diff --git a/ext/vscode/CHANGELOG.md b/ext/vscode/CHANGELOG.md
index c71be31615a..7bffbe66a2e 100644
--- a/ext/vscode/CHANGELOG.md
+++ b/ext/vscode/CHANGELOG.md
@@ -1,41 +1,47 @@
 # Release History
 
-## 0.5.0-alpha.1 (Unreleased)
-
-### Features Added
-
-### Breaking Changes
+## 0.4.2 (2023-03-15)
 
 ### Bugs Fixed
 
-### Other Changes
+- [[#1735]](https://github.com/Azure/azure-dev/pull/1735) Fixed an issue with the login command not working immediately after install.
 
 ## 0.4.1 (2023-03-14)
+
 ### Bugs Fixed
+
 - [[#1724]](https://github.com/Azure/azure-dev/pull/1724) Refine conditions for displaying the prompt to install the CLI.
 
 ## 0.4.0 (2023-03-08)
+
 ### Added
+
 - [[#853]](https://github.com/Azure/azure-dev/pull/853) Integration with the Azure Resources extension's workspace view. Requires version 0.6.1 of the [Azure Resources](https://marketplace.visualstudio.com/items?itemName=ms-azuretools.vscode-azureresourcegroups) extension.
 - [[#1644]](https://github.com/Azure/azure-dev/pull/1644) Added a walkthrough experience for using the extension.
 
 ## 0.3.0 (2022-09-14)
+
 ### Added
+
 - [[#493]](https://github.com/Azure/azure-dev/pull/493) Show README file after successful init/up.
 
 ### Fixed
+
 - [[#498]](https://github.com/Azure/azure-dev/pull/498) Use `azd template list` to populate template list in VS Code (now always consistent with the CLI).
 - [[#556]](https://github.com/Azure/azure-dev/pull/556) Improve error message when no environments are found.
 
 ## 0.2.0 (2022-08-02)
 
 ### Changed
+
 - [[#189]](https://github.com/Azure/azure-dev/pull/189) Bump bicep minimum version to v0.8.9
 
 ### Added
+
 - [[#151]](https://github.com/Azure/azure-dev/pull/151) Detect and warn the user if `azd` CLI is not installed.
 
 ### Fixed
+
 - [[#159]](https://github.com/Azure/azure-dev/pull/159) Enable user feedback via surveys.
 - [[#170]](https://github.com/Azure/azure-dev/pull/170) Enable gradual rollout of new features.
 
diff --git a/ext/vscode/package-lock.json b/ext/vscode/package-lock.json
index e4f099e08e7..48ad8974218 100644
--- a/ext/vscode/package-lock.json
+++ b/ext/vscode/package-lock.json
@@ -1,12 +1,12 @@
 {
     "name": "azure-dev",
-    "version": "0.5.0-alpha.1",
+    "version": "0.4.2",
     "lockfileVersion": 2,
     "requires": true,
     "packages": {
         "": {
             "name": "azure-dev",
-            "version": "0.5.0-alpha.1",
+            "version": "0.4.2",
             "license": "MIT",
             "dependencies": {
                 "@microsoft/vscode-azext-utils": "~0.4",
diff --git a/ext/vscode/package.json b/ext/vscode/package.json
index f1405a77a72..3e27edfad50 100644
--- a/ext/vscode/package.json
+++ b/ext/vscode/package.json
@@ -2,7 +2,7 @@
     "name": "azure-dev",
     "displayName": "Azure Developer CLI",
     "description": "Makes it easy to run, provision, and deploy Azure applications using the Azure Developer CLI",
-    "version": "0.5.0-alpha.1",
+    "version": "0.4.2",
     "license": "MIT",
     "icon": "resources/icon.png",
     "preview": true,
diff --git a/ext/vscode/src/commands/loginCli.ts b/ext/vscode/src/commands/loginCli.ts
index f223766a4b4..20b14eaacf6 100644
--- a/ext/vscode/src/commands/loginCli.ts
+++ b/ext/vscode/src/commands/loginCli.ts
@@ -2,12 +2,19 @@
 // Licensed under the MIT License.
 
 import { IActionContext } from '@microsoft/vscode-azext-utils';
-import { createAzureDevCli } from '../utils/azureDevCli';
+import { TelemetryId } from '../telemetry/telemetryId';
+import { createAzureDevCli, onAzdLoginAttempted } from '../utils/azureDevCli';
 import { executeAsTask } from '../utils/executeAsTask';
 import { getAzDevTerminalTitle } from './cmdUtil';
 
 export async function loginCli(context: IActionContext, shouldPrompt: boolean = true): Promise<void> {
     const azureCli = await createAzureDevCli(context);
     const command = azureCli.commandBuilder.withArg('login');
-    await executeAsTask(command.build(), getAzDevTerminalTitle(), { alwaysRunNew: true, focus: true });
+    await executeAsTask(command.build(), getAzDevTerminalTitle(), {
+        focus: true,
+        alwaysRunNew: true,
+        env: azureCli.env
+    }, TelemetryId.LoginCli).then(() => {
+        onAzdLoginAttempted();
+    });
 }
diff --git a/ext/vscode/src/telemetry/telemetryId.ts b/ext/vscode/src/telemetry/telemetryId.ts
index 1c6ae182972..71ee0e10b73 100644
--- a/ext/vscode/src/telemetry/telemetryId.ts
+++ b/ext/vscode/src/telemetry/telemetryId.ts
@@ -28,6 +28,9 @@ export enum TelemetryId {
     // Extra data captured: whether the "purge" option was used.
     InfraDeleteCli = 'azure-dev.commands.cli.infra-delete.task',
 
+    // Reported when 'login' CLI command is invoked.
+    LoginCli = 'azure-dev.commands.cli.login-cli.task',
+
     // Reported when 'pipeline config' CLI command is invoked.
     PipelineConfigCli = 'azure-dev.commands.cli.pipeline-config.task',
 
diff --git a/ext/vscode/src/utils/azureDevCli.ts b/ext/vscode/src/utils/azureDevCli.ts
index 062407ab01a..c287bc4b192 100644
--- a/ext/vscode/src/utils/azureDevCli.ts
+++ b/ext/vscode/src/utils/azureDevCli.ts
@@ -78,7 +78,12 @@ export function scheduleAzdYamlCheck(): void {
 export function onAzdInstallAttempted(): void {
     azdInstallAttempted = true;
 
-    // Clear the install state so we'll check again at the next command
+    // Clear the install+login state so we'll check again at the next command
+    azdLoginChecker.clear();
+}
+
+export function onAzdLoginAttempted(): void {
+    // Clear the install+login state so we'll check again at the next command
     azdLoginChecker.clear();
 }