diff --git a/extensions/vscode-test-resolver/src/extension.ts b/extensions/vscode-test-resolver/src/extension.ts
index 49b8f50cafd..17868c2007f 100644
--- a/extensions/vscode-test-resolver/src/extension.ts
+++ b/extensions/vscode-test-resolver/src/extension.ts
@@ -70,15 +70,15 @@ export function activate(context: vscode.ExtensionContext) {
 			const serverCommand = process.platform === 'win32' ? 'server.bat' : 'server.sh';
 			const commandArgs = ['--port=0', '--disable-telemetry'];
 			const env = getNewEnv();
+			const remoteDataDir = process.env['TESTRESOLVER_DATA_FOLDER'] || path.join(os.homedir(), serverDataFolderName || `${dataFolderName}-testresolver`);
+			env['VSCODE_AGENT_FOLDER'] = remoteDataDir;
+			outputChannel.appendLine(`Using data folder at ${remoteDataDir}`);
+
 			if (!commit) { // dev mode
 				const vscodePath = path.resolve(path.join(context.extensionPath, '..', '..'));
 				const serverCommandPath = path.join(vscodePath, 'resources', 'server', 'bin-dev', serverCommand);
 				extHostProcess = cp.spawn(serverCommandPath, commandArgs, { env, cwd: vscodePath });
 			} else {
-				const remoteDataDir = process.env['TESTRESOLVER_DATA_FOLDER'] || path.join(os.homedir(), serverDataFolderName || `${dataFolderName}-testresolver`);
-				env['VSCODE_AGENT_FOLDER'] = remoteDataDir;
-				outputChannel.appendLine(`Using data folder at ${remoteDataDir}`);
-
 				const serverBin = path.join(remoteDataDir, 'bin');
 				progress.report({ message: 'Installing VSCode Server' });
 				const serverLocation = await downloadAndUnzipVSCodeServer(updateUrl, commit, quality, serverBin);