diff --git a/src/vs/workbench/api/common/extHost.api.impl.ts b/src/vs/workbench/api/common/extHost.api.impl.ts
index fcc80b4cacc..e8eed318caa 100644
--- a/src/vs/workbench/api/common/extHost.api.impl.ts
+++ b/src/vs/workbench/api/common/extHost.api.impl.ts
@@ -343,7 +343,6 @@ export function createApiFactoryAndRegisterActors(accessor: ServicesAccessor): I
 				return extHostTerminalService.getDefaultShell(false);
 			},
 			get onDidChangeShell() {
-				checkProposedApiEnabled(extension, 'envShellEvent');
 				return extHostTerminalService.onDidChangeShell;
 			},
 			get isTelemetryEnabled() {
diff --git a/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts b/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts
index 493a5d860a6..ad2039a68bf 100644
--- a/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts
+++ b/src/vs/workbench/services/extensions/common/extensionsApiProposals.ts
@@ -40,7 +40,6 @@ export const allApiProposals = Object.freeze({
 	dropMetadata: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.dropMetadata.d.ts',
 	editSessionIdentityProvider: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.editSessionIdentityProvider.d.ts',
 	editorInsets: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.editorInsets.d.ts',
-	envShellEvent: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.envShellEvent.d.ts',
 	extensionRuntime: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.extensionRuntime.d.ts',
 	extensionsAny: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.extensionsAny.d.ts',
 	externalUriOpener: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.externalUriOpener.d.ts',
diff --git a/src/vscode-dts/vscode.d.ts b/src/vscode-dts/vscode.d.ts
index 17ee7553c42..cb6a6cabf48 100644
--- a/src/vscode-dts/vscode.d.ts
+++ b/src/vscode-dts/vscode.d.ts
@@ -10000,6 +10000,11 @@ declare module 'vscode' {
 		 */
 		export const onDidChangeTelemetryEnabled: Event<boolean>;
 
+		/**
+		 * An {@link Event} which fires when the default shell changes.
+		 */
+		export const onDidChangeShell: Event<string>;
+
 		/**
 		 * Creates a new {@link TelemetryLogger telemetry logger}.
 		 *
diff --git a/src/vscode-dts/vscode.proposed.envShellEvent.d.ts b/src/vscode-dts/vscode.proposed.envShellEvent.d.ts
deleted file mode 100644
index 8fed971ef71..00000000000
--- a/src/vscode-dts/vscode.proposed.envShellEvent.d.ts
+++ /dev/null
@@ -1,16 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-
-declare module 'vscode' {
-
-	// See https://github.com/microsoft/vscode/issues/160694
-	export namespace env {
-
-		/**
-		 * An {@link Event} which fires when the default shell changes.
-		 */
-		export const onDidChangeShell: Event<string>;
-	}
-}