Repository: vscode
Issue: Settings Defaults gets very confused when updating extensions.
Labels: bug,settings-editor


Type: <b>Bug</b>

If the settings schema has changed for an extension during an update, it is not getting correctly detected by VS Code Settings. 

## Steps to Reproduce

1. Install the Code Spell Checker extension version `v3.0.1` (the old version).
   ![Image](https://github.com/user-attachments/assets/49753d0b-b964-4331-9099-05ca7aa94d5d)
1. Restart VS Code -- this is necessary if already had the extension installed.
2. Go to the extension's settings.
   ![Image](https://github.com/user-attachments/assets/0c8a2153-a7ec-40a5-a984-5f6a59e7189a)
1. Notice the list of settings (59) -- Keep settings editor open.
   ![Image](https://github.com/user-attachments/assets/3aba9949-7fae-4cd9-9576-162266305a55)
1. Update the extension to v4.0.21.
   ![Image](https://github.com/user-attachments/assets/d3ef4827-ad08-443d-8dd0-ad6ec9766fd7)
1. Restart extensions as instructed.
2. Notice the list of settings (59) -- which is incorrect.
   ![Image](https://github.com/user-attachments/assets/2011a3d3-6192-4c3f-9709-68f15d5211c0)
1. Closing the settings editor and reopening doesn't make a difference. It is still showing stale settings.
2. Even Restarting the Extension Host does not work.
3. The only option is to Restart VS Code.
4. Restart VS Code.
5. Go to the Code Spell Checker settings. Notice that there are now 77.
   ![Image](https://github.com/user-attachments/assets/44c8140f-a78e-4968-8da0-c86bbcc79a29)


VS Code version: Code 1.95.3 (Universal) (f1a4fb101478ce6ec82fe9627c43efbf9e98c813, 2024-11-13T14:50:04.152Z)
OS version: Darwin arm64 24.1.0
Modes:

<details>
<summary>System Info</summary>

|Item|Value|
|---|---|
|CPUs|Apple M3 Pro (12 x 2400)|
|GPU Status|2d_canvas: enabled<br>canvas_oop_rasterization: enabled_on<br>direct_rendering_display_compositor: disabled_off_ok<br>gpu_compositing: enabled<br>multiple_raster_threads: enabled_on<br>opengl: enabled_on<br>rasterization: enabled<br>raw_draw: disabled_off_ok<br>skia_graphite: disabled_off<br>video_decode: enabled<br>video_encode: enabled<br>webgl: enabled<br>webgl2: enabled<br>webgpu: enabled<br>webnn: disabled_off|
|Load (avg)|3, 4, 3|
|Memory (System)|36.00GB (0.47GB free)|
|Process Argv|--crash-reporter-id 21ae0ece-62a2-4681-a5cf-c687ea23e753|
|Screen Reader|no|
|VM|0%|
</details><details><summary>Extensions (95)</summary>

