diff --git a/packages/ide/vscode/README.md b/packages/ide/vscode/README.md
index 44d12fd1..cf57bcc5 100644
--- a/packages/ide/vscode/README.md
+++ b/packages/ide/vscode/README.md
@@ -1,48 +1,62 @@
-# ZenStack VS Code Extension
+# ZenStack V3 VS Code Extension
 
-[ZenStack](https://zenstack.dev) is a toolkit that simplifies the development of a web app's backend. It enhances [Prisma ORM](https://prisma.io) with flexible Authorization and auto-generated, type-safe APIs/hooks, simplifying full-stack development.
+[ZenStack](https://zenstack.dev) is the modern data layer for TypeScript applications. It provides a data modeling language, a type-safe ORM with built-in access control, and other utilities that help you streamline full-stack development. This VS Code extension provides code editing helpers for authoring ZenStack's schema files (`.zmodel` files).
 
-This VS Code extension provides code editing helpers for authoring ZenStack's schema files (.zmodel files).
+Use this extension if you are using ZenStack v3.x, otherwise use the [original extension](https://marketplace.visualstudio.com/items?itemName=zenstack.zenstack) that works with v2.x. See [Configuration](#configuration) for how to use both versions side by side.
 
 ## Features
 
-- Syntax highlighting of `*.zmodel` files
+- Syntax highlighting
+- Inline error reporting
+- Go-to definition
+- Hover documentation
+- Code section folding
 
-    - In case the schema file is not recognized automatically, add the following to your settings.json file:
+## Configuration
 
-    ```json
-    "files.associations": {
-        "*.zmodel": "zmodel"
-    },
-    ```
+### Side by side with the original ZenStack extension
 
-- Auto formatting
+If you have the [original ZenStack v2 extension](https://marketplace.visualstudio.com/items?itemName=zenstack.zenstack) installed, it may compete with this extension on handling `.zmodel` files. In this case, add the following settings to your `.vscode/settings.json` file to specify which extension should handle `.zmodel` files.
 
-    - To automatically format on save, add the following to your settings.json file:
+To let this extension handle `.zmodel` files, add:
 
-        ```json
-        "editor.formatOnSave": true
-        ```
+```json
+"files.associations": {
+    "*.zmodel": "zmodel-v3"
+},
+```
 
-    - To enable formatting in combination with prettier, add the following to your settings.json file:
-        ```json
-        "[zmodel]": {
-        "editor.defaultFormatter": "zenstack.zenstack"
-        },
-        ```
+To let the v2 extension handle `.zmodel` files, add:
 
-- Inline error reporting
-- Go-to definition
-- Hover documentation
-- Code section folding
+```json
+"files.associations": {
+    "*.zmodel": "zmodel"
+},
+```
+
+### Auto formatting
+
+To automatically format on save, add the following to your `.vscode/settings.json` file:
+
+```json
+"editor.formatOnSave": true
+```
+
+To enable formatting in combination with prettier, add the following to your `.vscode/settings.json` file:
+
+```json
+"[zmodel-v3]": {
+    "editor.defaultFormatter": "zenstack.zenstack-v3"
+},
+```
 
 ## Links
 
-- [Home](https://zenstack.dev)
-- [Documentation](https://zenstack.dev/docs)
+- [Home](https://zenstack.dev/v3)
+- [Documentation](https://zenstack.dev/docs/3.x)
 - [Community chat](https://discord.gg/Ykhr738dUe)
 - [Twitter](https://twitter.com/zenstackhq)
-- [Blog](https://dev.to/zenstack)
+- [Blog](https://zenstack.dev/blog)
 
