diff --git a/registry/coder/modules/vscode-desktop-core/main.test.ts b/registry/coder/modules/vscode-desktop-core/main.test.ts
index 177651f7..67714e40 100644
--- a/registry/coder/modules/vscode-desktop-core/main.test.ts
+++ b/registry/coder/modules/vscode-desktop-core/main.test.ts
@@ -206,17 +206,6 @@ describe("vscode-desktop-core extension script logic", async () => {
       for (const expectedUrl of ide.expectedUrls) {
         expect(scriptContent).toContain(expectedUrl);
       }
-
-      // Verify the script uses the correct case branch for this IDE
-      if (ide.marketplace === "Microsoft") {
-        expect(scriptContent).toContain(
-          "# Microsoft IDEs: Use the VS Code API to get metadata",
-        );
-      } else {
-        expect(scriptContent).toContain(
-          "# Non-Microsoft IDEs: Use Open VSX Registry metadata endpoint",
-        );
-      }
     });
   }
 
diff --git a/registry/coder/modules/vscode-desktop-core/run.sh b/registry/coder/modules/vscode-desktop-core/run.sh
index ef858cbe..9d7d6592 100644
--- a/registry/coder/modules/vscode-desktop-core/run.sh
+++ b/registry/coder/modules/vscode-desktop-core/run.sh
@@ -6,13 +6,10 @@
 
 set -euo pipefail
 
-# Variables from Terraform template
 EXTENSIONS="${EXTENSIONS}"
 EXTENSIONS_URLS="${EXTENSIONS_URLS}"
 EXTENSIONS_DIR="${EXTENSIONS_DIR}"
 IDE_TYPE="${IDE_TYPE}"
-
-# Color constants
 BOLD='\033[0;1m'
 CODE='\033[36;40;1m'
 GREEN='\033[0;32m'
@@ -20,15 +17,21 @@ YELLOW='\033[1;33m'
 RED='\033[0;31m'
 RESET='\033[0m'
 
-# Check if extension is already installed
 is_extension_installed() {
   local target_dir="$1"
   local extension_id="$2"
   local extension_dir="$target_dir/$extension_id"
 
-  if [ -d "$extension_dir" ] && [ -f "$extension_dir/package.json" ]; then
-    if grep -q '"name"' "$extension_dir/package.json" 2> /dev/null; then
-      if grep -q '"publisher"' "$extension_dir/package.json" 2> /dev/null; then
+  local package_json=""
+  if [ -f "$extension_dir/package.json" ]; then
+    package_json="$extension_dir/package.json"
+  elif [ -f "$extension_dir/extension/package.json" ]; then
+    package_json="$extension_dir/extension/package.json"
+  fi
+
+  if [ -d "$extension_dir" ] && [ -n "$package_json" ]; then
+    if grep -q '"name"' "$package_json" 2> /dev/null; then
+      if grep -q '"publisher"' "$package_json" 2> /dev/null; then
         return 0
       fi
     fi
@@ -36,7 +39,6 @@ is_extension_installed() {
   return 1
 }
 
-# Generate marketplace URL for extension
 generate_extension_url() {
   local extension_id="$1"
 
@@ -44,7 +46,6 @@ generate_extension_url() {
     return 1
   fi
 
-  # Extract publisher and extension name
   local publisher
   publisher=$(echo "$extension_id" | cut -d'.' -f1)
   local name
@@ -55,24 +56,19 @@ generate_extension_url() {
     return 1
   fi
 
-  # Generate URL based on IDE type
   case "${IDE_TYPE}" in
     "vscode" | "vscode-insiders")
-      # Microsoft IDEs: Use the VS Code API to get metadata
       printf "https://marketplace.visualstudio.com/_apis/public/gallery/vscode/%s/%s/latest" "$publisher" "$name"
       ;;
     "vscodium" | "cursor" | "windsurf" | "kiro")
-      # Non-Microsoft IDEs: Use Open VSX Registry metadata endpoint
       printf "https://open-vsx.org/api/%s/%s/latest" "$publisher" "$name"
       ;;
     *)
-      # Default: Use Open VSX Registry for unknown IDEs
       printf "https://open-vsx.org/api/%s/%s/latest" "$publisher" "$name"
       ;;
   esac
 }
 
-# Download and install extension
 download_and_install_extension() {
   local target_dir="$1"
   local extension_id="$2"
@@ -80,7 +76,6 @@ download_and_install_extension() {
   local temp_dir="$4"
   local log_file="$5"
 
-  # Check if already installed (idempotency)
   if is_extension_installed "$target_dir" "$extension_id"; then
     printf "$${GREEN}✓ Extension $${CODE}$extension_id$${RESET}$${GREEN} already installed$${RESET}\n"
     return 0
@@ -89,57 +84,47 @@ download_and_install_extension() {
   printf "$${BOLD}📦 Installing extension $${CODE}$extension_id$${RESET}...\n"
   echo "$(date): Starting installation of $extension_id" >> "$log_file"
 
