Change:
private onApplicationConfigurationChanged(applicationConfiguration: ConfigurationModel): void { const previous = { data: this._configuration.toData(), workspace: this.workspace }; const change = this._configuration.compareAndUpdateApplicationConfiguration(applicationConfiguration); <ins> const configuraitonProperties = this.configurationRegistry.getConfigurationProperties(); change.keys = change.keys.filter(key => configuraitonProperties[key]?.scope === ConfigurationScope.APPLICATION); </ins> this.triggerConfigurationChange(change, previous, ConfigurationTarget.USER); }

Discussion:
<!-- Do Not Delete This! bugreporttemplate --<!-- Please read our Rules of Conduct: --<!-- Read our guide about submitting issues: --<!-- Search existing issues to avoid creating duplicates. --<!-- Test using the latest Insiders build to see if your issue has already been fixed: --<!-- Instead of creating your report here, use 'Report Issue' from the 'Help' menu in VS Code to pre-fill useful information. --<!-- Launch with to check. --<!-- If you answered No above, use 'Help: Start Extension Bisect' from Command Palette to try to identify the cause. --<!-- Issues caused by an extension need to be reported directly to the extension publisher. The 'Help Report Issue' dialog can assist with this. --When both default and custom profiles have the same extension installed and in default profile extension's settings changed and saved in user config, then in custom profile (if settings are not changed), the extension internally would read settings value from default profile instead of default values. is a simple extension that adds setting, reads it's value and it. Steps to reproduce: 1) in default profile install provided extension (source included) and open devtools, it should show 2) in settings UI change setting to in dev tools console it should show 3) open new vscode window and create a new empty custom profile 4) repeat step 1 in custom profile 5) in custom profile dev tools it shows which is value from default profile 6) in custom profile change the setting to , in dev tools it shown correctly 7) in custom profile reset the setting to default. Even though in the input field it shows , in the dev tools it shows 8) in default profile change the setting to anything (don't reset) 9) for some reason gets triggered in custom profile, it's dev tools now shows correct . At this point the bug no longer reproducible until custom profile window restarted. Version: 1.72.0 Commit: Date: 2022-10-04T23:20:39.912Z Electron: 19.0.17 Chromium: 102.0.5005.167 16.14.2 V8: 10.2.154.15-electron.0 OS: Windows_NT x64 10.0.

Sandboxed: No
I tried your steps and I cant repro following: At this step, I see default value. Value from default profile is not being shown for me. Also here, after resetting, I see the default value in the console. Can you please check your steps and reproduce again and let us know if you are still seeing the issue ?
I'm no longer able reproduce this either, however changing setting in default profile somehow triggers event in custom profile. Shouldn't profiles be totally independent?
Yeah, I see this too. I will investigate this.
To verify: Write a simple extension that logs when configuration changes. Eg:Open a VS Code window 1 with default profile and install above extension Open another VS Code window 2 with default profile and install above extension Change the colour theme in window 1 and make sure in console (developer tools) of window 2, nothing is logged.
I'm gonna assume you meant "with a new profile" and not "with default profile". Because based on your steps you're saying both windows use the same profile which I would expect logs in both windows.