diff --git a/registry/coder/modules/code-server/main.tf b/registry/coder/modules/code-server/main.tf
index b4e3d2597..ca4ff3afd 100644
--- a/registry/coder/modules/code-server/main.tf
+++ b/registry/coder/modules/code-server/main.tf
@@ -44,12 +44,6 @@ variable "settings" {
   default     = {}
 }
 
-variable "machine-settings" {
-  type        = any
-  description = "A map of template level machine settings to apply to code-server. This will be overwritten at each container start."
-  default     = {}
-}
-
 variable "folder" {
   type        = string
   description = "The folder to open in code-server."
@@ -155,7 +149,6 @@ resource "coder_script" "code-server" {
     INSTALL_PREFIX : var.install_prefix,
     // This is necessary otherwise the quotes are stripped!
     SETTINGS : replace(jsonencode(var.settings), "\"", "\\\""),
-    MACHINE_SETTINGS : replace(jsonencode(var.machine-settings), "\"", "\\\""),
     OFFLINE : var.offline,
     USE_CACHED : var.use_cached,
     USE_CACHED_EXTENSIONS : var.use_cached_extensions,
diff --git a/registry/coder/modules/code-server/run.sh b/registry/coder/modules/code-server/run.sh
index 73bcd6899..99b30c0ea 100644
--- a/registry/coder/modules/code-server/run.sh
+++ b/registry/coder/modules/code-server/run.sh
@@ -23,20 +23,7 @@ function run_code_server() {
 if [ ! -f ~/.local/share/code-server/User/settings.json ]; then
   echo "⚙️ Creating settings file..."
   mkdir -p ~/.local/share/code-server/User
-  if command -v jq &> /dev/null; then
-    echo "${SETTINGS}" | jq '.' > ~/.local/share/code-server/User/settings.json
-  else
-    echo "${SETTINGS}" > ~/.local/share/code-server/User/settings.json
-  fi
-fi
-
-# Apply/overwrite template based settings
-echo "⚙️ Creating machine settings file..."
-mkdir -p ~/.local/share/code-server/Machine
-if command -v jq &> /dev/null; then
-  echo "${MACHINE_SETTINGS}" | jq '.' > ~/.local/share/code-server/Machine/settings.json
-else
-  echo "${MACHINE_SETTINGS}" > ~/.local/share/code-server/Machine/settings.json
+  echo "${SETTINGS}" > ~/.local/share/code-server/User/settings.json
 fi
 
 # Check if code-server is already installed for offline