diff --git a/docs/_includes/generated-docs/configuration.md b/docs/_includes/generated-docs/configuration.md
index c9294804f3..efb29ed256 100644
--- a/docs/_includes/generated-docs/configuration.md
+++ b/docs/_includes/generated-docs/configuration.md
@@ -1136,7 +1136,7 @@ Default
 | [`cSpell.blockCheckingWhenAverageChunkSizeGreaterThan`](#cspellblockcheckingwhenaveragechunksizegreaterthan) | language-overridable | The maximum average length of chunks of text without word breaks.                |
 | [`cSpell.blockCheckingWhenLineLengthGreaterThan`](#cspellblockcheckingwhenlinelengthgreaterthan)             | language-overridable | The maximum line length.                                                         |
 | [`cSpell.blockCheckingWhenTextChunkSizeGreaterThan`](#cspellblockcheckingwhentextchunksizegreaterthan)       | language-overridable | The maximum length of a chunk of text without word breaks.                       |
-| [`cSpell.checkLimit`](#cspellchecklimit)                                                                     | resource             | The limit in K-Characters to be checked in a file.                               |
+| [`cSpell.checkLimit`](#cspellchecklimit)                                                                     | resource             | Set the maximum number of bocks of text to check. Each block is 1024 characters. |
 | [`cSpell.spellCheckDelayMs`](#cspellspellcheckdelayms)                                                       | application          | Delay in ms after a document has changed before checking it for spelling errors. |
 | [`cSpell.suggestionsTimeout`](#cspellsuggestionstimeout)                                                     | resource             | The maximum amount of time in milliseconds to generate suggestions for a word.   |
 
@@ -1240,7 +1240,8 @@ Scope
 : resource
 
 Description
-: The limit in K-Characters to be checked in a file.
+: Set the maximum number of bocks of text to check.
+Each block is 1024 characters.
 
 Default
 : _`500`_
@@ -1287,12 +1288,13 @@ Default
 
 # CSpell
 
-| Setting                                                | Scope    | Description                                                                                                        |
-| ------------------------------------------------------ | -------- | ------------------------------------------------------------------------------------------------------------------ |
-| [`cSpell.ignoreRegExpList`](#cspellignoreregexplist)   | resource | List of regular expressions or Pattern names (defined in `#cSpell.patterns#`) to exclude from…                     |
-| [`cSpell.includeRegExpList`](#cspellincluderegexplist) | resource | List of regular expression patterns or defined pattern names to match for spell checking.                          |
-| [`cSpell.overrides`](#cspelloverrides)                 | resource | Overrides are used to apply settings for specific files in your project.                                           |
-| [`cSpell.patterns`](#cspellpatterns)                   | resource | Defines a list of patterns that can be used with the `#cSpell.ignoreRegExpList#` and `#cSpell.includeRegExpList#`… |
+| Setting                                                                                        | Scope    | Description                                                                                                        |
+| ---------------------------------------------------------------------------------------------- | -------- | ------------------------------------------------------------------------------------------------------------------ |
+| [`cSpell.ignoreRegExpList`](#cspellignoreregexplist)                                           | resource | List of regular expressions or Pattern names (defined in `#cSpell.patterns#`) to exclude from…                     |
+| [`cSpell.includeRegExpList`](#cspellincluderegexplist)                                         | resource | List of regular expression patterns or defined pattern names to match for spell checking.                          |
+| [`cSpell.overrides`](#cspelloverrides)                                                         | resource | Overrides are used to apply settings for specific files in your project.                                           |
+| [`cSpell.patterns`](#cspellpatterns)                                                           | resource | Defines a list of patterns that can be used with the `#cSpell.ignoreRegExpList#` and `#cSpell.includeRegExpList#`… |
+| [`cSpell.useLocallyInstalledCSpellDictionaries`](#cspelluselocallyinstalledcspelldictionaries) | resource | Search for `@cspell/cspell-bundled-dicts` in the workspace folder and use it if found.                             |
 
 ## Definitions
 
@@ -1420,6 +1422,28 @@ Default
 
 ---
 
+### `cSpell.useLocallyInstalledCSpellDictionaries`
+
+Name
+: `cSpell.useLocallyInstalledCSpellDictionaries`
+
+Type
+: boolean
+
+Scope
+: resource
+
+Description
+: Search for `@cspell/cspell-bundled-dicts` in the workspace folder and use it if found.
+
+Default
+: _`true`_
+
+Version
+: 4.0.0
+
+---
+
 # Appearance
 
