diff --git a/news/changelog-1.8.md b/news/changelog-1.8.md
index b28360c641c..38dad06fb6d 100644
--- a/news/changelog-1.8.md
+++ b/news/changelog-1.8.md
@@ -68,6 +68,10 @@ All changes included in 1.8:
 
 - ([#12733](https://github.com/quarto-dev/quarto-cli/issues/12733)): Add installed extensions to `quarto inspect` project report.
 
+### `add`
+
+- ([#12627](https://github.com/quarto-dev/quarto-cli/issues/12627)): Don't actually install extension when user responds `yes` to first prompt but `no` to second.
+
 ## Engines
 
 ### `jupyter`
diff --git a/src/extension/install.ts b/src/extension/install.ts
index 3fc351519b4..24171dc41df 100644
--- a/src/extension/install.ts
+++ b/src/extension/install.ts
@@ -78,6 +78,7 @@ export async function installExtension(
   if (!confirmed) {
     // Not confirmed, cancel the installation
     cancelInstallation();
+    return false;
   }
 
   // Complete the installation