diff --git a/extension/package.json b/extension/package.json
index 774b13f594..095e7eee31 100644
--- a/extension/package.json
+++ b/extension/package.json
@@ -1628,6 +1628,7 @@
     "test-vscode": "node ./dist/test/runTest.js",
     "test-e2e": "wdio run ./src/test/e2e/wdio.conf.ts",
     "test": "jest --collect-coverage",
+    "setup-venv": "node ./scripts/virtualenv-install.js",
     "cover-vscode-run": "node ./scripts/coverIntegrationTests.js",
     "vscode:prepublish": ""
   },
@@ -1635,7 +1636,7 @@
     "@hediet/std": "0.6.0",
     "@vscode/extension-telemetry": "0.7.7",
     "appdirs": "1.1.0",
-    "execa": "5.1.1",
+    "execa": "7.1.1",
     "fs-extra": "11.1.1",
     "js-yaml": "4.1.0",
     "json5": "2.2.3",
@@ -1646,6 +1647,7 @@
     "lodash.merge": "4.6.2",
     "lodash.omit": "4.5.0",
     "node-fetch": "2.6.9",
+    "process-exists": "5.0.0",
     "tree-kill": "1.2.2",
     "uuid": "9.0.0",
     "vega-util": "1.17.2",
@@ -1690,7 +1692,6 @@
     "lint-staged": "13.2.2",
     "mocha": "10.2.0",
     "mock-require": "3.0.3",
-    "process-exists": "4.1.0",
     "shx": "0.3.4",
     "sinon": "15.0.4",
     "sinon-chai": "3.7.0",
diff --git a/extension/scripts/coverIntegrationTests.js b/extension/scripts/coverIntegrationTests.js
index 82c41d7d52..9b76126be2 100644
--- a/extension/scripts/coverIntegrationTests.js
+++ b/extension/scripts/coverIntegrationTests.js
@@ -1,6 +1,10 @@
 const { resolve, join } = require('path')
 const { writeFileSync } = require('fs-extra')
-const execa = require('execa')
+
+const getExeca = async () => {
+  const { execa } = await import('execa')
+  return execa
+}
 
 let activationEvents = []
 let failed
@@ -18,26 +22,28 @@ activationEvents = packageJson.activationEvents
 packageJson.activationEvents = ['onStartupFinished']
 writeFileSync(packageJsonPath, JSON.stringify(packageJson))
 
-const tests = execa('node', [join(cwd, 'dist', 'test', 'runTest.js')], {
-  cwd
-})
-
-pipe(tests)
-tests
-  .then(() => {})
-  .catch(() => {
-    failed = true
+getExeca().then(execa => {
+  const tests = execa('node', [join(cwd, 'dist', 'test', 'runTest.js')], {
+    cwd
   })
-  .finally(() => {
-    packageJson.activationEvents = activationEvents
 
