diff --git a/extensions/typescript-language-features/src/languageFeatures/fileReferences.ts b/extensions/typescript-language-features/src/languageFeatures/fileReferences.ts
index d74db5c107a..010f4038c7a 100644
--- a/extensions/typescript-language-features/src/languageFeatures/fileReferences.ts
+++ b/extensions/typescript-language-features/src/languageFeatures/fileReferences.ts
@@ -67,13 +67,13 @@ class FileReferencesCommand implements Command {
 				typeConverters.Location.fromTextSpan(this.client.toResource(reference.file), reference));
 
 			const config = vscode.workspace.getConfiguration('references');
-			const existingSetting = config.get('preferredLocation', undefined);
+			const existingSetting = config.inspect<string>('preferredLocation');
 
 			await config.update('preferredLocation', 'view');
 			try {
 				await vscode.commands.executeCommand('editor.action.showReferences', resource, new vscode.Position(0, 0), locations);
 			} finally {
-				await config.update('preferredLocation', existingSetting);
+				await config.update('preferredLocation', existingSetting?.workspaceFolderValue ?? existingSetting?.workspaceValue);
 			}
 		});
 	}