diff --git a/src/vs/platform/extensionManagement/node/extensionManagementService.ts b/src/vs/platform/extensionManagement/node/extensionManagementService.ts
index 2bcc19c90b1..fa9514488fd 100644
--- a/src/vs/platform/extensionManagement/node/extensionManagementService.ts
+++ b/src/vs/platform/extensionManagement/node/extensionManagementService.ts
@@ -933,6 +933,8 @@ class InstallExtensionInProfileTask extends AbstractExtensionTask<ILocalExtensio
 			source: this.source instanceof URI ? 'vsix' : 'gallery',
 		};
 
+		let local: ILocalExtension | undefined;
+
 		// VSIX
 		if (this.source instanceof URI) {
 			if (existingExtension) {
@@ -972,22 +974,22 @@ class InstallExtensionInProfileTask extends AbstractExtensionTask<ILocalExtensio
 				: this.options.installPreReleaseVersion || this.source.properties.isPreReleaseVersion || existingExtension?.preRelease;
 
 			if (existingExtension && existingExtension.type !== ExtensionType.System && existingExtension.manifest.version === this.source.version) {
-				return this.extensionsScanner.updateMetadata(existingExtension, metadata);
+				return this.extensionsScanner.updateMetadata(existingExtension, metadata, this.options.profileLocation);
 			}
 
 			// Unset if the extension is uninstalled and return the unset extension.
-			const local = await this.unsetIfUninstalled(this.extensionKey);
-			if (local) {
-				return local;
-			}
+			local = await this.unsetIfUninstalled(this.extensionKey);
 		}
 
 		if (token.isCancellationRequested) {
 			throw toExtensionManagementError(new CancellationError());
 		}
 
-		const { local, verificationStatus } = await this.extractExtensionFn(this.operation, token);
-		this._verificationStatus = verificationStatus;
+		if (!local) {
+			const result = await this.extractExtensionFn(this.operation, token);
+			local = result.local;
+			this._verificationStatus = result.verificationStatus;
+		}
 
 		if (this.uriIdentityService.extUri.isEqual(this.userDataProfilesService.defaultProfile.extensionsResource, this.options.profileLocation)) {
 			try {