diff --git a/apps/vs-code-designer/src/app/utils/__test__/bundleFeed.test.ts b/apps/vs-code-designer/src/app/utils/__test__/bundleFeed.test.ts
index 64781abcc82..3f5f8dca829 100644
--- a/apps/vs-code-designer/src/app/utils/__test__/bundleFeed.test.ts
+++ b/apps/vs-code-designer/src/app/utils/__test__/bundleFeed.test.ts
@@ -1,10 +1,32 @@
-import { getBundleVersionNumber, getExtensionBundleFolder } from '../bundleFeed';
+import {
+  getBundleVersionNumber,
+  getExtensionBundleFolder,
+  getLatestVersionRange,
+  addDefaultBundle,
+  downloadExtensionBundle,
+} from '../bundleFeed';
 import { describe, it, expect, vi, beforeEach } from 'vitest';
 import * as fse from 'fs-extra';
 import * as path from 'path';
 import * as cp from 'child_process';
-import { extensionBundleId } from '../../../constants';
+import { extensionBundleId, defaultVersionRange, defaultExtensionBundlePathValue } from '../../../constants';
+import type { IHostJsonV2 } from '@microsoft/vscode-extension-logic-apps';
 import * as cpUtils from '../funcCoreTools/cpUtils';
+import * as feedModule from '../feed';
+import * as binariesModule from '../binaries';
+
+// Mock fs-extra
+vi.mock('fs-extra', async (importOriginal) => {
+  const actual = await importOriginal();
+  return {
+    ...(actual as object),
+    readdir: vi.fn(),
+    stat: vi.fn(),
+    pathExists: vi.fn(),
+    readdirSync: vi.fn(),
+    statSync: vi.fn(),
+  };
+});
 
 // Mock localize
 vi.mock('../../localize', () => ({
@@ -47,6 +69,21 @@ vi.mock('vscode', () => ({
   },
 }));
 
