diff --git a/src/common/settings.ts b/src/common/settings.ts
index 36ce8700..e62af274 100644
--- a/src/common/settings.ts
+++ b/src/common/settings.ts
@@ -196,8 +196,28 @@ function getOptionalGlobalValue<T>(config: WorkspaceConfiguration, key: string):
   return inspect?.globalValue;
 }
 
+/**
+ * Returns the global settings for the extension.
+ *
+ * ## Notes
+ *
+ * The global settings do not belong to a specific workspace. This means that
+ * variables such as `${workspaceFolder}` or `${workspaceFolder:...}` are not
+ * resolved. The language server does not support these variables, so they are
+ * filtered out. For example, if `configuration` has either of these variables,
+ * it will be set to `null`.
+ */
 export async function getGlobalSettings(namespace: string): Promise<ISettings> {
   const config = getConfiguration(namespace);
+
+  let configuration = getGlobalValue<string | object | null>(config, "configuration", null);
+  if (typeof configuration === "string" && configuration.search(/\$\{workspaceFolder/) !== -1) {
+    logger.info(
+      `Resetting '${namespace}.configuration' to null in global settings because it contains workspace specific variables`,
+    );
+    configuration = null;
+  }
+
   return {
     nativeServer: getGlobalValue<NativeServer>(config, "nativeServer", "auto"),
     cwd: process.cwd(),
@@ -205,7 +225,7 @@ export async function getGlobalSettings(namespace: string): Promise<ISettings> {
     path: getGlobalValue<string[]>(config, "path", []),
     ignoreStandardLibrary: getGlobalValue<boolean>(config, "ignoreStandardLibrary", true),
     interpreter: [],
-    configuration: getGlobalValue<string | object | null>(config, "configuration", null),
+    configuration,
     importStrategy: getGlobalValue<ImportStrategy>(config, "importStrategy", "fromEnvironment"),
     codeAction: getGlobalValue<CodeAction>(config, "codeAction", {}),
     lint: {