 | Setting                                                                  | Scope       | Description                                                                               |
diff --git a/package-lock.json b/package-lock.json
index c30517a561..4427d499ea 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -28,10 +28,10 @@
         "packages/_integrationTests"
       ],
       "dependencies": {
-        "@cspell/cspell-bundled-dicts": "^8.1.0",
-        "@cspell/cspell-types": "^8.1.0",
+        "@cspell/cspell-bundled-dicts": "^8.1.2",
+        "@cspell/cspell-types": "^8.1.2",
         "@types/react": "^17.0.71",
-        "cspell": "^8.1.0",
+        "cspell": "^8.1.2",
         "regexp-worker": "^2.0.2"
       },
       "devDependencies": {
@@ -726,9 +726,9 @@
       "license": "MIT"
     },
     "node_modules/@cspell/cspell-bundled-dicts": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/cspell-bundled-dicts/-/cspell-bundled-dicts-8.1.0.tgz",
-      "integrity": "sha512-o/R/kR1QO9SQV2hUroaguTlHD6MDDtrVY6Xj5eG0loM7T0Pm3TEdlGYQ0LP6O9/CfUiHTntIFUM+PJ999+LuHQ==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/cspell-bundled-dicts/-/cspell-bundled-dicts-8.1.2.tgz",
+      "integrity": "sha512-K/+0HJs6ka8y+f4D5nO24vz8aVIFaOOUfvRdQl1sB8zvAPymtEYy4TOF/F2GUD5aDl1+bHIPJOPgbGDl3ANl+w==",
       "dependencies": {
         "@cspell/dict-ada": "^4.0.2",
         "@cspell/dict-aws": "^4.0.0",
@@ -784,28 +784,28 @@
       }
     },
     "node_modules/@cspell/cspell-json-reporter": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/cspell-json-reporter/-/cspell-json-reporter-8.1.0.tgz",
-      "integrity": "sha512-Iss9dq5XBc5wYADv/Z59W4DgRQYs8BSHNVD6+LbQctuqmeJAte426/oi4x0Y76AJtEe0N6BZouj8HXykovwP5w==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/cspell-json-reporter/-/cspell-json-reporter-8.1.2.tgz",
+      "integrity": "sha512-IDKXMgBdgRK7gLFajkGZ9iwKRwtPzsxUFd/srTF6Tm4u823B9f88nIpHbIIKYvgFGRFq06KSIUsEepH54M1ymA==",
       "dependencies": {
-        "@cspell/cspell-types": "8.1.0"
+        "@cspell/cspell-types": "8.1.2"
       },
       "engines": {
         "node": ">=18"
       }
     },
     "node_modules/@cspell/cspell-pipe": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/cspell-pipe/-/cspell-pipe-8.1.0.tgz",
-      "integrity": "sha512-HDNX7MFAPAJ9acyYBa1bG+P4WiHHMFNYeywYBf3h6ScVhHobAqnhqS6b8R7MVhVRivwnKIQPG3zK7UpcwfyRcw==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/cspell-pipe/-/cspell-pipe-8.1.2.tgz",
+      "integrity": "sha512-RIWQQphAtMYtIeclBdLnd/vc8kr9spWdrmTtiVYkBKG1B+BvEXfGzYc6BGT5tSWxYVTjzbyRJxZJ9pEIw5LUgw==",
       "engines": {
         "node": ">=18"
       }
     },
     "node_modules/@cspell/cspell-resolver": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/cspell-resolver/-/cspell-resolver-8.1.0.tgz",
-      "integrity": "sha512-nlppKh2o6g0zz+oIQ/dZB+oFQFf8lvn3mJKBpDwoeQY7/o9ZORPibXjtqXM83OhhdpoUVuk+3RFMsnFBBffa2Q==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/cspell-resolver/-/cspell-resolver-8.1.2.tgz",
+      "integrity": "sha512-fZwLkyFToxzA+HZ6YL7nJazrvZTqnSYD/Fy1PR9u6M90jGUY6nIcr7LBKtfDYB6wWE3ygtAUCx0soGssSlmyMw==",
       "dependencies": {
         "global-directory": "^4.0.1"
       },
@@ -814,17 +814,17 @@
       }
     },
     "node_modules/@cspell/cspell-service-bus": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/cspell-service-bus/-/cspell-service-bus-8.1.0.tgz",
-      "integrity": "sha512-9Enayhkef732f15kHgiUe4QKyJgKk1dcZ4EFq4eyzUUDFF/eBv6qTQo5k2juUhPIjaKosqqMBHg4ffXcpkhr+Q==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/cspell-service-bus/-/cspell-service-bus-8.1.2.tgz",
+      "integrity": "sha512-bvocFYE1LYe8aBYzG6qMSAj3JWdvRY1zaaoXXV7jkIs2jdBBsSvb6wXAKXn6Z2mjeKAD4y38tD6f9aq17hcSyQ==",
       "engines": {
         "node": ">=18"
       }
     },
     "node_modules/@cspell/cspell-types": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/cspell-types/-/cspell-types-8.1.0.tgz",
-      "integrity": "sha512-1SxBjQdZtVjrTs3Ftw5I3nNpuDjdpsFMvfbbt6EnxqMpmZiUwkqxLCKla0pEy5R9CZcFFlntlOTMTmNsIkgmWg==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/cspell-types/-/cspell-types-8.1.2.tgz",
+      "integrity": "sha512-ApVEfLN7G9uBpZOVCjBCTayhEJ1N++P9kBfsS1LWQk14qeTm/char9reVQq2s9kkGrPYEEda+hvGC8K0Y07UUg==",
       "engines": {
         "node": ">=18"
       }
@@ -1051,9 +1051,9 @@
       "license": "MIT"
     },
     "node_modules/@cspell/dynamic-import": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/dynamic-import/-/dynamic-import-8.1.0.tgz",
-      "integrity": "sha512-TJ1OnP0ubdVr5YTMU15rVs8R6ROuPvP/Z5lY2gtHscEsf9tZxvIt3924uMc9fTJXgNsITNWSoCzgwJYcDvGM6A==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/dynamic-import/-/dynamic-import-8.1.2.tgz",
+      "integrity": "sha512-S0I/VoZvuJvrVgqhxyHCrvHFGAZR6KxoPAr4FMrzVx00hYWZUdCanA494DYXwA5NXisyHlZrpga6H18mVjvIUw==",
       "dependencies": {
         "import-meta-resolve": "^4.0.0"
       },
@@ -1062,9 +1062,9 @@
       }
     },
     "node_modules/@cspell/strong-weak-map": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/@cspell/strong-weak-map/-/strong-weak-map-8.1.0.tgz",
-      "integrity": "sha512-yBc3ejGpx3QLbfS+Sec8ycS+lKuou5rnnpfz3aVBCnNHUPozosFuNYPFB6Iah2CBY6v6rkDCkIp5vnp1IwQzdA==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/@cspell/strong-weak-map/-/strong-weak-map-8.1.2.tgz",
+      "integrity": "sha512-oG3Iz9FV0rTAu34BgXIv5JUyR1legUyFzKWboFCsW9iyTAjViA8aIG6q0ZD7xK84Ugi385jW8XfJB0vb8A1qIQ==",
       "engines": {
         "node": ">=18"
       }
@@ -5898,21 +5898,21 @@
       }
     },
     "node_modules/cspell": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell/-/cspell-8.1.0.tgz",
-      "integrity": "sha512-oxQLyhW3yIAfvDdtoobvriWqfWVqOBo1o+WWRxlDyJdKDBH6my++p6KU3ZjxcJb7VG+CRLGfU7zASWwTPxMXRA==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell/-/cspell-8.1.2.tgz",
+      "integrity": "sha512-MOU+lwbzzXT1mcrLCYb9ecfPtquuys9RQy6KehU4S1Oub4715LiXct6+DqDt8NK6w4R3WRo9ixh1bnL3LoVEMw==",
       "dependencies": {
-        "@cspell/cspell-json-reporter": "8.1.0",
-        "@cspell/cspell-pipe": "8.1.0",
-        "@cspell/cspell-types": "8.1.0",
-        "@cspell/dynamic-import": "8.1.0",
+        "@cspell/cspell-json-reporter": "8.1.2",
+        "@cspell/cspell-pipe": "8.1.2",
+        "@cspell/cspell-types": "8.1.2",
+        "@cspell/dynamic-import": "8.1.2",
         "chalk": "^5.3.0",
         "chalk-template": "^1.1.0",
         "commander": "^11.1.0",
-        "cspell-gitignore": "8.1.0",
-        "cspell-glob": "8.1.0",
-        "cspell-io": "8.1.0",
-        "cspell-lib": "8.1.0",
+        "cspell-gitignore": "8.1.2",
+        "cspell-glob": "8.1.2",
+        "cspell-io": "8.1.2",
+        "cspell-lib": "8.1.2",
         "fast-glob": "^3.3.2",
         "fast-json-stable-stringify": "^2.1.0",
         "file-entry-cache": "^7.0.2",
@@ -5933,11 +5933,11 @@
       }
     },
     "node_modules/cspell-config-lib": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-config-lib/-/cspell-config-lib-8.1.0.tgz",
-      "integrity": "sha512-mIv8etMAp05OapdxJQt0nkfzclMti8AfACPryWnVePrwB89A2KjErHYBa7hX6gn20B4K+KgD7ckPcOi6L8vLYA==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-config-lib/-/cspell-config-lib-8.1.2.tgz",
+      "integrity": "sha512-iJKSY895AnnGAhjZN7HLfRZ3bAUuJKmZ9kmpFB9CJcMTERazBQuxGSx5AjjpB3b1kOM4T9Dgm++jcvbgwH5DbQ==",
       "dependencies": {
-        "@cspell/cspell-types": "8.1.0",
+        "@cspell/cspell-types": "8.1.2",
         "comment-json": "^4.2.3",
         "yaml": "^2.3.4"
       },
@@ -5946,13 +5946,13 @@
       }
     },
     "node_modules/cspell-dictionary": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-dictionary/-/cspell-dictionary-8.1.0.tgz",
