Fix #52946

src/vs/platform/extensionManagement/node/extensionManagementService.ts

@@ -437,7 +437,8 @@ export class ExtensionManagementService extends Disposable implements IExtension
 	private extractAndInstall({ zipPath, id, metadata }: InstallableExtension): TPromise<ILocalExtension> {
 		const tempPath = path.join(this.extensionsPath, `.${id}`);
 		const extensionPath = path.join(this.extensionsPath, id);
-		return this.extractAndRename(id, zipPath, tempPath, extensionPath)
+		return pfs.rimraf(extensionPath)
+			.then(() => this.extractAndRename(id, zipPath, tempPath, extensionPath), e => TPromise.wrapError(new ExtensionManagementError(nls.localize('errorDeleting', "Unable to delete the existing folder '{0}' while installing the extension '{1}'. Please delete the folder manually and try again", extensionPath, id), INSTALL_ERROR_DELETING)))
 			.then(() => {
 				this.logService.info('Installation completed.', id);
 				return this.scanExtension(id, this.extensionsPath, LocalExtensionType.User);