diff --git a/demo/package.json b/demo/package.json
index 9d2a9d47..bd0d4803 100644
--- a/demo/package.json
+++ b/demo/package.json
@@ -43,7 +43,7 @@
     "xterm-addon-webgl": "0.16.0"
   },
   "volta": {
-    "node": "18.14.2",
-    "npm": "9.5.1"
+    "node": "18.18.0",
+    "npm": "9.8.1"
   }
 }
diff --git a/demo/vite.config.ts b/demo/vite.config.ts
index f6b963d9..7fef3dec 100644
--- a/demo/vite.config.ts
+++ b/demo/vite.config.ts
@@ -21,16 +21,6 @@ export default defineConfig({
           next()
         })
       }
-    },
-    {
-      // prevent vite from trying to inject code into an extension file du to an `import()` in that file
-      name: 'hack-prevent-transform-javascript',
-      apply: 'serve',
-      load (source) {
-        if (source.includes('tsserver.web.js')) {
-          return `eval(${JSON.stringify(fs.readFileSync(source).toString('utf-8'))})`
-        }
-      }
     }
   ],
   optimizeDeps: {
@@ -50,10 +40,9 @@ export default defineConfig({
       'vscode/default-extensions/objective-c', 'vscode/default-extensions/perl', 'vscode/default-extensions/php', 'vscode/default-extensions/powershell',
       'vscode/default-extensions/python', 'vscode/default-extensions/r', 'vscode/default-extensions/ruby', 'vscode/default-extensions/rust',
       'vscode/default-extensions/scss', 'vscode/default-extensions/shellscript', 'vscode/default-extensions/sql', 'vscode/default-extensions/swift',
-      'vscode/default-extensions/typescript-basics', 'vscode/default-extensions/vb', 'vscode/default-extensions/xml', 'vscode/default-extensions/yaml',
-      'vscode/default-extensions/theme-defaults', 'vscode/default-extensions/theme-seti',
-      'vscode/default-extensions/references-view', 'vscode/default-extensions/typescript-basics', 'vscode/default-extensions/search-result',
-      'vscode/default-extensions/typescript-language-features', 'vscode/default-extensions/markdown-language-features',
+      'vscode/default-extensions/typescript-basics', 'vscode/default-extensions/typescript-language-features', 'vscode/default-extensions/vb',
+      'vscode/default-extensions/xml', 'vscode/default-extensions/yaml', 'vscode/default-extensions/theme-defaults', 'vscode/default-extensions/theme-seti',
+      'vscode/default-extensions/references-view', 'vscode/default-extensions/search-result', 'vscode/default-extensions/markdown-language-features',
       'vscode/default-extensions/json-language-features', 'vscode/default-extensions/css-language-features',
       'vscode/default-extensions/npm', 'vscode/default-extensions/css', 'vscode/default-extensions/markdown-basics', 'vscode/default-extensions/html',
       'vscode/default-extensions/html-language-features', 'vscode/default-extensions/configuration-editing', 'vscode/default-extensions/media-preview', 'vscode/default-extensions/markdown-math',
diff --git a/docs/vscode_monaco_upgrade.md b/docs/vscode_monaco_upgrade.md
index 2289a661..463a1856 100644
--- a/docs/vscode_monaco_upgrade.md
+++ b/docs/vscode_monaco_upgrade.md
@@ -27,6 +27,6 @@
   - Update dependencies
   - Implement improvements dependening on the new features available from vscode (optional)
 
-## Hints:
+## Hints
 
 Use repo log viewers and check the last update branch when in doubt
diff --git a/package.json b/package.json
index 4111d351..88dca6c6 100644
--- a/package.json
+++ b/package.json
@@ -179,7 +179,7 @@
     "recast": "^0.23.4"
   },
   "volta": {
-    "node": "18.17.1",
-    "npm": "9.6.7"
+    "node": "18.18.0",
+    "npm": "9.8.1"
   }
 }
diff --git a/scripts/vscode.patch b/scripts/vscode.patch
index 71a87f93..22c09d01 100644
--- a/scripts/vscode.patch
+++ b/scripts/vscode.patch
@@ -68,6 +68,19 @@ index 775a1be5996..ce8435bd920 100644
  				relativePath = relativePath.replace(/\\/g, '/');
  				if (!/(^\.\/)|(^\.\.\/)/.test(relativePath)) {
  					relativePath = './' + relativePath;
+diff --git a/extensions/typescript-language-features/web/typingsInstaller.ts b/extensions/typescript-language-features/web/typingsInstaller.ts
+index 7b9b164c40c..a961bb7267a 100644
+--- a/extensions/typescript-language-features/web/typingsInstaller.ts
++++ b/extensions/typescript-language-features/web/typingsInstaller.ts
+@@ -66,6 +66,8 @@ export default class WebTypingsInstallerClient implements ts.server.ITypingsInst
+ 			case 'action::packageInstalled':
+ 			case 'action::invalidate':
+ 			case 'action::set':
++			// missing case leads to error
++			case 'action::watchTypingLocations':
+ 				this.projectService!.updateTypingsForProject(response);
+ 				break;
+ 			case 'event::beginInstallTypes':
 diff --git a/extensions/typescript-language-features/web/webServer.ts b/extensions/typescript-language-features/web/webServer.ts
 index 191c2d03f63..f1526cf68ac 100644
 --- a/extensions/typescript-language-features/web/webServer.ts