diff --git a/cms/djangoapps/contentstore/views/preview.py b/cms/djangoapps/contentstore/views/preview.py
index b64a77ddb2..0d7e8786b4 100644
--- a/cms/djangoapps/contentstore/views/preview.py
+++ b/cms/djangoapps/contentstore/views/preview.py
@@ -212,7 +212,6 @@ def _preview_module_system(request, descriptor, field_data):
         # TODO (cpennington): Do we want to track how instructors are using the preview problems?
         track_function=lambda event_type, event: None,
         get_module=partial(_load_preview_module, request),
-        debug=True,
         mixins=settings.XBLOCK_MIXINS,
         course_id=course_id,
 
diff --git a/common/lib/xmodule/xmodule/capa_module.py b/common/lib/xmodule/xmodule/capa_module.py
index 250fd0974f..225d9aa46b 100644
--- a/common/lib/xmodule/xmodule/capa_module.py
+++ b/common/lib/xmodule/xmodule/capa_module.py
@@ -490,6 +490,15 @@ class ProblemBlock(
 
         return self.display_name
 
+    @property
+    def debug(self):
+        """
+        If CAPA block fails to render, we want course authors to be able to see
+        the error in Studio. At the same time, in production, we don't want
+        to show errors to students.
+        """
+        return getattr(self.runtime, 'is_author_mode', False) or settings.DEBUG
+
     @classmethod
     def filter_templates(cls, template, course):
         """
@@ -825,7 +834,7 @@ class ProblemBlock(
             cache=cache_service,
             can_execute_unsafe_code=sandbox_service.can_execute_unsafe_code,
             get_python_lib_zip=sandbox_service.get_python_lib_zip,
-            DEBUG=self.runtime.DEBUG,
+            DEBUG=self.debug,
             i18n=self.runtime.service(self, "i18n"),
             render_template=self.runtime.service(self, 'mako').render_template,
             resources_fs=self.runtime.resources_fs,
@@ -1060,8 +1069,7 @@ class ProblemBlock(
             str(err)
         )
 
-        # TODO (vshnayder): another switch on DEBUG.
-        if self.runtime.DEBUG:
+        if self.debug:
             msg = HTML(
                 '[courseware.capa.capa_module] '
                 'Failed to generate HTML for problem {url}'
@@ -1777,7 +1785,7 @@ class ProblemBlock(
             self.set_last_submission_time()
 
         except (StudentInputError, ResponseError, LoncapaProblemError) as inst:
-            if self.runtime.DEBUG:
+            if self.debug:
                 log.warning(
                     "StudentInputError in capa_module:problem_check",
                     exc_info=True
@@ -1811,7 +1819,7 @@ class ProblemBlock(
             self.set_state_from_lcp()
             self.set_score(self.score_from_lcp(self.lcp))
 
-            if self.runtime.DEBUG:
+            if self.debug:
                 msg = f"Error checking problem: {str(err)}"
                 msg += f'\nTraceback:\n{traceback.format_exc()}'
                 return {'success': msg}
diff --git a/common/lib/xmodule/xmodule/lti_2_util.py b/common/lib/xmodule/xmodule/lti_2_util.py
index 17dfe680c0..3829139b7b 100644
--- a/common/lib/xmodule/xmodule/lti_2_util.py
+++ b/common/lib/xmodule/xmodule/lti_2_util.py
@@ -12,6 +12,7 @@ import re
 from unittest import mock
 from urllib import parse
 
+from django.conf import settings
 from oauthlib.oauth1 import Client
 from webob import Response
 from xblock.core import XBlock
@@ -63,7 +64,7 @@ class LTI20BlockMixin:
         Returns:
             webob.response:  response to this request.  See above for details.
         """
-        if self.system.debug:
+        if settings.DEBUG:
             self._log_correct_authorization_header(request)
 
         if not self.accept_grades_past_due and self.is_past_due():
diff --git a/common/lib/xmodule/xmodule/tests/__init__.py b/common/lib/xmodule/xmodule/tests/__init__.py
index 206784dc24..0925073099 100644
--- a/common/lib/xmodule/xmodule/tests/__init__.py
+++ b/common/lib/xmodule/xmodule/tests/__init__.py
@@ -153,7 +153,6 @@ def get_test_system(
         static_url='/static',
         track_function=Mock(name='get_test_system.track_function'),
         get_module=get_module,
-        debug=True,
         hostname="edx.org",
         services={
             'user': user_service,
diff --git a/common/lib/xmodule/xmodule/tests/test_capa_module.py b/common/lib/xmodule/xmodule/tests/test_capa_module.py
index 26ff575f81..41acc05a93 100644
--- a/common/lib/xmodule/xmodule/tests/test_capa_module.py
+++ b/common/lib/xmodule/xmodule/tests/test_capa_module.py
@@ -17,6 +17,7 @@ import ddt
 import requests
 import webob
 from codejail.safe_exec import SafeExecException
+from django.test import override_settings
 from django.utils.encoding import smart_str
 from edx_user_state_client.interface import XBlockUserState
 from lxml import etree
@@ -961,6 +962,7 @@ class ProblemBlockTest(unittest.TestCase):  # lint-amnesty, pylint: disable=miss
             # but that this was considered the second attempt for grading purposes
             assert module.lcp.context['attempt'] == 2
 
+    @override_settings(DEBUG=True)
     def test_submit_problem_other_errors(self):
         """
         Test that errors other than the expected kinds give an appropriate message.
@@ -970,9 +972,6 @@ class ProblemBlockTest(unittest.TestCase):  # lint-amnesty, pylint: disable=miss
         # Create the module
         module = CapaFactory.create(attempts=1, user_is_staff=False)
 