+// Mock feed module
+vi.mock('../feed', () => ({
+  getJsonFeed: vi.fn(),
+}));
+
+// Mock binaries module
+vi.mock('../binaries', () => ({
+  downloadAndExtractDependency: vi.fn(),
+}));
+
+// Mock localSettings
+vi.mock('../appSettings/localSettings', () => ({
+  getLocalSettingsJson: vi.fn().mockResolvedValue({}),
+}));
+
 const mockedFse = vi.mocked(fse);
 const mockedExecSync = vi.mocked(cp.execSync);
 const mockedExecuteCommand = vi.mocked(cpUtils.executeCommand);
@@ -379,3 +416,183 @@ describe('getBundleVersionNumber', () => {
     expect(mockedExecuteCommand).toHaveBeenCalledWith(expect.anything(), '/mock/workspace', 'func', 'GetExtensionBundlePath');
   });
 });
+
+describe('getLatestVersionRange', () => {
+  it('should return the default version range constant', () => {
+    const result = getLatestVersionRange();
+    expect(result).toBe(defaultVersionRange);
+  });
+
+  it('should return a valid semver range string', () => {
+    const result = getLatestVersionRange();
+    expect(result).toMatch(/^\[.*\)$/);
+  });
+});
+
+describe('addDefaultBundle', () => {
+  it('should add extension bundle configuration to host.json', () => {
+    const hostJson: IHostJsonV2 = {
+      version: '2.0',
+    };
+
+    addDefaultBundle(hostJson);
+
+    expect(hostJson.extensionBundle).toBeDefined();
+    expect(hostJson.extensionBundle?.id).toBe(extensionBundleId);
+    expect(hostJson.extensionBundle?.version).toBe(defaultVersionRange);
+  });
+
+  it('should overwrite existing extension bundle configuration', () => {
+    const hostJson: IHostJsonV2 = {
+      version: '2.0',
+      extensionBundle: {
+        id: 'old-bundle-id',
+        version: '[1.0.0, 2.0.0)',
+      },
+    };
+
+    addDefaultBundle(hostJson);
+
+    expect(hostJson.extensionBundle?.id).toBe(extensionBundleId);
+    expect(hostJson.extensionBundle?.version).toBe(defaultVersionRange);
+  });
+
+  it('should preserve other host.json properties', () => {
+    const hostJson: IHostJsonV2 = {
+      version: '2.0',
+      logging: {
+        logLevel: {
+          default: 'Information',
+        },
+      },
+    };
+
+    addDefaultBundle(hostJson);
+
+    expect(hostJson.version).toBe('2.0');
+    expect(hostJson.logging).toBeDefined();
+    expect(hostJson.extensionBundle).toBeDefined();
+  });
+});
+
+describe('downloadExtensionBundle', () => {
+  const mockedGetJsonFeed = vi.mocked(feedModule.getJsonFeed);
+  const mockedDownloadAndExtract = vi.mocked(binariesModule.downloadAndExtractDependency);
+
+  const createMockContext = () => ({
+    telemetry: {
+      properties: {} as Record<string, string>,
+      measurements: {} as Record<string, number>,
+    },
+  });
+
+  beforeEach(() => {
+    vi.clearAllMocks();
+    // Reset environment variables
+    delete process.env.AzureFunctionsJobHost_extensionBundle_version;
+    delete process.env.FUNCTIONS_EXTENSIONBUNDLE_SOURCE_URI;
+  });
+
+  it('should download newer version when feed has higher version than local', async () => {
+    // Feed versions (simulating index.json format)
+    const feedVersions = ['1.0.0', '1.1.0', '1.2.0', '1.3.0', '1.95.0'];
+
+    // Local version is 1.75.0
+    mockedFse.pathExists.mockResolvedValue(true as never);
+    mockedFse.readdirSync.mockReturnValue(['1.75.0'] as any);
+    mockedFse.statSync.mockReturnValue({ isDirectory: () => true } as any);
+
+    // Mock the feed to return the versions array
+    mockedGetJsonFeed.mockResolvedValue(feedVersions as any);
+
+    // Mock download to succeed
+    mockedDownloadAndExtract.mockResolvedValue(undefined);
+
+    const context = createMockContext();
+    const result = await downloadExtensionBundle(context as any);
+
+    // Should have downloaded
+    expect(result).toBe(true);
+    expect(context.telemetry.properties.didUpdateExtensionBundle).toBe('true');
+
+    // Should download version 1.95.0 (the highest from feed)
+    expect(mockedDownloadAndExtract).toHaveBeenCalledWith(
+      expect.anything(),
+      expect.stringContaining('1.95.0'),
+      defaultExtensionBundlePathValue,
+      extensionBundleId,
+      '1.95.0'
+    );
+  });
+
+  it('should not download when local version is higher than feed versions', async () => {
+    // Feed only has older versions
+    const feedVersions = ['1.0.0', '1.1.0', '1.2.0'];
+
+    // Local version is already 1.75.0
+    mockedFse.pathExists.mockResolvedValue(true as never);
+    mockedFse.readdirSync.mockReturnValue(['1.75.0'] as any);
