diff --git a/dvc/repo/index.py b/dvc/repo/index.py
index 265e4278f8..da8c03bf02 100644
--- a/dvc/repo/index.py
+++ b/dvc/repo/index.py
@@ -670,7 +670,7 @@ def build_data_index(  # noqa: C901
                 hash_name=hash_name,
             )
         except FileNotFoundError:
-            continue
+            out_entry = DataIndexEntry()
 
         out_entry.key = key
         data.add(out_entry)
diff --git a/pyproject.toml b/pyproject.toml
index 4f72a85724..3e7202e0c0 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -34,7 +34,7 @@ dependencies = [
     "configobj>=5.0.6",
     "distro>=1.3",
     "dpath<3,>=2.1.0",
-    "dvc-data>=1.8.0,<1.9.0",
+    "dvc-data>=1.9.0,<1.10.0",
     "dvc-http>=2.29.0",
     "dvc-render>=0.3.1,<1",
     "dvc-studio-client>=0.9.2,<1",