diff --git a/components/ide/code/BUILD.yaml b/components/ide/code/BUILD.yaml
index 06ac7a7db3a056..f9bc4fdd9ce09e 100644
--- a/components/ide/code/BUILD.yaml
+++ b/components/ide/code/BUILD.yaml
@@ -25,7 +25,7 @@ packages:
       - codeQuality
       - codeVersion
     config:
-      dockerfile: leeway.Dockerfile
+      dockerfile: leeway.nightly.Dockerfile
       metadata:
         helm-component: workspace.codeImage
       buildArgs:
diff --git a/components/ide/code/leeway.nightly.Dockerfile b/components/ide/code/leeway.nightly.Dockerfile
new file mode 100644
index 00000000000000..cf9def46af0fe1
--- /dev/null
+++ b/components/ide/code/leeway.nightly.Dockerfile
@@ -0,0 +1,101 @@
+# Copyright (c) 2024 Gitpod GmbH. All rights reserved.
+# Licensed under the GNU Affero General Public License (AGPL).
+# See License.AGPL.txt in the project root for license information.
+FROM gitpod/openvscode-server-linux-build-agent:focal-x64 as code_builder
+
+ENV TRIGGER_REBUILD 1
+
+ENV PLAYWRIGHT_SKIP_BROWSER_DOWNLOAD=1
+ENV ELECTRON_SKIP_BINARY_DOWNLOAD=1
+ENV VSCODE_ARCH=x64
+ENV NPM_REGISTRY=https://registry.npmjs.org
+
+ARG CODE_COMMIT
+ARG CODE_QUALITY
+ARG CODE_VERSION
+
+RUN sudo mkdir -m 0755 -p /etc/apt/keyrings
+RUN curl -fsSL https://deb.nodesource.com/gpgkey/nodesource-repo.gpg.key | sudo gpg --dearmor -o /etc/apt/keyrings/nodesource.gpg
+
+RUN if dpkg --compare-versions "$CODE_VERSION" "ge" "1.90"; then \
+      NODE_VERSION=20; \
+    else \
+      NODE_VERSION=18; \
+    fi && \
+    echo "deb [signed-by=/etc/apt/keyrings/nodesource.gpg] https://deb.nodesource.com/node_$NODE_VERSION.x nodistro main" | sudo tee /etc/apt/sources.list.d/nodesource.list
+RUN apt-get update && apt-get install -y nodejs
+
+RUN mkdir /gp-code \
+    && cd /gp-code \
+    && git init \
+    && git remote add origin https://github.com/gitpod-io/openvscode-server \
+    && git fetch origin $CODE_COMMIT --depth=1 \
+    && git reset --hard FETCH_HEAD
+WORKDIR /gp-code
+
+RUN apt-get install -y pkg-config dbus xvfb libgtk-3-0 libxkbfile-dev libkrb5-dev libgbm1 rpm \
+    && cp build/azure-pipelines/linux/xvfb.init /etc/init.d/xvfb \
+    && chmod +x /etc/init.d/xvfb \
+    && update-rc.d xvfb defaults \
+    && service xvfb start \
+    # Start dbus session
+    && mkdir -p /var/run/dbus
+
+# Disable v8 cache used by yarn v1.x, refs https://github.com/nodejs/node/issues/51555
+ENV DISABLE_V8_COMPILE_CACHE=1
+
+# ENV npm_config_arch=x64
+RUN mkdir -p .build \
+    && npm config set registry "$NPM_REGISTRY" \
+    && npm ci
+
+# check that the provided codeVersion is the correct one for the given codeCommit
+RUN commitVersion=$(cat package.json | jq -r .version) \
+    && if [ "$commitVersion" != "$CODE_VERSION" ]; then echo "Code version mismatch: $commitVersion != $CODE_VERSION"; exit 1; fi
+
+# update product.json
+RUN nameShort=$(jq --raw-output '.nameShort' product.json) && \
+    nameLong=$(jq --raw-output '.nameLong' product.json) && \
+    if [ "$CODE_QUALITY" = "insider" ]; then \
+        nameShort="$nameShort - Insiders" \
+        nameLong="$nameLong - Insiders" \
+    ; fi  && \
+    setQuality="setpath([\"quality\"]; \"$CODE_QUALITY\")" && \
+    setNameShort="setpath([\"nameShort\"]; \"$nameShort\")" && \
+    setNameLong="setpath([\"nameLong\"]; \"$nameLong\")" && \
+    setSegmentKey="setpath([\"segmentKey\"]; \"untrusted-dummy-key\")" && \
+    jqCommands="${setQuality} | ${setNameShort} | ${setNameLong} | ${setSegmentKey}" && \
+    cat product.json | jq "${jqCommands}" > product.json.tmp && \
+    mv product.json.tmp product.json && \
+    jq '{quality,nameLong,nameShort}' product.json
+
+RUN npm run gulp compile-build \
+    && npm run gulp extensions-ci \
+    && npm run gulp minify-vscode-reh \
+    && npm run gulp vscode-web-min-ci \
+    && npm run gulp vscode-reh-linux-x64-min-ci
+
+# config for first layer needed by blobserve
+# this custom urls will be then replaced by blobserve.
