diff --git a/src/PowerShellEditorServices/Server/PsesLanguageServer.cs b/src/PowerShellEditorServices/Server/PsesLanguageServer.cs
index 877f8377a..1f740cec6 100644
--- a/src/PowerShellEditorServices/Server/PsesLanguageServer.cs
+++ b/src/PowerShellEditorServices/Server/PsesLanguageServer.cs
@@ -141,10 +141,17 @@ public async Task StartAsync()
                             JObject initializationOptions = initializeParams.InitializationOptions as JObject;
                             HostStartOptions hostStartOptions = new()
                             {
-                                LoadProfiles = initializationOptions?.GetValue("EnableProfileLoading")?.Value<bool>() ?? false,
+                                // TODO: We need to synchronize our "default" settings as specified
+                                // in the VS Code extension's package.json with the actual default
+                                // values in this project. For now, this is going to be the most
+                                // annoying setting, so we're defaulting this to true.
+                                //
+                                // NOTE: The keys start with a lowercase because OmniSharp's client
+                                // (used for testing) forces it to be that way.
+                                LoadProfiles = initializationOptions?.GetValue("enableProfileLoading")?.Value<bool>() ?? true,
                                 // TODO: Consider deprecating the setting which sets this and
                                 // instead use WorkspacePath exclusively.
-                                InitialWorkingDirectory = initializationOptions?.GetValue("InitialWorkingDirectory")?.Value<string>() ?? workspaceService.WorkspacePath
+                                InitialWorkingDirectory = initializationOptions?.GetValue("initialWorkingDirectory")?.Value<string>() ?? workspaceService.WorkspacePath
                             };
 
                             _psesHost = languageServer.Services.GetService<PsesInternalHost>();
diff --git a/test/PowerShellEditorServices.Test.E2E/LSPTestsFixures.cs b/test/PowerShellEditorServices.Test.E2E/LSPTestsFixures.cs
index 4d9db8c82..12e29ee07 100644
--- a/test/PowerShellEditorServices.Test.E2E/LSPTestsFixures.cs
+++ b/test/PowerShellEditorServices.Test.E2E/LSPTestsFixures.cs
@@ -56,7 +56,8 @@ public async Task InitializeAsync()
                 options
                     .WithInput(_psesProcess.OutputStream)
                     .WithOutput(_psesProcess.InputStream)
-                    .WithRootUri(DocumentUri.FromFileSystemPath(testdir.FullName))
+                    .WithWorkspaceFolder(DocumentUri.FromFileSystemPath(testdir.FullName), "testdir")
+                    .WithInitializationOptions(new { EnableProfileLoading = false })
                     .OnPublishDiagnostics(diagnosticParams => Diagnostics.AddRange(diagnosticParams.Diagnostics.Where(d => d != null)))
                     .OnLogMessage(logMessageParams => Output?.WriteLine($"{logMessageParams.Type}: {logMessageParams.Message}"))
                     .OnTelemetryEvent(telemetryEventParams => TelemetryEvents.Add(