diff --git a/lib/vscode b/lib/vscode
index 31c37ee8f..903b1e9d8 160000
--- a/lib/vscode
+++ b/lib/vscode
@@ -1 +1 @@
-Subproject commit 31c37ee8f63491495ac49e43b8544550fbae4533
+Subproject commit 903b1e9d8990623e3d7da1df3d33db3e42d80eda
diff --git a/patches/proxy-uri.diff b/patches/proxy-uri.diff
index 713d7b314..32aefbf13 100644
--- a/patches/proxy-uri.diff
+++ b/patches/proxy-uri.diff
@@ -83,7 +83,7 @@ Index: code-server/lib/vscode/src/vs/workbench/contrib/terminal/common/terminalE
 ===================================================================
 --- code-server.orig/lib/vscode/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
 +++ code-server/lib/vscode/src/vs/workbench/contrib/terminal/common/terminalEnvironment.ts
-@@ -271,7 +271,7 @@ export async function createTerminalEnvi
+@@ -291,7 +291,7 @@ export async function createTerminalEnvi
  
  		// Sanitize the environment, removing any undesirable VS Code and Electron environment
  		// variables