-      "integrity": "sha512-nwvlPiM7jsZThZ2bUS2CYzqwAbxWC4OL5GozQfbGEwW/8unNhifBpJzlOZuzLyX4Vu94ETExeIc625wBqPWjVA==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-dictionary/-/cspell-dictionary-8.1.2.tgz",
+      "integrity": "sha512-MB244J4hSFlEqZ/3DP1yM5VN4DAaL6ki4axjgrOaJJyHcVe6WRIbiJBxOcBw0WmWzyZHFZVBXC/dnV0ydpXL8A==",
       "dependencies": {
-        "@cspell/cspell-pipe": "8.1.0",
-        "@cspell/cspell-types": "8.1.0",
-        "cspell-trie-lib": "8.1.0",
+        "@cspell/cspell-pipe": "8.1.2",
+        "@cspell/cspell-types": "8.1.2",
+        "cspell-trie-lib": "8.1.2",
         "fast-equals": "^5.0.1",
         "gensequence": "^6.0.0"
       },
@@ -5961,11 +5961,11 @@
       }
     },
     "node_modules/cspell-gitignore": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-gitignore/-/cspell-gitignore-8.1.0.tgz",
-      "integrity": "sha512-upMIEjbBz1g92Vt80h2hMMRZ9057iAmCWxi05l0WrwGrtc3CGsA8gQQIFIbVZ0x86Sbmv1cBZms1Y/hKWPWuvg==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-gitignore/-/cspell-gitignore-8.1.2.tgz",
+      "integrity": "sha512-fytNCWAyd7oX5oDstx63pLf43YY43CvRWi5gi2E2EUj8VzzbfXwkCwBlIfjupoZ0HFk85LSy9ESVoJ7uO1Of9g==",
       "dependencies": {
-        "cspell-glob": "8.1.0",
+        "cspell-glob": "8.1.2",
         "find-up-simple": "^1.0.0"
       },
       "bin": {
@@ -5976,9 +5976,9 @@
       }
     },
     "node_modules/cspell-glob": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-glob/-/cspell-glob-8.1.0.tgz",
-      "integrity": "sha512-onPRqJqPZaaUQ1CKeuh2fJJ9UjIBicRq6Ffd6bqWCu7IdwfEBPtjWa/nlEjCVp1CMRwhS3Y0zG3jHkKLydsR4Q==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-glob/-/cspell-glob-8.1.2.tgz",
+      "integrity": "sha512-fd4GVUhHMbikSIQjFrHJILPj7X6qfhnQYYMRLx3oIARhQAvbQpx6KzVVUKJ6yMP++dqLFBSs+9KIe/IJyRx5zw==",
       "dependencies": {
         "micromatch": "^4.0.5"
       },
@@ -5987,12 +5987,12 @@
       }
     },
     "node_modules/cspell-grammar": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-grammar/-/cspell-grammar-8.1.0.tgz",
-      "integrity": "sha512-E28SDJYOOuHk8eBtMSIGyCu8qiKb/H4LX1J/kw8+eV0RLvnllmq2FAYFBk8jtu4uW49TW5n/eLg7J2TvPONYAA==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-grammar/-/cspell-grammar-8.1.2.tgz",
+      "integrity": "sha512-642YdsUWpGgAih7Dibrxa9g4+drC/DYWlGj0tiRWd9Ge93QC9Iz3344D3RBD11yXs7+uvCQcLCJBDK+49LGE8A==",
       "dependencies": {
-        "@cspell/cspell-pipe": "8.1.0",
-        "@cspell/cspell-types": "8.1.0"
+        "@cspell/cspell-pipe": "8.1.2",
+        "@cspell/cspell-types": "8.1.2"
       },
       "bin": {
         "cspell-grammar": "bin.mjs"
@@ -6002,36 +6002,36 @@
       }
     },
     "node_modules/cspell-io": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-io/-/cspell-io-8.1.0.tgz",
-      "integrity": "sha512-oPRMS/XUWcdZXMj6Zhs65mgOVyRZajAhHLm18o6cPLOGUD0770oMqi8ZNKj7LuvubkyP/NL0m4AEcWwvmz/Cbw==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-io/-/cspell-io-8.1.2.tgz",
+      "integrity": "sha512-4KUJd2Q8k9stb//iDHpORTBBz0uM8YHa8KA2iSUdJj4D6eA5nTLc0Vzt6y89MrUjPlkzk8kyV848McZfodQtRQ==",
       "dependencies": {
-        "@cspell/cspell-service-bus": "8.1.0"
+        "@cspell/cspell-service-bus": "8.1.2"
       },
       "engines": {
         "node": ">=18"
       }
     },
     "node_modules/cspell-lib": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-lib/-/cspell-lib-8.1.0.tgz",
-      "integrity": "sha512-tatdY9teElqqPtKHAY1osOhV68h/f3x+4Niw7rV12OXmJ9El1lPka59bVTV401fODWRoF3WWJXUpTg012zhdrQ==",
-      "dependencies": {
-        "@cspell/cspell-bundled-dicts": "8.1.0",
-        "@cspell/cspell-pipe": "8.1.0",
-        "@cspell/cspell-resolver": "8.1.0",
-        "@cspell/cspell-types": "8.1.0",
-        "@cspell/dynamic-import": "8.1.0",
-        "@cspell/strong-weak-map": "8.1.0",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-lib/-/cspell-lib-8.1.2.tgz",
+      "integrity": "sha512-UJjuaZ/ZXIXiWFVLGgVJu6VftWHujQaeUgjlQxePvAqI0QdzR9G5vsJ80BGaoldhhKyWxCCq/Gx6PaeWWNzJ5Q==",
+      "dependencies": {
+        "@cspell/cspell-bundled-dicts": "8.1.2",
+        "@cspell/cspell-pipe": "8.1.2",
+        "@cspell/cspell-resolver": "8.1.2",
+        "@cspell/cspell-types": "8.1.2",
+        "@cspell/dynamic-import": "8.1.2",
+        "@cspell/strong-weak-map": "8.1.2",
         "clear-module": "^4.1.2",
         "comment-json": "^4.2.3",
         "configstore": "^6.0.0",
-        "cspell-config-lib": "8.1.0",
-        "cspell-dictionary": "8.1.0",
-        "cspell-glob": "8.1.0",
-        "cspell-grammar": "8.1.0",
-        "cspell-io": "8.1.0",
-        "cspell-trie-lib": "8.1.0",
+        "cspell-config-lib": "8.1.2",
+        "cspell-dictionary": "8.1.2",
+        "cspell-glob": "8.1.2",
+        "cspell-grammar": "8.1.2",
+        "cspell-io": "8.1.2",
+        "cspell-trie-lib": "8.1.2",
         "fast-equals": "^5.0.1",
         "gensequence": "^6.0.0",
         "import-fresh": "^3.3.0",
@@ -6044,12 +6044,12 @@
       }
     },
     "node_modules/cspell-trie-lib": {
-      "version": "8.1.0",
-      "resolved": "https://registry.npmjs.org/cspell-trie-lib/-/cspell-trie-lib-8.1.0.tgz",
-      "integrity": "sha512-OF5ZNuGPIGg2CCMdMeAgd1I2iVDjoelpMjVDyqpuNu+RVpAkmNRqMFDBlsnJPWCCeOLn7blWPMBZW2KXctsm3Q==",
+      "version": "8.1.2",
+      "resolved": "https://registry.npmjs.org/cspell-trie-lib/-/cspell-trie-lib-8.1.2.tgz",
+      "integrity": "sha512-TfNRr8XI8ObHjSalnbeF256HyG+cHNDeQSSy5n0Y+UomaSo3Cyy7Z91+0WtND8hdw206jhKiqZqGtzf8ojniDg==",
       "dependencies": {
-        "@cspell/cspell-pipe": "8.1.0",
-        "@cspell/cspell-types": "8.1.0",
+        "@cspell/cspell-pipe": "8.1.2",
+        "@cspell/cspell-types": "8.1.2",
         "gensequence": "^6.0.0"
       },
       "engines": {
@@ -19342,9 +19342,9 @@
       }
     },
     "node_modules/terser": {
-      "version": "5.24.0",
-      "resolved": "https://registry.npmjs.org/terser/-/terser-5.24.0.tgz",
-      "integrity": "sha512-ZpGR4Hy3+wBEzVEnHvstMvqpD/nABNelQn/z2r0fjVWGQsN3bpOLzQlqDxmb4CDZnXq5lpjnQ+mHQLAOpfM5iw==",
+      "version": "5.25.0",
+      "resolved": "https://registry.npmjs.org/terser/-/terser-5.25.0.tgz",
+      "integrity": "sha512-we0I9SIsfvNUMP77zC9HG+MylwYYsGFSBG8qm+13oud2Yh+O104y614FRbyjpxys16jZwot72Fpi827YvGzuqg==",
       "dev": true,
       "dependencies": {
         "@jridgewell/source-map": "^0.3.3",
@@ -21978,8 +21978,8 @@
       "name": "@internal/cspell-helper",
       "version": "1.0.0",
       "dependencies": {
-        "@cspell/cspell-types": "^8.1.0",
-        "cspell-lib": "^8.1.0"
+        "@cspell/cspell-types": "^8.1.2",
+        "cspell-lib": "^8.1.2"
       },
       "bin": {
         "build": "build.mjs"
@@ -22030,7 +22030,7 @@
         "mocha": "^10.2.0"
       },
       "devDependencies": {
-        "@cspell/cspell-types": "^8.1.0",
+        "@cspell/cspell-types": "^8.1.2",
         "@types/chai": "^4.3.11",
         "@types/decompress": "^4.2.7",
         "@types/glob": "^8.1.0",
@@ -22467,13 +22467,14 @@
       "version": "2.0.0",
       "license": "MIT",
       "dependencies": {
-        "@cspell/cspell-bundled-dicts": "^8.1.0",
-        "@cspell/cspell-pipe": "^8.1.0",
-        "@cspell/cspell-types": "^8.1.0",
+        "@cspell/cspell-bundled-dicts": "^8.1.2",
+        "@cspell/cspell-pipe": "^8.1.2",
+        "@cspell/cspell-types": "^8.1.2",
         "@internal/common-utils": "file:../__utils",
-        "cspell-gitignore": "^8.1.0",
-        "cspell-glob": "^8.1.0",
-        "cspell-lib": "^8.1.0",
+        "cspell-config-lib": "^8.1.2",
+        "cspell-gitignore": "^8.1.2",
+        "cspell-glob": "^8.1.2",
