diff --git a/.vscode-test.js b/.vscode-test.js
index 35afecdba..90afe6dc6 100644
--- a/.vscode-test.js
+++ b/.vscode-test.js
@@ -27,7 +27,7 @@ module.exports = defineConfig({
     tests: [
         {
             label: "integrationTests",
-            files: ["out/test/common.js", "out/test/integration-tests/**/*.test.js"],
+            files: ["dist/test/common.js", "dist/test/integration-tests/**/*.test.js"],
             version: process.env["VSCODE_VERSION"] ?? "stable",
             workspaceFolder: "./assets/test",
             launchArgs: [
@@ -50,7 +50,7 @@ module.exports = defineConfig({
         },
         {
             label: "unitTests",
-            files: ["out/test/common.js", "out/test/unit-tests/**/*.test.js"],
+            files: ["dist/test/common.js", "dist/test/unit-tests/**/*.test.js"],
             version: process.env["VSCODE_VERSION"] ?? "stable",
             launchArgs: [
                 "--disable-extensions",
diff --git a/.vscode/extensions.json b/.vscode/extensions.json
index 539d83104..e680869ad 100644
--- a/.vscode/extensions.json
+++ b/.vscode/extensions.json
@@ -2,7 +2,6 @@
 	// See http://go.microsoft.com/fwlink/?LinkId=827846
 	// for the documentation about the extensions.json format
 	"recommendations": [
-		"connor4312.esbuild-problem-matchers",
 		"dbaeumer.vscode-eslint",
 		"esbenp.prettier-vscode"
 	]
diff --git a/.vscode/launch.json b/.vscode/launch.json
index 5e1219b61..f10b5ffcc 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -30,7 +30,6 @@
 				"--profile=testing-debug"
 			],
 			"outFiles": [
-				"${workspaceFolder}/out/**/*.js",
 				"${workspaceFolder}/dist/**/*.js"
 			],
 			"env": {
@@ -45,7 +44,7 @@
 			"testConfiguration": "${workspaceFolder}/.vscode-test.js",
 			"testConfigurationLabel": "unitTests",
 			"outFiles": [
-				"${workspaceFolder}/out/**/*.js"
+				"${workspaceFolder}/dist/**/*.js"
 			],
 			"preLaunchTask": "compile-tests"
 		}
diff --git a/.vscode/settings.json b/.vscode/settings.json
index 5c31c3df8..2ef8db44a 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -1,10 +1,10 @@
 // Place your settings in this file to overwrite default and user settings.
 {
     "files.exclude": {
-        "out": false // set this to true to hide the "out" folder with the compiled JS files
+        "dist": false // set this to true to hide the "dist" folder with the compiled JS files
     },
     "search.exclude": {
-        "out": true // set this to false to include "out" folder in search results
+        "dist": true // set this to false to include "dist" folder in search results
     },
     // Turn off tsc task auto detection since we have the necessary tasks as npm scripts
     "typescript.tsc.autoDetect": "off",
diff --git a/.vscode/tasks.json b/.vscode/tasks.json
index db015fca9..f852e361a 100644
--- a/.vscode/tasks.json
+++ b/.vscode/tasks.json
@@ -6,12 +6,12 @@
 		{
 			"label": "build",
 			"type": "npm",
-			"script": "esbuild-watch",
-			"problemMatcher": "$esbuild-watch",
-			"isBackground": true,
+			"script": "watch",
+			"problemMatcher": "$tsc-watch",
 			"presentation": {
 				"reveal": "never"
 			},
+			"isBackground": true,
 			"group": {
 				"kind": "build",
 				"isDefault": true
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index 3a9eedcc5..a6bc91dbf 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -28,7 +28,7 @@ nvm install
 npm install
 ```
 
-When you first open the project in VS Code you will be recommended to also install [`ESLint`](https://marketplace.visualstudio.com/items?itemName=dbaeumer.vscode-eslint), [`Prettier - Code formatter`](https://marketplace.visualstudio.com/items?itemName=esbenp.prettier-vscode) and [`esbuild Problem Matchers`](https://marketplace.visualstudio.com/items?itemName=connor4312.esbuild-problem-matchers). Please do so. `ESLint`, `Prettier - Code formatter` is used to ensure a consistent style and we expect everyone who contributes to follow this style as well. `esbuild Problem Matchers` provides proper error output from building the project.