Extension|Author (truncated)|Version
---|---|---
terraform|4op|0.2.5
ada|Ada|26.0.202411173
commit-message-editor|ada|0.25.0
tsl-problem-matcher|amo|0.6.2
alignment|ann|0.3.0
cpupro|ant|0.1.1
vscode-zipfs|arc|3.0.0
astro-vscode|ast|2.15.4
markdown-mermaid|bie|1.27.0
mermaid-markdown-syntax-highlighting|bpr|1.7.0
npm-intellisense|chr|1.4.5
codesandbox-projects|Cod|0.2.142
jison-syntax-highlight|cru|0.1.1
scala|dal|0.0.5
vscode-jq-playground|dav|4.3.5
vscode-eslint|dba|3.0.13
vscode-wasm|dts|1.4.1
gitlens|eam|16.0.3
EditorConfig|Edi|0.16.4
prettier-vscode|esb|11.0.0
linter-gfortran|for|3.2.0
copilot|Git|1.245.0
copilot-chat|Git|0.22.4
remotehub|Git|0.64.0
vscode-github-actions|git|0.27.0
vscode-pull-request-github|Git|0.100.3
gitpod-desktop|git|0.0.180
yaml-plus-json|hil|1.12.2
mediawiki|jak|2.1.0
latex-workshop|Jam|10.5.6
svg|joc|1.5.4
jq-syntax-highlighting|jq-|0.0.2
vscode-tree-sitter-query|jri|0.0.6
language-haskell|jus|3.6.0
vscode-cfml|Kam|0.5.4
bison|lun|0.1.0
Kotlin|mat|1.7.1
Lisp|mat|0.1.12
rainbow-csv|mec|3.13.0
dotenv|mik|1.0.1
vscode-apache|mrm|1.2.0
vscode-puglint|mrm|2.3.0
vscode-azureresourcegroups|ms-|0.9.9
vscode-docker|ms-|1.29.3
vscode-language-pack-de|MS-|1.95.2024103009
vscode-dotnet-runtime|ms-|2.2.3
al|ms-|14.1.1180850
playwright|ms-|1.1.12
black-formatter|ms-|2024.4.0
debugpy|ms-|2024.12.0
isort|ms-|2023.10.1
python|ms-|2024.20.0
vscode-pylance|ms-|2024.11.3
jupyter|ms-|2024.10.0
jupyter-keymap|ms-|1.1.2
jupyter-renderers|ms-|1.0.21
vscode-jupyter-cell-tags|ms-|0.1.9
vscode-jupyter-slideshow|ms-|0.1.6
remote-containers|ms-|0.391.0
remote-ssh|ms-|0.115.1
remote-ssh-edit|ms-|0.87.0
remote-wsl|ms-|0.88.5
azure-account|ms-|0.12.0
azure-repos|ms-|0.40.0
cpptools|ms-|1.22.11
cpptools-extension-pack|ms-|1.3.0
live-server|ms-|0.4.15
powershell|ms-|2024.4.0
remote-explorer|ms-|0.4.3
remote-repositories|ms-|0.42.0
test-adapter-converter|ms-|0.2.1
vscode-js-profile-flame|ms-|1.0.9
vsliveshare|ms-|1.0.5941
vetur|oct|0.37.3
common-lisp|qin|1.2.11
vscode-yaml|red|1.15.0
rust-analyzer|rus|0.3.2188
es6-mocha-snippets|spo|0.2.2
avro|str|0.5.0
code-spell-checker|str|4.0.21
hunspell|str|1.0.4
iconfont-preview|stx|0.0.5
svelte-vscode|sve|109.3.2
even-better-toml|tam|0.19.2
msbuild-project-tools|tin|0.6.6
es6-string-html|Tob|2.16.0
vscode-mermaid-editor|tom|0.19.1
vscode-mdx|uni|1.8.11
intellicode-api-usage-examples|Vis|0.2.9
vscodeintellicode|Vis|1.3.2
vscode-gradle|vsc|3.16.4
vscode-java-debug|vsc|0.58.1
debug|web|0.27.0
php-debug|xde|1.35.0
php-intellisense|zob|1.3.3

(1 theme extensions excluded)

</details><details>
<summary>A/B Experiments</summary>

```
vsliv368:30146709
vspor879:30202332
vspor708:30202333
vspor363:30204092
vscod805:30301674
binariesv615:30325510
vsaa593:30376534
py29gd2263:31024239
vscaac:30438847
c4g48928:30535728
azure-dev_surveyone:30548225
vscrp:30673768
2i9eh265:30646982
962ge761:30959799
pythonnoceb:30805159
asynctok:30898717
pythonmypyd1:30879173
2e7ec940:31000449
pythontbext0:30879054
cppperfnew:31000557
dsvsc020:30976470
pythonait:31006305
dsvsc021:30996838
945dj816:31013170
dvdeprecation:31068756
dwnewjupyter:31046869
nativerepl1:31139838
pythonrstrctxt:31112756
nativeloc2:31185842
cf971741:31144450
iacca1:31171482
notype1:31157159
5fd0e150:31155592
dwcopilot:31170013
stablechunks:31184530

```

</details>

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