diff --git a/test/automation/src/code.ts b/test/automation/src/code.ts
index 35f2a4c214a..a93ce45f267 100644
--- a/test/automation/src/code.ts
+++ b/test/automation/src/code.ts
@@ -120,8 +120,10 @@ export async function spawn(options: SpawnOptions): Promise<Code> {
 	let child: cp.ChildProcess | undefined;
 	let connectDriver: typeof connectElectronDriver;
 
+	copyExtension(options, 'vscode-notebook-tests');
+
 	if (options.web) {
-		await launch(options.userDataDir, options.workspacePath, options.codePath);
+		await launch(options.userDataDir, options.workspacePath, options.codePath, options.extensionsPath);
 		connectDriver = connectPlaywrightDriver.bind(connectPlaywrightDriver, options.browser);
 		return connect(connectDriver, child, '', handle, options.logger);
 	}
@@ -156,7 +158,7 @@ export async function spawn(options: SpawnOptions): Promise<Code> {
 		env['TESTRESOLVER_DATA_FOLDER'] = remoteDataDir;
 	}
 
-	copyExtension(options, 'vscode-notebook-tests');
+
 	args.push('--enable-proposed-api=vscode.vscode-notebook-tests');
 
 	if (!codePath) {
diff --git a/test/automation/src/playwrightDriver.ts b/test/automation/src/playwrightDriver.ts
index 9d5bb04af6d..7d7c34deb25 100644
--- a/test/automation/src/playwrightDriver.ts
+++ b/test/automation/src/playwrightDriver.ts
@@ -91,7 +91,7 @@ let server: ChildProcess | undefined;
 let endpoint: string | undefined;
 let workspacePath: string | undefined;
 
-export async function launch(userDataDir: string, _workspacePath: string, codeServerPath = process.env.VSCODE_REMOTE_SERVER_PATH): Promise<void> {
+export async function launch(userDataDir: string, _workspacePath: string, codeServerPath = process.env.VSCODE_REMOTE_SERVER_PATH, extPath: string): Promise<void> {
 	workspacePath = _workspacePath;
 
 	const agentFolder = userDataDir;
@@ -111,7 +111,7 @@ export async function launch(userDataDir: string, _workspacePath: string, codeSe
 	}
 	server = spawn(
 		serverLocation,
-		['--browser', 'none', '--driver', 'web'],
+		['--browser', 'none', '--driver', 'web', '--extensions-dir', extPath],
 		{ env }
 	);
 	server.stderr?.on('data', error => console.log(`Server stderr: ${error}`));
@@ -146,7 +146,8 @@ export function connect(browserType: 'chromium' | 'webkit' | 'firefox' = 'chromi
 		const context = await browser.newContext();
 		const page = await context.newPage();
 		await page.setViewportSize({ width, height });
-		await page.goto(`${endpoint}&folder=vscode-remote://localhost:9888${URI.file(workspacePath!).path}`);
+		const payloadParam = `[["enableProposedApi",""]]`;
+		await page.goto(`${endpoint}&folder=vscode-remote://localhost:9888${URI.file(workspacePath!).path}&payload=${payloadParam}`);
 		const result = {
 			client: { dispose: () => browser.close() && teardown() },
 			driver: buildDriver(browser, page)
diff --git a/test/smoke/src/main.ts b/test/smoke/src/main.ts
index 4f1565f1a96..51c085de716 100644
--- a/test/smoke/src/main.ts
+++ b/test/smoke/src/main.ts
@@ -316,7 +316,7 @@ describe(`VSCode Smoke Tests (${opts.web ? 'Web' : 'Electron'})`, () => {
 		if (!opts.web) { setupDataLossTests(); }
 		if (!opts.web) { setupDataPreferencesTests(); }
 		setupDataSearchTests();
-		if (!opts.web) { setupDataNotebookTests(); }
+		setupDataNotebookTests();
 		setupDataLanguagesTests();
 		setupDataEditorTests();
 		setupDataStatusbarTests(!!opts.web);