diff --git a/src/vs/workbench/contrib/chat/browser/chatSetup.ts b/src/vs/workbench/contrib/chat/browser/chatSetup.ts
index 5a4620c7031..916bb9b66ee 100644
--- a/src/vs/workbench/contrib/chat/browser/chatSetup.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatSetup.ts
@@ -934,7 +934,8 @@ class ChatSetupContext extends Disposable {
 		@IWorkspaceContextService private readonly workspaceContextService: IWorkspaceContextService,
 		@IExtensionService private readonly extensionService: IExtensionService,
 		@IExtensionManagementService private readonly extensionManagementService: IExtensionManagementService,
-		@IWorkbenchExtensionEnablementService private readonly extensionEnablementService: IWorkbenchExtensionEnablementService
+		@IWorkbenchExtensionEnablementService private readonly extensionEnablementService: IWorkbenchExtensionEnablementService,
+		@ILogService private readonly logService: ILogService
 	) {
 		super();
 
@@ -968,6 +969,8 @@ class ChatSetupContext extends Disposable {
 	update(context: { triggered: boolean }): Promise<void>;
 	update(context: { entitlement: ChatEntitlement }): Promise<void>;
 	update(context: { installed?: boolean; triggered?: boolean; entitlement?: ChatEntitlement }): Promise<void> {
+		this.logService.trace(`[chat setup] update(): ${JSON.stringify(context)}`);
+
 		if (typeof context.installed === 'boolean') {
 			this._state.installed = context.installed;
 
@@ -998,6 +1001,8 @@ class ChatSetupContext extends Disposable {
 	private async updateContext(): Promise<void> {
 		await this.updateBarrier?.wait();
 
+		this.logService.trace(`[chat setup] updateContext(): ${JSON.stringify(this._state)}`);
+
 		if (this._state.triggered && !this._state.installed) {
 			// this is ugly but fixes flicker from a previous chat install
 			this.storageService.remove('chat.welcomeMessageContent.panel', StorageScope.APPLICATION);