diff --git a/scripts/test-integration.bat b/scripts/test-integration.bat
index 0ce9c1ba30b..a28bb307fbd 100644
--- a/scripts/test-integration.bat
+++ b/scripts/test-integration.bat
@@ -46,7 +46,7 @@ if %errorlevel% neq 0 exit /b %errorlevel%
 
 :: Tests in the extension host
 
-set ALL_PLATFORMS_API_TESTS_EXTRA_ARGS=--disable-telemetry --crash-reporter-directory=%VSCODECRASHDIR% --no-cached-data --disable-updates --disable-keytar --disable-extensions --user-data-dir=%VSCODEUSERDATADIR%
+set ALL_PLATFORMS_API_TESTS_EXTRA_ARGS=--disable-telemetry --crash-reporter-directory=%VSCODECRASHDIR% --no-cached-data --disable-updates --disable-keytar --disable-extensions --disable-workspace-trust --user-data-dir=%VSCODEUSERDATADIR%
 
 call "%INTEGRATION_TEST_ELECTRON_PATH%" %~dp0\..\extensions\vscode-api-tests\testWorkspace --enable-proposed-api=vscode.vscode-api-tests --extensionDevelopmentPath=%~dp0\..\extensions\vscode-api-tests --extensionTestsPath=%~dp0\..\extensions\vscode-api-tests\out\singlefolder-tests %ALL_PLATFORMS_API_TESTS_EXTRA_ARGS%
 if %errorlevel% neq 0 exit /b %errorlevel%
diff --git a/scripts/test-integration.sh b/scripts/test-integration.sh
index 0b2fe97b17d..e147156da33 100755
--- a/scripts/test-integration.sh
+++ b/scripts/test-integration.sh
@@ -62,7 +62,7 @@ after_suite
 
 # Tests in the extension host
 
-ALL_PLATFORMS_API_TESTS_EXTRA_ARGS="--disable-telemetry --crash-reporter-directory=$VSCODECRASHDIR --no-cached-data --disable-updates --disable-keytar --disable-extensions --user-data-dir=$VSCODEUSERDATADIR"
+ALL_PLATFORMS_API_TESTS_EXTRA_ARGS="--disable-telemetry --crash-reporter-directory=$VSCODECRASHDIR --no-cached-data --disable-updates --disable-keytar --disable-extensions --disable-workspace-trust --user-data-dir=$VSCODEUSERDATADIR"
 
 "$INTEGRATION_TEST_ELECTRON_PATH" $LINUX_EXTRA_ARGS $ROOT/extensions/vscode-api-tests/testWorkspace --enable-proposed-api=vscode.vscode-api-tests --extensionDevelopmentPath=$ROOT/extensions/vscode-api-tests --extensionTestsPath=$ROOT/extensions/vscode-api-tests/out/singlefolder-tests $ALL_PLATFORMS_API_TESTS_EXTRA_ARGS
 after_suite
diff --git a/src/vs/workbench/services/workspaces/common/workspaceTrust.ts b/src/vs/workbench/services/workspaces/common/workspaceTrust.ts
index 7bfb5124c64..c070ebbb7e1 100644
--- a/src/vs/workbench/services/workspaces/common/workspaceTrust.ts
+++ b/src/vs/workbench/services/workspaces/common/workspaceTrust.ts
@@ -233,10 +233,6 @@ export class WorkspaceTrustManagementService extends Disposable implements IWork
 			return this._remoteAuthority.options.isTrusted;
 		}
 
-		if (this.environmentService.extensionTestsLocationURI) {
-			return true; // trust running tests with vscode-test
-		}
-
 		if (this.workspaceService.getWorkbenchState() === WorkbenchState.EMPTY) {
 			// Use memento if present, otherwise default to restricted mode
 			// Workspace may transition to trusted based on the opened editors
diff --git a/test/automation/src/application.ts b/test/automation/src/application.ts
index aec773a75b0..d620cb05a45 100644
--- a/test/automation/src/application.ts
+++ b/test/automation/src/application.ts
@@ -71,7 +71,6 @@ export class Application {
 	async start(expectWalkthroughPart = true): Promise<any> {
 		await this._start();
 		await this.code.waitForElement('.explorer-folders-view');
-		await this.dismissTrustDialog();
 
 		// https://github.com/microsoft/vscode/issues/118748
 		// if (expectWalkthroughPart) {
@@ -84,20 +83,6 @@ export class Application {
 		await new Promise(c => setTimeout(c, 1000));
 		await this._start(options.workspaceOrFolder, options.extraArgs);
 		await this.code.waitForElement('.explorer-folders-view');
-		await this.dismissTrustDialog();
-	}
-
-	private async dismissTrustDialog(): Promise<void> {
-		if (this.options.web) {
-			return;
-		}
-
-		try {
-			// Dismiss workspace trust dialog, if found
-			await this.code.waitAndClick(`.monaco-workbench .dialog-buttons-row a:nth-child(1)`, 10, 10, 50);
-		} catch {
-			// there musn't be any trust dialog, maybe workspace is trusted?
-		}
 	}
 
 	private async _start(workspaceOrFolder = this.workspacePathOrFolder, extraArgs: string[] = []): Promise<any> {
diff --git a/test/automation/src/code.ts b/test/automation/src/code.ts
index aab14d1f0d5..8333471680a 100644
--- a/test/automation/src/code.ts
+++ b/test/automation/src/code.ts
@@ -140,6 +140,7 @@ export async function spawn(options: SpawnOptions): Promise<Code> {
 		'--disable-updates',
 		'--disable-keytar',
 		'--disable-crash-reporter',
+		'--disable-workspace-trust',
 		`--extensions-dir=${options.extensionsPath}`,
 		`--user-data-dir=${options.userDataDir}`,
 		'--driver', handle