+    mockedFse.statSync.mockReturnValue({ isDirectory: () => true } as any);
+
+    mockedGetJsonFeed.mockResolvedValue(feedVersions as any);
+
+    const context = createMockContext();
+    const result = await downloadExtensionBundle(context as any);
+
+    // Should not download
+    expect(result).toBe(false);
+    expect(context.telemetry.properties.didUpdateExtensionBundle).toBe('false');
+    expect(mockedDownloadAndExtract).not.toHaveBeenCalled();
+  });
+
+  it('should correctly identify the latest version from an unordered feed list', async () => {
+    // Feed versions in random order
+    const feedVersions = ['1.3.0', '1.95.0', '1.0.0', '1.50.0', '1.1.0'];
+
+    // No local versions
+    mockedFse.pathExists.mockResolvedValue(true as never);
+    mockedFse.readdirSync.mockReturnValue([] as any);
+
+    mockedGetJsonFeed.mockResolvedValue(feedVersions as any);
+    mockedDownloadAndExtract.mockResolvedValue(undefined);
+
+    const context = createMockContext();
+    const result = await downloadExtensionBundle(context as any);
+
+    expect(result).toBe(true);
+    // Should download 1.95.0 (the actual highest version)
+    expect(mockedDownloadAndExtract).toHaveBeenCalledWith(
+      expect.anything(),
+      expect.stringContaining('1.95.0'),
+      defaultExtensionBundlePathValue,
+      extensionBundleId,
+      '1.95.0'
+    );
+  });
+
+  it('should handle multiple local versions and compare against highest', async () => {
+    // Feed has 1.95.0
+    const feedVersions = ['1.0.0', '1.95.0'];
+
+    // Multiple local versions, highest is 1.75.0
+    mockedFse.pathExists.mockResolvedValue(true as never);
+    mockedFse.readdirSync.mockReturnValue(['1.50.0', '1.75.0', '1.60.0'] as any);
+    mockedFse.statSync.mockReturnValue({ isDirectory: () => true } as any);
+
+    mockedGetJsonFeed.mockResolvedValue(feedVersions as any);
+    mockedDownloadAndExtract.mockResolvedValue(undefined);
+
+    const context = createMockContext();
+    const result = await downloadExtensionBundle(context as any);
+
+    // Should download since 1.95.0 > 1.75.0
+    expect(result).toBe(true);
+    expect(mockedDownloadAndExtract).toHaveBeenCalledWith(
+      expect.anything(),
+      expect.stringContaining('1.95.0'),
+      defaultExtensionBundlePathValue,
+      extensionBundleId,
+      '1.95.0'
+    );
+  });
+});
diff --git a/apps/vs-code-designer/src/app/utils/bundleFeed.ts b/apps/vs-code-designer/src/app/utils/bundleFeed.ts
index 0f082252458..05a95f9eae9 100644
--- a/apps/vs-code-designer/src/app/utils/bundleFeed.ts
+++ b/apps/vs-code-designer/src/app/utils/bundleFeed.ts
@@ -7,7 +7,7 @@ import { getLocalSettingsJson } from './appSettings/localSettings';
 import { downloadAndExtractDependency } from './binaries';
 import { getJsonFeed } from './feed';
 import type { IActionContext } from '@microsoft/vscode-azext-utils';
-import type { IBundleDependencyFeed, IBundleFeed, IBundleMetadata, IHostJsonV2 } from '@microsoft/vscode-extension-logic-apps';
+import type { IBundleDependencyFeed, IBundleMetadata, IHostJsonV2 } from '@microsoft/vscode-extension-logic-apps';
 import * as path from 'path';
 import * as semver from 'semver';
 import * as vscode from 'vscode';
@@ -16,38 +16,16 @@ import { ext } from '../../extensionVariables';
 import { getFunctionsCommand } from './funcCoreTools/funcVersion';
 import * as fse from 'fs-extra';
 import { executeCommand } from './funcCoreTools/cpUtils';
-/**
- * Gets bundle extension feed.
- * @param {IActionContext} context - Command context.
- * @param {IBundleMetadata | undefined} bundleMetadata - Bundle meta data.
- * @returns {Promise<IBundleFeed>} Returns bundle extension object.
- */
-async function getBundleFeed(context: IActionContext, bundleMetadata: IBundleMetadata | undefined): Promise<IBundleFeed> {
-  const bundleId: string = (bundleMetadata && bundleMetadata.id) || extensionBundleId;
-
-  const envVarUri: string | undefined = process.env.FUNCTIONS_EXTENSIONBUNDLE_SOURCE_URI;
-  // Only use an aka.ms link for the most common case, otherwise we will dynamically construct the url
-  let url: string;
-  if (!envVarUri && bundleId === extensionBundleId) {
-    url = 'https://aka.ms/AAqvc78';
-  } else {
-    const baseUrl: string = envVarUri || 'https://cdn.functions.azure.com/public';
-    url = `${baseUrl}/ExtensionBundles/${bundleId}/index-v2.json`;
-  }
-
-  return getJsonFeed(context, url);
-}
 