-  # Use dedicated temp directory for this extension
   local extension_temp_dir
   extension_temp_dir="$temp_dir/$extension_id-$(date +%s)"
   local download_file="$temp_dir/$extension_id.vsix"
 
-  # First, get the metadata JSON
   echo "$(date): Fetching metadata from $metadata_url" >> "$log_file"
   local metadata_response
   if metadata_response=$(timeout 30 curl -fsSL "$metadata_url" 2>&1); then
-    # Extract the download URL from JSON (handle both VS Code and Open VSX)
     local download_url
     if [[ "${IDE_TYPE}" == "vscode" || "${IDE_TYPE}" == "vscode-insiders" ]]; then
-      # VS Code format
       download_url=$(echo "$metadata_response" | jq -r '.versions[0].files[] | select(.assetType == "Microsoft.VisualStudio.Services.VSIXPackage") | .source' 2> /dev/null)
     else
-      # Open VSX format
       download_url=$(echo "$metadata_response" | jq -r '.files.download // .downloads.universal // empty' 2> /dev/null)
     fi
 
     if [[ -n "$download_url" && "$download_url" != "null" ]]; then
       echo "$(date): Extracted download URL: $download_url" >> "$log_file"
-      # Download the actual .vsix file
       echo "$(date): Downloading extension to $download_file" >> "$log_file"
       if timeout 30 curl -fsSL "$download_url" -o "$download_file" 2>&1; then
         echo "$(date): File size: $(stat -c%s "$download_file") bytes" >> "$log_file"
-        # Verify the download is a valid ZIP file
         echo "$(date): Validating ZIP file..." >> "$log_file"
         if unzip -t "$download_file" > /dev/null 2>&1; then
-          # Create target directory
           mkdir -p "$target_dir"
           local extract_dir="$target_dir/$extension_id"
 
-          # Remove existing incomplete installation
           if [ -d "$extract_dir" ]; then
             rm -rf "$extract_dir"
           fi
 
           mkdir -p "$extract_dir"
 
-          # Extract extension
           echo "$(date): Extracting to $extract_dir" >> "$log_file"
           if unzip -q "$download_file" -d "$extract_dir" 2> /dev/null; then
-            if [ -f "$extract_dir/package.json" ]; then
+            if [ -f "$extract_dir/package.json" ] || [ -f "$extract_dir/extension/package.json" ]; then
               printf "$${GREEN}✅ Successfully installed $${CODE}$extension_id$${RESET}\n"
-              # Log success
               echo "$(date): Successfully installed $extension_id" >> "$log_file"
               rm -rf "$extension_temp_dir"
               return 0
             else
               printf "$${RED}❌ Invalid extension package$${RESET}\n"
-              echo "$(date): Invalid extension package for $extension_id" >> "$log_file"
+              echo "$(date): Invalid extension package for $extension_id - package.json not found" >> "$log_file"
+              echo "$(date): Directory contents: $(ls -la "$extract_dir")" >> "$log_file"
               rm -rf "$extract_dir"
               rm -rf "$extension_temp_dir"
               return 1
@@ -181,7 +166,6 @@ download_and_install_extension() {
   fi
 }
 
-# Install extension from URL
 install_extension_from_url() {
   local url="$1"
   local target_dir="$2"
@@ -200,7 +184,6 @@ install_extension_from_url() {
     return 0
   fi
 
-  # Use dedicated temp directory
   local extension_temp_dir
   extension_temp_dir="$temp_dir/$extension_id-$(date +%s)"
   local download_file="$temp_dir/$extension_id.vsix"
@@ -208,11 +191,9 @@ install_extension_from_url() {
   echo "$(date): Downloading extension to $download_file" >> "$log_file"
   if timeout 30 curl -fsSL "$url" -o "$download_file" 2>&1; then
     echo "$(date): File size: $(stat -c%s "$download_file") bytes" >> "$log_file"
-    # Create target directory
     mkdir -p "$target_dir"
     local extract_dir="$target_dir/$extension_id"
 
