diff --git a/crates/xtask/Dockerfile b/crates/xtask/Dockerfile
index 4206a5505c..b003f36c88 100644
--- a/crates/xtask/Dockerfile
+++ b/crates/xtask/Dockerfile
@@ -7,5 +7,5 @@ WORKDIR /usr/src/app
 
 COPY . .
 
-RUN cargo build --profile ephemeral-build
-RUN cargo xtask init
\ No newline at end of file
+RUN cargo xtask init --update-ide false
+RUN cargo xtask build
\ No newline at end of file
diff --git a/crates/xtask/src/main.rs b/crates/xtask/src/main.rs
index f1cff14ab2..2cc1b701d6 100644
--- a/crates/xtask/src/main.rs
+++ b/crates/xtask/src/main.rs
@@ -259,8 +259,12 @@ impl App {
             Xtasks::Macros { macro_name } => {
                 cmd.arg("macros").arg(macro_name.as_ref());
             }
-            Xtasks::Init => {
-                cmd.arg("init");
+            Xtasks::Init { dont_update_ide } => {
+                let arg = cmd.arg("init");
+
+                if dont_update_ide {
+                    arg.arg("--dont-update-ide");
+                }
             }
             Xtasks::Build => {
                 cmd.arg("build");
@@ -486,7 +490,11 @@ enum Xtasks {
         macro_name: Macro,
     },
     /// Performs first time local-development environment setup
-    Init,
+    Init {
+        /// Prevents updating the IDE settings, defaults to false
+        #[clap(long, default_value = "false")]
+        dont_update_ide: bool,
+    },
     /// Build the main workspace only
     Build,
     /// Build the main workspace, apply all prefferred lints
@@ -583,7 +591,7 @@ impl Xtasks {
             Xtasks::Docs { open, no_rust_docs } => Self::docs(app_settings, open, no_rust_docs),
             Xtasks::Test { name, package } => Self::test(app_settings, package, name),
             Xtasks::CiCheck => Self::cicd(app_settings),
-            Xtasks::Init => Self::init(app_settings),
+            Xtasks::Init { dont_update_ide } => Self::init(app_settings, dont_update_ide),
             Xtasks::Macros { macro_name } => match macro_name {
                 Macro::ScriptTests => {
                     let mut settings = app_settings.clone();
@@ -1290,7 +1298,7 @@ impl Xtasks {
         Ok(())
     }
 
-    fn init(app_settings: GlobalArgs) -> Result<()> {
+    fn init(app_settings: GlobalArgs, dont_update_ide: bool) -> Result<()> {
         // install cargo mdbook
         Self::run_system_command(
             &app_settings,
@@ -1350,34 +1358,38 @@ impl Xtasks {
 
         // create .vscode settings
         // read from templates at compile time
-        let vscode_settings = include_str!("../templates/settings.json.tera");
-        let mut tera = tera::Tera::default();
-        let mut context = tera::Context::new();
-        let workspace_dir = Self::workspace_dir(&app_settings)?;
-        let json_workspace_dir = serde_json::to_string(&workspace_dir)?; // make sure this works as a json string
-        context.insert("dir", &json_workspace_dir.trim_matches('\"'));
-
-        let templated_settings = tera.render_str(vscode_settings, &context)?;
-        let templated_settings_json = Self::read_json_with_comments(templated_settings.as_bytes())
-            .with_context(|| "reading templated vscode settings")?;
-        let vscode_dir = Self::relative_workspace_dir(&app_settings, ".vscode")?;
-        std::fs::create_dir_all(&vscode_dir)?;
-        let vscode_settings_path = vscode_dir.join("settings.json");
-
-        // if the file already exists, merge the settings otherwise create it
-        info!(
-            "Merging vscode settings at {:?}. With overrides generated by template.",
-            vscode_settings_path
-        );
-        if vscode_settings_path.exists() {
-            let existing_settings = std::fs::read_to_string(&vscode_settings_path)?;
-            let mut existing_settings = Self::read_json_with_comments(existing_settings.as_bytes())
-                .with_context(|| "reading existing vscode settings file")?;
-            Self::merge_json(templated_settings_json, &mut existing_settings);
-            let merged_settings = serde_json::to_string_pretty(&existing_settings)?;
-            std::fs::write(&vscode_settings_path, merged_settings)?;
-        } else {
-            std::fs::write(&vscode_settings_path, templated_settings)?;
+        if !dont_update_ide {
+            let vscode_settings = include_str!("../templates/settings.json.tera");
+            let mut tera = tera::Tera::default();
+            let mut context = tera::Context::new();
+            let workspace_dir = Self::workspace_dir(&app_settings)?;
+            let json_workspace_dir = serde_json::to_string(&workspace_dir)?; // make sure this works as a json string
+            context.insert("dir", &json_workspace_dir.trim_matches('\"'));
+
+            let templated_settings = tera.render_str(vscode_settings, &context)?;
+            let templated_settings_json =
+                Self::read_json_with_comments(templated_settings.as_bytes())
+                    .with_context(|| "reading templated vscode settings")?;
+            let vscode_dir = Self::relative_workspace_dir(&app_settings, ".vscode")?;
+            std::fs::create_dir_all(&vscode_dir)?;
+            let vscode_settings_path = vscode_dir.join("settings.json");
+
+            // if the file already exists, merge the settings otherwise create it
+            info!(
+                "Merging vscode settings at {:?}. With overrides generated by template.",
+                vscode_settings_path
+            );
+            if vscode_settings_path.exists() {
+                let existing_settings = std::fs::read_to_string(&vscode_settings_path)?;
+                let mut existing_settings =
+                    Self::read_json_with_comments(existing_settings.as_bytes())
+                        .with_context(|| "reading existing vscode settings file")?;
+                Self::merge_json(templated_settings_json, &mut existing_settings);
+                let merged_settings = serde_json::to_string_pretty(&existing_settings)?;
+                std::fs::write(&vscode_settings_path, merged_settings)?;
+            } else {
+                std::fs::write(&vscode_settings_path, templated_settings)?;
+            }
         }
 
         Ok(())