diff --git a/README.md b/README.md
index b18e4551..d9222290 100644
--- a/README.md
+++ b/README.md
@@ -935,10 +935,10 @@ SOFTWARE.
 [spotify-armhf-shield]: https://img.shields.io/badge/armhf-no-red.svg
 [spotify-armv7-shield]: https://img.shields.io/badge/armv7-yes-green.svg
 [spotify-i386-shield]: https://img.shields.io/badge/i386-yes-green.svg
-[addon-vscode]: https://github.com/hassio-addons/addon-vscode/tree/v5.4.0
-[addon-doc-vscode]: https://github.com/hassio-addons/addon-vscode/blob/v5.4.0/README.md
+[addon-vscode]: https://github.com/hassio-addons/addon-vscode/tree/v5.4.1
+[addon-doc-vscode]: https://github.com/hassio-addons/addon-vscode/blob/v5.4.1/README.md
 [vscode-issue]: https://github.com/hassio-addons/addon-vscode/issues
-[vscode-version-shield]: https://img.shields.io/badge/version-v5.4.0-blue.svg
+[vscode-version-shield]: https://img.shields.io/badge/version-v5.4.1-blue.svg
 [vscode-aarch64-shield]: https://img.shields.io/badge/aarch64-yes-green.svg
 [vscode-amd64-shield]: https://img.shields.io/badge/amd64-yes-green.svg
 [vscode-armhf-shield]: https://img.shields.io/badge/armhf-no-red.svg
diff --git a/vscode/CHANGELOG.md b/vscode/CHANGELOG.md
index 7fe1a171..e4176c38 100644
--- a/vscode/CHANGELOG.md
+++ b/vscode/CHANGELOG.md
@@ -1,12 +1,26 @@
 ## What’s changed
 
+ℹ️  The default configuration changed. If you have custom settings, the new improvement to the configuration won't be applied. You may consider [resetting your VSCode settings to the add-on defaults](https://github.com/hassio-addons/addon-vscode/blob/main/vscode/DOCS.md#resetting-your-vscode-settings-to-the-add-on-defaults).
+
+## 🚀 Enhancements
+
+- 🚀 Added ESPHome Subfolders to ESPHome Language Association @myztillx (#512)
+- 🚀 Exclude node_modules by default @frenck (#525)
+
 ## ⬆️ Dependency updates
 
-- ⬆️ Upgrades esbenp.prettier-vscode to 9.8.0 @frenck (#488)
-- Bump esphome from 2022.8.0 to 2022.8.2 in /vscode @dependabot (#492)
-- Bump esphome from 2022.8.2 to 2022.8.3 in /vscode @dependabot (#493)
-- ⬆️ Upgrades add-on base image to 6.1.2 @frenck (#499)
-- ⬆️ Upgrades code-server to 4.7.0 @frenck (#500)
-- ⬆️ Upgrades Home Assistant CLI to v4.21.0 @frenck (#501)
-- Bump yamllint from 1.27.1 to 1.28.0 in /vscode @dependabot (#497)
-- ⬆️ Upgrades ESPHome.esphome-vscode to 2022.8.3 @frenck (#502)
+- ⬆️ Bump esphome from 2022.8.3 to 2022.9.0 @dependabot (#504)
+- ⬆️ Bump esphome from 2022.9.0 to 2022.9.1 @dependabot (#505)
+- ⬆️ Bump esphome from 2022.9.1 to 2022.9.2 @dependabot (#506)
+- ⬆️ Bump esphome from 2022.9.2 to 2022.9.3 @dependabot (#507)
+- ⬆️ Bump esphome from 2022.9.3 to 2022.10.0 @dependabot (#513)
+- ⬆️ Upgrades ESPHome.esphome-vscode to 2022.10.0 @glmnet (#514)
+- ⬆️ Bump esphome from 2022.10.0 to 2022.10.1 @dependabot (#515)
+- ⬆️ Upgrades code-server to 4.8.0 @frenck (#516)
+- ⬆️ Bump esphome from 2022.10.1 to 2022.10.2 @dependabot (#519)
+- ⬆️ Upgrades add-on base image to 6.1.3 @frenck (#520)
+- ⬆️ Upgrades code-server to 4.8.2 @frenck (#521)
+- ⬆️ Upgrades Home Assistant CLI to v4.22.0 @frenck (#522)
+- ⬆️ Upgrades code-server to 4.8.3 @frenck (#523)
+- ⬆️ Upgrades Home Assistant CLI to v4.23.0 @frenck (#524)
+- ⬆️ Upgrades esbenp.prettier-vscode to 9.9.0 @frenck (#526)
diff --git a/vscode/README.md b/vscode/README.md
index 0945dc39..efc8b720 100644
--- a/vscode/README.md
+++ b/vscode/README.md
@@ -51,6 +51,6 @@ If you are more interested in stable releases of our add-ons:
 [patreon-shield]: https://frenck.dev/wp-content/uploads/2019/12/patreon.png
 [patreon]: https://www.patreon.com/frenck
 [project-stage-shield]: https://img.shields.io/badge/project%20stage-production%20ready-brightgreen.svg
-[release-shield]: https://img.shields.io/badge/version-v5.4.0-blue.svg
-[release]: https://github.com/hassio-addons/addon-vscode/tree/v5.4.0
+[release-shield]: https://img.shields.io/badge/version-v5.4.1-blue.svg
+[release]: https://github.com/hassio-addons/addon-vscode/tree/v5.4.1
 [screenshot]: https://github.com/hassio-addons/addon-vscode/raw/main/images/screenshot.png
\ No newline at end of file
diff --git a/vscode/config.yaml b/vscode/config.yaml
index 519047cb..e5e5d4d3 100644
--- a/vscode/config.yaml
+++ b/vscode/config.yaml
@@ -38,4 +38,4 @@ slug: vscode
 startup: services
 uart: true
 url: https://github.com/hassio-addons/addon-vscode
-version: 5.4.0
+version: 5.4.1