-    writeFileSync(packageJsonPath, JSON.stringify(packageJson))
-
-    const prettier = execa('prettier', ['--write', 'package.json'], { cwd })
-    pipe(prettier)
-    prettier.then(() => {
-      if (failed) {
-        process.exit(1)
-      }
+  pipe(tests)
+  tests
+    .then(() => {})
+    .catch(() => {
+      failed = true
     })
-  })
+    .finally(() => {
+      packageJson.activationEvents = activationEvents
+
+      writeFileSync(packageJsonPath, JSON.stringify(packageJson))
+
+      const prettier = execa('prettier', ['--write', 'package.json'], { cwd })
+      pipe(prettier)
+      prettier.then(() => {
+        if (failed) {
+          process.exit(1)
+        }
+      })
+    })
+})
diff --git a/extension/scripts/virtualenv-install.js b/extension/scripts/virtualenv-install.js
new file mode 100644
index 0000000000..a3399329e0
--- /dev/null
+++ b/extension/scripts/virtualenv-install.js
@@ -0,0 +1,13 @@
+const { join, resolve } = require('path')
+require('../dist/vscode/mockModule')
+
+const importModuleAfterMockingVsCode = async () => {
+  const { setupTestVenv } = require('../dist/python')
+  return setupTestVenv
+}
+
+importModuleAfterMockingVsCode().then(setupTestVenv => {
+  const cwd = resolve(__dirname, '..', '..', 'demo')
+
+  setupTestVenv(cwd, '.env', '-r', join('.', 'requirements.txt'))
+})
diff --git a/extension/src/extension.ts b/extension/src/extension.ts
index 66bc19f6c8..f7fa6c56a4 100644
--- a/extension/src/extension.ts
+++ b/extension/src/extension.ts
@@ -42,7 +42,7 @@ import { GitExecutor } from './cli/git/executor'
 import { GitReader } from './cli/git/reader'
 import { Setup } from './setup'
 import { definedAndNonEmpty } from './util/array'
-import { stopProcesses } from './process/execution'
+import { esmModulesImported, stopProcesses } from './process/execution'
 import { Flag } from './cli/dvc/constants'
 import { LanguageClient } from './languageClient'
 import { collectRunningExperimentPids } from './experiments/processExecution/collect'
@@ -304,8 +304,10 @@ class Extension extends Disposable {
 let extension: undefined | Extension
 
 export function activate(context: ExtensionContext): void {
-  extension = new Extension(context)
-  context.subscriptions.push(extension)
+  void esmModulesImported.then(() => {
+    extension = new Extension(context)
+    context.subscriptions.push(extension)
+  })
 }
 
 export function deactivate(): void {
diff --git a/extension/src/process/execution.test.ts b/extension/src/process/execution.test.ts
deleted file mode 100644
index f8fb1e471d..0000000000
--- a/extension/src/process/execution.test.ts
+++ /dev/null
@@ -1,32 +0,0 @@
-import process from 'process'
-import { executeProcess, processExists } from './execution'
-
-describe('executeProcess', () => {
-  it('should be able to run a process', async () => {
-    const output = await executeProcess({
-      args: ['some', 'text'],
-      cwd: __dirname,
-      executable: 'echo'
-    })
-    expect(output).toMatch(/some.*text/)
-  })
-
-  it('should return the stderr if the process throws with stderr', async () => {
-    await expect(
-      executeProcess({
-        args: ['me', 'outside'],
-        cwd: __dirname,
-        executable: 'find'
-      })
-    ).rejects.toBeTruthy()
-  })
-})
-
-describe('processExists', () => {
-  it('should return true if the process exists', async () => {
-    expect(await processExists(process.pid)).toBe(true)
-  })
-  it('should return false if it does not', async () => {
-    expect(await processExists(-123.321)).toBe(false)
-  })
-})
diff --git a/extension/src/process/execution.ts b/extension/src/process/execution.ts
index 6817d5ead7..c53064f9ab 100644
--- a/extension/src/process/execution.ts
+++ b/extension/src/process/execution.ts
@@ -2,11 +2,36 @@ import { ChildProcess } from 'child_process'
 import { Readable } from 'stream'
 import { Event, EventEmitter } from 'vscode'
 import { Disposable } from '@hediet/std/disposable'
-import execa from 'execa'
-import doesProcessExists from 'process-exists'
+import { Deferred } from '@hediet/std/synchronization'
 import kill from 'tree-kill'
 import { getProcessPlatform } from '../env'
 
+const deferred = new Deferred()
+export const esmModulesImported = deferred.promise
+
+// eslint-disable-next-line @typescript-eslint/ban-ts-comment
+// @ts-ignore
+type EsmExeca = typeof import('execa').execa
+// eslint-disable-next-line @typescript-eslint/ban-ts-comment
+// @ts-ignore
+type EsmProcessExists = typeof import('process-exists').processExists
+
+const envCanImportEsm = process.env.NODE_ENV !== 'test'
+
+let execa: EsmExeca
+let doesProcessExist: EsmProcessExists
+const importEsmModules = async () => {
+  const [{ execa: esmExeca }, { processExists: esmProcessExists }] =
+    await Promise.all([import('execa'), import('process-exists')])
+  execa = esmExeca
+  doesProcessExist = esmProcessExists
+  deferred.resolve()
+}
+
+if (envCanImportEsm) {
+  void importEsmModules()
+}
+
 interface RunningProcess extends ChildProcess {
   all?: Readable
 }
@@ -86,7 +111,7 @@ export const executeProcess = async (
 }
 
