diff --git a/src/vs/workbench/api/browser/mainThreadAuthentication.ts b/src/vs/workbench/api/browser/mainThreadAuthentication.ts
index f6286c8656d..e426e5feae5 100644
--- a/src/vs/workbench/api/browser/mainThreadAuthentication.ts
+++ b/src/vs/workbench/api/browser/mainThreadAuthentication.ts
@@ -21,6 +21,8 @@ export class MainThreadAuthenticationProvider extends Disposable {
 	private _accounts = new Map<string, string[]>(); // Map account name to session ids
 	private _sessions = new Map<string, string>(); // Map account id to name
 
+	private _hasInitializedSessions = false;
+
 	constructor(
 		private readonly _proxy: ExtHostAuthenticationShape,
 		public readonly id: string,
@@ -33,11 +35,6 @@ export class MainThreadAuthenticationProvider extends Disposable {
 	) {
 		super();
 	}
-
-	public async initialize(): Promise<void> {
-		return this.registerCommandsAndContextMenuItems();
-	}
-
 	public hasSessions(): boolean {
 		return !!this._sessions.size;
 	}
@@ -83,15 +80,6 @@ export class MainThreadAuthenticationProvider extends Disposable {
 		quickPick.show();
 	}
 
-	private async registerCommandsAndContextMenuItems(): Promise<void> {
-		try {
-			const sessions = await this._proxy.$getSessions(this.id);
-			sessions.forEach(session => this.registerSession(session));
-		} catch (_) {
-			// Ignore
-		}
-	}
-
 	private registerSession(session: modes.AuthenticationSession) {
 		this._sessions.set(session.id, session.account.label);
 
@@ -123,7 +111,13 @@ export class MainThreadAuthenticationProvider extends Disposable {
 	}
 
 	async getSessions(): Promise<ReadonlyArray<modes.AuthenticationSession>> {
-		return this._proxy.$getSessions(this.id);
+		const sessions = await this._proxy.$getSessions(this.id);
+		if (!this._hasInitializedSessions) {
+			sessions.forEach(session => this.registerSession(session));
+			this._hasInitializedSessions = true;
+		}
+
+		return sessions;
 	}
 
 	async updateSessionItems(event: modes.AuthenticationSessionsChangeEvent): Promise<void> {
@@ -195,7 +189,6 @@ export class MainThreadAuthentication extends Disposable implements MainThreadAu
 
 	async $registerAuthenticationProvider(id: string, label: string, supportsMultipleAccounts: boolean): Promise<void> {
 		const provider = new MainThreadAuthenticationProvider(this._proxy, id, label, supportsMultipleAccounts, this.notificationService, this.storageService, this.quickInputService, this.dialogService);
-		await provider.initialize();
 		this.authenticationService.registerAuthenticationProvider(id, provider);
 	}
 
diff --git a/src/vs/workbench/browser/parts/activitybar/activitybarActions.ts b/src/vs/workbench/browser/parts/activitybar/activitybarActions.ts
index 6fa9bb54cdf..7e1fd51d634 100644
--- a/src/vs/workbench/browser/parts/activitybar/activitybarActions.ts
+++ b/src/vs/workbench/browser/parts/activitybar/activitybarActions.ts
@@ -259,6 +259,11 @@ export class AccountsActivityActionViewItem extends MenuActivityActionViewItem {
 			}
 		});
 
+		if (providers.length && !menus.length) {
+			const noAccountsAvailableAction = disposables.add(new Action('noAccountsAvailable', localize('noAccounts', "You are not signed in to any accounts"), undefined, false));
+			menus.push(noAccountsAvailableAction);
+		}
+
 		if (menus.length && otherCommands.length) {
 			menus.push(disposables.add(new Separator()));
 		}
diff --git a/src/vs/workbench/services/authentication/browser/authenticationService.ts b/src/vs/workbench/services/authentication/browser/authenticationService.ts
index b91263aa5c6..a77ecf9c238 100644
--- a/src/vs/workbench/services/authentication/browser/authenticationService.ts
+++ b/src/vs/workbench/services/authentication/browser/authenticationService.ts
@@ -192,7 +192,6 @@ const authenticationExtPoint = ExtensionsRegistry.registerExtensionPoint<Authent
 export class AuthenticationService extends Disposable implements IAuthenticationService {
 	declare readonly _serviceBrand: undefined;
 	private _placeholderMenuItem: IDisposable | undefined;
-	private _noAccountsMenuItem: IDisposable | undefined;
 	private _signInRequestItems = new Map<string, SessionRequestInfo>();
 	private _sessionAccessRequestItems = new Map<string, { [extensionId: string]: { disposables: IDisposable[], possibleSessions: AuthenticationSession[] } }>();
 	private _accountBadgeDisposable = this._register(new MutableDisposable());
@@ -278,29 +277,6 @@ export class AuthenticationService extends Disposable implements IAuthentication
 		return this._authenticationProviders.has(id);
 	}
 
-	private updateAccountsMenuItem(): void {
-		let hasSession = false;
-		this._authenticationProviders.forEach(async provider => {
-			hasSession = hasSession || provider.hasSessions();
-		});
-
-		if (hasSession && this._noAccountsMenuItem) {
-			this._noAccountsMenuItem.dispose();
-			this._noAccountsMenuItem = undefined;
-		}
-
-		if (!hasSession && !this._noAccountsMenuItem) {
-			this._noAccountsMenuItem = MenuRegistry.appendMenuItem(MenuId.AccountsContext, {
-				group: '0_accounts',
-				command: {
-					id: 'noAccounts',
-					title: nls.localize('noAccounts', "You are not signed in to any accounts"),
-					precondition: ContextKeyExpr.false()
-				},
-			});
-		}
-	}
-
 	registerAuthenticationProvider(id: string, authenticationProvider: MainThreadAuthenticationProvider): void {
 		this._authenticationProviders.set(id, authenticationProvider);
 		this._onDidRegisterAuthenticationProvider.fire({ id, label: authenticationProvider.label });
@@ -309,8 +285,6 @@ export class AuthenticationService extends Disposable implements IAuthentication
 			this._placeholderMenuItem.dispose();
 			this._placeholderMenuItem = undefined;
 		}
-
-		this.updateAccountsMenuItem();
 	}
 
 	unregisterAuthenticationProvider(id: string): void {
@@ -319,7 +293,6 @@ export class AuthenticationService extends Disposable implements IAuthentication
 			provider.dispose();
 			this._authenticationProviders.delete(id);
 			this._onDidUnregisterAuthenticationProvider.fire({ id, label: provider.label });
-			this.updateAccountsMenuItem();
 
 			const accessRequests = this._sessionAccessRequestItems.get(id) || {};
 			Object.keys(accessRequests).forEach(extensionId => {
@@ -343,7 +316,6 @@ export class AuthenticationService extends Disposable implements IAuthentication
 		if (provider) {
 			this._onDidChangeSessions.fire({ providerId: id, label: provider.label, event: event });
 			await provider.updateSessionItems(event);
-			this.updateAccountsMenuItem();
 
 			if (event.added) {
 				await this.updateNewSessionRequests(provider);