diff --git a/src/vs/server/node/extensionHostConnection.ts b/src/vs/server/node/extensionHostConnection.ts
index aa12dbf4a3d..6f035a8cccb 100644
--- a/src/vs/server/node/extensionHostConnection.ts
+++ b/src/vs/server/node/extensionHostConnection.ts
@@ -46,7 +46,6 @@ export async function buildUserEnvironment(startParamsEnv: { [key: string]: stri
 			VSCODE_AMD_ENTRYPOINT: 'vs/workbench/api/node/extensionHostProcess',
 			VSCODE_VERBOSE_LOGGING: 'true',
 			VSCODE_HANDLES_UNCAUGHT_ERRORS: 'true',
-			VSCODE_LOG_STACK: 'false',
 			VSCODE_NLS_CONFIG: JSON.stringify(nlsConfig, undefined, 0)
 		},
 		...startParamsEnv
diff --git a/src/vs/workbench/api/node/extHostConsoleForwarder.ts b/src/vs/workbench/api/node/extHostConsoleForwarder.ts
index dc6250d4def..25e4b293d75 100644
--- a/src/vs/workbench/api/node/extHostConsoleForwarder.ts
+++ b/src/vs/workbench/api/node/extHostConsoleForwarder.ts
@@ -4,15 +4,17 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { MainContext } from 'vs/workbench/api/common/extHost.protocol';
+import { IExtHostInitDataService } from 'vs/workbench/api/common/extHostInitDataService';
 import { IExtHostRpcService } from 'vs/workbench/api/common/extHostRpcService';
 
 export class ExtHostConsoleForwarder {
 	constructor(
 		@IExtHostRpcService extHostRpc: IExtHostRpcService,
+		@IExtHostInitDataService initData: IExtHostInitDataService,
 	) {
 		const mainThreadConsole = extHostRpc.getProxy(MainContext.MainThreadConsole);
 
-		pipeLoggingToParent();
+		pipeLoggingToParent(initData.consoleForward.includeStack);
 
 		// Use IPC messages to forward console-calls, note that the console is
 		// already patched to use`process.send()`
@@ -29,7 +31,7 @@ export class ExtHostConsoleForwarder {
 }
 
 // TODO@Alex: remove duplication
-function pipeLoggingToParent() {
+function pipeLoggingToParent(includeStack: boolean) {
 	const MAX_STREAM_BUFFER_LENGTH = 1024 * 1024;
 	const MAX_LENGTH = 100000;
 
@@ -69,7 +71,7 @@ function pipeLoggingToParent() {
 
 		// Add the stack trace as payload if we are told so. We remove the message and the 2 top frames
 		// to start the stacktrace where the console message was being written
-		if (process.env['VSCODE_LOG_STACK'] === 'true') {
+		if (includeStack) {
 			const stack = new Error().stack;
 			if (stack) {
 				argsArray.push({ __$stack: stack.split('\n').slice(3).join('\n') });
diff --git a/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts b/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts
index 62751e8d4d1..f080738692b 100644
--- a/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts
+++ b/src/vs/workbench/services/extensions/browser/webWorkerExtensionHost.ts
@@ -291,6 +291,9 @@ export class WebWorkerExtensionHost extends Disposable implements IExtensionHost
 				name: this._labelService.getWorkspaceLabel(workspace),
 				transient: workspace.transient
 			},
+			consoleForward: {
+				includeStack: false,
+			},
 			allExtensions: deltaExtensions.toAdd,
 			myExtensions: deltaExtensions.myToAdd,
 			telemetryInfo,
diff --git a/src/vs/workbench/services/extensions/common/extensionHostProtocol.ts b/src/vs/workbench/services/extensions/common/extensionHostProtocol.ts
index ca72df6f92f..b77fc753786 100644
--- a/src/vs/workbench/services/extensions/common/extensionHostProtocol.ts
+++ b/src/vs/workbench/services/extensions/common/extensionHostProtocol.ts
@@ -31,6 +31,7 @@ export interface IExtensionHostInitData {
 	logFile: URI;
 	autoStart: boolean;
 	remote: { isRemote: boolean; authority: string | undefined; connectionData: IRemoteConnectionData | null };
+	consoleForward: { includeStack: boolean };
 	uiKind: UIKind;
 	messagePorts?: ReadonlyMap<string, MessagePortLike>;
 }
diff --git a/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts b/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts
index 13f08421c35..fc1049cce63 100644
--- a/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts
+++ b/src/vs/workbench/services/extensions/common/remoteExtensionHost.ts
@@ -242,6 +242,9 @@ export class RemoteExtensionHost extends Disposable implements IExtensionHost {
 				authority: this._initDataProvider.remoteAuthority,
 				connectionData: remoteInitData.connectionData
 			},
+			consoleForward: {
+				includeStack: false,
+			},
 			allExtensions: deltaExtensions.toAdd,
 			myExtensions: deltaExtensions.myToAdd,
 			telemetryInfo,
diff --git a/src/vs/workbench/services/extensions/electron-sandbox/localProcessExtensionHost.ts b/src/vs/workbench/services/extensions/electron-sandbox/localProcessExtensionHost.ts
index 5fb28df7282..ae80c979897 100644
--- a/src/vs/workbench/services/extensions/electron-sandbox/localProcessExtensionHost.ts
+++ b/src/vs/workbench/services/extensions/electron-sandbox/localProcessExtensionHost.ts
@@ -230,8 +230,7 @@ export class SandboxLocalProcessExtensionHost implements IExtensionHost {
 			VSCODE_AMD_ENTRYPOINT: 'vs/workbench/api/node/extensionHostProcess',
 			VSCODE_VERBOSE_LOGGING: true,
 			VSCODE_LOG_NATIVE: this._isExtensionDevHost,
-			VSCODE_HANDLES_UNCAUGHT_ERRORS: true,
-			VSCODE_LOG_STACK: !this._isExtensionDevTestFromCli && (this._isExtensionDevHost || !this._environmentService.isBuilt || this._productService.quality !== 'stable' || this._environmentService.verbose)
+			VSCODE_HANDLES_UNCAUGHT_ERRORS: true
 		});
 
 		if (this._environmentService.debugExtensionHost.env) {
@@ -484,6 +483,9 @@ export class SandboxLocalProcessExtensionHost implements IExtensionHost {
 				connectionData: null,
 				isRemote: false
 			},
+			consoleForward: {
+				includeStack: !this._isExtensionDevTestFromCli && (this._isExtensionDevHost || !this._environmentService.isBuilt || this._productService.quality !== 'stable' || this._environmentService.verbose),
+			},
 			allExtensions: deltaExtensions.toAdd,
 			myExtensions: deltaExtensions.myToAdd,
 			telemetryInfo,