diff --git a/src/vs/workbench/api/common/extHostOutput.ts b/src/vs/workbench/api/common/extHostOutput.ts
index 3f1de6629f7e0..c8ccb609da064 100644
--- a/src/vs/workbench/api/common/extHostOutput.ts
+++ b/src/vs/workbench/api/common/extHostOutput.ts
@@ -151,13 +151,17 @@ export class ExtHostOutputService implements ExtHostOutputServiceShape {
 		if (isString(languageId) && !languageId.trim()) {
 			throw new Error('illegal argument `languageId`. must not be empty');
 		}
-		const logLevel = this.getDefaultLogLevel(extension);
+		let logLevel: LogLevel | undefined;
+		const logLevelValue = this.initData.environment.extensionLogLevel?.find(([identifier]) => ExtensionIdentifier.equals(extension.identifier, identifier))?.[1];
+		if (logLevelValue) {
+			logLevel = parseLogLevel(logLevelValue);
+		}
 		const extHostOutputChannel = log ? this.doCreateLogOutputChannel(name, logLevel, extension) : this.doCreateOutputChannel(name, languageId, extension);
 		extHostOutputChannel.then(channel => {
 			this.channels.set(channel.id, channel);
 			channel.visible = channel.id === this.visibleChannelId;
 		});
-		return log ? this.createExtHostLogOutputChannel(name, logLevel, <Promise<ExtHostOutputChannel>>extHostOutputChannel) : this.createExtHostOutputChannel(name, <Promise<ExtHostOutputChannel>>extHostOutputChannel);
+		return log ? this.createExtHostLogOutputChannel(name, logLevel ?? this.logService.getLevel(), <Promise<ExtHostOutputChannel>>extHostOutputChannel) : this.createExtHostOutputChannel(name, <Promise<ExtHostOutputChannel>>extHostOutputChannel);
 	}
 
 	private async doCreateOutputChannel(name: string, languageId: string | undefined, extension: IExtensionDescription): Promise<ExtHostOutputChannel> {
@@ -171,7 +175,7 @@ export class ExtHostOutputService implements ExtHostOutputServiceShape {
 		return new ExtHostOutputChannel(id, name, logger, this.proxy, extension);
 	}
 
-	private async doCreateLogOutputChannel(name: string, logLevel: LogLevel, extension: IExtensionDescription): Promise<ExtHostLogOutputChannel> {
+	private async doCreateLogOutputChannel(name: string, logLevel: LogLevel | undefined, extension: IExtensionDescription): Promise<ExtHostLogOutputChannel> {
 		const extensionLogDir = await this.createExtensionLogDirectory(extension);
 		const file = this.extHostFileSystemInfo.extUri.joinPath(extensionLogDir, `${name.replace(/[\\/:\*\?"<>\|]/g, '')}.log`);
 		const logger = this.loggerService.createLogger(file, { name }, logLevel);
@@ -179,15 +183,6 @@ export class ExtHostOutputService implements ExtHostOutputServiceShape {
 		return new ExtHostLogOutputChannel(id, name, logger, this.proxy, extension);
 	}
 
-	private getDefaultLogLevel(extension: IExtensionDescription): LogLevel {
-		let logLevel: LogLevel | undefined;
-		const logLevelValue = this.initData.environment.extensionLogLevel?.find(([identifier]) => ExtensionIdentifier.equals(extension.identifier, identifier))?.[1];
-		if (logLevelValue) {
-			logLevel = parseLogLevel(logLevelValue);
-		}
-		return logLevel ?? this.logService.getLevel();
-	}
-
 	private createExtensionLogDirectory(extension: IExtensionDescription): Thenable<URI> {
 		let extensionLogDirectoryPromise = this.extensionLogDirectoryPromise.get(extension.identifier.value);
 		if (!extensionLogDirectoryPromise) {