diff --git a/src/client/common/application/commands.ts b/src/client/common/application/commands.ts
index 31ad3eba7e47..14585f36dfb4 100644
--- a/src/client/common/application/commands.ts
+++ b/src/client/common/application/commands.ts
@@ -62,7 +62,10 @@ interface ICommandNameWithoutArgumentTypeMapping {
 export interface ICommandNameArgumentTypeMapping extends ICommandNameWithoutArgumentTypeMapping {
     ['vscode.openWith']: [Uri, string];
     ['workbench.action.quickOpen']: [string];
-    ['workbench.extensions.installExtension']: [Uri | 'ms-python.python'];
+    ['workbench.extensions.installExtension']: [
+        Uri | 'ms-python.python',
+        { installOnlyNewlyAddedFromExtensionPackVSIX?: boolean } | undefined,
+    ];
     ['workbench.action.files.openFolder']: [];
     ['workbench.action.openWorkspace']: [];
     ['setContext']: [string, boolean] | ['python.vscode.channel', Channel];
diff --git a/src/client/common/installer/extensionBuildInstaller.ts b/src/client/common/installer/extensionBuildInstaller.ts
index 984578e1bc4d..cd93040877fb 100644
--- a/src/client/common/installer/extensionBuildInstaller.ts
+++ b/src/client/common/installer/extensionBuildInstaller.ts
@@ -29,7 +29,9 @@ export class StableBuildInstaller implements IExtensionBuildInstaller {
         this.output.append(ExtensionChannels.installingStableMessage());
         await this.appShell.withProgressCustomIcon(Octicons.Installing, async (progress) => {
             progress.report({ message: ExtensionChannels.installingStableMessage() });
-            return this.cmdManager.executeCommand('workbench.extensions.installExtension', PVSC_EXTENSION_ID);
+            return this.cmdManager.executeCommand('workbench.extensions.installExtension', PVSC_EXTENSION_ID, {
+                installOnlyNewlyAddedFromExtensionPackVSIX: true,
+            });
         });
         this.output.appendLine(ExtensionChannels.installationCompleteMessage());
     }
@@ -51,7 +53,9 @@ export class InsidersBuildInstaller implements IExtensionBuildInstaller {
         this.output.append(ExtensionChannels.installingInsidersMessage());
         await this.appShell.withProgressCustomIcon(Octicons.Installing, async (progress) => {
             progress.report({ message: ExtensionChannels.installingInsidersMessage() });
-            return this.cmdManager.executeCommand('workbench.extensions.installExtension', Uri.file(vsixFilePath));
+            return this.cmdManager.executeCommand('workbench.extensions.installExtension', Uri.file(vsixFilePath), {
+                installOnlyNewlyAddedFromExtensionPackVSIX: true,
+            });
         });
         this.output.appendLine(ExtensionChannels.installationCompleteMessage());
         await this.fs.deleteFile(vsixFilePath);
diff --git a/src/test/common/installer/extensionBuildInstaller.unit.test.ts b/src/test/common/installer/extensionBuildInstaller.unit.test.ts
index 56a8d86d91ef..c69ea5fefaff 100644
--- a/src/test/common/installer/extensionBuildInstaller.unit.test.ts
+++ b/src/test/common/installer/extensionBuildInstaller.unit.test.ts
@@ -45,16 +45,18 @@ suite('Extension build installer - Stable build installer', async () => {
     test('Installing stable build logs progress and installs stable', async () => {
         when(output.append(ExtensionChannels.installingStableMessage())).thenReturn();
         when(output.appendLine(ExtensionChannels.installationCompleteMessage())).thenReturn();
-        when(cmdManager.executeCommand('workbench.extensions.installExtension', PVSC_EXTENSION_ID)).thenResolve(
-            undefined,
-        );
+        when(
+            cmdManager.executeCommand('workbench.extensions.installExtension', PVSC_EXTENSION_ID, anything()),
+        ).thenResolve(undefined);
         when(appShell.withProgressCustomIcon(anything(), anything())).thenCall((_, cb) => cb(progressReporter));
         await stableBuildInstaller.install();
         verify(output.append(ExtensionChannels.installingStableMessage())).once();
         verify(output.appendLine(ExtensionChannels.installationCompleteMessage())).once();
         verify(appShell.withProgressCustomIcon(anything(), anything()));
         expect(progressReportStub.callCount).to.equal(1);
-        verify(cmdManager.executeCommand('workbench.extensions.installExtension', PVSC_EXTENSION_ID)).once();
+        verify(
+            cmdManager.executeCommand('workbench.extensions.installExtension', PVSC_EXTENSION_ID, anything()),
+        ).once();
     });
 });
 
@@ -102,9 +104,12 @@ suite('Extension build installer - Insiders build installer', async () => {
             },
         );
         when(appShell.withProgressCustomIcon(anything(), anything())).thenCall((_, cb) => cb(progressReporter));
-        when(cmdManager.executeCommand('workbench.extensions.installExtension', anything())).thenCall((_, cb) => {
-            assert.deepEqual(cb, Uri.file(vsixFilePath), 'Wrong VSIX installed');
-        });
+        when(cmdManager.executeCommand('workbench.extensions.installExtension', anything(), anything())).thenCall(
+            (_, uri, options) => {
+                assert.deepStrictEqual(uri, Uri.file(vsixFilePath), 'Wrong VSIX installed');
+                assert.deepStrictEqual(options, { installOnlyNewlyAddedFromExtensionPackVSIX: true });
+            },
+        );
         when(fs.deleteFile(vsixFilePath)).thenResolve();
 
         await insidersBuildInstaller.install();
@@ -115,7 +120,7 @@ suite('Extension build installer - Insiders build installer', async () => {
         verify(output.appendLine(ExtensionChannels.installationCompleteMessage())).once();
         verify(appShell.withProgressCustomIcon(anything(), anything()));
         expect(progressReportStub.callCount).to.equal(1);
-        verify(cmdManager.executeCommand('workbench.extensions.installExtension', anything())).once();
+        verify(cmdManager.executeCommand('workbench.extensions.installExtension', anything(), anything())).once();
         verify(fs.deleteFile(vsixFilePath)).once();
     });
 });