 /**
  * Gets Workflow bundle extension feed.
  * @param {IActionContext} context - Command context.
- * @param {IBundleMetadata | undefined} bundleMetadata - Bundle meta data.
- * @returns {Promise<IBundleFeed>} Returns bundle extension object.
+ * @returns {Promise<string[]>} Returns array of available bundle versions.
  */
-async function getWorkflowBundleFeed(context: IActionContext): Promise<IBundleFeed> {
+async function getWorkflowBundleFeed(context: IActionContext): Promise<string[]> {
   const envVarUri: string | undefined = process.env.FUNCTIONS_EXTENSIONBUNDLE_SOURCE_URI;
   const baseUrl: string = envVarUri || 'https://cdn.functions.azure.com/public';
-  const url = `${baseUrl}/ExtensionBundles/${extensionBundleId}/index-v2.json`;
+  const url = `${baseUrl}/ExtensionBundles/${extensionBundleId}/index.json`;
 
   return getJsonFeed(context, url);
 }
@@ -56,7 +34,7 @@ async function getWorkflowBundleFeed(context: IActionContext): Promise<IBundleFe
  * Gets extension bundle dependency feed.
  * @param {IActionContext} context - Command context.
  * @param {IBundleMetadata | undefined} bundleMetadata - Bundle meta data.
- * @returns {Promise<IBundleFeed>} Returns bundle extension object.
+ * @returns {Promise<IBundleDependencyFeed>} Returns bundle extension object.
  */
 async function getBundleDependencyFeed(
   context: IActionContext,
@@ -77,12 +55,10 @@ async function getBundleDependencyFeed(
 
 /**
  * Gets latest bundle extension version range.
- * @param {IActionContext} context - Command context.
- * @returns {Promise<string>} Returns lates version range.
+ * @returns {string} Returns latest version range.
  */
-export async function getLatestVersionRange(context: IActionContext): Promise<string> {
-  const feed: IBundleFeed = await getBundleFeed(context, undefined);
-  return feed.defaultVersionRange;
+export function getLatestVersionRange(): string {
+  return defaultVersionRange;
 }
 
 /**
@@ -97,20 +73,12 @@ export async function getDependenciesVersion(context: IActionContext): Promise<I
 
 /**
  * Add bundle extension version to host.json configuration.
- * @param {IActionContext} context - Command context.
  * @param {IHostJsonV2} hostJson - Host.json configuration.
  */
-export async function addDefaultBundle(context: IActionContext, hostJson: IHostJsonV2): Promise<void> {
-  let versionRange: string;
-  try {
-    versionRange = await getLatestVersionRange(context);
-  } catch {
-    versionRange = defaultVersionRange;
-  }
-
+export function addDefaultBundle(hostJson: IHostJsonV2): void {
   hostJson.extensionBundle = {
     id: extensionBundleId,
-    version: versionRange,
+    version: defaultVersionRange,
   };
 }
 
@@ -191,8 +159,8 @@ export async function downloadExtensionBundle(context: IActionContext): Promise<
 
     // Check the latest from feed.
     let latestFeedBundleVersion = '1.0.0';
-    const feed: IBundleFeed = await getWorkflowBundleFeed(context);
-    for (const bundleVersion in feed.bundleVersions) {
+    const feedVersions: string[] = await getWorkflowBundleFeed(context);
+    for (const bundleVersion of feedVersions) {
       latestFeedBundleVersion = semver.gt(latestFeedBundleVersion, bundleVersion) ? latestFeedBundleVersion : bundleVersion;
     }