diff --git a/requirements.txt b/requirements.txt
--- a/requirements.txt
+++ b/requirements.txt
@@ -31,10 +31,10 @@ dulwich==0.21.6
   urllib3==1.26.14
 gunicorn==21.2.0
   packaging==24.0
-hg-evolve==11.0.2
+hg-evolve==11.1.3
 importlib-metadata==6.0.0
   zipp==3.15.0
-mercurial==6.3.3
+mercurial==6.7.4
 more-itertools==9.1.0
 msgpack==1.0.8
 orjson==3.10.3
diff --git a/vcsserver/hgcompat.py b/vcsserver/hgcompat.py
--- a/vcsserver/hgcompat.py
+++ b/vcsserver/hgcompat.py
@@ -56,7 +56,7 @@ from mercurial.node import bin, hex
 from mercurial.encoding import tolocal
 from mercurial.discovery import findcommonoutgoing
 from mercurial.hg import peer
-from mercurial.httppeer import makepeer
+from mercurial.httppeer import make_peer
 from mercurial.utils.urlutil import url as hg_url
 from mercurial.scmutil import revrange, revsymbol
 from mercurial.node import nullrev
diff --git a/vcsserver/remote/hg_remote.py b/vcsserver/remote/hg_remote.py
--- a/vcsserver/remote/hg_remote.py
+++ b/vcsserver/remote/hg_remote.py
@@ -31,6 +31,7 @@ from mercurial import unionrepo
 from mercurial import verify
 from mercurial import repair
 from mercurial.error import AmbiguousPrefixLookupError
+from mercurial.utils.urlutil import path as hg_path
 
 import vcsserver
 from vcsserver import exceptions
@@ -54,7 +55,7 @@ from vcsserver.hgcompat import (
     hg_url as url_parser,
     httpbasicauthhandler,
     httpdigestauthhandler,
-    makepeer,
+    make_peer,
     instance,
     match,
     memctx,
@@ -521,8 +522,10 @@ class HgRemote(RemoteBase):
                 # check for pure hg repos
                 log.debug(
                     "Verifying if URL is a Mercurial repository: %s", obfuscated_uri)
+                # Create repo path with custom mercurial path object
                 ui = make_ui_from_config(config)
-                peer_checker = makepeer(ui, safe_bytes(url))
+                repo_path = hg_path(ui=ui, rawloc=safe_bytes(test_uri))
+                peer_checker = make_peer(ui, repo_path, False)
                 peer_checker.lookup(b'tip')
         except Exception as e:
             log.warning("URL is not a valid Mercurial repository: %s",
@@ -1038,7 +1041,7 @@ class HgRemote(RemoteBase):
 
         # Mercurial internally has a lot of logic that checks ONLY if
         # option is defined, we just pass those if they are defined then
-        opts = {}
+        opts = {"remote_hidden": False}
 
         if bookmark:
             opts['bookmark'] = [safe_bytes(x) for x in bookmark] \