diff --git a/.vscode/launch.json b/.vscode/launch.json
index 364441d2a68..31dab766db7 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -5,90 +5,44 @@
     {
       "type": "extensionHost",
       "request": "launch",
-      "name": "Launch Dev Client",
+      "name": "VSCE: Launch Dev Client",
       "runtimeExecutable": "${execPath}",
       "args": [
         "--disable-extensions",
-        "--extensionDevelopmentPath=${workspaceFolder}"
+        "--extensionDevelopmentPath=${workspaceFolder}/vscode-ng-language-service"
       ],
       "outFiles": [
-        "${workspaceFolder}/dist/bin/vscode-ng-language-service/client/src/*.js"
+        "${workspaceFolder}/dist/bin/vscode-ng-language-service/client/index.js",
+        "${workspaceFolder}/dist/bin/vscode-ng-language-service/server/index.js"
       ],
-      "preLaunchTask": {
-        "type": "npm",
-        "script": "vscode:watch"
-      }
+      "preLaunchTask": "vsce: watch bundles"
     },
     {
       "type": "extensionHost",
       "request": "launch",
-      "name": "Launch Prod Client",
+      "name": "VSCE: Launch Prod Client",
       "runtimeExecutable": "${execPath}",
       "args": [
-        "--extensionDevelopmentPath=${workspaceFolder}/dist/bin/vscode-ng-language-service/npm"
+        "--disable-extensions",
+        "--extensionDevelopmentPath=${workspaceFolder}/dist/bin/vscode-ng-language-service/npm/vscode-ng-language-service/vsix_sandbox"
       ],
       "sourceMaps": false,
-      "preLaunchTask": "build vsix"
+      "preLaunchTask": "vsce: package"
     },
     {
       "type": "node",
       "request": "attach",
-      "name": "Attach to Server",
+      "name": "VSCE: Attach to Server",
       "port": 6009,
       "restart": true,
-      "outFiles": [
-        "${workspaceFolder}/dist/bin/vscode-ng-language-service/server/src/*.js"
-      ]
-    },
-    {
-      "type": "node",
-      "request": "attach",
-      "name": "Attach to Jasmine",
-      "port": 9229,
-      "restart": true,
-      "outFiles": [
-        "${workspaceFolder}/dist/bin/vscode-ng-language-service/**/*.js"
-      ],
-    },
-    {
-      "name": "Integration test: Attach to server",
-      "port": 9330,
-      "request": "attach",
-      "skipFiles": [
-        "<node_internals>/**"
-      ],
-      "outFiles": [
-        "${workspaceFolder}/dist/bin/vscode-ng-language-service/integration/lsp/*.js"
-      ],
-      "type": "node"
-    },
-    {
-      "name": "E2E Test",
-      "type": "extensionHost",
-      "request": "launch",
-      "runtimeExecutable": "${execPath}",
-      "args": [
-        "--disable-extensions",
-        "--extensionDevelopmentPath=${workspaceFolder}/dist/bin/vscode-ng-language-service/npm",
-        "--extensionTestsPath=${workspaceFolder}/dist/bin/vscode-ng-language-service/integration/e2e/jasmine",
-        "${workspaceFolder}/vscode-ng-language-service/integration/project"
-      ],
-      "outFiles": [
-        "${workspaceFolder}/dist/bin/vscode-ng-language-service/integration/e2e/*.js"
-      ],
-      "preLaunchTask": {
-        "type": "npm",
-        "script": "compile:integration"
-      }
+      "skipFiles": ["<node_internals>/**"],
+      "outFiles": ["${workspaceFolder}/dist/bin/vscode-ng-language-service/server/index.js"]
     }
   ],
   "compounds": [
     {
-      "name": "Dev Client + Server",
-      "configurations": [
-        "Launch Dev Client",
-        "Attach to Server"
-      ]
+      "name": "VSCE: Dev Client + Server",
+      "configurations": ["VSCE: Launch Dev Client", "VSCE: Attach to Server"]
     }
   ]
-}
\ No newline at end of file
+}
diff --git a/.vscode/tasks.json b/.vscode/tasks.json