 export const processExists = (pid: number): Promise<boolean> =>
-  doesProcessExists(pid)
+  doesProcessExist(pid)
 
 export const stopProcesses = async (pids: number[]): Promise<boolean> => {
   let allKilled = true
diff --git a/extension/src/python/index.test.ts b/extension/src/python/index.test.ts
index 18cca17267..c2563cb40a 100644
--- a/extension/src/python/index.test.ts
+++ b/extension/src/python/index.test.ts
@@ -1,5 +1,5 @@
 import { join } from 'path'
-import { setupVenv } from '.'
+import { setupTestVenv } from '.'
 import { Process, createProcess } from '../process/execution'
 import { getProcessPlatform } from '../env'
 
@@ -16,7 +16,7 @@ beforeEach(() => {
   jest.resetAllMocks()
 })
 
-describe('setupVenv', () => {
+describe('setupTestVenv', () => {
   it('should create the correct python processes on sane operating systems', async () => {
     mockedCreateProcess.mockResolvedValue(mockedProcess)
     mockedGetProcessPlatform.mockReturnValue('freebsd')
@@ -24,7 +24,7 @@ describe('setupVenv', () => {
     const envDir = '.env'
     const cwd = __dirname
 
-    await setupVenv(__dirname, envDir, 'dvc')
+    await setupTestVenv(__dirname, envDir, 'dvc')
 
     expect(mockedCreateProcess).toHaveBeenCalledTimes(3)
     expect(mockedCreateProcess).toHaveBeenCalledWith({
@@ -53,7 +53,7 @@ describe('setupVenv', () => {
     const envDir = '.env'
     const cwd = __dirname
 
-    await setupVenv(__dirname, envDir, '-r', 'requirements.txt')
+    await setupTestVenv(__dirname, envDir, '-r', 'requirements.txt')
 
     expect(mockedCreateProcess).toHaveBeenCalledTimes(3)
     expect(mockedCreateProcess).toHaveBeenCalledWith({
diff --git a/extension/src/python/index.ts b/extension/src/python/index.ts
index 77c9b911b3..7f151f2052 100644
--- a/extension/src/python/index.ts
+++ b/extension/src/python/index.ts
@@ -3,7 +3,12 @@ import { getVenvBinPath } from './path'
 import { getProcessPlatform } from '../env'
 import { exists } from '../fileSystem'
 import { Logger } from '../common/logger'
-import { createProcess, executeProcess, Process } from '../process/execution'
+import {
+  createProcess,
+  esmModulesImported,
+  executeProcess,
+  Process
+} from '../process/execution'
 
 const sendOutput = (process: Process) => {
   process.all?.on('data', chunk =>
@@ -29,11 +34,12 @@ export const installPackages = (
 export const getDefaultPython = (): string =>
   getProcessPlatform() === 'win32' ? 'python' : 'python3'
 
-export const setupVenv = async (
+export const setupTestVenv = async (
   cwd: string,
   envDir: string,
   ...installArgs: string[]
 ) => {
+  await esmModulesImported
   if (!exists(join(cwd, envDir))) {
     const initVenv = createProcess({
       args: ['-m', 'venv', envDir],
diff --git a/extension/src/test/cli/index.ts b/extension/src/test/cli/index.ts
index d4b425c972..a98c42bcbf 100644
--- a/extension/src/test/cli/index.ts
+++ b/extension/src/test/cli/index.ts
@@ -5,12 +5,12 @@ require('../../vscode/mockModule')
 const importModulesAfterMockingVsCode = () => {
   const { removeDir } = require('../../fileSystem')
   const { runMocha } = require('../util/mocha')
-  const { setupVenv } = require('../../python')
+  const { setupTestVenv } = require('../../python')
 
