diff --git a/sample/yarn.lock b/sample/yarn.lock
index faa426dc30..dbf0615c20 100644
--- a/sample/yarn.lock
+++ b/sample/yarn.lock
@@ -249,10 +249,10 @@
     https-proxy-agent "^7.0.0"
     tslib "^2.6.2"
 
-"@vscode/vsce-sign-win32-x64@2.0.6":
+"@vscode/vsce-sign-linux-x64@2.0.6":
   version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-win32-x64/-/vsce-sign-win32-x64-2.0.6.tgz"
-  integrity sha1-dEMO/0HSaBjCP5gmsEXYx1cy6us=
+  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-linux-x64/-/vsce-sign-linux-x64-2.0.6.tgz"
+  integrity sha1-reEcru7VJPwWvWxDykmuoAKV3ow=
 
 "@vscode/vsce-sign@^2.0.0":
   version "2.0.9"
diff --git a/vscode-dotnet-runtime-extension/src/extension.ts b/vscode-dotnet-runtime-extension/src/extension.ts
index ec8ec502da..0cc8c99e11 100644
--- a/vscode-dotnet-runtime-extension/src/extension.ts
+++ b/vscode-dotnet-runtime-extension/src/extension.ts
@@ -66,12 +66,14 @@ import
     IIssueContext,
     InstallationValidator,
     InstallRecord,
+    InstallTrackerSingleton,
     InvalidUninstallRequest,
     IUtilityContext,
     JsonInstaller,
     LinuxVersionResolver,
     LocalInstallUpdateService,
     LocalMemoryCacheSingleton,
+    MarkInstallAsInUseFailedEvent,
     NoExtensionIdProvided,
     registerEventStream,
     UninstallErrorConfiguration,
@@ -85,7 +87,6 @@ import
     WebRequestWorkerSingleton,
     WindowDisplayWorker
 } from 'vscode-dotnet-runtime-library';
-import { InstallTrackerSingleton } from 'vscode-dotnet-runtime-library/dist/Acquisition/InstallTrackerSingleton';
 import { dotnetCoreAcquisitionExtensionId } from './DotnetCoreAcquisitionId';
 import open = require('open');
 
@@ -504,7 +505,17 @@ export function activate(vsCodeContext: vscode.ExtensionContext, extensionContex
 
             if ((installs?.length ?? 0) > 0)
             {
-                await InstallTrackerSingleton.getInstance(globalEventStream, vsCodeContext.globalState).markInstallAsInUse(dotnetExecutablePath);
+                try
+                {
+                    await InstallTrackerSingleton.getInstance(globalEventStream, vsCodeContext.globalState).markInstallAsInUse(dotnetExecutablePath);
+                }
+                catch (error: any)
+                {
+                    // Log but don't fail if we can't mark the install as in use (e.g., due to mutex/temp folder issues)
+                    // This is a non-critical operation that shouldn't prevent the extension from finding and using the .NET installation
+                    globalEventStream.post(new MarkInstallAsInUseFailedEvent(
+                        `Failed to mark install as in use: ${error?.message ?? JSON.stringify(error)}. Continuing anyway.`));
+                }
             }
 
             return installs ?? [];
@@ -738,7 +749,17 @@ ${JSON.stringify(commandContext)}`));
             if (validated)
             {
                 globalEventStream.post(new DotnetFindPathMetCondition(`${path} met the conditions.`));
-                await InstallTrackerSingleton.getInstance(globalEventStream, vsCodeContext.globalState).markInstallAsInUse(path);
+                try
+                {
+                    await InstallTrackerSingleton.getInstance(globalEventStream, vsCodeContext.globalState).markInstallAsInUse(path);
+                }
+                catch (error: any)
+                {
+                    // Log but don't fail if we can't mark the install as in use (e.g., due to mutex/temp folder issues)
+                    // This is a non-critical operation that shouldn't prevent the extension from finding and using the .NET installation
+                    globalEventStream.post(new MarkInstallAsInUseFailedEvent(
+                        `Failed to mark install as in use: ${error?.message ?? JSON.stringify(error)}. Continuing anyway.`));
+                }
                 return path;
             }
         }
diff --git a/vscode-dotnet-runtime-extension/yarn.lock b/vscode-dotnet-runtime-extension/yarn.lock
index 06b25d6294..a51140ada8 100644
--- a/vscode-dotnet-runtime-extension/yarn.lock
+++ b/vscode-dotnet-runtime-extension/yarn.lock
@@ -488,51 +488,11 @@
     ora "^8.1.0"
     semver "^7.6.2"
 
