diff --git a/build/esbuild/build.ts b/build/esbuild/build.ts
index 3ad1455bbe7..7ca578a6981 100644
--- a/build/esbuild/build.ts
+++ b/build/esbuild/build.ts
@@ -43,10 +43,6 @@ const commonExternals = [
     'commonjs',
     'node:crypto',
     'vscode-jsonrpc', // Used by a few modules, might as well pull this out, instead of duplicating it in separate bundles.
-    // jsonc-parser doesn't get bundled well with esbuild without any changes.
-    // Its possible the fix is very simple.
-    // For now, its handled with webpack.
-    'jsonc-parser',
     // Ignore telemetry specific packages that are not required.
     'applicationinsights-native-metrics',
     '@opentelemetry/tracing',
@@ -171,6 +167,9 @@ function createConfig(
         moment: path.join(extensionFolder, 'build', 'webpack', 'moment.js'),
         'vscode-jupyter-release-version': path.join(__dirname, releaseVersionScriptFile)
     };
+    if (target === 'desktop') {
+        alias['jsonc-parser'] = path.join(extensionFolder, 'node_modules', 'jsonc-parser', 'lib', 'esm', 'main.js');
+    }
     return {
         entryPoints: [source],
         outfile,
diff --git a/build/webpack/webpack.extension.dependencies.config.js b/build/webpack/webpack.extension.dependencies.config.js
deleted file mode 100644
index 748f4d0a7aa..00000000000
--- a/build/webpack/webpack.extension.dependencies.config.js
+++ /dev/null
@@ -1,35 +0,0 @@
-// Copyright (c) Microsoft Corporation.
-// Licensed under the MIT License.
-'use strict';
-
-const path = require('path');
-const constants = require('../constants');
-const common = require('./common');
-const entryItems = {
-    // jsonc-parser does not get bundled propertly with esbuild.
-    [`node_modules/jsonc-parser`]: `./node_modules/jsonc-parser`
-};
-
-const config = {
-    mode: 'production',
-    target: 'node',
-    context: constants.ExtensionRootDir,
-    entry: entryItems,
-    devtool: 'source-map',
-    node: {
-        __dirname: false
-    },
-    externals: ['vscode', 'commonjs', 'vscode-jsonrpc'],
-    plugins: [...common.getDefaultPlugins('dependencies')],
-    resolve: {
-        extensions: ['.js']
-    },
-    output: {
-        filename: '[name].js',
-        path: path.resolve(constants.ExtensionRootDir, 'dist'),
-        libraryTarget: 'commonjs2',
-        devtoolModuleFilenameTemplate: '../../[resource-path]'
-    }
-};
-// tslint:disable-next-line:no-default-export
-exports.default = config;
diff --git a/gulpfile.js b/gulpfile.js
index 804d0a4fbf6..5c39af5f9d6 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -166,13 +166,6 @@ async function buildWebPackForDevOrProduction(configFile, configNameForProductio
         await spawnAsync('npm', ['run', 'webpack', '--', '--config', configFile, '--mode', 'development'], webpackEnv);
     }
 }
-gulp.task('webpack-dependencies', async () => {
-    // No need to build dependencies for web.
-    if (common.getBundleConfiguration() === common.bundleConfiguration.web) {
-        return;
-    }
-    await buildWebPackForDevOrProduction('./build/webpack/webpack.extension.dependencies.config.js', 'production');
-});
 
 function modifyJson(jsonFile, cb) {
     const json = fs.readFileSync(jsonFile).toString('utf-8');
diff --git a/package.json b/package.json
index 8000a62c422..82ec1536d19 100644
--- a/package.json
+++ b/package.json
@@ -2094,17 +2094,15 @@
         "preprePublishNonBundle": "gulp clean",
         "updatePackageJsonForBundle": "gulp updatePackageJsonForBundle",
         "prePublishNonBundle": "npm run compile-no-watch",
-        "compile": "concurrently \"tsc -watch -p ./\" npm:webpack-dev \"npx tsx build/esbuild/build.ts --watch\"",
-        "compile-watch-all": "concurrently \"tsc -watch -p ./\" npm:webpack-dev \"npx tsx build/esbuild/build.ts --watch-all\"",
-        "compile-no-watch": "concurrently npm:compile-out npm:webpack-dev npm:esbuild-all",
+        "compile": "concurrently \"tsc -watch -p ./\" \"npx tsx build/esbuild/build.ts --watch\"",
+        "compile-watch-all": "concurrently \"tsc -watch -p ./\" \"npx tsx build/esbuild/build.ts --watch-all\"",
+        "compile-no-watch": "concurrently npm:compile-out npm:esbuild-all",
         "compile-out": "tsc -p ./",
         "compile-web-test": "webpack --mode development --config ./build/webpack/webpack.extension.web.config.js",
         "compile-web-test-watch": "webpack --mode development --config ./build/webpack/webpack.extension.web.config.js --stats-error-details --watch --progress",
         "esbuild-all": "npx tsx build/esbuild/build.ts",
-        "compile-release": "concurrently npm:compile-out npm:esbuild-release npm:webpack-release",
+        "compile-release": "concurrently npm:compile-out npm:esbuild-release",
         "esbuild-release": "npx tsx build/esbuild/build.ts --production",
-        "webpack-dev": "gulp webpack-dependencies",
-        "webpack-release": "gulp webpack-dependencies",
         "esbuild-watch": "npx tsx build/esbuild/build.ts --watch",
         "checkDependencies": "gulp checkDependencies",
         "postinstall": "npm run download-api && node ./build/ci/postInstall.js",