+# Check pkg/blobserve/blobserve.go, `inlineVars` method
+RUN cp /vscode-web/out/vs/gitpod/browser/workbench/workbench.esm.html /vscode-web/index.html \
+&& cp /vscode-web/out/vs/gitpod/browser/workbench/callback.html /vscode-web/callback.html \
+&& sed -i -e "s/{{VERSION}}/$CODE_QUALITY-$CODE_COMMIT/g" /vscode-web/index.html
+
+# cli config: alises to gitpod-code
+RUN cp /vscode-reh-linux-x64/bin/remote-cli/gitpod-code /vscode-reh-linux-x64/bin/remote-cli/code \
+&& cp /vscode-reh-linux-x64/bin/remote-cli/gitpod-code /vscode-reh-linux-x64/bin/remote-cli/gp-code \
+&& cp /vscode-reh-linux-x64/bin/remote-cli/gitpod-code /vscode-reh-linux-x64/bin/remote-cli/open
+
+# grant write permissions for built-in extensions
+RUN chmod -R ugo+w /vscode-reh-linux-x64/extensions
+
+FROM scratch
+# copy static web resources in first layer to serve from blobserve
+COPY --from=code_builder --chown=33333:33333 /vscode-web/ /ide/
+COPY --from=code_builder --chown=33333:33333 /vscode-reh-linux-x64/ /ide/
+
+ARG CODE_VERSION
+ARG CODE_COMMIT
+LABEL "io.gitpod.ide.version"=$CODE_VERSION
+LABEL "io.gitpod.ide.commit"=$CODE_COMMIT
diff --git a/components/ide/gha-update-image/BUILD.yaml b/components/ide/gha-update-image/BUILD.yaml
index 9fdc9ceaf9286d..f1b7b9b583564b 100644
--- a/components/ide/gha-update-image/BUILD.yaml
+++ b/components/ide/gha-update-image/BUILD.yaml
@@ -14,6 +14,24 @@ scripts:
       cf_patch="{\"data\": {\"config.json\": $cf_patch}}"
       # echo "$cf_patch"
 
+      kubectl patch cm ide-config --type=merge -p "$cf_patch"
+      kubectl rollout restart deployment ide-service
+      kubectl rollout restart deployment server
+  - name: code-use-dev-latest
+    script: |
+      ide_list=("code")
+      prop_list=("latestImage")
+
+      cf_patch=$(kubectl get cm ide-config -o=json | jq '.data."config.json"' |jq -r)
+      for ide in "${ide_list[@]}"; do
+        for prop in "${prop_list[@]}"; do
+          cf_patch=$(echo "$cf_patch" | jq ".ideOptions.options.$ide.$prop = \"eu.gcr.io/gitpod-dev-artifact/build/ide/code:nightly\"")
+        done
+      done
+      cf_patch=$(echo "$cf_patch" |jq tostring)
+      cf_patch="{\"data\": {\"config.json\": $cf_patch}}"
+      # echo "$cf_patch"
+
       kubectl patch cm ide-config --type=merge -p "$cf_patch"
       kubectl rollout restart deployment ide-service
       kubectl rollout restart deployment server
diff --git a/components/local-app-api/typescript-grpcweb/webpack.config.js b/components/local-app-api/typescript-grpcweb/webpack.config.js
index 98f952fb50f953..3b540706bbb70d 100644
--- a/components/local-app-api/typescript-grpcweb/webpack.config.js
+++ b/components/local-app-api/typescript-grpcweb/webpack.config.js
@@ -30,8 +30,6 @@ module.exports = {
         libraryTarget: "umd",
         globalObject: "typeof self !== 'undefined' ? self : this",
     },
-    externals: {
-        "@improbable-eng/grpc-web": "commonjs2 @improbable-eng/grpc-web",
-    },
+    externals: {},
     mode: "production",
 };