diff --git a/src/vs/workbench/contrib/notebook/browser/view/renderers/codeCell.ts b/src/vs/workbench/contrib/notebook/browser/view/renderers/codeCell.ts
index 0a305a7d9d5fd11f14ad19652c5afc272fe0eede..97e8d538e049e7110d816ea0020f9e9b30c3ea30 100644
--- a/src/vs/workbench/contrib/notebook/browser/view/renderers/codeCell.ts
+++ b/src/vs/workbench/contrib/notebook/browser/view/renderers/codeCell.ts
@@ -325,7 +325,7 @@ export class CodeCell extends Disposable {
 				if (renderedOutput.renderResult.type !== RenderOutputType.None) {
 					// Show inset in webview, or render output that isn't rendered
 					// TODO@roblou skipHeightInit flag is a hack - the webview only sends the real height once. Don't wipe it out here.
-					this.renderOutput(currOutput, index, undefined, true);
+					this.renderOutput(currOutput, index, undefined);
 				} else {
 					// Anything else, just update the height
 					this.viewCell.updateOutputHeight(index, renderedOutput.element.clientHeight);
@@ -430,7 +430,7 @@ export class CodeCell extends Disposable {
 		);
 	}
 
-	private renderOutput(currOutput: IProcessedOutput, index: number, beforeElement?: HTMLElement, skipHeightInit = false) {
+	private renderOutput(currOutput: IProcessedOutput, index: number, beforeElement?: HTMLElement) {
 		if (!this.outputResizeListeners.has(currOutput)) {
 			this.outputResizeListeners.set(currOutput, new DisposableStore());
 		}
@@ -510,42 +510,40 @@ export class CodeCell extends Disposable {
 			outputItemDiv.style.position = 'absolute';
 		}
 
-		if (!skipHeightInit) {
-			if (outputHasDynamicHeight(result)) {
-				this.viewCell.selfSizeMonitoring = true;
-
-				const clientHeight = outputItemDiv.clientHeight;
-				const dimension = {
-					width: this.viewCell.layoutInfo.editorWidth,
-					height: clientHeight
-				};
-				const elementSizeObserver = getResizesObserver(outputItemDiv, dimension, () => {
-					if (this.templateData.outputContainer && document.body.contains(this.templateData.outputContainer!)) {
-						const height = Math.ceil(elementSizeObserver.getHeight());
-
-						if (clientHeight === height) {
-							return;
-						}
-
-						const currIndex = this.viewCell.outputs.indexOf(currOutput);
-						if (currIndex < 0) {
-							return;
-						}
-
-						this.viewCell.updateOutputHeight(currIndex, height);
-						this.relayoutCell();
+		if (outputHasDynamicHeight(result)) {
+			this.viewCell.selfSizeMonitoring = true;
+
+			const clientHeight = outputItemDiv.clientHeight;
+			const dimension = {
+				width: this.viewCell.layoutInfo.editorWidth,
+				height: clientHeight
+			};
+			const elementSizeObserver = getResizesObserver(outputItemDiv, dimension, () => {
+				if (this.templateData.outputContainer && document.body.contains(this.templateData.outputContainer!)) {
+					const height = Math.ceil(elementSizeObserver.getHeight());
+
+					if (clientHeight === height) {
+						return;
 					}
-				});
-				elementSizeObserver.startObserving();
-				this.outputResizeListeners.get(currOutput)!.add(elementSizeObserver);
-				this.viewCell.updateOutputHeight(index, clientHeight);
-			} else if (result.type !== RenderOutputType.None) { // no-op if it's a webview
-				const clientHeight = Math.ceil(outputItemDiv.clientHeight);
-				this.viewCell.updateOutputHeight(index, clientHeight);
-
-				const top = this.viewCell.getOutputOffsetInContainer(index);
-				outputItemDiv.style.top = `${top}px`;
-			}
+
+					const currIndex = this.viewCell.outputs.indexOf(currOutput);
+					if (currIndex < 0) {
+						return;
+					}
+
+					this.viewCell.updateOutputHeight(currIndex, height);
+					this.relayoutCell();
+				}
+			});
+			elementSizeObserver.startObserving();
+			this.outputResizeListeners.get(currOutput)!.add(elementSizeObserver);
+			this.viewCell.updateOutputHeight(index, clientHeight);
+		} else if (result.type === RenderOutputType.None) { // no-op if it's a webview
+			const clientHeight = Math.ceil(outputItemDiv.clientHeight);
+			this.viewCell.updateOutputHeight(index, clientHeight);
+
+			const top = this.viewCell.getOutputOffsetInContainer(index);
+			outputItemDiv.style.top = `${top}px`;
 		}
 	}
 
diff --git a/src/vs/workbench/contrib/notebook/common/notebookCommon.ts b/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
index 2ad327e44720c29a6afd495e9be8d9416eea2919..52520303aa6595a423ca192ed284bca4675e9f53 100644
--- a/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
+++ b/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
@@ -313,7 +313,7 @@ export interface IRenderOutputViaExtension {
 export type IInsetRenderOutput = IRenderPlainHtmlOutput | IRenderOutputViaExtension;
 export type IRenderOutput = IRenderNoOutput | IInsetRenderOutput;
 
-export const outputHasDynamicHeight = (o: IRenderOutput) => o.type === RenderOutputType.Extension || o.hasDynamicHeight;
+export const outputHasDynamicHeight = (o: IRenderOutput) => o.type !== RenderOutputType.Extension && o.hasDynamicHeight;
 
 export type NotebookCellTextModelSplice = [
 	number /* start */,