+        "cspell-lib": "^8.1.2",
         "gensequence": "^6.0.0",
         "json-rpc-api": "file:../json-rpc-api",
         "node-watch": "^0.7.4",
@@ -22506,9 +22507,9 @@
       "version": "2.0.0",
       "license": "MIT",
       "dependencies": {
-        "@cspell/cspell-types": "^8.1.0",
+        "@cspell/cspell-types": "^8.1.2",
         "@internal/common-utils": "file:../__utils",
-        "cspell-lib": "^8.1.0",
+        "cspell-lib": "^8.1.2",
         "regexp-worker": "^2.0.2",
         "vscode-languageserver": "^9.0.1",
         "vscode-languageserver-textdocument": "^1.0.11",
@@ -22552,7 +22553,7 @@
         "react": "^17.0.2",
         "react-dom": "^17.0.2",
         "react-test-renderer": "^17.0.2",
-        "terser": "^5.24.0",
+        "terser": "^5.25.0",
         "terser-webpack-plugin": "^5.3.9",
         "ts-loader": "^9.5.1",
         "vscode-uri": "^3.0.8",
@@ -22579,7 +22580,7 @@
       "version": "2.0.0",
       "license": "MIT",
       "dependencies": {
-        "@cspell/cspell-types": "^8.1.0",
+        "@cspell/cspell-types": "^8.1.2",
         "@internal/common-utils": "file:../__utils",
         "@internal/settings-webview": "file:../_settingsViewer",
         "code-spell-checker-server": "file:../_server",
@@ -22604,7 +22605,7 @@
         "@types/kefir": "^3.8.11",
         "@types/source-map-support": "^0.5.10",
         "cross-env": "^7.0.3",
-        "cspell-lib": "^8.1.0",
+        "cspell-lib": "^8.1.2",
         "lorem-ipsum": "^2.0.8",
         "rfdc": "^1.3.0",
         "source-map-support": "^0.5.21",
diff --git a/package.json b/package.json
index dc8849663b..142249bf26 100644
--- a/package.json
+++ b/package.json
@@ -1395,6 +1395,13 @@
             "markdownDescription": "Defines a list of patterns that can be used with the `#cSpell.ignoreRegExpList#` and\n`#cSpell.includeRegExpList#` options.\n\n**Example:**\n\n```jsonc\n\"cSpell.patterns\": [\n  {\n    \"name\": \"comment-single-line\",\n    \"pattern\": \"/#.*​/g\"\n  },\n  {\n    \"name\": \"comment-multi-line\",\n    \"pattern\": \"/(?:\\\\/\\\\*[\\\\s\\\\S]*?\\\\*\\\\/)/g\"\n  }\n]\n```",
             "scope": "resource",
             "type": "array"
+          },
+          "cSpell.useLocallyInstalledCSpellDictionaries": {
+            "default": true,
+            "markdownDescription": "Search for `@cspell/cspell-bundled-dicts` in the workspace folder and use it if found.",
+            "scope": "resource",
+            "type": "boolean",
+            "version": "4.0.0"
           }
         },
         "title": "CSpell",
@@ -3078,7 +3085,7 @@
           },
           "cSpell.checkLimit": {
             "default": 500,
-            "markdownDescription": "The limit in K-Characters to be checked in a file.",
+            "markdownDescription": "Set the maximum number of bocks of text to check.\nEach block is 1024 characters.",
             "scope": "resource",
             "type": "number"
           },
@@ -3351,10 +3358,10 @@
     "vitest": "^0.34.6"
   },
   "dependencies": {
-    "@cspell/cspell-bundled-dicts": "^8.1.0",
-    "@cspell/cspell-types": "^8.1.0",
+    "@cspell/cspell-bundled-dicts": "^8.1.2",
+    "@cspell/cspell-types": "^8.1.2",
     "@types/react": "^17.0.71",
-    "cspell": "^8.1.0",
+    "cspell": "^8.1.2",
     "regexp-worker": "^2.0.2"
   },
   "comment-resolutions": {
diff --git a/packages/__cspell-helper/package.json b/packages/__cspell-helper/package.json
index 614599e216..04168b1987 100644
--- a/packages/__cspell-helper/package.json
+++ b/packages/__cspell-helper/package.json
@@ -22,8 +22,8 @@
     "yargs": "^17.7.2"
   },
   "dependencies": {
-    "@cspell/cspell-types": "^8.1.0",
-    "cspell-lib": "^8.1.0"
+    "@cspell/cspell-types": "^8.1.2",
+    "cspell-lib": "^8.1.2"
   },
   "engines": {
     "node": ">18.0.0"
diff --git a/packages/_integrationTests/package.json b/packages/_integrationTests/package.json
index cb0943c008..007691051b 100644
--- a/packages/_integrationTests/package.json
+++ b/packages/_integrationTests/package.json
@@ -23,7 +23,7 @@
   "author": "",
   "license": "MIT",
   "devDependencies": {
-    "@cspell/cspell-types": "^8.1.0",
+    "@cspell/cspell-types": "^8.1.2",
     "@types/chai": "^4.3.11",
     "@types/decompress": "^4.2.7",
     "@types/glob": "^8.1.0",
diff --git a/packages/_server/package.json b/packages/_server/package.json
index 234b3357ee..302a9f6a8c 100644
--- a/packages/_server/package.json
+++ b/packages/_server/package.json
@@ -35,13 +35,14 @@
     "yargs": "^17.7.2"
   },
   "dependencies": {
-    "@cspell/cspell-bundled-dicts": "^8.1.0",
-    "@cspell/cspell-pipe": "^8.1.0",
-    "@cspell/cspell-types": "^8.1.0",
+    "@cspell/cspell-bundled-dicts": "^8.1.2",
+    "@cspell/cspell-pipe": "^8.1.2",
+    "@cspell/cspell-types": "^8.1.2",
     "@internal/common-utils": "file:../__utils",
-    "cspell-gitignore": "^8.1.0",
-    "cspell-glob": "^8.1.0",
-    "cspell-lib": "^8.1.0",
+    "cspell-config-lib": "^8.1.2",
+    "cspell-gitignore": "^8.1.2",
+    "cspell-glob": "^8.1.2",
+    "cspell-lib": "^8.1.2",
     "gensequence": "^6.0.0",
     "json-rpc-api": "file:../json-rpc-api",
     "node-watch": "^0.7.4",
diff --git a/packages/_server/spell-checker-config.schema.json b/packages/_server/spell-checker-config.schema.json
index 0a56a791a9..2a2c1f00c4 100644
--- a/packages/_server/spell-checker-config.schema.json
+++ b/packages/_server/spell-checker-config.schema.json
@@ -958,6 +958,14 @@
           "markdownDescription": "Defines a list of patterns that can be used with the `#cSpell.ignoreRegExpList#` and\n`#cSpell.includeRegExpList#` options.\n\n**Example:**\n\n```jsonc\n\"cSpell.patterns\": [\n  {\n    \"name\": \"comment-single-line\",\n    \"pattern\": \"/#.*​/g\"\n  },\n  {\n    \"name\": \"comment-multi-line\",\n    \"pattern\": \"/(?:\\\\/\\\\*[\\\\s\\\\S]*?\\\\*\\\\/)/g\"\n  }\n]\n```",
           "scope": "resource",
           "type": "array"
+        },
+        "cSpell.useLocallyInstalledCSpellDictionaries": {
+          "default": true,
+          "description": "Search for `@cspell/cspell-bundled-dicts` in the workspace folder and use it if found.",
+          "markdownDescription": "Search for `@cspell/cspell-bundled-dicts` in the workspace folder and use it if found.",
+          "scope": "resource",
+          "type": "boolean",
+          "version": "4.0.0"
         }
       },
       "title": "CSpell",
@@ -2664,8 +2672,8 @@
         },
         "cSpell.checkLimit": {
           "default": 500,
-          "description": "The limit in K-Characters to be checked in a file.",
-          "markdownDescription": "The limit in K-Characters to be checked in a file.",
+          "description": "Set the maximum number of bocks of text to check. Each block is 1024 characters.",
+          "markdownDescription": "Set the maximum number of bocks of text to check.\nEach block is 1024 characters.",
           "scope": "resource",
           "type": "number"
         },
diff --git a/packages/_server/src/codeActions.mts b/packages/_server/src/codeActions.mts
index 5fbee18258..456671ba9a 100644
--- a/packages/_server/src/codeActions.mts
+++ b/packages/_server/src/codeActions.mts
@@ -170,7 +170,7 @@ class CodeActionHandler {
             // Only suggest adding if it is our diagnostic and there is a word.
             if (isSpellingIssue && word && spellCheckerDiags.length) {
                 const wConfig = await pWorkspaceConfig;
-                const targets = calculateConfigTargets(docSetting, wConfig);
+                const targets = await calculateConfigTargets(docSetting, wConfig);
                 debugTargets && logTargets(targets);
 
