigSnapshot) error {
 		// Store defaults keyed under wildcard so they can be applied to centrally configured upstreams
 		if u.DestinationName == structs.WildcardSpecifier {
 			snap.ConnectProxy.UpstreamConfig[u.DestinationID().String()] = &u
+			continue
 		}
 
 		// This can be true if the upstream is a synthetic entry populated from centralized upstream config.
diff --git a/agent/structs/structs.go b/agent/structs/structs.go
index 55f5e68751..ec1082cc7c 100644
--- a/agent/structs/structs.go
+++ b/agent/structs/structs.go
@@ -1153,7 +1153,7 @@ func (s *NodeService) Validate() error {
 				"Proxy.DestinationServiceName must be non-empty for Connect proxy "+
 					"services"))
 		}
-		if strings.TrimSpace(s.Proxy.DestinationServiceName) == WildcardSpecifier {
+		if s.Proxy.DestinationServiceName == WildcardSpecifier {
 			result = multierror.Append(result, fmt.Errorf(
 				"Proxy.DestinationServiceName must not be a wildcard for Connect proxy "+
 					"services"))