diff --git a/extensions/mssql/src/configurations/config.ts b/extensions/mssql/src/configurations/config.ts
index 01c1ed66c1..b801fff8e8 100644
--- a/extensions/mssql/src/configurations/config.ts
+++ b/extensions/mssql/src/configurations/config.ts
@@ -7,7 +7,7 @@ export const config = {
     service: {
         downloadUrl:
             "https://github.com/Microsoft/sqltoolsservice/releases/download/{#version#}/microsoft.sqltools.servicelayer-{#fileName#}",
-        version: "5.0.20260302.1",
+        version: "5.0.20260304.1",
         downloadFileNames: {
             Windows_64: "win-x64-net8.0.zip",
             Windows_ARM64: "win-arm64-net8.0.zip",
diff --git a/extensions/mssql/test/unit/schemaDesignerTool.test.ts b/extensions/mssql/test/unit/schemaDesignerTool.test.ts
index 469740f4bb..d260d0c23d 100644
--- a/extensions/mssql/test/unit/schemaDesignerTool.test.ts
+++ b/extensions/mssql/test/unit/schemaDesignerTool.test.ts
@@ -1250,8 +1250,15 @@ suite("SchemaDesignerTool Tests", () => {
             expect(parsedResult.receipt.changes.foreignKeysUpdated).to.have.length(1);
             expectNoSchemaDump(parsedResult);
 
-            expect(sendActionEventStub.calledOnce).to.be.true;
-            expect(sendActionEventStub.getCall(0).args[3]).to.deep.include({
+            const applyEditsTelemetryCall = sendActionEventStub
+                .getCalls()
+                .find(
+                    (call) =>
+                        call.args[2]?.operation === "apply_edits" &&
+                        call.args[2]?.success === "true",
+                );
+            expect(applyEditsTelemetryCall).to.not.be.undefined;
+            expect(applyEditsTelemetryCall!.args[3]).to.deep.include({
                 editsCount: edits.length,
                 appliedEdits: edits.length,
                 add_table_count: 1,