diff --git a/src/vs/platform/extensions/common/extensionValidator.ts b/src/vs/platform/extensions/common/extensionValidator.ts
index 87923dc1cb0..87a9288104d 100644
--- a/src/vs/platform/extensions/common/extensionValidator.ts
+++ b/src/vs/platform/extensions/common/extensionValidator.ts
@@ -361,14 +361,11 @@ export function areApiProposalsCompatible(apiProposals: string[], arg1?: any): b
 	const incompatibleProposals: string[] = [];
 	const parsedProposals = parseApiProposals(apiProposals);
 	for (const { proposalName, version } of parsedProposals) {
-		const existingProposal = productApiProposals[proposalName];
-		if (!existingProposal) {
-			continue;
-		}
 		if (!version) {
 			continue;
 		}
-		if (existingProposal.version !== version) {
+		const existingProposal = productApiProposals[proposalName];
+		if (existingProposal?.version !== version) {
 			incompatibleProposals.push(proposalName);
 		}
 	}
diff --git a/src/vs/platform/extensions/test/common/extensionValidator.test.ts b/src/vs/platform/extensions/test/common/extensionValidator.test.ts
index 82c3cf0bf8a..3b42e5fc06b 100644
--- a/src/vs/platform/extensions/test/common/extensionValidator.test.ts
+++ b/src/vs/platform/extensions/test/common/extensionValidator.test.ts
@@ -436,6 +436,7 @@ suite('Extension Version Validator', () => {
 		assert.strictEqual(areApiProposalsCompatible(['proposal1', 'proposal2'], {}), true);
 		assert.strictEqual(areApiProposalsCompatible(['proposal1', 'proposal2'], { 'proposal1': { proposal: '' } }), true);
 
+		assert.strictEqual(areApiProposalsCompatible(['proposal2@1'], { 'proposal1': { proposal: '' } }), false);
 		assert.strictEqual(areApiProposalsCompatible(['proposal1@1'], { 'proposal1': { proposal: '', version: 2 } }), false);
 		assert.strictEqual(areApiProposalsCompatible(['proposal1@1'], { 'proposal1': { proposal: '' } }), false);
 	});