fix #75620

src/vs/workbench/contrib/extensions/browser/extensionsViewlet.ts

@@ -631,11 +631,6 @@ export class StatusUpdater extends Disposable implements IWorkbenchContribution
 	private onServiceChange(): void {
 		this.badgeHandle.clear();
 
-		if (this.extensionsWorkbenchService.local.some(e => e.state === ExtensionState.Installing)) {
-			this.badgeHandle.value = this.activityService.showActivity(VIEWLET_ID, new ProgressBadge(() => localize('extensions', "Extensions")), 'extensions-badge progress-badge');
-			return;
-		}
-
 		const outdated = this.extensionsWorkbenchService.outdated.reduce((r, e) => r + (this.extensionEnablementService.isEnabled(e.local!) ? 1 : 0), 0);
 		if (outdated > 0) {
 			const badge = new NumberBadge(outdated, n => localize('outdatedExtensions', '{0} Outdated Extensions', n));

src/vs/workbench/contrib/extensions/browser/extensionsWorkbenchService.ts

@@ -536,6 +536,8 @@ export class ExtensionsWorkbenchService extends Disposable implements IExtension
 			this.resetIgnoreAutoUpdateExtensions();
 			this.eventuallySyncWithGallery(true);
 		});
+
+		this._register(this.onChange(() => this.updateActivity()));
 	}
 
 	get local(): IExtension[] {
@@ -1025,6 +1027,21 @@ export class ExtensionsWorkbenchService extends Disposable implements IExtension
 		return this._extensionAllowedBadgeProviders;
 	}
 
+	private _activityCallBack: (() => void) | null = null;
+	private updateActivity(): void {
+		if ((this.localExtensions && this.localExtensions.local.some(e => e.state === ExtensionState.Installing || e.state === ExtensionState.Uninstalling))
+			|| (this.remoteExtensions && this.remoteExtensions.local.some(e => e.state === ExtensionState.Installing || e.state === ExtensionState.Uninstalling))) {
+			if (!this._activityCallBack) {
+				this.progressService.withProgress({ location: ProgressLocation.Extensions }, () => new Promise(c => this._activityCallBack = c));
+			}
+		} else {
+			if (this._activityCallBack) {
+				this._activityCallBack();
+			}
+			this._activityCallBack = null;
+		}
+	}
+
 	private onError(err: any): void {
 		if (isPromiseCanceledError(err)) {
 			return;