diff --git a/src/vs/platform/extensionManagement/node/extensionManagementService.ts b/src/vs/platform/extensionManagement/node/extensionManagementService.ts
index c7137910f44..905dec7cd90 100644
--- a/src/vs/platform/extensionManagement/node/extensionManagementService.ts
+++ b/src/vs/platform/extensionManagement/node/extensionManagementService.ts
@@ -599,7 +599,13 @@ export class ExtensionsScanner extends Disposable {
 		metadata = { ...source?.metadata, ...metadata };
 
 		if (target) {
-			await this.extensionsProfileScannerService.updateMetadata([[extension, { ...target.metadata, ...metadata }]], toProfileLocation);
+			if (this.uriIdentityService.extUri.isEqual(target.location, extension.location)) {
+				await this.extensionsProfileScannerService.updateMetadata([[extension, { ...target.metadata, ...metadata }]], toProfileLocation);
+			} else {
+				const targetExtension = await this.scanLocalExtension(target.location, extension.type, toProfileLocation);
+				await this.extensionsProfileScannerService.removeExtensionFromProfile(targetExtension, toProfileLocation);
+				await this.extensionsProfileScannerService.addExtensionsToProfile([[extension, { ...target.metadata, ...metadata }]], toProfileLocation);
+			}
 		} else {
 			await this.extensionsProfileScannerService.addExtensionsToProfile([[extension, metadata]], toProfileLocation);
 		}