 ## Community
 
diff --git a/packages/ide/vscode/package.json b/packages/ide/vscode/package.json
index 8b183adc..e580f9f9 100644
--- a/packages/ide/vscode/package.json
+++ b/packages/ide/vscode/package.json
@@ -1,9 +1,9 @@
 {
-    "name": "zenstack",
+    "name": "zenstack-v3",
     "publisher": "zenstack",
-    "version": "3.0.0-alpha.33",
-    "displayName": "ZenStack Language Tools",
-    "description": "VSCode extension for ZenStack ZModel language",
+    "version": "3.0.2",
+    "displayName": "ZenStack V3 Language Tools",
+    "description": "VSCode extension for ZenStack (v3) ZModel language",
     "private": true,
     "repository": {
         "type": "git",
@@ -12,7 +12,7 @@
     "scripts": {
         "build": "tsc --noEmit && tsup",
         "lint": "eslint src --ext ts",
-        "vscode:publish": "pnpm build && vsce publish --no-dependencies --pre-release --follow-symlinks",
+        "vscode:publish": "pnpm build && vsce publish --no-dependencies --follow-symlinks",
         "vscode:package": "pnpm build && vsce package --no-dependencies"
     },
     "homepage": "https://zenstack.dev",
@@ -49,7 +49,7 @@
     ],
     "engines": {
         "vscode": "^1.63.0",
-        "node": ">=18.0.0"
+        "node": ">=20.0.0"
     },
     "categories": [
         "Programming Languages"
@@ -57,7 +57,7 @@
     "contributes": {
         "languages": [
             {
-                "id": "zmodel",
+                "id": "zmodel-v3",
                 "aliases": [
                     "ZenStack Model",
                     "zmodel"
@@ -74,14 +74,14 @@
         ],
         "grammars": [
             {
-                "language": "zmodel",
+                "language": "zmodel-v3",
                 "scopeName": "source.zmodel",
                 "path": "./syntaxes/zmodel.tmLanguage.json"
             }
         ]
     },
     "activationEvents": [
-        "onLanguage:zmodel"
+        "onLanguage:zmodel-v3"
     ],
     "main": "./dist/extension.js"
 }
diff --git a/packages/ide/vscode/src/extension/main.ts b/packages/ide/vscode/src/extension/main.ts
index fed30b20..a7fab381 100644
--- a/packages/ide/vscode/src/extension/main.ts
+++ b/packages/ide/vscode/src/extension/main.ts
@@ -43,11 +43,11 @@ function startLanguageClient(context: vscode.ExtensionContext): LanguageClient {
 
     // Options to control the language client
     const clientOptions: LanguageClientOptions = {
-        documentSelector: [{ scheme: '*', language: 'zmodel' }],
+        documentSelector: [{ language: 'zmodel-v3' }],
     };
 
     // Create the language client and start the client.
-    const client = new LanguageClient('zmodel', 'ZModel', serverOptions, clientOptions);
+    const client = new LanguageClient('zmodel-v3', 'ZenStack Model V3', serverOptions, clientOptions);
 
     // Start the client. This will also launch the server
     client.start();
diff --git a/packages/language/src/generated/module.ts b/packages/language/src/generated/module.ts
index 58849979..0c621d00 100644
--- a/packages/language/src/generated/module.ts
+++ b/packages/language/src/generated/module.ts
@@ -8,7 +8,7 @@ import { ZModelAstReflection } from './ast.js';
 import { ZModelGrammar } from './grammar.js';
 
 export const ZModelLanguageMetaData = {
-    languageId: 'zmodel',
+    languageId: 'zmodel-v3',
     fileExtensions: ['.zmodel'],
     caseInsensitive: false,
     mode: 'development'
diff --git a/scripts/bump-version.ts b/scripts/bump-version.ts
index ff4d353f..53057d4a 100644
--- a/scripts/bump-version.ts
+++ b/scripts/bump-version.ts
@@ -3,6 +3,8 @@ import { glob } from 'glob';
 import * as path from 'node:path';
 import * as yaml from 'yaml';
 
+const excludes = ['packages/ide/vscode/package.json'];
+
 function getWorkspacePackageJsonFiles(workspaceFile: string): string[] {
     const workspaceYaml = fs.readFileSync(workspaceFile, 'utf8');
     const workspace = yaml.parse(workspaceYaml) as { packages?: string[] };
@@ -23,7 +25,8 @@ function getWorkspacePackageJsonFiles(workspaceFile: string): string[] {
     // include root package.json
     files.add(path.resolve(__dirname, '../package.json'));
 
-    return Array.from(files);
+    const result = Array.from(files).filter((f) => !excludes.some((e) => f.endsWith(e)));
+    return result;
 }
 
 function incrementVersion(version: string): string {