-    # Remove existing incomplete installation
     if [ -d "$extract_dir" ]; then
       rm -rf "$extract_dir"
     fi
@@ -221,14 +202,15 @@ install_extension_from_url() {
 
     echo "$(date): Extracting to $extract_dir" >> "$log_file"
     if unzip -q "$download_file" -d "$extract_dir" 2> /dev/null; then
-      if [ -f "$extract_dir/package.json" ]; then
+      if [ -f "$extract_dir/package.json" ] || [ -f "$extract_dir/extension/package.json" ]; then
         printf "$${GREEN}✅ Successfully installed $${CODE}$extension_id$${RESET}\n"
         echo "$(date): Successfully installed $extension_id from URL" >> "$log_file"
         rm -rf "$extension_temp_dir"
         return 0
       else
         printf "$${RED}❌ Invalid extension package$${RESET}\n"
-        echo "$(date): Invalid extension package for $extension_id from URL" >> "$log_file"
+        echo "$(date): Invalid extension package for $extension_id from URL - package.json not found" >> "$log_file"
+        echo "$(date): Directory contents: $(ls -la "$extract_dir")" >> "$log_file"
         rm -rf "$extract_dir"
         rm -rf "$extension_temp_dir"
         return 1
@@ -248,7 +230,6 @@ install_extension_from_url() {
   fi
 }
 
-# Install extensions from URLs
 install_extensions_from_urls() {
   local urls="$1"
   local target_dir="$2"
@@ -261,9 +242,7 @@ install_extensions_from_urls() {
 
   printf "$${BOLD}🔗 Installing extensions from URLs...$${RESET}\n"
 
-  # Simple approach: replace commas with newlines and process each URL
   echo "$urls" | tr ',' '\n' | while read -r url; do
-    # Trim whitespace
     url=$(echo "$url" | sed 's/^[[:space:]]*//;s/[[:space:]]*$//')
     if [ -n "$url" ]; then
       install_extension_from_url "$url" "$target_dir" "$temp_dir" "$log_file"
@@ -271,7 +250,6 @@ install_extensions_from_urls() {
   done
 }
 
-# Install extensions from extension IDs
 install_extensions_from_ids() {
   local extensions="$1"
   local target_dir="$2"
@@ -284,9 +262,7 @@ install_extensions_from_ids() {
 
   printf "$${BOLD}🧩 Installing extensions from extension IDs...$${RESET}\n"
 
-  # Simple approach: replace commas with newlines and process each extension
   echo "$extensions" | tr ',' '\n' | while read -r extension_id; do
-    # Trim whitespace
     extension_id=$(echo "$extension_id" | sed 's/^[[:space:]]*//;s/[[:space:]]*$//')
     if [ -n "$extension_id" ]; then
       local metadata_url
@@ -301,11 +277,9 @@ install_extensions_from_ids() {
   done
 }
 
-# Main execution
 main() {
   printf "$${BOLD}🚀 Starting extension installation for $${CODE}${IDE_TYPE}$${RESET} IDE...\n"
 
-  # Check dependencies
   for cmd in curl unzip timeout; do
     if ! command -v "$cmd" > /dev/null 2>&1; then
       printf "$${RED}❌ Missing required command: $cmd$${RESET}\n"
@@ -313,19 +287,16 @@ main() {
     fi
   done
 
-  # Create dedicated module directory structure
   local module_dir="$HOME/.vscode-desktop-core"
   local temp_dir="$module_dir/tmp"
   local logs_dir="$module_dir/logs"
 
   mkdir -p "$temp_dir" "$logs_dir"
 
-  # Set up logging
   local log_file
   log_file="$logs_dir/extension-installation-$(date +%Y%m%d-%H%M%S).log"
   printf "$${BOLD}📝 Logging to: $${CODE}$log_file$${RESET}\n"
 
-  # Expand tilde in extensions directory path
   local extensions_dir="${EXTENSIONS_DIR}"
   if [ "$${extensions_dir#\~}" != "$extensions_dir" ]; then
     extensions_dir="$HOME/$${extensions_dir#\~/}"
@@ -333,19 +304,16 @@ main() {
 
   printf "$${BOLD}📁 Using extensions directory: $${CODE}$extensions_dir$${RESET}\n"
 
-  # Create extensions directory
   mkdir -p "$extensions_dir"
   if [[ ! -w "$extensions_dir" ]]; then
     printf "$${RED}❌ Extensions directory is not writable: $extensions_dir$${RESET}\n"
     return 1
   fi
 
-  # Install extensions from URLs (airgapped scenario)
   if [ -n "${EXTENSIONS_URLS}" ]; then
     install_extensions_from_urls "${EXTENSIONS_URLS}" "$extensions_dir" "$temp_dir" "$log_file"
   fi
 
-  # Install extensions from extension IDs (normal scenario)
   if [[ -n "${EXTENSIONS}" ]]; then
     install_extensions_from_ids "${EXTENSIONS}" "$extensions_dir" "$temp_dir" "$log_file"
   fi
@@ -355,7 +323,6 @@ main() {
   printf "$${BOLD}📝 Log file: $${CODE}$log_file$${RESET}\n"
 }
 
-# Script execution entry point
 if [[ -n "${EXTENSIONS}" ]] || [[ -n "${EXTENSIONS_URLS}" ]]; then
   main
 else