-  return { removeDir, runMocha, setupVenv }
+  return { removeDir, runMocha, setupTestVenv }
 }
 
-const { setupVenv, removeDir, runMocha } = importModulesAfterMockingVsCode()
+const { setupTestVenv, removeDir, runMocha } = importModulesAfterMockingVsCode()
 
 async function main() {
   try {
@@ -19,7 +19,7 @@ async function main() {
       'ts',
       async () => {
         await mkdirp(TEMP_DIR)
-        await setupVenv(
+        await setupTestVenv(
           TEMP_DIR,
           ENV_DIR,
           'git+https://github.com/iterative/dvc#egg=dvc[s3]'
diff --git a/extension/src/test/e2e/util.ts b/extension/src/test/e2e/util.ts
index 73f3f7a3bc..32e31f7518 100644
--- a/extension/src/test/e2e/util.ts
+++ b/extension/src/test/e2e/util.ts
@@ -1,7 +1,7 @@
 import { Key } from 'webdriverio'
 import { $$, browser } from '@wdio/globals'
 import { ViewControl } from 'wdio-vscode-service'
-import { PlotsWebview } from './pageObjects/plotsWebview'
+import { PlotsWebview } from './pageObjects/plotsWebview.js'
 
 const findProgressBars = () => $$('.monaco-progress-container')
 
diff --git a/extension/src/test/suite/cli/child.ts b/extension/src/test/suite/cli/child.ts
index 757d159ae8..387b51cb29 100644
--- a/extension/src/test/suite/cli/child.ts
+++ b/extension/src/test/suite/cli/child.ts
@@ -6,12 +6,14 @@ require('../../../vscode/mockModule')
 
 const importModuleAfterMockingVsCode = () => {
   const { Cli } = require('../../../cli')
-  return { Cli }
+  const { esmModulesImported } = require('../../../process/execution')
+  return { Cli, esmModulesImported }
 }
 
 const main = async () => {
-  const { Cli } = importModuleAfterMockingVsCode()
+  const { Cli, esmModulesImported } = importModuleAfterMockingVsCode()
 
+  await esmModulesImported
   const cli = new Cli()
 