-"@vscode/vsce-sign-alpine-arm64@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-alpine-arm64/-/vsce-sign-alpine-arm64-2.0.6.tgz"
-  integrity sha1-LNJEyvXo7FQ/QvuR1N87kzZByPo=
-
-"@vscode/vsce-sign-alpine-x64@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-alpine-x64/-/vsce-sign-alpine-x64-2.0.6.tgz"
-  integrity sha1-sOgKR5IAHGbif+7iwR6CGtH6FoA=
-
-"@vscode/vsce-sign-darwin-arm64@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-darwin-arm64/-/vsce-sign-darwin-arm64-2.0.6.tgz"
-  integrity sha1-S4+hq1XygKmZhb48BvtzDleBDM4=
-
-"@vscode/vsce-sign-darwin-x64@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-darwin-x64/-/vsce-sign-darwin-x64-2.0.6.tgz"
-  integrity sha1-0skYbZUFSYJyy93YODuwOOvPWCA=
-
-"@vscode/vsce-sign-linux-arm@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-linux-arm/-/vsce-sign-linux-arm-2.0.6.tgz"
-  integrity sha1-CifEKkrbN+lu7HjNe/o4jNTp++8=
-
-"@vscode/vsce-sign-linux-arm64@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-linux-arm64/-/vsce-sign-linux-arm64-2.0.6.tgz"
-  integrity sha1-s9hWAUQEC5INjG7dQ3QxS1glVIE=
-
 "@vscode/vsce-sign-linux-x64@2.0.6":
   version "2.0.6"
   resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-linux-x64/-/vsce-sign-linux-x64-2.0.6.tgz"
   integrity sha1-reEcru7VJPwWvWxDykmuoAKV3ow=
 
-"@vscode/vsce-sign-win32-arm64@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-win32-arm64/-/vsce-sign-win32-arm64-2.0.6.tgz"
-  integrity sha1-BoiWgUjgPrOSR5yEkcclBnIb7/w=
-
-"@vscode/vsce-sign-win32-x64@2.0.6":
-  version "2.0.6"
-  resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign-win32-x64/-/vsce-sign-win32-x64-2.0.6.tgz"
-  integrity sha1-dEMO/0HSaBjCP5gmsEXYx1cy6us=
-
 "@vscode/vsce-sign@^2.0.0":
   version "2.0.9"
   resolved "https://pkgs.dev.azure.com/dnceng/public/_packaging/dotnet-public-npm/npm/registry/@vscode/vsce-sign/-/vsce-sign-2.0.9.tgz"
diff --git a/vscode-dotnet-runtime-library/src/EventStream/EventStreamEvents.ts b/vscode-dotnet-runtime-library/src/EventStream/EventStreamEvents.ts
index 58662a2344..784e495293 100644
--- a/vscode-dotnet-runtime-library/src/EventStream/EventStreamEvents.ts
+++ b/vscode-dotnet-runtime-library/src/EventStream/EventStreamEvents.ts
@@ -1701,6 +1701,16 @@ export class DotnetOfflineWarning extends DotnetCustomMessageEvent
     }
 }
 
+export class MarkInstallAsInUseFailedEvent extends DotnetCustomMessageEvent
+{
+    public readonly eventName = 'MarkInstallAsInUseFailedEvent';
+    constructor(eventMsg: string)
+    {
+        super(eventMsg);
+        this.type = EventType.DotnetAcquisitionMessage;
+    }
+}
+
 export class NetInstallerBeginExecutionEvent extends DotnetCustomMessageEvent
 {
     public readonly eventName = 'NetInstallerBeginExecutionEvent';
diff --git a/vscode-dotnet-runtime-library/src/index.ts b/vscode-dotnet-runtime-library/src/index.ts
index cd5af02f4e..403b9e17c9 100644
--- a/vscode-dotnet-runtime-library/src/index.ts
+++ b/vscode-dotnet-runtime-library/src/index.ts
@@ -25,6 +25,7 @@ export * from './Acquisition/IJsonInstaller';
 export * from './Acquisition/InstallationValidator';
 export * from './Acquisition/InstallRecord';
 export * from './Acquisition/InstallRecordWithPath';
+export * from './Acquisition/InstallTrackerSingleton';
 export * from './Acquisition/IVersionResolver';
 export * from './Acquisition/JsonInstaller';
 export * from './Acquisition/LinuxGlobalInstaller';
diff --git a/vscode-dotnet-sdk-extension/src/extension.ts b/vscode-dotnet-sdk-extension/src/extension.ts
index 50da6aa889..8ff06dd01c 100644
--- a/vscode-dotnet-sdk-extension/src/extension.ts
+++ b/vscode-dotnet-sdk-extension/src/extension.ts
@@ -22,6 +22,8 @@ import
     EventBasedError,
     ExtensionConfigurationWorker,
     formatIssueUrl,
+    GlobalInstallerResolver,
+    IAcquisitionWorkerContext,
     IDotnetAcquireContext,
     IDotnetUninstallContext,
     IEventStreamContext,
@@ -38,8 +40,6 @@ import
 } from 'vscode-dotnet-runtime-library';
 import open = require('open');
 
-import { GlobalInstallerResolver } from 'vscode-dotnet-runtime-library/dist/Acquisition/GlobalInstallerResolver';
-import { IAcquisitionWorkerContext } from 'vscode-dotnet-runtime-library/dist/Acquisition/IAcquisitionWorkerContext';
 import { dotnetCoreAcquisitionExtensionId } from './DotnetCoreAcquisitionId';
 
 const packageJson = require('../package.json');