diff --git a/.github/workflows/actions/test-and-build/action.yaml b/.github/workflows/actions/test-and-build/action.yaml
index b847cb0e0..f10658fa0 100644
--- a/.github/workflows/actions/test-and-build/action.yaml
+++ b/.github/workflows/actions/test-and-build/action.yaml
@@ -68,6 +68,7 @@ runs:
     - name: Run Tests
       env:
         NODE_OPTIONS: "--max_old_space_size=4096"
+        MDB_IS_TEST: "true"
       run: |
         npm run test
       shell: bash
diff --git a/.github/workflows/draft-release.yaml b/.github/workflows/draft-release.yaml
index 70c290198..0a5cf2990 100644
--- a/.github/workflows/draft-release.yaml
+++ b/.github/workflows/draft-release.yaml
@@ -96,6 +96,7 @@ jobs:
           GARASIGN_USERNAME: ${{ secrets.GARASIGN_USERNAME }}
           SNYK_TOKEN: ${{ secrets.SNYK_TOKEN }}
           JIRA_API_TOKEN: ${{ secrets.JIRA_API_TOKEN }}
+          MDB_IS_TEST: "true"
 
       - name: Create Draft Release
         run: |
diff --git a/.github/workflows/test-and-build-from-fork.yaml b/.github/workflows/test-and-build-from-fork.yaml
index 44aad4fe1..62493f282 100644
--- a/.github/workflows/test-and-build-from-fork.yaml
+++ b/.github/workflows/test-and-build-from-fork.yaml
@@ -40,4 +40,5 @@ jobs:
         env:
           NODE_OPTIONS: "--max_old_space_size=4096"
           SEGMENT_KEY: "test-segment-key"
+          MDB_IS_TEST: "true"
         run: npm run test
diff --git a/.github/workflows/test-and-build.yaml b/.github/workflows/test-and-build.yaml
index 5399eef5f..4aa0e1b29 100644
--- a/.github/workflows/test-and-build.yaml
+++ b/.github/workflows/test-and-build.yaml
@@ -48,3 +48,4 @@ jobs:
           GARASIGN_USERNAME: ${{ secrets.GARASIGN_USERNAME }}
           SNYK_TOKEN: ${{ secrets.SNYK_TOKEN }}
           JIRA_API_TOKEN: ${{ secrets.JIRA_API_TOKEN }}
+          MDB_IS_TEST: "true"
diff --git a/.vscode/launch.json b/.vscode/launch.json
index 533cbba63..95c2c7a51 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -53,10 +53,11 @@
         "--extensionTestsPath=${workspaceFolder}/out/test/suite"
       ],
       "env": {
-        "MOCHA_GREP": "${input:mochaGrep}"
+        "MOCHA_GREP": "${input:mochaGrep}",
+        "MDB_IS_TEST": "true"
       },
       "outFiles": ["${workspaceFolder}/out/**/*.js"],
-      "preLaunchTask": "npm: compile:extension",
+      "preLaunchTask": "npm: compile:extension"
     }
   ],
   "inputs": [
diff --git a/package.json b/package.json
index dae69987e..0f168de13 100644
--- a/package.json
+++ b/package.json
@@ -52,7 +52,7 @@
     "watch:extension-bundles": "webpack --mode development --watch",
     "pretest": "npm run compile",
     "test": "npm run test-webview && npm run test-extension",
-    "test-extension": "cross-env NODE_OPTIONS=--no-force-async-hooks-checks xvfb-maybe node ./out/test/runTest.js",
+    "test-extension": "cross-env MDB_IS_TEST=true NODE_OPTIONS=--no-force-async-hooks-checks xvfb-maybe node ./out/test/runTest.js",
     "test-webview": "mocha -r ts-node/register --grep=\"${MOCHA_GREP}\" --file ./src/test/setup-webview.ts src/test/suite/views/webview-app/**/*.test.tsx",
     "ai-accuracy-tests": "env TS_NODE_FILES=true mocha -r ts-node/register --grep=\"${MOCHA_GREP}\" --file ./src/test/ai-accuracy-tests/test-setup.ts ./src/test/ai-accuracy-tests/ai-accuracy-tests.ts",
     "analyze-bundle": "webpack --mode production --analyze",
diff --git a/src/connectionController.ts b/src/connectionController.ts
index b68a5debf..87c7ecf15 100644
--- a/src/connectionController.ts
+++ b/src/connectionController.ts
@@ -729,6 +729,7 @@ export default class ConnectionController {
 
     if (!this._activeDataService) {
       log.error('Unable to disconnect: no active connection');
+      this._disconnecting = false;
       return false;
     }
 
diff --git a/src/extension.ts b/src/extension.ts
index ae53f7f9b..a4c10e239 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -21,7 +21,9 @@ debug.log = log.debug.bind(log);
 
 import MDBExtensionController from './mdbExtensionController';
 
