diff --git a/packages/databricks-vscode/package.json b/packages/databricks-vscode/package.json
index b3662e31b..1c30fd2fb 100644
--- a/packages/databricks-vscode/package.json
+++ b/packages/databricks-vscode/package.json
@@ -607,21 +607,6 @@
                         "type": "string",
                         "default": "",
                         "description": "Similar to python.envFile. Absolute path to a file containing environment variable definitions."
-                    },
-                    "databricks.experiments.optInto": {
-                        "type": "array",
-                        "default": [],
-                        "items": {
-                            "enum": [
-                                "debugging.dbconnect"
-                            ],
-                            "enumDescriptions": [
-                                "Interactive debugging using dbconnect V2."
-                            ],
-                            "type": "string"
-                        },
-                        "uniqueItems": true,
-                        "description": "Opt into experimental features."
                     }
                 }
             }
diff --git a/packages/databricks-vscode/src/configuration/ConnectionManager.test.ts b/packages/databricks-vscode/src/configuration/ConnectionManager.test.ts
index d6b1fe3d1..57801b5b5 100644
--- a/packages/databricks-vscode/src/configuration/ConnectionManager.test.ts
+++ b/packages/databricks-vscode/src/configuration/ConnectionManager.test.ts
@@ -1,27 +1,18 @@
 /* eslint-disable @typescript-eslint/naming-convention */
 
-import {mock, instance} from "ts-mockito";
-import {ConnectionManager} from "./ConnectionManager";
 import {Disposable} from "vscode";
-import {CliWrapper} from "../cli/CliWrapper";
 
 describe(__filename, () => {
-    let mockedCliWrapper: CliWrapper;
     let disposables: Array<Disposable>;
 
     beforeEach(() => {
         disposables = [];
-        mockedCliWrapper = mock(CliWrapper);
     });
 
     afterEach(() => {
         disposables.forEach((d) => d.dispose());
     });
 
-    it("should create an instance", async () => {
-        new ConnectionManager(instance(mockedCliWrapper));
-    });
-
     // TODO
     // login
     // logout
diff --git a/packages/databricks-vscode/src/configuration/ConnectionManager.ts b/packages/databricks-vscode/src/configuration/ConnectionManager.ts
index d0e2e596e..2a15c3663 100644
--- a/packages/databricks-vscode/src/configuration/ConnectionManager.ts
+++ b/packages/databricks-vscode/src/configuration/ConnectionManager.ts
@@ -30,6 +30,7 @@ import {NamedLogger} from "@databricks/databricks-sdk/dist/logging";
 import {Loggers} from "../logger";
 import {CustomWhenContext} from "../vscode-objs/CustomWhenContext";
 import {workspaceConfigs} from "../vscode-objs/WorkspaceConfigs";
+import {WorkspaceStateManager} from "../vscode-objs/WorkspaceState";
 
 export type ConnectionState = "CONNECTED" | "CONNECTING" | "DISCONNECTED";
 
@@ -63,7 +64,10 @@ export class ConnectionManager {
 
     public metadataServiceUrl?: string;
 
-    constructor(private cli: CliWrapper) {}
+    constructor(
+        private cli: CliWrapper,
+        private workspaceState: WorkspaceStateManager
+    ) {}
 
     get state(): ConnectionState {
         return this._state;
@@ -218,7 +222,8 @@ export class ConnectionManager {
 
         if (
             this.databricksWorkspace &&
-            workspaceConfigs.enableFilesInWorkspace
+            (workspaceConfigs.enableFilesInWorkspace ||
+                this.workspaceState.wsfsFeatureFlag)
         ) {
             await this.createRootDirectory(
                 workspaceClient,
diff --git a/packages/databricks-vscode/src/extension.ts b/packages/databricks-vscode/src/extension.ts
index 0bd231a53..606ba211e 100644
--- a/packages/databricks-vscode/src/extension.ts
+++ b/packages/databricks-vscode/src/extension.ts
@@ -142,7 +142,7 @@ export async function activate(
     const cli = new CliWrapper(context);
 
