diff --git a/crates/ty_server/src/server.rs b/crates/ty_server/src/server.rs
index 321a74857e..402800d325 100644
--- a/crates/ty_server/src/server.rs
+++ b/crates/ty_server/src/server.rs
@@ -3,7 +3,7 @@
 use self::schedule::spawn_main_loop;
 use crate::PositionEncoding;
 use crate::capabilities::{ResolvedClientCapabilities, server_capabilities};
-use crate::session::{InitializationOptions, Session};
+use crate::session::{InitializationOptions, Session, warn_about_unknown_options};
 use anyhow::Context;
 use lsp_server::Connection;
 use lsp_types::{ClientCapabilities, InitializeParams, MessageType, Url};
@@ -96,29 +96,7 @@ impl Server {
 
         let unknown_options = &initialization_options.options.unknown;
         if !unknown_options.is_empty() {
-            // HACK: Old versions of the ty VS Code extension used a custom schema for settings
-            // which was changed in version 2025.35.0. This is to ensure that users don't receive
-            // unnecessary warnings when using an older version of the extension. This should be
-            // removed after a few releases.
-            if !unknown_options.contains_key("settings")
-                || !unknown_options.contains_key("globalSettings")
-            {
-                tracing::warn!(
-                    "Received unknown options during initialization: {}",
-                    serde_json::to_string_pretty(&unknown_options)
-                        .unwrap_or_else(|_| format!("{unknown_options:?}"))
-                );
-
-                client.show_warning_message(format_args!(
-                    "Received unknown options during initialization: '{}'. \
-                    Refer to the logs for more details",
-                    unknown_options
-                        .keys()
-                        .map(String::as_str)
-                        .collect::<Vec<_>>()
-                        .join("', '")
-                ));
-            }
+            warn_about_unknown_options(&client, None, unknown_options);
         }
 
         // Get workspace URLs without settings - settings will come from workspace/configuration
diff --git a/crates/ty_server/src/session.rs b/crates/ty_server/src/session.rs
index d97e11ac48..233b0e6aa3 100644
--- a/crates/ty_server/src/session.rs
+++ b/crates/ty_server/src/session.rs
@@ -1,6 +1,6 @@
 //! Data model, state management, and configuration resolution.
 
-use std::collections::{BTreeMap, HashSet, VecDeque};
+use std::collections::{BTreeMap, HashMap, HashSet, VecDeque};
 use std::ops::{Deref, DerefMut};
 use std::panic::RefUnwindSafe;
 use std::sync::Arc;
@@ -467,28 +467,7 @@ impl Session {
 
             let unknown_options = &options.unknown;
             if !unknown_options.is_empty() {
-                // HACK: This is to ensure that users with an older version of the ty VS Code
-                // extension don't get warnings about unknown options when they are using a newer
-                // version of the language server. This should be removed after a few releases.
-                if !unknown_options.contains_key("importStrategy")
-                    && !unknown_options.contains_key("interpreter")
-                {
-                    tracing::warn!(
-                        "Received unknown options for workspace `{url}`: {}",
-                        serde_json::to_string_pretty(unknown_options)
-                            .unwrap_or_else(|_| format!("{unknown_options:?}"))
-                    );
-
-                    client.show_warning_message(format!(
-                        "Received unknown options for workspace `{url}`: '{}'. \
-                        Refer to the logs for more details.",
-                        unknown_options
-                            .keys()
-                            .map(String::as_str)
-                            .collect::<Vec<_>>()
-                            .join("', '")
-                    ));
-                }
+                warn_about_unknown_options(client, Some(&url), unknown_options);
             }
 
             combined_global_options.combine_with(Some(global));
@@ -1595,3 +1574,29 @@ impl DocumentHandle {
         Ok(requires_clear_diagnostics)
     }
 }
+
+/// Warns about unknown options received by the server.
+///
+/// If `workspace_url` is `Some`, it indicates that the unknown options were received during a
+/// workspace initialization, otherwise they were received during the server initialization.
+pub(super) fn warn_about_unknown_options(
+    client: &Client,
+    workspace_url: Option<&Url>,
+    unknown_options: &HashMap<String, serde_json::Value>,
+) {
+    let message = if let Some(workspace_url) = workspace_url {
+        format!(
+            "Received unknown options for workspace `{workspace_url}`: {}",
+            serde_json::to_string_pretty(unknown_options)
+                .unwrap_or_else(|_| format!("{unknown_options:?}"))
+        )
+    } else {
+        format!(
+            "Received unknown options during initialization: {}",
+            serde_json::to_string_pretty(unknown_options)
+                .unwrap_or_else(|_| format!("{unknown_options:?}"))
+        )
+    };
+    tracing::warn!("{message}");
+    client.show_warning_message(message);
+}
diff --git a/crates/ty_server/tests/e2e/initialize.rs b/crates/ty_server/tests/e2e/initialize.rs
index 1526e78022..8611afdccd 100644
--- a/crates/ty_server/tests/e2e/initialize.rs
+++ b/crates/ty_server/tests/e2e/initialize.rs
@@ -402,7 +402,7 @@ fn unknown_initialization_options() -> Result<()> {
     insta::assert_json_snapshot!(show_message_params, @r#"
     {
       "type": 2,
-      "message": "Received unknown options during initialization: 'bar'. Refer to the logs for more details"
+      "message": "Received unknown options during initialization: {\n  /"bar/": null\n}"
     }
     "#);
 
@@ -427,7 +427,7 @@ fn unknown_options_in_workspace_configuration() -> Result<()> {
     insta::assert_json_snapshot!(show_message_params, @r#"
     {
       "type": 2,
-      "message": "Received unknown options for workspace `file://<temp_dir>/foo`: 'bar'. Refer to the logs for more details."
+      "message": "Received unknown options for workspace `file://<temp_dir>/foo`: {\n  /"bar/": null\n}"
     }
     "#);