diff --git a/src/terraform/README.md b/src/terraform/README.md
index 199c566d6..f6f5c9636 100644
--- a/src/terraform/README.md
+++ b/src/terraform/README.md
@@ -28,9 +28,6 @@ Installs the Terraform CLI and optionally TFLint and Terragrunt. Auto-detects la
 ### VS Code Extensions
 
 - `HashiCorp.terraform`
-- `ms-azuretools.vscode-azureterraform`
-
-
 
 ## Licensing
 
diff --git a/src/terraform/devcontainer-feature.json b/src/terraform/devcontainer-feature.json
index 3193f25af..e3e5fb9ad 100644
--- a/src/terraform/devcontainer-feature.json
+++ b/src/terraform/devcontainer-feature.json
@@ -59,15 +59,13 @@
     "customizations": {
         "vscode": {
             "extensions": [
-                "HashiCorp.terraform",
-                "ms-azuretools.vscode-azureterraform"
+                "HashiCorp.terraform"
             ],
             "settings": {
                 "terraform.languageServer.enable": true,
                 "terraform.languageServer.args": [
                     "serve"
-                ],
-                "azureTerraform.terminal": "integrated"
+                ]
             }
         }
     },