diff --git a/.vscode/settings.json b/.vscode/settings.json
index bfb8f5e3e9a..d9aeed84432 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -210,6 +210,5 @@
 	],
 	"azureMcp.serverMode": "all",
 	"azureMcp.readOnly": true,
-	"chat.tools.terminal.outputLocation": "chat",
 	"debug.breakpointsView.presentation": "tree"
 }