                 if (!docSetting.hideAddToDictionaryCodeActions) {
@@ -201,7 +201,7 @@ class CodeActionHandler {
             // Only suggest adding if it is our diagnostic and there is a word.
             if (word && eslintSpellCheckerDiags.length) {
                 const wConfig = await pWorkspaceConfig;
-                const targets = calculateConfigTargets(docSetting, wConfig);
+                const targets = await calculateConfigTargets(docSetting, wConfig);
                 debugTargets && logTargets(targets);
 
                 if (!docSetting.hideAddToDictionaryCodeActions) {
diff --git a/packages/_server/src/config/configTargetsHelper.mts b/packages/_server/src/config/configTargetsHelper.mts
index 27d5ac2bfe..f827884822 100644
--- a/packages/_server/src/config/configTargetsHelper.mts
+++ b/packages/_server/src/config/configTargetsHelper.mts
@@ -1,5 +1,5 @@
 import type { DictionaryDefinitionCustom } from '@cspell/cspell-types';
-import { toUri } from '@internal/common-utils/uriHelper';
+import { toFileUri, toUri } from '@internal/common-utils/uriHelper';
 import { capitalize } from '@internal/common-utils/util';
 import * as Path from 'path';
 
@@ -15,11 +15,24 @@ import type {
 import { ConfigKinds, ConfigScopes, weight } from './configTargets.mjs';
 import type { CSpellUserSettings } from './cspellConfig/index.mjs';
 import type { CSpellSettingsWithFileSource } from './documentSettings.mjs';
-import { extractCSpellFileConfigurations, extractTargetDictionaries } from './documentSettings.mjs';
-
-export function calculateConfigTargets(settings: CSpellUserSettings, workspaceConfig: WorkspaceConfigForDocument): ConfigTarget[] {
+import { extractCSpellFileConfigurations, extractTargetDictionaries, filterExistingCSpellFileConfigurations } from './documentSettings.mjs';
+
+export async function calculateConfigTargets(
+    settings: CSpellUserSettings,
+    workspaceConfig: WorkspaceConfigForDocument,
+    configFilesFound?: string[],
+): Promise<ConfigTarget[]> {
+    const found = new Set(configFilesFound);
+    async function isFound(filename: string) {
+        if (found.has(filename)) return true;
+        const href = toFileUri(filename).toString();
+        return found.has(href);
+    }
     const targets: ConfigTarget[] = [];
-    const sources = extractCSpellFileConfigurations(settings).filter((cfg) => !cfg.readonly);
+    const possibleSources = extractCSpellFileConfigurations(settings).filter((cfg) => !cfg.readonly);
+    const sources = configFilesFound
+        ? possibleSources.filter((cfg) => isFound(cfg.source.filename))
+        : await filterExistingCSpellFileConfigurations(possibleSources);
     const dictionaries = extractTargetDictionaries(settings);
 