-let mdbExtension: MDBExtensionController;
+let mdbExtension: MDBExtensionController | undefined;
+
+const isUnderTest = process.env.MDB_IS_TEST === 'true';
 
 // Called when our extension is activated.
 // See "activationEvents" in `package.json` for the events that cause activation.
@@ -51,13 +53,24 @@ export async function activate(
     },
   });
 
-  mdbExtension = new MDBExtensionController(context, {
-    shouldTrackTelemetry: true,
-  });
-  await mdbExtension.activate();
+  // Solution to VSCODE-700. If we are running tests, don't activate the extension.
+  // This avoids registering multiple providers when running the tests, which causes errors in recent versions of vscode.
+  if (isUnderTest) {
+    log.info(
+      'Skipping MDBExtensionController activation because MDB_IS_TEST is set.',
+    );
+    return;
+  }
 
-  // Add our extension to a list of disposables for when we are deactivated.
-  context.subscriptions.push(mdbExtension);
+  if (!mdbExtension) {
+    mdbExtension = new MDBExtensionController(context, {
+      shouldTrackTelemetry: true,
+    });
+    await mdbExtension.activate();
+
+    // Add our extension to a list of disposables for when we are deactivated.
+    context.subscriptions.push(mdbExtension);
+  }
 }
 
 // Called when our extension is deactivated.
diff --git a/src/test/runTest.ts b/src/test/runTest.ts
index 79278b9a1..3b07e0f0a 100644
--- a/src/test/runTest.ts
+++ b/src/test/runTest.ts
@@ -39,7 +39,7 @@ async function main(): Promise<any> {
 
   // Download VS Code, unzip it and run the integration test
   await runTests({
-    version: '1.103.2', // TODO(VSCODE-700) Once we fix the test setup issues, we should revert this to 'insiders'
+    version: 'insiders',
     extensionDevelopmentPath,
     extensionTestsPath,
     launchArgs: [testWorkspace, '--disable-extensions'],
diff --git a/src/test/suite/connectionController.test.ts b/src/test/suite/connectionController.test.ts
index 01eb20102..35a9bb2fb 100644
--- a/src/test/suite/connectionController.test.ts
+++ b/src/test/suite/connectionController.test.ts
@@ -42,7 +42,7 @@ const sleep = (ms: number): Promise<void> => {
 };
 
 suite('Connection Controller Test Suite', function () {
-  this.timeout(5000);
+  this.timeout(10000);
 
   const extensionContextStub = new ExtensionContextStub();
   const testStorageController = new StorageController(extensionContextStub);
@@ -73,6 +73,8 @@ suite('Connection Controller Test Suite', function () {
     extensionContextStub._workspaceState = {};
     extensionContextStub._globalState = {};
 
+    testConnectionController.cancelConnectionAttempt();
+
     await testConnectionController.disconnect();
     testConnectionController.clearAllConnections();
 
diff --git a/src/test/suite/editors/playgroundSelectionCodeActionProvider.test.ts b/src/test/suite/editors/playgroundSelectionCodeActionProvider.test.ts
index cd00309fd..c1c3d5e56 100644
--- a/src/test/suite/editors/playgroundSelectionCodeActionProvider.test.ts
+++ b/src/test/suite/editors/playgroundSelectionCodeActionProvider.test.ts
@@ -3,7 +3,6 @@ import { beforeEach, afterEach } from 'mocha';
 import chai from 'chai';
 import sinon from 'sinon';
 import PlaygroundSelectionCodeActionProvider from '../../../editors/playgroundSelectionCodeActionProvider';
-import { LanguageServerController } from '../../../language';
 import { mdbTestExtension } from '../stubbableMdbExtension';
 import { PlaygroundController } from '../../../editors';
 import { TEST_DATABASE_URI } from '../dbTestHelper';
@@ -32,11 +31,6 @@ suite('Playground Selection Code Action Provider Test Suite', function () {
     let testActiveTextEditor;
 
     beforeEach(async () => {
-      sandbox.replace(
-        mdbTestExtension.testExtensionController,
-        '_languageServerController',
-        new LanguageServerController(extensionContextStub),
-      );
       sandbox.stub(vscode.window, 'showInformationMessage');
       sandbox.stub(
         mdbTestExtension.testExtensionController._telemetryService,
@@ -79,7 +73,6 @@ suite('Playground Selection Code Action Provider Test Suite', function () {
         .getConfiguration('mdb')
         .update('confirmRunAll', false);
 
