diff --git a/components/server/src/ide-service.ts b/components/server/src/ide-service.ts
index a0ab86bf4dc3d0..be35d14b58516c 100644
--- a/components/server/src/ide-service.ts
+++ b/components/server/src/ide-service.ts
@@ -4,7 +4,7 @@
  * See License-AGPL.txt in the project root for license information.
  */
 
-import { TaskConfig, Workspace } from "@gitpod/gitpod-protocol";
+import { IDESettings, TaskConfig, User, Workspace } from "@gitpod/gitpod-protocol";
 import { IDEOptions, IDEClient } from "@gitpod/gitpod-protocol/lib/ide-protocol";
 import {
     IDEServiceClient,
@@ -42,6 +42,32 @@ export class IDEService {
         }
     }
 
+    migrateSettings(user: User): IDESettings | undefined {
+        if (!user?.additionalData?.ideSettings || user.additionalData.ideSettings.settingVersion === "2.0") {
+            return undefined;
+        }
+        const newIDESettings: IDESettings = {
+            settingVersion: "2.0",
+        };
+        const ideSettings = user.additionalData.ideSettings;
+        if (ideSettings.useDesktopIde) {
+            if (ideSettings.defaultDesktopIde === "code-desktop") {
+                newIDESettings.defaultIde = "code-desktop";
+            } else if (ideSettings.defaultDesktopIde === "code-desktop-insiders") {
+                newIDESettings.defaultIde = "code-desktop";
+                newIDESettings.useLatestVersion = true;
+            } else {
+                newIDESettings.defaultIde = ideSettings.defaultDesktopIde;
+                newIDESettings.useLatestVersion = ideSettings.useLatestVersion;
+            }
+        } else {
+            const useLatest = ideSettings.defaultIde === "code-latest";
+            newIDESettings.defaultIde = "code";
+            newIDESettings.useLatestVersion = useLatest;
+        }
+        return newIDESettings;
+    }
+
     async resolveWorkspaceConfig(req: ResolveWorkspaceConfigRequest): Promise<ResolveWorkspaceConfigResponse> {
         for (let attempt = 0; attempt < 15; attempt++) {
             if (attempt != 0) {
diff --git a/components/server/src/workspace/workspace-starter.spec.ts b/components/server/src/workspace/workspace-starter.spec.ts
index 673d955e9ff514..39a24365433157 100644
--- a/components/server/src/workspace/workspace-starter.spec.ts
+++ b/components/server/src/workspace/workspace-starter.spec.ts
@@ -6,11 +6,12 @@
 
 import { User } from "@gitpod/gitpod-protocol";
 import * as chai from "chai";
-import { migrationIDESettings } from "./workspace-starter";
+import { IDEService } from "../ide-service";
 const expect = chai.expect;
 
-describe("workspace-starter", function () {
-    describe("migrationIDESettings", function () {
+describe("ide-service", function () {
+    describe("ideService.migrateSettings", function () {
+        const ideService = new IDEService();
         it("with no ideSettings should be undefined", function () {
             const user: User = {
                 id: "string",
@@ -18,7 +19,7 @@ describe("workspace-starter", function () {
                 identities: [],
                 additionalData: {},
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result).to.undefined;
         });
 
@@ -35,7 +36,7 @@ describe("workspace-starter", function () {
                     },
                 },
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result).to.undefined;
         });
 