index df7e2e153d8..3cbabd8ff48 100644
--- a/.vscode/tasks.json
+++ b/.vscode/tasks.json
@@ -2,20 +2,9 @@
   "version": "2.0.0",
   "tasks": [
     {
-      "type": "npm",
-      "script": "compile",
-      "group": "build",
-      "presentation": {
-        "panel": "dedicated",
-        "reveal": "never"
-      },
-      "problemMatcher": [
-        "$tsc"
-      ]
-    },
-    {
-      "type": "npm",
-      "script": "vscode:watch",
+      "type": "shell",
+      "label": "vsce: watch bundles",
+      "command": "pnpm --filter=ng-template run watch",
       "isBackground": true,
       "group": {
         "kind": "build",
@@ -36,8 +25,8 @@
     },
     {
       "type": "shell",
-      "label": "build vsix",
-      "command": "pnpm bazel build //vscode-ng-language-service:npm --config=release"
+      "label": "vsce: package",
+      "command": "pnpm --filter=ng-template run package"
     }
   ]
 }
diff --git a/vscode-ng-language-service/BUILD.bazel b/vscode-ng-language-service/BUILD.bazel
index cec43a526b9..ae8c85e744c 100644
--- a/vscode-ng-language-service/BUILD.bazel
+++ b/vscode-ng-language-service/BUILD.bazel
@@ -26,7 +26,7 @@ expand_template_rule(
         "0.0.0-PLACEHOLDER": "{{BUILD_SCM_VERSION}}",
     },
     substitutions = {
-        "./bazel-bin/client/src/extension": "./index",
+        "../dist/bin/vscode-ng-language-service/client/index": "./index",
     },
     template = "package.json",
 )
diff --git a/vscode-ng-language-service/package.json b/vscode-ng-language-service/package.json
index fd0b4eb4873..44b6c729f0b 100644
--- a/vscode-ng-language-service/package.json
+++ b/vscode-ng-language-service/package.json
@@ -242,11 +242,11 @@
     "onLanguage:html",
     "onLanguage:typescript"
   ],
-  "main": "./bazel-bin/client/src/extension",
+  "main": "../dist/bin/vscode-ng-language-service/client/index",
   "scripts": {
     "build:syntaxes": "bazel run //vscode-ng-language-service/syntaxes:syntaxes",
-    "watch": "ibazel build //vscode-ng-language-service:index.js //vscode-ng-language-service/server:index.js",
-    "package": "pnpm bazel build //vscode-ng-language-service:npm --config=release",
+    "watch": "ibazel build //vscode-ng-language-service/client:index //vscode-ng-language-service/server:index",
+    "package": "bazel build //vscode-ng-language-service:npm --config=release",
     "test": "bazel test --test_tag_filters=unit_test //vscode-ng-language-service/...",
     "test:watch": "ibazel test --test_tag_filters=unit_test //vscode-ng-language-service/...",
     "test:lsp": "bazel test --test_output=streamed //vscode-ng-language-service/integration/lsp:test",
diff --git a/vscode-ng-language-service/server/BUILD.bazel b/vscode-ng-language-service/server/BUILD.bazel
index 24166ab27d5..a3e5d4eb00e 100644
--- a/vscode-ng-language-service/server/BUILD.bazel
+++ b/vscode-ng-language-service/server/BUILD.bazel
@@ -71,6 +71,9 @@ expand_template_rule(
     stamp_substitutions = {
         "0.0.0-PLACEHOLDER": "{{BUILD_SCM_VERSION}}",
     },
+    substitutions = {
+        "../../dist/bin/vscode-ng-language-service/server/index.js": "./index.js",
+    },
     template = "package.json",
 )
 
diff --git a/vscode-ng-language-service/server/package.json b/vscode-ng-language-service/server/package.json
index 83090c17e2d..1c9723f9cb3 100644
--- a/vscode-ng-language-service/server/package.json
+++ b/vscode-ng-language-service/server/package.json
@@ -11,6 +11,7 @@
   "engines": {
     "node": "^20.11.1 || ^22.11.0"
   },
+  "main": "../../dist/bin/vscode-ng-language-service/server/index.js",
   "bin": {
     "ngserver": "./bin/ngserver"
   },