diff --git a/src/vs/workbench/services/extensionManagement/browser/builtinExtensionsScannerService.ts b/src/vs/workbench/services/extensionManagement/browser/builtinExtensionsScannerService.ts
index aabedd44faf..7e2a73a6528 100644
--- a/src/vs/workbench/services/extensionManagement/browser/builtinExtensionsScannerService.ts
+++ b/src/vs/workbench/services/extensionManagement/browser/builtinExtensionsScannerService.ts
@@ -68,7 +68,7 @@ export class BuiltinExtensionsScannerService implements IBuiltinExtensionsScanne
 		if (environmentService.options && typeof environmentService.options._enableBuiltinExtensions !== 'undefined') {
 			enableBuiltinExtensions = environmentService.options._enableBuiltinExtensions;
 		} else {
-			enableBuiltinExtensions = environmentService.remoteAuthority ? false : true;
+			enableBuiltinExtensions = true;
 		}
 		if (enableBuiltinExtensions) {
 			return FileAccess.asBrowserUri('../../../../../../extensions', require);
diff --git a/src/vs/workbench/workbench.web.api.ts b/src/vs/workbench/workbench.web.api.ts
index ce3b88b5030..bd5d7c5a78c 100644
--- a/src/vs/workbench/workbench.web.api.ts
+++ b/src/vs/workbench/workbench.web.api.ts
@@ -324,7 +324,7 @@ interface IWorkbenchConstructionOptions {
 	/**
 	 * [TEMPORARY]: This will be removed soon.
 	 * Enable inlined extensions.
-	 * Defaults to false on serverful and true on serverless.
+	 * Defaults to true.
 	 */
 	readonly _enableBuiltinExtensions?: boolean;