@@ -51,7 +52,7 @@ describe("workspace-starter", function () {
                     },
                 },
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result?.defaultIde).to.equal("code");
             expect(result?.useLatestVersion ?? false).to.be.true;
         });
@@ -69,7 +70,7 @@ describe("workspace-starter", function () {
                     },
                 },
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result?.defaultIde).to.equal("code-desktop");
             expect(result?.useLatestVersion ?? false).to.be.true;
         });
@@ -87,7 +88,7 @@ describe("workspace-starter", function () {
                     },
                 },
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result?.defaultIde).to.equal("code-desktop");
             expect(result?.useLatestVersion ?? false).to.be.false;
         });
@@ -106,7 +107,7 @@ describe("workspace-starter", function () {
                     },
                 },
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result?.defaultIde).to.equal("intellij");
             expect(result?.useLatestVersion ?? false).to.be.false;
         });
@@ -125,7 +126,7 @@ describe("workspace-starter", function () {
                     },
                 },
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result?.defaultIde).to.equal("intellij");
             expect(result?.useLatestVersion ?? false).to.be.true;
         });
@@ -144,7 +145,7 @@ describe("workspace-starter", function () {
                     },
                 },
             };
-            const result = migrationIDESettings(user);
+            const result = ideService.migrateSettings(user);
             expect(result?.defaultIde).to.equal("code");
             expect(result?.useLatestVersion ?? false).to.be.true;
         });
diff --git a/components/server/src/workspace/workspace-starter.ts b/components/server/src/workspace/workspace-starter.ts
index 1bdd59ae8db2aa..6a5ea57519cd71 100644
--- a/components/server/src/workspace/workspace-starter.ts
+++ b/components/server/src/workspace/workspace-starter.ts
@@ -56,7 +56,6 @@ import {
     ImageConfigFile,
     ProjectEnvVar,
     ImageBuildLogInfo,
-    IDESettings,
     WithReferrerContext,
     EnvVarWithValue,
     BillingTier,
@@ -137,32 +136,6 @@ export interface StartWorkspaceOptions {
 const MAX_INSTANCE_START_RETRIES = 2;
 const INSTANCE_START_RETRY_INTERVAL_SECONDS = 2;
 
-export const migrationIDESettings = (user: User) => {
-    if (!user?.additionalData?.ideSettings || user.additionalData.ideSettings.settingVersion === "2.0") {
-        return;
-    }
-    const newIDESettings: IDESettings = {
-        settingVersion: "2.0",
-    };
-    const ideSettings = user.additionalData.ideSettings;
-    if (ideSettings.useDesktopIde) {
-        if (ideSettings.defaultDesktopIde === "code-desktop") {
-            newIDESettings.defaultIde = "code-desktop";
-        } else if (ideSettings.defaultDesktopIde === "code-desktop-insiders") {
-            newIDESettings.defaultIde = "code-desktop";
-            newIDESettings.useLatestVersion = true;
-        } else {
-            newIDESettings.defaultIde = ideSettings.defaultDesktopIde;
-            newIDESettings.useLatestVersion = ideSettings.useLatestVersion;
-        }
-    } else {
-        const useLatest = ideSettings.defaultIde === "code-latest";
-        newIDESettings.defaultIde = "code";
-        newIDESettings.useLatestVersion = useLatest;
-    }
-    return newIDESettings;
-};
-
 export async function getWorkspaceClassForInstance(
     ctx: TraceContext,
     workspace: Workspace,
@@ -297,6 +270,7 @@ export class WorkspaceStarter {
             }
 
             const ideConfig = await this.resolveIDEConfiguration(ctx, workspace, user);
+
             // create and store instance
             let instance = await this.workspaceDb
                 .trace({ span })
@@ -379,6 +353,11 @@ export class WorkspaceStarter {
     private async resolveIDEConfiguration(ctx: TraceContext, workspace: Workspace, user: User) {
         const span = TraceContext.startSpan("resolveIDEConfiguration", ctx);
         try {
+            const migrated = this.ideService.migrateSettings(user);
+            if (user.additionalData?.ideSettings && migrated) {
+                user.additionalData.ideSettings = migrated;
+            }
+
             const workspaceType =
                 workspace.type === "prebuild"
                     ? IdeServiceApi.WorkspaceType.PREBUILD
@@ -804,11 +783,6 @@ export class WorkspaceStarter {
     ): Promise<WorkspaceInstance> {
         const span = TraceContext.startSpan("newInstance", ctx);
         try {
-            const migrated = migrationIDESettings(user);
-            if (user.additionalData?.ideSettings && migrated) {
-                user.additionalData.ideSettings = migrated;
-            }
-
             const configuration: WorkspaceInstanceConfiguration = {
                 ideImage: ideConfig.webImage,
                 supervisorImage: ideConfig.supervisorImage,