diff --git a/extensions/ql-vscode/src/local-databases.ts b/extensions/ql-vscode/src/local-databases.ts
index a4e32a5d0..7dbdf3cf2 100644
--- a/extensions/ql-vscode/src/local-databases.ts
+++ b/extensions/ql-vscode/src/local-databases.ts
@@ -11,6 +11,7 @@ import {
   showAndLogExceptionWithTelemetry,
   isFolderAlreadyInWorkspace,
   showBinaryChoiceDialog,
+  getFirstStoragePath,
 } from "./helpers";
 import { ProgressCallback, withProgress } from "./progress";
 import {
@@ -676,11 +677,13 @@ export class DatabaseManager extends DisposableObject {
     }
 
     try {
+      const workspaceStorage = getFirstStoragePath();
+
       const qlPackGenerator = new QlPackGenerator(
         folderName,
         databaseItem.language as QueryLanguage,
         this.cli,
-        this.ctx.storageUri?.fsPath,
+        workspaceStorage,
       );
       await qlPackGenerator.generate();
     } catch (e: unknown) {
diff --git a/extensions/ql-vscode/src/qlpack-generator.ts b/extensions/ql-vscode/src/qlpack-generator.ts
index a7efc3f3d..b87cf1351 100644
--- a/extensions/ql-vscode/src/qlpack-generator.ts
+++ b/extensions/ql-vscode/src/qlpack-generator.ts
@@ -1,7 +1,7 @@
-import { writeFile } from "fs-extra";
+import { mkdir, writeFile } from "fs-extra";
 import { dump } from "js-yaml";
 import { join } from "path";
-import { Uri, workspace } from "vscode";
+import { Uri } from "vscode";
 import { CodeQLCliServer } from "./cli";
 import { QueryLanguage } from "./common/query-language";
 
@@ -44,14 +44,7 @@ export class QlPackGenerator {
   }
 
   private async createWorkspaceFolder() {
-    await workspace.fs.createDirectory(this.folderUri);
-
-    const end = (workspace.workspaceFolders || []).length;
-
-    workspace.updateWorkspaceFolders(end, 0, {
-      name: this.folderName,
-      uri: this.folderUri,
-    });
+    await mkdir(this.folderUri.fsPath);
   }
 
   private async createQlPackYaml() {