diff --git a/extensions/data-workspace/src/common/constants.ts b/extensions/data-workspace/src/common/constants.ts
index 7784c2e760..8f8b355b23 100644
--- a/extensions/data-workspace/src/common/constants.ts
+++ b/extensions/data-workspace/src/common/constants.ts
@@ -15,8 +15,8 @@ export const AllProjectTypes = localize('AllProjectTypes', "All Project Types");
 export const ProviderNotFoundForProjectTypeError = (projectType: string): string => { return localize('UnknownProjectTypeError', "No provider was found for project type with id: '{0}'", projectType); };
 export const WorkspaceRequiredMessage = localize('dataworkspace.workspaceRequiredMessage', "A workspace is required in order to use the project feature.");
 export const OpenWorkspace = localize('dataworkspace.openWorkspace', "Open Workspace…");
-export const CreateWorkspaceConfirmation = localize('dataworkspace.createWorkspaceConfirmation', "A workspace will be created and opened in order to open project. The Extension Host will restart and if there is a folder currently open, it will be closed.");
-export const EnterWorkspaceConfirmation = localize('dataworkspace.enterWorkspaceConfirmation', "To open this workspace, the Extension Host will restart and if there is a workspace or folder currently open, it will be closed.");
+export const CreateWorkspaceConfirmation = localize('dataworkspace.createWorkspaceConfirmation', "A workspace will be created and opened in order to open project. Azure Data Studio will restart and if there is a folder currently open, it will be closed.");
+export const EnterWorkspaceConfirmation = localize('dataworkspace.enterWorkspaceConfirmation', "To open this workspace, Azure Data Studio will restart. If there is a workspace or folder currently open, it will be closed.");
 export const WorkspaceContainsNotAddedProjects = localize('dataworkspace.workspaceContainsNotAddedProjects', "The current workspace contains one or more projects that have not been added to the workspace. Use the 'Open existing' dialog to add projects to the projects pane.");
 export const LaunchOpenExisitingDialog = localize('dataworkspace.launchOpenExistingDialog', "Launch Open existing dialog");
 export const DoNotShowAgain = localize('dataworkspace.doNotShowAgain', "Do not show again");
diff --git a/src/sql/workbench/api/browser/mainThreadWorkspace.ts b/src/sql/workbench/api/browser/mainThreadWorkspace.ts
index 22bcfb92ff..68f4f49618 100644
--- a/src/sql/workbench/api/browser/mainThreadWorkspace.ts
+++ b/src/sql/workbench/api/browser/mainThreadWorkspace.ts
@@ -17,7 +17,7 @@ export class MainThreadWorkspace extends Disposable implements MainThreadWorkspa
 	constructor(
 		extHostContext: IExtHostContext,
 		@IWorkspaceEditingService private workspaceEditingService: IWorkspaceEditingService,
-		@IWorkbenchEnvironmentService protected readonly environmentService: IWorkbenchEnvironmentService,
+		@IWorkbenchEnvironmentService protected readonly environmentService: IWorkbenchEnvironmentService
 	) {
 		super();
 	}
@@ -37,5 +37,4 @@ export class MainThreadWorkspace extends Disposable implements MainThreadWorkspa
 		workspaceFile = URI.revive(workspaceFile);
 		return this.workspaceEditingService.saveAndEnterWorkspace(workspaceFile);
 	}
-
 }
diff --git a/src/vs/workbench/services/workspaces/electron-sandbox/workspaceEditingService.ts b/src/vs/workbench/services/workspaces/electron-sandbox/workspaceEditingService.ts
index 4e334bff68..d01b8a5dee 100644
--- a/src/vs/workbench/services/workspaces/electron-sandbox/workspaceEditingService.ts
+++ b/src/vs/workbench/services/workspaces/electron-sandbox/workspaceEditingService.ts
@@ -11,7 +11,6 @@ import { IJSONEditingService } from 'vs/workbench/services/configuration/common/
 import { IWorkspacesService, isUntitledWorkspace, IWorkspaceIdentifier, hasWorkspaceFileExtension } from 'vs/platform/workspaces/common/workspaces';
 import { WorkspaceService } from 'vs/workbench/services/configuration/browser/configurationService';
 import { IStorageService } from 'vs/platform/storage/common/storage';
-import { IExtensionService } from 'vs/workbench/services/extensions/common/extensions';
 import { IBackupFileService } from 'vs/workbench/services/backup/common/backup';
 import { ICommandService } from 'vs/platform/commands/common/commands';
 import { basename } from 'vs/base/common/resources';
@@ -42,7 +41,6 @@ export class NativeWorkspaceEditingService extends AbstractWorkspaceEditingServi
 		@INativeHostService private nativeHostService: INativeHostService,
 		@IConfigurationService configurationService: IConfigurationService,
 		@IStorageService private storageService: IStorageService,
-		@IExtensionService private extensionService: IExtensionService,
 		@IBackupFileService private backupFileService: IBackupFileService,
 		@INotificationService notificationService: INotificationService,
 		@ICommandService commandService: ICommandService,
@@ -176,16 +174,9 @@ export class NativeWorkspaceEditingService extends AbstractWorkspaceEditingServi
 			}
 		}
 
-		// TODO@aeschli: workaround until restarting works
-		if (this.environmentService.remoteAuthority) {
-			this.hostService.reload();
-		}
-
-		// Restart the extension host: entering a workspace means a new location for
-		// storage and potentially a change in the workspace.rootPath property.
-		else {
-			this.extensionService.restartExtensionHost();
-		}
+		// {{SQL CARBON EDIT}} - reload instead of restarting extension host because there is state maintained in the core
+		// that gets lost when the extension host is restarted
+		this.hostService.reload();
 	}
 
 	private migrateStorage(toWorkspace: IWorkspaceIdentifier): Promise<void> {