diff --git a/vscode/rootfs/etc/cont-init.d/code-server.sh b/vscode/rootfs/etc/cont-init.d/code-server.sh
index a69b9c6..a4d2f9f 100644
--- a/vscode/rootfs/etc/cont-init.d/code-server.sh
+++ b/vscode/rootfs/etc/cont-init.d/code-server.sh
@@ -4,13 +4,18 @@
 # Sets up code-server.
 # ==============================================================================
 
-# Ensure persistent data folder exists
+# List of previous config hashes, to allow upgrade "default" configs.
+readonly -a PREVIOUS_DEFAULT_CONFIG_HASHES=(
+    86776df88391c3d94f79f62b430f9ff8538960628d5e04fb660165a5a46640d2e74f89cd68b3e6985dc59101ae2dda00a1e25aa48381acfd4736858c5f23878b
+)
+
+# Ensure persistent data folder exists.
 if ! bashio::fs.directory_exists '/data/vscode'; then
     mkdir -p /data/vscode/extensions \
         || bashio::exit.nok "Could not create persistent storage folder."
 fi
 
-# Copy in the extensions we deliver
+# Copy in the extensions we deliver.
 cp -R /root/.code-server/extensions/* /data/vscode/extensions
 
 # Sets up default user settings on first start.
@@ -21,7 +26,13 @@ if ! bashio::fs.file_exists '/data/vscode/User/settings.json'; then
     cp /root/.code-server/settings.json /data/vscode/User/settings.json
 fi
 
-# Workaround workspace bug for code-server
+# Upgrade settings.json is still default from previous version.
+current=$(sha512sum /data/vscode/User/settings.json|cut -d " " -f 1)
+if [[ " ${PREVIOUS_DEFAULT_CONFIG_HASHES[*]} " == *" ${current} "* ]]; then
+    cp /root/.code-server/settings.json /data/vscode/User/settings.json
+fi
+
+# Workaround workspace bug for code-server.
 # https://github.com/codercom/code-server/issues/121
 if ! bashio::fs.file_exists '/data/vscode/Backups/workspaces.json'; then
     mkdir -p /data/vscode/Backups \
@@ -29,7 +40,7 @@ if ! bashio::fs.file_exists '/data/vscode/Backups/workspaces.json'; then
     cp /root/.code-server/workspaces.json /data/vscode/Backups/workspaces.json
 fi
 
-# Workaround workspace bug for code-server (same as above, part 2)
+# Workaround workspace bug for code-server (same as above, part 2).
 # https://github.com/codercom/code-server/issues/121
 if ! bashio::fs.file_exists '/data/vscode/User/workspaceStorage'; then
      mkdir -p /data/vscode/User/workspaceStorage \
diff --git a/vscode/rootfs/root/.code-server/settings.json b/vscode/rootfs/root/.code-server/settings.json
index e483485..f327008 100644
--- a/vscode/rootfs/root/.code-server/settings.json
+++ b/vscode/rootfs/root/.code-server/settings.json
@@ -13,16 +13,17 @@
     "editor.selectionClipboard": false,
     "terminal.integrated.copyOnSelection": true,
     "settings": {
-		"editor.tabSize": 2,
-		"editor.renderWhitespace": "boundary",
-		"yaml.customTags": [
-			"!secret",
-			"!yaml",
-			"!include",
-			"!include_dir_list",
-			"!include_dir_named",
-			"!include_dir_merge_list",
-			"!include_dir_merge_named"
-		]
-	}
+        "editor.tabSize": 2,
+        "editor.renderWhitespace": "boundary",
+        "yaml.customTags": [
+            "!env_var",
+            "!include_dir_list",
+            "!include_dir_merge_list",
+            "!include_dir_merge_named",
+            "!include_dir_named",
+            "!include",
+            "!secret",
+            "!yaml"
+        ]
+    }
 }