   const options = getOptions('background')
diff --git a/extension/src/test/suite/process/execution.test.ts b/extension/src/test/suite/process/execution.test.ts
new file mode 100644
index 0000000000..ae9a00e3e2
--- /dev/null
+++ b/extension/src/test/suite/process/execution.test.ts
@@ -0,0 +1,36 @@
+import process from 'process'
+import { describe, it, suite } from 'mocha'
+import { expect } from 'chai'
+import { executeProcess, processExists } from '../../../process/execution'
+
+suite('Process Manager Test Suite', () => {
+  describe('executeProcess', () => {
+    it('should be able to run a process', async () => {
+      const output = await executeProcess({
+        args: ['some', 'text'],
+        cwd: __dirname,
+        executable: 'echo'
+      })
+      expect(output).to.match(/some.*text/)
+    })
+
+    it('should return the stderr if the process throws with stderr', async () => {
+      await expect(
+        executeProcess({
+          args: ['me', 'outside'],
+          cwd: __dirname,
+          executable: 'find'
+        })
+      ).to.be.eventually.rejected
+    })
+  })
+
+  describe('processExists', () => {
+    it('should return true if the process exists', async () => {
+      expect(await processExists(process.pid)).to.be.true
+    })
+    it('should return false if it does not', async () => {
+      expect(await processExists(-123.321)).to.be.false
+    })
+  })
+})
diff --git a/extension/tsconfig.json b/extension/tsconfig.json
index e72ac8000b..68db4db9e1 100644
--- a/extension/tsconfig.json
+++ b/extension/tsconfig.json
@@ -1,6 +1,7 @@
 {
   "compilerOptions": {
     "resolveJsonModule": true,
+    "moduleResolution": "node16",
     "module": "commonjs",
     "target": "es6",
     "outDir": "dist",
diff --git a/package.json b/package.json
index 6fa4aba08d..b4d115d1a0 100644
--- a/package.json
+++ b/package.json
@@ -28,7 +28,7 @@
     "postinstall": "husky install && git submodule init && git submodule update",
     "storybook": "yarn workspace dvc-vscode-webview storybook",
     "build-storybook": "yarn turbo run build-storybook --filter=dvc-vscode-webview",
-    "setup:venv": "ts-node ./scripts/virtualenv-install.ts",
+    "setup:venv": "yarn turbo run lint:build && yarn workspace dvc run setup-venv",
     "scheduled:cli:test": "ts-node ./extension/src/test/cli/index.ts",
     "create-svgs": "ts-node ./scripts/create-svgs.ts",
     "svgr": "yarn workspace dvc-vscode-webview svgr"
diff --git a/renovate.json b/renovate.json
index 4e6cb10b27..d70aa3c0f5 100644
--- a/renovate.json
+++ b/renovate.json
@@ -1,5 +1,5 @@
 {
-  "ignoreDeps": ["@types/node", "@types/vscode", "execa", "process-exists"],
+  "ignoreDeps": ["@types/node", "@types/vscode"],
   "extends": ["config:base"],
   "packageRules": [
     {
diff --git a/scripts/virtualenv-install.ts b/scripts/virtualenv-install.ts
deleted file mode 100644
index fe9f5735e4..0000000000
--- a/scripts/virtualenv-install.ts
+++ /dev/null
@@ -1,14 +0,0 @@
-import { join, resolve } from 'path'
-require('dvc/src/vscode/mockModule')
-
-const importModuleAfterMockingVsCode = () => {
-  const { setupVenv } = require('dvc/src/python')
-
-  return setupVenv
-}
-
-const setupVenv = importModuleAfterMockingVsCode()
-
-const cwd = resolve(__dirname, '..', 'demo')
-
-setupVenv(cwd, '.env', '-r', join('.', 'requirements.txt'))
diff --git a/yarn.lock b/yarn.lock
index 5a10287c9f..d2679b4b6f 100644
--- a/yarn.lock
+++ b/yarn.lock
@@ -10755,7 +10755,22 @@ evp_bytestokey@^1.0.0, evp_bytestokey@^1.0.3:
     md5.js "^1.3.4"
     safe-buffer "^5.1.1"
 
-execa@5.1.1, execa@^5.0.0, execa@^5.1.1:
+execa@7.1.1, execa@^7.1.1:
+  version "7.1.1"
+  resolved "https://registry.yarnpkg.com/execa/-/execa-7.1.1.tgz#3eb3c83d239488e7b409d48e8813b76bb55c9c43"
+  integrity sha512-wH0eMf/UXckdUYnO21+HDztteVv05rq2GXksxT4fCGeHkBhw1DROXh40wcjMcRqDOWE7iPJ4n3M7e2+YFP+76Q==
+  dependencies:
+    cross-spawn "^7.0.3"
+    get-stream "^6.0.1"
+    human-signals "^4.3.0"
+    is-stream "^3.0.0"
+    merge-stream "^2.0.0"
+    npm-run-path "^5.1.0"
+    onetime "^6.0.0"
+    signal-exit "^3.0.7"
+    strip-final-newline "^3.0.0"
+
+execa@^5.0.0, execa@^5.1.1:
   version "5.1.1"
   resolved "https://registry.yarnpkg.com/execa/-/execa-5.1.1.tgz#f80ad9cbf4298f7bd1d4c9555c21e93741c411dd"
   integrity sha512-8uSpZZocAZRBAPIEINJj3Lo9HyGitllczc27Eh5YYojjMFMn8yHMDMaUHE2Jqfq05D/wucwI4JGURyXt1vchyg==
@@ -10785,21 +10800,6 @@ execa@^7.0.0:
     signal-exit "^3.0.7"
     strip-final-newline "^3.0.0"
 
