diff --git a/extensions/git/src/git.ts b/extensions/git/src/git.ts
index 3132b8cdf86..9de7226a652 100644
--- a/extensions/git/src/git.ts
+++ b/extensions/git/src/git.ts
@@ -1704,7 +1704,7 @@ export class Repository {
 			}
 
 			const raw = await readfile(templatePath, 'utf8');
-			return raw.replace(/^\s*#.*$\n?/gm, '').trim();
+			return raw.replace(/\n?#.*/g, '');
 
 		} catch (err) {
 			return '';