-      await mdbTestExtension.testExtensionController._languageServerController.startLanguageServer();
       await mdbTestExtension.testExtensionController._playgroundController._activeConnectionChanged();
 
       testActiveTextEditor = sandbox.stub(vscode.window, 'activeTextEditor');
diff --git a/src/test/suite/index.ts b/src/test/suite/index.ts
index e3bbec7dd..13de8b55e 100644
--- a/src/test/suite/index.ts
+++ b/src/test/suite/index.ts
@@ -54,11 +54,21 @@ export async function run(): Promise<void> {
         try {
           // Run the mocha test.
           mocha.run((failures) => {
-            if (failures > 0) {
-              e(new Error(`${failures} tests failed.`));
-            } else {
-              c();
-            }
+            // Deactivate the extension to properly clean up the language server
+            void mdbTestExtension.testExtensionController
+              .deactivate()
+              .then(() => {
+                if (failures > 0) {
+                  e(new Error(`${failures} tests failed.`));
+                } else {
+                  c();
+                }
+              })
+              .catch((deactivateErr) => {
+                console.error('Error deactivating extension:');
+                console.error(deactivateErr);
+                e(deactivateErr);
+              });
           });
         } catch (mochaRunErr) {
           console.error('Error running mocha tests:');
diff --git a/src/test/suite/language/languageServerController.test.ts b/src/test/suite/language/languageServerController.test.ts
index df406b942..57d4a4b1d 100644
--- a/src/test/suite/language/languageServerController.test.ts
+++ b/src/test/suite/language/languageServerController.test.ts
@@ -11,7 +11,6 @@ import chaiAsPromised from 'chai-as-promised';
 import PlaygroundSelectionCodeActionProvider from '../../../editors/playgroundSelectionCodeActionProvider';
 import ConnectionController from '../../../connectionController';
 import EditDocumentCodeLensProvider from '../../../editors/editDocumentCodeLensProvider';
-import { LanguageServerController } from '../../../language';
 import { mdbTestExtension } from '../stubbableMdbExtension';
 import { PlaygroundController } from '../../../editors';
 import PlaygroundResultProvider from '../../../editors/playgroundResultProvider';
@@ -21,6 +20,7 @@ import { TEST_DATABASE_URI } from '../dbTestHelper';
 import { TelemetryService } from '../../../telemetry';
 import { ExtensionContextStub } from '../stubs';
 import ExportToLanguageCodeLensProvider from '../../../editors/exportToLanguageCodeLensProvider';
+import type { LanguageServerController } from '../../../language';
 
 const expect = chai.expect;
 
@@ -58,9 +58,9 @@ suite('Language Server Controller Test Suite', () => {
   const sandbox = sinon.createSandbox();
 
   before(async () => {
-    languageServerControllerStub = new LanguageServerController(
-      extensionContextStub,
-    );
+    languageServerControllerStub =
+      mdbTestExtension.testExtensionController._languageServerController;
+
     const testExportToLanguageCodeLensProvider =
       new ExportToLanguageCodeLensProvider(testPlaygroundResultProvider);
 
@@ -73,7 +73,6 @@ suite('Language Server Controller Test Suite', () => {
       playgroundSelectionCodeActionProvider: testCodeActionProvider,
       exportToLanguageCodeLensProvider: testExportToLanguageCodeLensProvider,
     });
-    await languageServerControllerStub.startLanguageServer();
     await testPlaygroundController._activeConnectionChanged();
   });
 
diff --git a/src/test/suite/views/webviewController.test.ts b/src/test/suite/views/webviewController.test.ts
index b5ae67721..a6cdf6ae2 100644
--- a/src/test/suite/views/webviewController.test.ts
+++ b/src/test/suite/views/webviewController.test.ts
@@ -157,9 +157,9 @@ suite('Webview Test Suite', () => {
   suite('when oidc device auth flow setting is enabled', function () {
     let originalDeviceAuthFlow;
     before(async function () {
-      originalDeviceAuthFlow = vscode.workspace.getConfiguration(
-        'mdb.showOIDCDeviceAuthFlow',
-      );
+      originalDeviceAuthFlow = vscode.workspace
+        .getConfiguration('mdb')
+        .get('showOIDCDeviceAuthFlow');
 
       await vscode.workspace
         .getConfiguration('mdb')