diff --git a/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs b/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs
index d7e79f6cc..f97216b83 100644
--- a/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs
+++ b/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs
@@ -38,7 +38,7 @@ public NpmComponentDetector(
 
     public override IEnumerable<ComponentType> SupportedComponentTypes { get; } = [ComponentType.Npm];
 
-    public override int Version { get; } = 3;
+    public override int Version { get; } = 4;
 
     protected override async Task OnFileFoundAsync(ProcessRequest processRequest, IDictionary<string, string> detectorArgs, CancellationToken cancellationToken = default)
     {
@@ -82,20 +82,6 @@ protected virtual bool ProcessPackageJson(string filePath, ISingleFileComponentR
             return false;
         }
 
-        // Check for VS Code extensions
-        // See https://code.visualstudio.com/api/working-with-extensions/publishing-extension#visual-studio-code-compatibility
-        var containsVsCodeEngine = false;
-        if (packageJson.Engines is not null && packageJson.Engines.ContainsKey("vscode"))
-        {
-            containsVsCodeEngine = true;
-        }
-
-        if (containsVsCodeEngine)
-        {
-            this.Logger.LogInformation("{NpmPackageName} found at path {NpmPackageLocation} represents a built-in VS Code extension. This package will not be registered.", name, filePath);
-            return false;
-        }
-
         var author = this.GetAuthor(packageJson.Author, name, filePath);
         var npmComponent = new NpmComponent(name, version, author: author);
 
diff --git a/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs b/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs
index 6081e5e0c..7a128e1fc 100644
--- a/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs
+++ b/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs
@@ -227,7 +227,7 @@ public async Task TestNpmDetector_NodeEngineDoesNotCauseSkippedPackageAsync()
     }
 
     [TestMethod]
-    public async Task TestNpmDetector_VSCodeEngineCausesSkippedPackageAsync()
+    public async Task TestNpmDetector_VSCodeEnginePackageIsDetectedAsync()
     {
         var componentName = GetRandomString();
         var version = NewRandomVersion();
@@ -239,7 +239,11 @@ public async Task TestNpmDetector_VSCodeEngineCausesSkippedPackageAsync()
             .ExecuteDetectorAsync();
         scanResult.ResultCode.Should().Be(ProcessingResultCode.Success);
         var detectedComponents = componentRecorder.GetDetectedComponents();
-        detectedComponents.Should().BeEmpty();
+        detectedComponents.Should().ContainSingle();
+        detectedComponents.Single().Component.Type.Should().Be(ComponentType.Npm);
+        var detectedNpmComponent = (NpmComponent)detectedComponents.Single().Component;
+        detectedNpmComponent.Name.Should().Be(componentName);
+        detectedNpmComponent.Version.Should().Be(version);
     }
 
     [TestMethod]
@@ -256,7 +260,11 @@ public async Task TestNpmDetector_EnginesAsArray_VSCodeEngine()
             .ExecuteDetectorAsync();
         scanResult.ResultCode.Should().Be(ProcessingResultCode.Success);
         var detectedComponents = componentRecorder.GetDetectedComponents();
-        detectedComponents.Should().BeEmpty();
+        detectedComponents.Should().ContainSingle();
+        detectedComponents.Single().Component.Type.Should().Be(ComponentType.Npm);
+        var detectedNpmComponent = (NpmComponent)detectedComponents.Single().Component;
+        detectedNpmComponent.Name.Should().Be(packageName);
+        detectedNpmComponent.Version.Should().Be(packageVersion);
     }
 
     [TestMethod]