     targets.push(...workspaceConfigToTargets(workspaceConfig));
diff --git a/packages/_server/src/config/configTargetsHelper.test.mts b/packages/_server/src/config/configTargetsHelper.test.mts
index fd58654e08..1605e3cf17 100644
--- a/packages/_server/src/config/configTargetsHelper.test.mts
+++ b/packages/_server/src/config/configTargetsHelper.test.mts
@@ -178,7 +178,7 @@ describe('Validate configTargetsHelper', () => {
         };
         const cfg = mustBeDefined(await searchForConfig(__dirname));
         const settings = { ...cfg };
-        const r = calculateConfigTargets(settings, wConfig);
+        const r = await calculateConfigTargets(settings, wConfig);
         expect(r).toEqual([
             oc<ConfigTargetDictionary>({
                 kind: 'dictionary',
@@ -231,7 +231,9 @@ describe('Validate configTargetsHelper', () => {
         const defs: DictionaryDef[] = [cd('custom-words', 'path/to/custom-words.txt', false)];
         const dictionaries: string[] = (cfg.dictionaries || []).concat('custom-words');
         const settings: CSpellUserSettings = { ...cfg, dictionaryDefinitions: defs, dictionaries };
-        const r = calculateConfigTargets(settings, wConfig).sort((a, b) => col.compare(a.kind, b.kind) || col.compare(a.name, b.name));
+        const r = (await calculateConfigTargets(settings, wConfig)).sort(
+            (a, b) => col.compare(a.kind, b.kind) || col.compare(a.name, b.name),
+        );
         expect(r).toEqual([
             oc<ConfigTargetCSpell>({
                 kind: 'cspell',
diff --git a/packages/_server/src/config/cspellConfig/SpellCheckerSettings.mts b/packages/_server/src/config/cspellConfig/SpellCheckerSettings.mts
index 1295e1a106..973cc94574 100644
--- a/packages/_server/src/config/cspellConfig/SpellCheckerSettings.mts
+++ b/packages/_server/src/config/cspellConfig/SpellCheckerSettings.mts
@@ -19,7 +19,8 @@ export interface SpellCheckerSettings extends SpellCheckerShouldCheckDocSettings
     autoFormatConfigFile?: boolean;
 
     /**
-     * The limit in K-Characters to be checked in a file.
+     * Set the maximum number of bocks of text to check.
+     * Each block is 1024 characters.
      * @scope resource
      * @default 500
      */
@@ -404,6 +405,14 @@ export interface SpellCheckerSettings extends SpellCheckerShouldCheckDocSettings
      * }
      */
     mergeCSpellSettingsFields?: CSpellMergeFields;
+
+    /**
+     * Search for `@cspell/cspell-bundled-dicts` in the workspace folder and use it if found.
+     * @scope resource
+     * @version 4.0.0
+     * @default true
+     */
+    useLocallyInstalledCSpellDictionaries?: boolean;
 }
 
 type AutoOrBoolean = boolean | 'auto';
diff --git a/packages/_server/src/config/documentSettings.mts b/packages/_server/src/config/documentSettings.mts
index e0c7b44f78..94621abd64 100644
--- a/packages/_server/src/config/documentSettings.mts
+++ b/packages/_server/src/config/documentSettings.mts
@@ -1,3 +1,5 @@
+import { stat } from 'node:fs/promises';
+
 import { opConcatMap, opFilter, pipe } from '@cspell/cspell-pipe/sync';
 import type {
     CSpellSettingsWithSourceTrace,
@@ -23,14 +25,14 @@ import {
     calcOverrideSettings,
     clearCachedFiles,
     ExclusionHelper,
+    getDefaultConfigLoader,
     getSources,
     mergeSettings,
-    readSettings as cspellReadSettingsFile,
     searchForConfig,
 } from 'cspell-lib';
-import * as fs from 'fs';
 import * as os from 'os';
 import * as path from 'path';
+import { pathToFileURL } from 'url';
 import type { Connection, WorkspaceFolder } from 'vscode-languageserver/node.js';
 import { URI as Uri, Utils as UriUtils } from 'vscode-uri';
 
@@ -106,6 +108,9 @@ const defaultCheckOnlyEnabledFileTypes = true;
 
 type ClearFn = () => void;
 
+const fileConfigsToImport = '.vscode.configs.to.import.cspell.config.json';
+const fileVSCodeSettings = '.vscode.folder.settings.json';
+
 export class DocumentSettings {
     // Cache per folder settings
     private valuesToClearOnReset: ClearFn[] = [];
@@ -213,7 +218,13 @@ export class DocumentSettings {
     private async _importSettings() {
         log('importSettings');
         const importPaths = [...this.configsToImport].sort();
-        return readAndMergeSettingsFiles(importPaths);
+        const loader = getDefaultConfigLoader();
+        const cfg = loader.createCSpellConfigFile(pathToFileURL(fileConfigsToImport), {
+            name: 'VS Code Imports',
+            import: importPaths,
+            readonly: true,
+        });
+        return await loader.mergeConfigFileWithImports(cfg);
     }
 
     private async _fetchWorkspaceConfiguration(uri: DocumentUri): Promise<WorkspaceConfigForDocument> {
@@ -290,7 +301,9 @@ export class DocumentSettings {
         const uri = typeof docUri === 'string' ? Uri.parse(docUri) : docUri;
         const docUriAsString = uri.toString();
         const settings = await this.fetchSettingsForUri(docUriAsString);
-        return this.extractCSpellConfigurationFiles(settings.settings);
+        const uris = this.extractCSpellConfigurationFiles(settings.settings);
+        const found = await Promise.all(uris.map(filterUrl));
+        return found.filter(isDefined);
     }
 
