diff --git a/pkgs/applications/editors/vscode/generic.nix b/pkgs/applications/editors/vscode/generic.nix
index 1ad9bb25e72a..7b7007910a5c 100644
--- a/pkgs/applications/editors/vscode/generic.nix
+++ b/pkgs/applications/editors/vscode/generic.nix
@@ -104,6 +104,11 @@ let
       # Override the previously determined VSCODE_PATH with the one we know to be correct
       sed -i "/ELECTRON=/iVSCODE_PATH='$out/lib/vscode'" "$out/bin/${executableName}"
       grep -q "VSCODE_PATH='$out/lib/vscode'" "$out/bin/${executableName}" # check if sed succeeded
+
+      # Remove native encryption code, as it derives the key from the executable path which does not work for us.
+      # The credentials should be stored in a secure keychain already, so the benefit of this is questionable
+      # in the first place.
+      rm -rf $out/lib/vscode/resources/app/node_modules/vscode-encrypt
     '') + ''
       runHook postInstall
     '';