     // Configuration group
-    const connectionManager = new ConnectionManager(cli);
+    const connectionManager = new ConnectionManager(cli, workspaceStateManager);
     context.subscriptions.push(
         connectionManager.onDidChangeState(async () => {
             telemetry.setMetadata(
diff --git a/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_repo.e2e.ts b/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_repo.e2e.ts
index 00e279c16..b49e77800 100644
--- a/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_repo.e2e.ts
+++ b/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_repo.e2e.ts
@@ -10,7 +10,7 @@ import {
 } from "./utils.ts";
 import {sleep} from "wdio-vscode-service";
 
-describe("Run job on cluster", async function () {
+describe("Run job on cluster with repo", async function () {
     let projectDir: string;
     this.timeout(2 * 60 * 1000);
 
diff --git a/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_workspace.e2e.ts b/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_workspace.e2e.ts
index d3310f752..03f1ed9f1 100644
--- a/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_workspace.e2e.ts
+++ b/packages/databricks-vscode/src/test/e2e/run_job_on_cluster_with_workspace.e2e.ts
@@ -10,13 +10,13 @@ import {
 } from "./utils.ts";
 import {sleep} from "wdio-vscode-service";
 
-describe("Run job on cluster", async function () {
+describe("Run job on cluster with workspace", async function () {
     let projectDir: string;
     this.timeout(2 * 60 * 1000);
 
     before(async () => {
         assert(process.env.TEST_DEFAULT_CLUSTER_ID);
-        assert(process.env.TEST_REPO_PATH);
+        assert(process.env.TEST_WORKSPACE_FOLDER_PATH);
         assert(process.env.WORKSPACE_PATH);
         projectDir = process.env.WORKSPACE_PATH;
 
@@ -40,7 +40,7 @@ describe("Run job on cluster", async function () {
             JSON.stringify({
                 clusterId: process.env["TEST_DEFAULT_CLUSTER_ID"],
                 profile: "DEFAULT",
-                workspacePath: process.env["TEST_REPO_PATH"],
+                workspacePath: process.env["TEST_WORKSPACE_FOLDER_PATH"],
             })
         );
         await fs.writeFile(
diff --git a/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_repo.e2e.ts b/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_repo.e2e.ts
index 288e2c0c3..270d363f7 100644
--- a/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_repo.e2e.ts
+++ b/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_repo.e2e.ts
@@ -10,7 +10,7 @@ import {
 } from "./utils.ts";
 import {sleep} from "wdio-vscode-service";
 
-describe("Run python on cluster", async function () {
+describe("Run python on cluster with repo", async function () {
     let projectDir: string;
     this.timeout(3 * 60 * 1000);
 
diff --git a/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_workspace.e2e.ts b/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_workspace.e2e.ts
index 3eb583f61..59ef11cbf 100644
--- a/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_workspace.e2e.ts
+++ b/packages/databricks-vscode/src/test/e2e/run_on_cluster_with_workspace.e2e.ts
@@ -10,14 +10,14 @@ import {
 } from "./utils.ts";
 import {sleep} from "wdio-vscode-service";
 
-describe("Run python on cluster", async function () {
+describe("Run python on cluster with workspace", async function () {
     let projectDir: string;
     this.timeout(3 * 60 * 1000);
 
     before(async () => {
         assert(process.env.DATABRICKS_HOST);
         assert(process.env.TEST_DEFAULT_CLUSTER_ID);
-        assert(process.env.TEST_REPO_PATH);
+        assert(process.env.TEST_WORKSPACE_FOLDER_PATH);
         assert(process.env.WORKSPACE_PATH);
         projectDir = process.env.WORKSPACE_PATH;
 
@@ -47,7 +47,7 @@ describe("Run python on cluster", async function () {
                 authType: "profile",
                 profile: "DEFAULT",
                 clusterId: process.env["TEST_DEFAULT_CLUSTER_ID"],
-                workspacePath: process.env["TEST_REPO_PATH"],
+                workspacePath: process.env["TEST_WORKSPACE_FOLDER_PATH"],
             })
         );
         await fs.mkdir(path.join(projectDir, "nested"), {recursive: true});
diff --git a/packages/databricks-vscode/src/test/e2e/utils.ts b/packages/databricks-vscode/src/test/e2e/utils.ts
index ec8a32f68..0b1645005 100644
--- a/packages/databricks-vscode/src/test/e2e/utils.ts
+++ b/packages/databricks-vscode/src/test/e2e/utils.ts
@@ -121,6 +121,16 @@ export async function dismissNotifications() {
 }
 
