diff --git a/extensions/typescript/src/typescriptServiceClient.ts b/extensions/typescript/src/typescriptServiceClient.ts
index 91d2bc0085c..61df7b0ca43 100644
--- a/extensions/typescript/src/typescriptServiceClient.ts
+++ b/extensions/typescript/src/typescriptServiceClient.ts
@@ -183,7 +183,7 @@ export default class TypeScriptServiceClient implements ITypescriptServiceClient
 		this._apiVersion = API.defaultVersion;
 		this.tracer = new Tracer(this.logger);
 
-		this.disposables.push(workspace.onDidChangeConfiguration(() => {
+		workspace.onDidChangeConfiguration(() => {
 			const oldConfiguration = this.configuration;
 			this.configuration = TypeScriptServiceConfiguration.loadFromWorkspace();
 
@@ -199,7 +199,7 @@ export default class TypeScriptServiceClient implements ITypescriptServiceClient
 					this.restartTsServer();
 				}
 			}
-		}));
+		}, this, this.disposables);
 		this.telemetryReporter = new TelemetryReporter();
 		this.disposables.push(this.telemetryReporter);
 		this.startService();
diff --git a/extensions/typescript/src/utils/configuration.ts b/extensions/typescript/src/utils/configuration.ts
index 57c5c1a641a..df3a8943643 100644
--- a/extensions/typescript/src/utils/configuration.ts
+++ b/extensions/typescript/src/utils/configuration.ts
@@ -71,13 +71,10 @@ export class TypeScriptServiceConfiguration {
 	}
 
 	private static extractGlobalTsdk(configuration: WorkspaceConfiguration): string | null {
-		let inspect = configuration.inspect('typescript.tsdk');
+		const inspect = configuration.inspect('typescript.tsdk');
 		if (inspect && inspect.globalValue && 'string' === typeof inspect.globalValue) {
 			return inspect.globalValue;
 		}
-		if (inspect && inspect.defaultValue && 'string' === typeof inspect.defaultValue) {
-			return inspect.defaultValue;
-		}
 		return null;
 	}
 
diff --git a/extensions/typescript/src/utils/versionPicker.ts b/extensions/typescript/src/utils/versionPicker.ts
index 7f7270a359d..42ee8d5a6d1 100644
--- a/extensions/typescript/src/utils/versionPicker.ts
+++ b/extensions/typescript/src/utils/versionPicker.ts
@@ -31,7 +31,7 @@ export class TypeScriptVersionPicker {
 	) {
 		this._currentVersion = this.versionProvider.defaultVersion;
 
-		if (workspaceState.get<boolean>(useWorkspaceTsdkStorageKey, false)) {
+		if (this.useWorkspaceTsdkSetting) {
 			const localVersion = this.versionProvider.localVersion;
 			if (localVersion) {
 				this._currentVersion = localVersion;
@@ -39,6 +39,10 @@ export class TypeScriptVersionPicker {
 		}
 	}
 
+	public get useWorkspaceTsdkSetting(): boolean {
+		return this.workspaceState.get<boolean>(useWorkspaceTsdkStorageKey, false);
+	}
+
 	public get currentVersion(): TypeScriptVersion {
 		return this._currentVersion;
 	}
@@ -52,7 +56,7 @@ export class TypeScriptVersionPicker {
 
 		const shippedVersion = this.versionProvider.defaultVersion;
 		pickOptions.push({
-			label: (this.currentVersion.path === shippedVersion.path
+			label: (!this.useWorkspaceTsdkSetting
 				? '• '
 				: '') + localize('useVSCodeVersionOption', 'Use VS Code\'s Version'),
 			description: shippedVersion.versionString,
@@ -62,7 +66,7 @@ export class TypeScriptVersionPicker {
 
 		for (const version of this.versionProvider.localVersions) {
 			pickOptions.push({
-				label: (this.currentVersion.path === version.path
+				label: (this.useWorkspaceTsdkSetting && this.currentVersion.path === version.path
 					? '• '
 					: '') + localize('useWorkspaceVersionOption', 'Use Workspace Version'),
 				description: version.versionString,