diff --git a/packages/server/src/cli.ts b/packages/server/src/cli.ts
index 4cc8291a..629a961d 100644
--- a/packages/server/src/cli.ts
+++ b/packages/server/src/cli.ts
@@ -26,7 +26,6 @@ commander.version(process.env.VERSION || "development")
 	.option("--cert <value>")
 	.option("--cert-key <value>")
 	.option("-e, --extensions-dir <dir>", "Override the main default path for user extensions.")
-	.option("--builtin-extensions-dir <dir>", "Override the main default path for built-in extensions.")
 	.option("--extra-extensions-dir [dir]", "Path to an extra user extension directory (repeatable).", collect, [])
 	.option("--extra-builtin-extensions-dir [dir]", "Path to an extra built-in extension directory (repeatable).", collect, [])
 	.option("-d --user-data-dir <dir>", "Specifies the directory that user data is kept in, useful when running as root.")
@@ -66,7 +65,6 @@ const bold = (text: string | number): string | number => {
 
 		readonly userDataDir?: string;
 		readonly extensionsDir?: string;
-		readonly builtinExtensionsDir?: string;
 		readonly extraExtensionsDir?: string[];
 		readonly extraBuiltinExtensionsDir?: string[];
 
@@ -94,8 +92,7 @@ const bold = (text: string | number): string | number => {
 
 	const dataDir = path.resolve(options.userDataDir || options.dataDir || path.join(dataHome, "code-server"));
 	const extensionsDir = options.extensionsDir ? path.resolve(options.extensionsDir) : path.resolve(dataDir, "extensions");
-	const builtInExtensionsDir = options.builtinExtensionsDir ? path.resolve(options.builtinExtensionsDir)
-		: path.resolve(buildDir || path.join(__dirname, ".."), "build/extensions");
+	const builtInExtensionsDir = path.resolve(buildDir || path.join(__dirname, ".."), "build/extensions");
 	const extraExtensionDirs = options.extraExtensionsDir ? options.extraExtensionsDir.map((p) => path.resolve(p)) : [];
 	const extraBuiltinExtensionDirs = options.extraBuiltinExtensionsDir ? options.extraBuiltinExtensionsDir.map((p) => path.resolve(p)) : [];
 	const workingDir = path.resolve(args[0] || process.cwd());
@@ -113,7 +110,6 @@ const bold = (text: string | number): string | number => {
 		fse.mkdirp(cacheHome),
 		fse.mkdirp(dataDir),
 		fse.mkdirp(extensionsDir),
-		fse.mkdirp(builtInExtensionsDir),
 		fse.mkdirp(workingDir),
 		fse.mkdirp(dependenciesDir),
 		...extraExtensionDirs.map((p) => fse.mkdirp(p)),
diff --git a/scripts/vscode.patch b/scripts/vscode.patch
index bba7c2fb..90ba0555 100644
--- a/scripts/vscode.patch
+++ b/scripts/vscode.patch
@@ -149,13 +149,13 @@ index e0ff793..885de12 100644
 -		const cmdOrCtrlKey = platform.isMacintosh ? e.metaKey : e.ctrlKey;
 +		const cmdOrCtrlKey = browser.isMacintosh ? e.metaKey : e.ctrlKey;
 diff --git a/src/vs/code/electron-browser/sharedProcess/sharedProcessMain.ts b/src/vs/code/electron-browser/sharedProcess/sharedProcessMain.ts
-index 6fd8249..1101558 100644
+index 6fd8249..6ae6b11 100644
 --- a/src/vs/code/electron-browser/sharedProcess/sharedProcessMain.ts
 +++ b/src/vs/code/electron-browser/sharedProcess/sharedProcessMain.ts
 @@ -50,0 +51,2 @@ import { ServiceIdentifier } from 'vs/platform/instantiation/common/instantiatio
 +import { BackupMainService } from 'vs/platform/backup/electron-main/backupMainService';
 +import { mkdirp } from 'vs/base/node/pfs';
-@@ -93,0 +96,11 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
+@@ -93,0 +96,10 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
 +	Promise.all<boolean | undefined>([ // Copied from src/vs/code/electron-main/main.ts
 +		environmentService.extensionsPath,
 +		environmentService.nodeCachedDataDir,
@@ -163,20 +163,19 @@ index 6fd8249..1101558 100644
 +		environmentService.globalStorageHome,
 +		environmentService.workspaceStorageHome,
 +		environmentService.backupHome,
-+		environmentService.builtinExtensionsPath,
 +		...environmentService.extraExtensionPaths,
 +		...environmentService.extraBuiltinExtensionPaths,
 +	].map((path): undefined | Promise<boolean> => path ? mkdirp(path) : undefined));
-@@ -119,0 +133,2 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
+@@ -119,0 +132,2 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
 +	const backupMainService = instantiationService.createInstance(BackupMainService) as BackupMainService;
 +	backupMainService.initialize().catch(console.error);
-@@ -124 +139 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
+@@ -124 +138 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
 -		const { appRoot, extensionsPath, extensionDevelopmentLocationURI, isBuilt, installSourcePath } = environmentService;
 +		const { appRoot, extensionsPath, extraExtensionPaths, extensionDevelopmentLocationURI, isBuilt, installSourcePath } = environmentService;
-@@ -138 +153 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
+@@ -138 +152 @@ function main(server: Server, initData: ISharedProcessInitData, configuration: I
 -				piiPaths: [appRoot, extensionsPath]
 +				piiPaths: [appRoot, extensionsPath, ...extraExtensionPaths]
-@@ -223,0 +239 @@ async function handshake(configuration: ISharedProcessConfiguration): Promise<vo
+@@ -223,0 +238 @@ async function handshake(configuration: ISharedProcessConfiguration): Promise<vo
 +startup({ machineId: "1" });
 diff --git a/src/vs/code/node/cli.ts b/src/vs/code/node/cli.ts
 index 1f8b17a..2a875f9 100644