diff --git a/src/vs/platform/extensionManagement/common/extensionManagementCLI.ts b/src/vs/platform/extensionManagement/common/extensionManagementCLI.ts
index 3506d94d5c9..064420130d1 100644
--- a/src/vs/platform/extensionManagement/common/extensionManagementCLI.ts
+++ b/src/vs/platform/extensionManagement/common/extensionManagementCLI.ts
@@ -224,7 +224,7 @@ export class ExtensionManagementCLI {
 			}
 			extensionsToInstall.push({
 				extension: gallery,
-				options: { ...installOptions, installGivenVersion: !!version, isApplicationScoped: installedExtension?.isApplicationScoped },
+				options: { ...installOptions, installGivenVersion: !!version, isApplicationScoped: installOptions.isApplicationScoped || installedExtension?.isApplicationScoped },
 			});
 		}));