diff --git a/extensions/mssql/config.json b/extensions/mssql/config.json
index ccfb492d9f..6b1aaced4c 100644
--- a/extensions/mssql/config.json
+++ b/extensions/mssql/config.json
@@ -1,6 +1,6 @@
 {
 	"downloadUrl": "https://github.com/Microsoft/sqltoolsservice/releases/download/{#version#}/microsoft.sqltools.servicelayer-{#fileName#}",
-	"version": "4.6.0.3",
+	"version": "4.6.0.4",
 	"downloadFileNames": {
 		"Windows_86": "win-x86-net7.0.zip",
 		"Windows_64": "win-x64-net7.0.zip",
diff --git a/extensions/mssql/src/utils.ts b/extensions/mssql/src/utils.ts
index c2c693eb65..3f5fcd9861 100644
--- a/extensions/mssql/src/utils.ts
+++ b/extensions/mssql/src/utils.ts
@@ -185,6 +185,8 @@ export function getCommonLaunchArgsAndCleanupOldLogFiles(logPath: string, fileNa
 	let launchArgs = [];
 	// Application Name determines app storage location or user data path.
 	launchArgs.push('--application-name', 'azuredatastudio');
+	launchArgs.push('--data-path', getAppDataPath());
+
 	launchArgs.push(`--locale`, vscode.env.language);
 
 	launchArgs.push('--log-file');