diff --git a/build/package.json b/build/package.json
index 42e67a02b0d..4270709f2f8 100644
--- a/build/package.json
+++ b/build/package.json
@@ -53,7 +53,7 @@
     "ternary-stream": "^3.0.0",
     "through2": "^4.0.2",
     "tmp": "^0.2.1",
-    "vscode-universal-bundler": "^0.1.0",
+    "vscode-universal-bundler": "^0.1.2",
     "workerpool": "^6.4.0",
     "yauzl": "^2.10.0"
   },
diff --git a/build/yarn.lock b/build/yarn.lock
index 70a53f30bf8..d25994cedf0 100644
--- a/build/yarn.lock
+++ b/build/yarn.lock
@@ -2734,10 +2734,10 @@ vscode-gulp-watch@^5.0.3:
     vinyl "^2.2.0"
     vinyl-file "^3.0.0"
 
-vscode-universal-bundler@^0.1.0:
-  version "0.1.0"
-  resolved "https://registry.yarnpkg.com/vscode-universal-bundler/-/vscode-universal-bundler-0.1.0.tgz#1a03d1d16c6ea5065318fafbc2a554b7c2f3bd32"
-  integrity sha512-wtT9IZ/fqIZSirY6cxElu8a6WpNaOjgQjjazt85lMCWBuF/tWVw5nRYX67pTVsUyi6kzQaIvfyyIvxVbBpetBA==
+vscode-universal-bundler@^0.1.2:
+  version "0.1.2"
+  resolved "https://registry.yarnpkg.com/vscode-universal-bundler/-/vscode-universal-bundler-0.1.2.tgz#50ba7c637942dae6c0bc9bb37c0fcabf509cbca5"
+  integrity sha512-fboaE0933+r+qW4aRuuMwC8yle4DX6xyRDCM0otYMo5+4POZjEHbsqkPQ8H8xmhScHf1Fa7kZXYo1V2n0d2x/g==
   dependencies:
     "@electron/asar" "^3.2.7"
     "@malept/cross-spawn-promise" "^2.0.0"
diff --git a/src/bootstrap-window.js b/src/bootstrap-window.js
index a747a7cf5dc..b3216ac0f2e 100644
--- a/src/bootstrap-window.js
+++ b/src/bootstrap-window.js
@@ -102,8 +102,8 @@ const isESM = false;
 				options.beforeRequire(configuration);
 			}
 
-			const fileRoot = `${configuration.appRoot}/out`;
-			globalThis._VSCODE_FILE_ROOT = fileRoot;
+			const baseUrl = new URL(`${fileUriFromPath(configuration.appRoot, { isWindows: safeProcess.platform === 'win32', scheme: 'vscode-file', fallbackAuthority: 'vscode-app' })}/out/`);
+			globalThis._VSCODE_FILE_ROOT = baseUrl.toString();
 
 			// DEV ---------------------------------------------------------------------------------------
 			// DEV: This is for development and enables loading CSS via import-statements via import-maps.
@@ -123,7 +123,6 @@ const isESM = false;
 					style.textContent += `@import url(${url});\n`;
 				};
 
-				const baseUrl = new URL(`vscode-file://vscode-app${fileRoot}/`);
 				/**
 				 * @type { { imports: Record<string, string> }}
 				 */
@@ -154,13 +153,13 @@ const isESM = false;
 					const cssModule = modulePath.replace('vs/css!', '');
 					const link = document.createElement('link');
 					link.rel = 'stylesheet';
-					link.href = `${configuration.appRoot}/out/${cssModule}.css`;
+					link.href = new URL(`${cssModule}.css`, baseUrl).href;
 					document.head.appendChild(link);
 					return Promise.resolve();
 
 				} else {
 					// ESM/JS module loading
-					return import(`${configuration.appRoot}/out/${modulePath}.js`);
+					return import(new URL(`${modulePath}.js`, baseUrl).href);
 				}
 			}));
 
diff --git a/src/vs/workbench/browser/workbench.ts b/src/vs/workbench/browser/workbench.ts
index b0688133537..a89451b8022 100644
--- a/src/vs/workbench/browser/workbench.ts
+++ b/src/vs/workbench/browser/workbench.ts
@@ -50,6 +50,7 @@ import { AccessibilityProgressSignalScheduler } from 'vs/platform/accessibilityS
 import { setProgressAcccessibilitySignalScheduler } from 'vs/base/browser/ui/progressbar/progressAccessibilitySignal';
 import { AccessibleViewRegistry } from 'vs/platform/accessibility/browser/accessibleViewRegistry';
 import { NotificationAccessibleView } from 'vs/workbench/browser/parts/notifications/notificationAccessibleView';
+import { isESM } from 'vs/base/common/amd';
 
 export interface IWorkbenchOptions {
 
@@ -113,7 +114,7 @@ export class Workbench extends Layout {
 		}
 		type AnnotatedError = AnnotatedLoadingError | AnnotatedFactoryError | AnnotatedValidationError;
 
-		if (typeof mainWindow.require?.config === 'function') {
+		if (!isESM && typeof mainWindow.require?.config === 'function') {
 			mainWindow.require.config({
 				onError: (err: AnnotatedError) => {
 					if (err.phase === 'loading') {