-        # Ensure that DEBUG is on
-        module.system.DEBUG = True
-
         # Simulate answering a problem that raises the exception
         with patch('capa.capa_problem.LoncapaProblem.grade_answers') as mock_grade:
             error_msg = "Superterrible error happened: ☠"
@@ -1711,9 +1710,6 @@ class ProblemBlockTest(unittest.TestCase):  # lint-amnesty, pylint: disable=miss
         # is asked to render itself as HTML
         module.lcp.get_html = Mock(side_effect=Exception("Test"))
 
-        # Turn off DEBUG
-        module.system.DEBUG = False
-
         # Try to render the module with DEBUG turned off
         html = module.get_problem_html()
 
@@ -1727,6 +1723,31 @@ class ProblemBlockTest(unittest.TestCase):  # lint-amnesty, pylint: disable=miss
         # Expect that the module has created a new dummy problem with the error
         assert original_problem != module.lcp
 
+    def test_get_problem_html_error_preview(self):
+        """
+        Test the html response when an error occurs with DEBUG off in Studio.
+        """
+        render_template = Mock(return_value="<div>Test Template HTML</div>")
+        module = CapaFactory.create(render_template=render_template)
+
+        # Simulate throwing an exception when the capa problem
+        # is asked to render itself as HTML
+        error_msg = "Superterrible error happened: ☠"
+        module.lcp.get_html = Mock(side_effect=Exception(error_msg))
+
+        module.system.is_author_mode = True
+
+        # Try to render the module with the author mode turned on
+        html = module.get_problem_html()
+
+        assert html is not None
+
+        # Check the rendering context
+        render_args, _ = render_template.call_args
+        context = render_args[1]
+        assert error_msg in context['problem']['html']
+
+    @override_settings(DEBUG=True)
     def test_get_problem_html_error_w_debug(self):
         """
         Test the html response when an error occurs with DEBUG on
@@ -1739,9 +1760,6 @@ class ProblemBlockTest(unittest.TestCase):  # lint-amnesty, pylint: disable=miss
         error_msg = "Superterrible error happened: ☠"
         module.lcp.get_html = Mock(side_effect=Exception(error_msg))
 
-        # Make sure DEBUG is on
-        module.system.DEBUG = True
-
         # Try to render the module with DEBUG turned on
         html = module.get_problem_html()
 
diff --git a/common/lib/xmodule/xmodule/x_module.py b/common/lib/xmodule/xmodule/x_module.py
index ffc6a58ff9..ef5072c9bb 100644
--- a/common/lib/xmodule/xmodule/x_module.py
+++ b/common/lib/xmodule/xmodule/x_module.py
@@ -1637,7 +1637,7 @@ class ModuleSystem(MetricsMixin, ConfigurableFragmentWrapper, ModuleSystemShim,
 
     def __init__(
             self, static_url, track_function, get_module,
-            descriptor_runtime, debug=False, hostname="", publish=None,
+            descriptor_runtime, hostname="", publish=None,
             course_id=None, error_descriptor_class=None,
             field_data=None, rebind_noauth_module_to_user=None,
             **kwargs):
@@ -1678,7 +1678,6 @@ class ModuleSystem(MetricsMixin, ConfigurableFragmentWrapper, ModuleSystemShim,
         self.STATIC_URL = static_url
         self.track_function = track_function
         self.get_module = get_module
-        self.DEBUG = self.debug = debug
         self.HOSTNAME = self.hostname = hostname
         self.course_id = course_id
 
diff --git a/lms/djangoapps/courseware/module_render.py b/lms/djangoapps/courseware/module_render.py
index 4d7ad48c79..9b1e7bc618 100644
--- a/lms/djangoapps/courseware/module_render.py
+++ b/lms/djangoapps/courseware/module_render.py
@@ -729,7 +729,6 @@ def get_module_system_for_user(
         static_url=settings.STATIC_URL,
         get_module=inner_get_module,
         user=user,
-        debug=settings.DEBUG,
         hostname=settings.SITE_NAME,
         publish=publish,
         course_id=course_id,
diff --git a/openedx/core/djangoapps/xblock/runtime/shims.py b/openedx/core/djangoapps/xblock/runtime/shims.py
index 637ce63cda..5225d249c5 100644
--- a/openedx/core/djangoapps/xblock/runtime/shims.py
+++ b/openedx/core/djangoapps/xblock/runtime/shims.py
@@ -97,14 +97,6 @@ class RuntimeShim:
         # TODO: Refactor capa to access this directly, don't bother the runtime. Then remove it from here.
         return False  # Change this if/when we need to support unsafe courses in the new runtime.
 
-    @property
-    def DEBUG(self):
-        """
-        Should DEBUG mode (?) be used? This flag is only read by capa.
-        """
-        # TODO: Refactor capa to access this directly, don't bother the runtime. Then remove it from here.
-        return False
-
     def get_python_lib_zip(self):
         """
         A function returning a bytestring or None. The bytestring is the
diff --git a/requirements/edx/base.in b/requirements/edx/base.in
index 703fc0ee97..4f834e95d4 100644
--- a/requirements/edx/base.in
+++ b/requirements/edx/base.in
@@ -109,7 +109,7 @@ ipaddress                           # Ip network support for Embargo feature
 jsonfield                           # Django model field for validated JSON; used in several apps
 laboratory                          # Library for testing that code refactors/infrastructure changes produce identical results
 lxml                                # XML parser
-lti-consumer-xblock>=4.1.0
+lti-consumer-xblock>=4.1.1
 mailsnake                           # Needed for mailchimp (mailing djangoapp)
 mako                                # Primary template language used for server-side page rendering
 Markdown                            # Convert text markup to HTML; used in capa problems, forums, and course wikis