-execa@^7.1.1:
-  version "7.1.1"
-  resolved "https://registry.yarnpkg.com/execa/-/execa-7.1.1.tgz#3eb3c83d239488e7b409d48e8813b76bb55c9c43"
-  integrity sha512-wH0eMf/UXckdUYnO21+HDztteVv05rq2GXksxT4fCGeHkBhw1DROXh40wcjMcRqDOWE7iPJ4n3M7e2+YFP+76Q==
-  dependencies:
-    cross-spawn "^7.0.3"
-    get-stream "^6.0.1"
-    human-signals "^4.3.0"
-    is-stream "^3.0.0"
-    merge-stream "^2.0.0"
-    npm-run-path "^5.1.0"
-    onetime "^6.0.0"
-    signal-exit "^3.0.7"
-    strip-final-newline "^3.0.0"
-
 exenv-es6@^1.1.1:
   version "1.1.1"
   resolved "https://registry.yarnpkg.com/exenv-es6/-/exenv-es6-1.1.1.tgz#80b7a8c5af24d53331f755bac07e84abb1f6de67"
@@ -16643,12 +16643,12 @@ prismjs@^1.27.0, prismjs@~1.27.0:
   resolved "https://registry.yarnpkg.com/prismjs/-/prismjs-1.27.0.tgz#bb6ee3138a0b438a3653dd4d6ce0cc6510a45057"
   integrity sha512-t13BGPUlFDR7wRB5kQDG4jjl7XeuH6jbJGt11JHPL96qwsEHNX2+68tFXqc1/k+/jALsbSWJKUOT/hcYAZ5LkA==
 
-process-exists@4.1.0:
-  version "4.1.0"
-  resolved "https://registry.yarnpkg.com/process-exists/-/process-exists-4.1.0.tgz#4132c516324c1da72d65896851cdbd8bbdf5b9d8"
-  integrity sha512-BBJoiorUKoP2AuM5q/yKwIfT1YWRHsaxjW+Ayu9erLhqKOfnXzzVVML0XTYoQZuI1YvcWKmc1dh06DEy4+KzfA==
+process-exists@5.0.0:
+  version "5.0.0"
+  resolved "https://registry.yarnpkg.com/process-exists/-/process-exists-5.0.0.tgz#0b6dcd3d19e85e1f72c633f56d38e498196e2855"
+  integrity sha512-6QPRh5fyHD8MaXr4GYML8K/YY0Sq5dKHGIOrAKS3cYpHQdmygFCcijIu1dVoNKAZ0TWAMoeh8KDK9dF8auBkJA==
   dependencies:
-    ps-list "^6.3.0"
+    ps-list "^8.0.0"
 
 process-nextick-args@~2.0.0:
   version "2.0.1"
@@ -16745,10 +16745,10 @@ prr@~1.0.1:
   resolved "https://registry.yarnpkg.com/prr/-/prr-1.0.1.tgz#d3fc114ba06995a45ec6893f484ceb1d78f5f476"
   integrity sha1-0/wRS6BplaRexok/SEzrHXj19HY=
 
-ps-list@^6.3.0:
-  version "6.3.0"
-  resolved "https://registry.yarnpkg.com/ps-list/-/ps-list-6.3.0.tgz#a2b775c2db7d547a28fbaa3a05e4c281771259be"
-  integrity sha512-qau0czUSB0fzSlBOQt0bo+I2v6R+xiQdj78e1BR/Qjfl5OHWJ/urXi8+ilw1eHe+5hSeDI1wrwVTgDp2wst4oA==
+ps-list@^8.0.0:
+  version "8.1.1"
+  resolved "https://registry.yarnpkg.com/ps-list/-/ps-list-8.1.1.tgz#9ff1952b26a9a07fcc05270407e60544237ae581"
+  integrity sha512-OPS9kEJYVmiO48u/B9qneqhkMvgCxT+Tm28VCEJpheTpl8cJ0ffZRRNgS5mrQRTrX5yRTpaJ+hRDeefXYmmorQ==
 
 pseudomap@^1.0.2:
   version "1.0.2"