diff --git a/src/vs/workbench/services/configuration/browser/configuration.ts b/src/vs/workbench/services/configuration/browser/configuration.ts
index e7414fcbb97f596fe1793ec630aecd807166781f..c779fb5d65ef96470ecc6b3691bfceaf6efa927a 100644
--- a/src/vs/workbench/services/configuration/browser/configuration.ts
+++ b/src/vs/workbench/services/configuration/browser/configuration.ts
@@ -101,7 +101,8 @@ class FileServiceBasedConfiguration extends Disposable {
 					const content = await this.fileService.readFile(resource);
 					return content.value.toString();
 				} catch (error) {
-					if ((<FileOperationError>error).fileOperationResult !== FileOperationResult.FILE_NOT_FOUND) {
+					if ((<FileOperationError>error).fileOperationResult !== FileOperationResult.FILE_NOT_FOUND
+						&& (<FileOperationError>error).fileOperationResult !== FileOperationResult.FILE_NOT_DIRECTORY) {
 						errors.onUnexpectedError(error);
 					}
 				}