 export async function waitForSyncComplete() {
+    await browser.waitUntil(
+        async () => {
+            return await getViewSubSection("CONFIGURATION", "Sync Destination");
+        },
+        {
+            timeout: 20000,
+            interval: 2000,
+            timeoutMsg: "Couldn't find sync destination tree items.",
+        }
+    );
     await browser.waitUntil(
         async () => {
             const repoConfigItem = await getViewSubSection(
diff --git a/packages/databricks-vscode/src/test/e2e/wdio.conf.ts b/packages/databricks-vscode/src/test/e2e/wdio.conf.ts
index d972a118a..26e19cdfe 100644
--- a/packages/databricks-vscode/src/test/e2e/wdio.conf.ts
+++ b/packages/databricks-vscode/src/test/e2e/wdio.conf.ts
@@ -8,7 +8,13 @@ import path from "node:path";
 import {fileURLToPath} from "url";
 import assert from "assert";
 import fs from "fs/promises";
-import {WorkspaceClient, Cluster, Repo} from "@databricks/databricks-sdk";
+import {
+    WorkspaceClient,
+    Cluster,
+    Repo,
+    WorkspaceFsEntity,
+    WorkspaceFsUtils,
+} from "@databricks/databricks-sdk";
 import * as ElementCustomCommands from "./customCommands/elementCustomCommands.ts";
 import {execFile, ExecFileOptions} from "node:child_process";
 import {mkdirSync} from "node:fs";
@@ -259,12 +265,14 @@ export const config: Options.Testrunner = {
                 process.env["DATABRICKS_TOKEN"]
             );
             const repoPath = await createRepo(client);
+            const workspaceFolderPath = await createWsFolder(client);
             const configFile = await writeDatabricksConfig();
             await startCluster(client, process.env["TEST_DEFAULT_CLUSTER_ID"]);
 
             process.env.DATABRICKS_CONFIG_FILE = configFile;
             process.env.WORKSPACE_PATH = WORKSPACE_PATH;
             process.env.TEST_REPO_PATH = repoPath;
+            process.env.TEST_WORKSPACE_FOLDER_PATH = workspaceFolderPath;
         } catch (e) {
             console.error(e);
             process.exit(1);
@@ -545,6 +553,28 @@ async function createRepo(workspaceClient: WorkspaceClient): Promise<string> {
     return repo.path;
 }
 
+/**
+ * Create a workspace folder for the integration tests to use
+ */
+async function createWsFolder(
+    workspaceClient: WorkspaceClient
+): Promise<string> {
+    const me = (await workspaceClient.currentUser.me()).userName!;
+    const wsFolderPath = `/Users/${me}/.ide/${REPO_NAME}`;
+
+    console.log(`Creating test Workspace Folder: ${wsFolderPath}`);
+
+    await workspaceClient.workspace.mkdirs({path: wsFolderPath});
+    const repo = await WorkspaceFsEntity.fromPath(
+        workspaceClient,
+        wsFolderPath
+    );
+    if (WorkspaceFsUtils.isDirectory(repo)) {
+        return repo.path;
+    }
+    throw Error(`Couldn't create worspace folder at ${wsFolderPath}`);
+}
+
 async function startCluster(
     workspaceClient: WorkspaceClient,
     clusterId: string
diff --git a/packages/databricks-vscode/src/workspace-fs/WorkspaceFsAccessVerifier.ts b/packages/databricks-vscode/src/workspace-fs/WorkspaceFsAccessVerifier.ts
index a4fc01f93..189ab2d27 100644
--- a/packages/databricks-vscode/src/workspace-fs/WorkspaceFsAccessVerifier.ts
+++ b/packages/databricks-vscode/src/workspace-fs/WorkspaceFsAccessVerifier.ts
@@ -139,6 +139,7 @@ export class WorkspaceFsAccessVerifier implements Disposable {
         } else {
             if (
                 workspaceConfigs.syncDestinationType === "workspace" ||
+                !this.workspaceState.wsfsFeatureFlag ||
                 !(await this.isEnabledForWorkspace()) ||
                 this.workspaceState.skipSwitchToWorkspace
             ) {