+When you first open the project in VS Code you will be recommended to also install [`ESLint`](https://marketplace.visualstudio.com/items?itemName=dbaeumer.vscode-eslint) and [`Prettier - Code formatter`](https://marketplace.visualstudio.com/items?itemName=esbenp.prettier-vscode). Please do so. `ESLint`, `Prettier - Code formatter` is used to ensure a consistent style and we expect everyone who contributes to follow this style as well.
 
 To run your version of the Swift extension while in VS Code, press `F5`. This will open up another instance of VS Code with it running. You can use the original version of VS Code to debug it.
 
diff --git a/package.json b/package.json
index cb7a99612..0e50d54ed 100644
--- a/package.json
+++ b/package.json
@@ -28,7 +28,7 @@
     "workspaceContains:compile_commands.json",
     "onDebugResolve:swift-lldb"
   ],
-  "main": "./dist/extension.js",
+  "main": "./dist/src/extension.js",
   "contributes": {
     "icons": {
       "swift-icon": {
@@ -1266,13 +1266,10 @@
     "vadimcn.vscode-lldb"
   ],
   "scripts": {
-    "vscode:prepublish": "npm run esbuild-bundle",
-    "esbuild-base": "del-cli ./dist && esbuild \"./src/**/*.ts\" --outdir=dist --format=cjs --platform=node --target=node18",
-    "esbuild": "npm run esbuild-base",
-    "esbuild-watch": "npm run esbuild-base -- --watch",
-    "esbuild-bundle": "del-cli ./dist && esbuild ./src/extension.ts --bundle --outfile=dist/extension.js --external:vscode --format=cjs --platform=node --target=node18 --minify --sourcemap",
-    "compile": "tsc",
-    "watch": "tsc --watch",
+    "vscode:prepublish": "npm run bundle",
+    "bundle": "del-cli ./dist && esbuild ./src/extension.ts --bundle --outfile=dist/src/extension.js --external:vscode --format=cjs --platform=node --target=node18 --minify --sourcemap",
+    "compile": "del-cli ./dist && tsc",
+    "watch": "del-cli ./dist && tsc --watch",
     "lint": "eslint ./ --ext ts && tsc --noEmit",
     "format": "prettier --check *.json src test",
     "pretest": "npm run compile-tests",
@@ -1283,7 +1280,7 @@
     "integration-test": "npm test -- --label integrationTests",
     "unit-test": "npm test -- --label unitTests",
     "coverage": "npm test -- --coverage",
-    "compile-tests": "del-cli ./assets/test/**/.build && npm run compile && npm run esbuild",
+    "compile-tests": "del-cli ./assets/test/**/.build && npm run compile",
     "package": "vsce package",
     "dev-package": "vsce package --no-update-package-json 1.12.0-dev",
     "preview-package": "vsce package --pre-release",
diff --git a/tsconfig.json b/tsconfig.json
index d13fda314..1f3f311c4 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -2,7 +2,7 @@
   "compilerOptions": {
     "module": "commonjs",
     "target": "ES2020",
-    "outDir": "out",
+    "outDir": "dist",
     "lib": ["ES2020"],
     "sourceMap": true,
     "strict": true /* enable all strict type-checking options */
@@ -11,5 +11,5 @@
     // "noFallthroughCasesInSwitch": true, /* Report errors for fallthrough cases in switch statement. */
     // "noUnusedParameters": true,  /* Report errors on unused parameters. */
   },
-  "exclude": ["node_modules", ".vscode-test"]
+  "include": ["src/**/*.ts", "test/**/*.ts"]
 }