     /**
@@ -316,9 +329,19 @@ export class DocumentSettings {
         const cSpellConfigSettings: CSpellUserSettings = {
             ...cSpell,
             id: 'VSCode-Config',
+            name: 'VS Code Settings',
             ignorePaths: ignorePaths.concat(ExclusionHelper.extractGlobsFromExcludeFilesGlobMap(exclude)),
+            readonly: true,
         };
 
+        if (cSpellConfigSettings.useLocallyInstalledCSpellDictionaries) {
+            const rawImports = cSpellConfigSettings.import || [];
+            const imports = Array.isArray(rawImports) ? rawImports : [rawImports];
+            imports.push('@cspell/cspell-bundled-dicts');
+            console.error('fetchSettingsFromVSCode %o', { imports });
+            cSpellConfigSettings.import = imports;
+        }
+
         return cSpellConfigSettings;
     }
 
@@ -329,16 +352,19 @@ export class DocumentSettings {
         if (uriSpecial && uri !== uriSpecial) {
             return this.fetchSettingsForUri(uriSpecial.toString());
         }
+        const loader = getDefaultConfigLoader();
         const folders = await this.folders;
         const useUriForConfig = docUri || folders[0]?.uri || defaultRootUri;
+        const useURLForConfig = new URL(fileVSCodeSettings, useUriForConfig);
         const searchForUri = Uri.parse(useUriForConfig);
         const searchForFsPath = path.normalize(searchForUri.fsPath);
         const vscodeCSpellConfigSettingsRel = await this.fetchSettingsFromVSCode(docUri);
         const vscodeCSpellConfigSettingsForDocument = await this.resolveWorkspacePaths(vscodeCSpellConfigSettingsRel, useUriForConfig);
+        const vscodeCSpellConfigFileForDocument = loader.createCSpellConfigFile(useURLForConfig, vscodeCSpellConfigSettingsForDocument);
+        const vscodeCSpellSettings: CSpellUserSettings = await loader.mergeConfigFileWithImports(vscodeCSpellConfigFileForDocument);
         const settings = vscodeCSpellConfigSettingsForDocument.noConfigSearch ? undefined : await searchForConfig(searchForFsPath);
         const rootFolder = this.rootSchemaAndDomainFolderForUri(docUri);
         const folder = await this.findMatchingFolder(docUri, folders[0] || rootFolder);
-        const vscodeCSpellSettings = await resolveConfigImports(vscodeCSpellConfigSettingsForDocument, folder.uri);
         const globRootFolder = folder !== rootFolder ? folder : folders[0] || folder;
 
         const mergedSettingsFromVSCode = mergeSettings(await this.importedSettings(), vscodeCSpellSettings);
@@ -407,40 +433,6 @@ export class DocumentSettings {
     }
 }
 
-async function resolveConfigImports(config: CSpellUserSettings, folderUri: string): Promise<CSpellUserSettings> {
-    log('resolveConfigImports:', folderUri);
-    const uriFsPath = path.normalize(Uri.parse(folderUri).fsPath);
-    const imports = typeof config.import === 'string' ? [config.import] : config.import || [];
-    const importAbsPath = imports.map((file) => resolvePath(uriFsPath, file));
-    log(`resolvingConfigImports: [\n${imports.join('\n')}]`);
-    log(`resolvingConfigImports ABS: [\n${importAbsPath.join('\n')}]`);
-    const { import: _import, ...result } = importAbsPath.length
-        ? mergeSettings(await readAndMergeSettingsFiles(importAbsPath), config)
-        : config;
-    return result;
-}
-
-async function readAndMergeSettingsFiles(importAbsPaths: string[]): Promise<CSpellSettingsWithSourceTrace> {
-    return mergeSettings({}, ...(await Promise.all(readSettingsFiles([...importAbsPaths]))));
-}
-
-function readSettingsFiles(paths: string[]) {
-    // log('readSettingsFiles:', paths);
-    const existingPaths = paths.filter((filename) => exists(filename));
-    log('readSettingsFiles:', existingPaths);
-    // console.error('readSettingsFiles: %o', existingPaths);
-    return existingPaths.map((file) => cspellReadSettingsFile(file));
-}
-
-function exists(file: string): boolean {
-    try {
-        const s = fs.statSync(file);
-        return s.isFile();
-    } catch (e) {
-        return false;
-    }
-}
-
 function resolvePath(...parts: string[]): string {
     const normalizedParts = parts.map((part) => (part[0] === '~' ? os.homedir() + part.slice(1) : part));
     return path.resolve(...normalizedParts);
@@ -662,11 +654,26 @@ export function extractCSpellFileConfigurations(settings: CSpellUserSettings): C
         .filter(isCSpellSettingsWithFileSource)
         .filter(({ source }) => !regExIsOwnedByCspell.test(source.filename))
         .filter(({ source }) => !regExIsOwnedByExtension.test(source.filename))
+        .filter(({ source }) => !source.filename.endsWith(fileConfigsToImport))
+        .filter(({ source }) => !source.filename.endsWith(fileVSCodeSettings))
         .reverse();
 
     return configs;
 }
 
+export async function filterExistingCSpellFileConfigurations(
+    configs: CSpellSettingsWithFileSource[],
+): Promise<CSpellSettingsWithFileSource[]> {
+    const existingConfigs = await Promise.all(
+        configs.map(async (cfg) => {
+            const { source } = cfg;
+            const found = await filterUrl(toFileUri(source.filename));
+            return found ? cfg : undefined;
+        }),
+    );
+    return existingConfigs.filter(isDefined);
+}
+
 /**
  *
  * @param settings - finalized settings
@@ -721,9 +728,25 @@ export function isExcluded(settings: ExtSettings, uri: Uri): boolean {
     return settings.excludeGlobMatcher.match(uri.fsPath);
 }
 
+async function filterUrl(uri: Uri): Promise<Uri | undefined> {
+    if (uri.scheme !== 'file') return undefined;
+    const url = new URL(uri.toString());
+    try {
+        const stats = await stat(url);
+        const found = stats.isFile() ? uri : undefined;
+        console.error('filterUrl %o', { uri: uri.toString(), found: !!found });
+        return found;
+    } catch (e) {
+        console.error('filterUrl Not found', uri.toString());
+        return undefined;
+    }
+}
+
 export const __testing__ = {
     extractTargetDictionaries,
     extractEnableFiletypes,
     normalizeEnableFiletypes,
     applyEnableFiletypes,
+    fileConfigsToImport,
+    fileVSCodeSettings,
 };
diff --git a/packages/_server/src/config/documentSettings.test.mts b/packages/_server/src/config/documentSettings.test.mts
index faa799face..d652fb287b 100644
--- a/packages/_server/src/config/documentSettings.test.mts
+++ b/packages/_server/src/config/documentSettings.test.mts
@@ -55,6 +55,7 @@ const cspellConfigInVsCode: CSpellUserSettings = {
     ],
     enabledLanguageIds: ['typescript', 'javascript', 'php', 'json', 'jsonc'],
     mergeCSpellSettings: true,
+    useLocallyInstalledCSpellDictionaries: true,
 };
 
 const sampleFiles = {
@@ -409,11 +410,15 @@ describe('Validate DocumentSettings', () => {
         expect(result.map((f) => f.toString().toLowerCase())).toEqual(expected.map((u) => filePathToUri(u).toString().toLowerCase()));
     });
 
+    function rPathWsRoot(...paths: string[]) {
+        return Path.resolve(pathWorkspaceRoot, ...paths);
+    }
+
     test.each`
         filename                               | expected
         ${sampleFiles.sampleClientEsLint}      | ${[configFiles.clientConfig, configFiles.rootConfigYaml]}
         ${sampleFiles.sampleNodePackage}       | ${[configFiles.rootConfigJson, configFiles.rootConfigYaml]}
-        ${sampleFiles.sampleSamplesReadme}     | ${[Path.resolve(pathWorkspaceRoot, 'samples/custom-dictionary/cspell.json')]}
+        ${sampleFiles.sampleSamplesReadme}     | ${[rPathWsRoot('samples/custom-dictionary/cspell.json')]}
         ${sampleFiles.sampleClientReadme}      | ${[configFiles.clientConfig, configFiles.rootConfigYaml]}
         ${sampleFiles.sampleServerPackageLock} | ${[configFiles.serverConfig, configFiles.rootConfigYaml]}
     `('findCSpellConfigurationFilesForUri no folders $filename', async ({ filename, expected }: FindCSpellConfigurationFilesForUriTest) => {
diff --git a/packages/_server/src/server.mts b/packages/_server/src/server.mts
index a4efb70c10..53d1eec559 100644
--- a/packages/_server/src/server.mts
+++ b/packages/_server/src/server.mts
@@ -378,7 +378,7 @@ export function run(): void {
         const activeSettings = await getActiveUriSettings(uri);
         const settings = stringifyPatterns(activeSettings);
         const configFiles = uri ? (await documentSettings.findCSpellConfigurationFilesForUri(uri)).map((uri) => uri.toString()) : [];
-        const configTargets = workspaceConfig ? calculateConfigTargets(settings, workspaceConfig) : [];
+        const configTargets = workspaceConfig ? await calculateConfigTargets(settings, workspaceConfig, configFiles) : [];
         const ieInfo = await calcIncludeExcludeInfo(activeSettings, params);
 
         return {
diff --git a/packages/_serverPatternMatcher/package.json b/packages/_serverPatternMatcher/package.json
index 6d5d5943c0..3815d31b85 100644
--- a/packages/_serverPatternMatcher/package.json
+++ b/packages/_serverPatternMatcher/package.json
@@ -47,9 +47,9 @@
     "webpack-cli": "^5.1.4"
   },
   "dependencies": {
-    "@cspell/cspell-types": "^8.1.0",
+    "@cspell/cspell-types": "^8.1.2",
     "@internal/common-utils": "file:../__utils",
-    "cspell-lib": "^8.1.0",
+    "cspell-lib": "^8.1.2",
     "regexp-worker": "^2.0.2",
     "vscode-languageserver-textdocument": "^1.0.11",
     "vscode-languageserver": "^9.0.1",
diff --git a/packages/_settingsViewer/package.json b/packages/_settingsViewer/package.json
index f672b00873..c572577836 100644
--- a/packages/_settingsViewer/package.json
+++ b/packages/_settingsViewer/package.json
@@ -38,7 +38,7 @@
     "react": "^17.0.2",
     "react-dom": "^17.0.2",
     "react-test-renderer": "^17.0.2",
-    "terser": "^5.24.0",
+    "terser": "^5.25.0",
     "terser-webpack-plugin": "^5.3.9",
     "ts-loader": "^9.5.1",
     "vscode-uri": "^3.0.8",
diff --git a/packages/client/package.json b/packages/client/package.json
index 7ebc2c4694..d0cfeb72db 100644
--- a/packages/client/package.json
+++ b/packages/client/package.json
@@ -45,7 +45,7 @@
     "@types/kefir": "^3.8.11",
     "@types/source-map-support": "^0.5.10",
     "cross-env": "^7.0.3",
-    "cspell-lib": "^8.1.0",
+    "cspell-lib": "^8.1.2",
     "lorem-ipsum": "^2.0.8",
     "rfdc": "^1.3.0",
     "source-map-support": "^0.5.21",
@@ -55,7 +55,7 @@
     "webpack-cli": "^5.1.4"
   },
   "dependencies": {
-    "@cspell/cspell-types": "^8.1.0",
+    "@cspell/cspell-types": "^8.1.2",
     "@internal/common-utils": "file:../__utils",
     "@internal/settings-webview": "file:../_settingsViewer",
     "code-spell-checker-server": "file:../_server",
diff --git a/packages/client/src/client/client.ts b/packages/client/src/client/client.ts
index ac3da79102..7e6d4fd127 100644
--- a/packages/client/src/client/client.ts
+++ b/packages/client/src/client/client.ts
@@ -141,7 +141,7 @@ export class CSpellClient implements Disposable {
         const { uri, languageId } = document || {};
 
         const workspaceConfig = calculateWorkspaceConfigForDocument(uri);
-        if (!uri) {
+        if (!uri || !workspaceConfig.uri) {
             return this.serverApi.getConfigurationForDocument({ workspaceConfig });
         }
         return this.serverApi.getConfigurationForDocument({ uri: uri.toString(), languageId, workspaceConfig });
@@ -289,7 +289,7 @@ function calculateWorkspaceConfigForDocument(docUri: Uri | undefined): Workspace
     tWords.user = tUserWords.user;
 
     const resp: WorkspaceConfigForDocumentResponse = {
-        uri: docUri?.toString(),
+        uri: scope?.toString(),
         workspaceFile,
         workspaceFolder,
         words: tWords,
diff --git a/packages/client/src/settings/configFields.ts b/packages/client/src/settings/configFields.ts
index 589003993c..644070b5e4 100644
--- a/packages/client/src/settings/configFields.ts
+++ b/packages/client/src/settings/configFields.ts
@@ -49,6 +49,7 @@ export const ConfigFields: CSpellUserSettingsFields = {
     suggestionMenuType: 'suggestionMenuType',
     suggestionNumChanges: 'suggestionNumChanges',
     suggestionsTimeout: 'suggestionsTimeout',
+    useLocallyInstalledCSpellDictionaries: 'useLocallyInstalledCSpellDictionaries',
     workspaceRootPath: 'workspaceRootPath',
     decorateIssues: 'decorateIssues',
     textDecoration: 'textDecoration',