diff --git a/src/Features/Test/EditAndContinue/EditAndContinueWorkspaceServiceTests.cs b/src/Features/Test/EditAndContinue/EditAndContinueWorkspaceServiceTests.cs
index f5928559c4d59..887e53d8856d7 100644
--- a/src/Features/Test/EditAndContinue/EditAndContinueWorkspaceServiceTests.cs
+++ b/src/Features/Test/EditAndContinue/EditAndContinueWorkspaceServiceTests.cs
@@ -13,6 +13,7 @@
 using System.Text;
 using System.Threading;
 using System.Threading.Tasks;
+using Microsoft.CodeAnalysis.CodeRefactorings.MoveType;
 using Microsoft.CodeAnalysis.Contracts.EditAndContinue;
 using Microsoft.CodeAnalysis.CSharp;
 using Microsoft.CodeAnalysis.CSharp.Test.Utilities;
@@ -4251,6 +4252,90 @@ static void F()
         EndDebuggingSession(debuggingSession);
     }
 
+    /// <summary>
+    /// Scenario:
+    /// - F5
+    /// - edit source and apply code fix to move type to file XYZ.cs
+    /// - continue execution
+    /// </summary>
+    [Fact, WorkItem("https://github.com/dotnet/roslyn/issues/72984")]
+    public async Task EditAndContinueAfterApplyingMoveTypeToFileCodeFix()
+    {
+        const string movedType = "AnotherClass";
+
+        const string source = $$"""
+            class {{movedType}}
+            {
+                public const bool True = true;
+            }
+
+            class Test
+            {
+                static bool B() => {{movedType}}.True;
+                static void G() { while (B()); }
+
+                static void F()
+                {
+                    G();
+                }
+            }
+            """;
+
+        const string modifiedSource = $$"""
+            class Test
+            {
+                static bool A() => {{movedType}}.True;
+                static bool B() => A();
+                static void G() { while (B()); }
+
+                static void F()
+                {
+                    H();
+                }
+
+                static void H()
+                {
+                    G();
+                }
+            }
+            """;
+
+        var moduleId = EmitAndLoadLibraryToDebuggee(source);
+
+        using var workspace = CreateWorkspace(out var solution, out var service);
+        (solution, var document) = AddDefaultTestProject(solution, source);
+        var documentId = document.Id;
+        var oldProject = document.Project;
+
+        var debuggingSession = await StartDebuggingSessionAsync(service, solution);
+
+        // Apply code fix: Move type to AnotherClass.cs
+
+        var moveTypeService = document.GetLanguageService<IMoveTypeService>();
+        var root = await document.GetSyntaxRootAsync();
+        var span = root.DescendantTokens()
+            .Where(s => s.Text is movedType)
+            .FirstOrDefault()
+            .Span;
+        var modifiedSolution = await moveTypeService.GetModifiedSolutionAsync(document, span, MoveTypeOperationKind.MoveType, cancellationToken: default);
+
+        // Apply edit on remaining document: source after code fix -> modifiedSource
+
+        modifiedSolution = modifiedSolution.WithDocumentText(document.Id, CreateText(modifiedSource));
+
+        var newProject = modifiedSolution.GetProject(oldProject.Id);
+        Assert.Equal(1, oldProject.DocumentIds.Count);
+        Assert.Equal(2, newProject.DocumentIds.Count);
+
+        var (updates, emitDiagnostics) = await EmitSolutionUpdateAsync(debuggingSession, modifiedSolution);
+        Assert.Empty(emitDiagnostics);
+        Assert.False(updates.Updates.IsEmpty);
+        Assert.Equal(ModuleUpdateStatus.Ready, updates.Status);
+
+        CommitSolutionUpdate(debuggingSession);
+        EndDebuggingSession(debuggingSession);
+    }
+
     [Fact]
     public async Task MultiSession()
     {
diff --git a/src/VisualStudio/IntegrationTest/New.IntegrationTests/CSharp/CSharpWinForms.cs b/src/VisualStudio/IntegrationTest/New.IntegrationTests/CSharp/CSharpWinForms.cs
index 3675c407613eb..482daa543441f 100644
--- a/src/VisualStudio/IntegrationTest/New.IntegrationTests/CSharp/CSharpWinForms.cs
+++ b/src/VisualStudio/IntegrationTest/New.IntegrationTests/CSharp/CSharpWinForms.cs
@@ -94,7 +94,7 @@ public async Task AddClickHandler()
         Assert.Contains(@"this.SomeButton.Click += new System.EventHandler(this.ExecuteWhenButtonClicked);", designerActualText);
         await TestServices.SolutionExplorer.OpenFileAsync(project, "Form1.cs", HangMitigatingCancellationToken);
         var codeFileActualText = await TestServices.Editor.GetTextAsync(HangMitigatingCancellationToken);
-        Assert.Contains(@"    public partial class Form1 : Form
+        Assert.Contains(@"    public partial class Form1: Form
     {
         public Form1()
         {
diff --git a/src/Workspaces/Core/Portable/Workspace/Solution/DocumentState.cs b/src/Workspaces/Core/Portable/Workspace/Solution/DocumentState.cs
index 8579fba2f1ba8..07baa5aaf65f9 100644
--- a/src/Workspaces/Core/Portable/Workspace/Solution/DocumentState.cs
+++ b/src/Workspaces/Core/Portable/Workspace/Solution/DocumentState.cs
@@ -495,23 +495,8 @@ internal DocumentState UpdateTree(SyntaxNode newRoot, PreservationMode mode)
         var newTextVersion = GetNewerVersion();
         var newTreeVersion = GetNewTreeVersionForUpdatedTree(newRoot, newTextVersion, mode);
 
-        // determine encoding
-        Encoding? encoding;
-
-        if (TryGetSyntaxTree(out var priorTree))
-        {
-            // this is most likely available since UpdateTree is normally called after modifying the existing tree.
-            encoding = priorTree.Encoding;
-        }
-        else if (TryGetText(out var priorText))
-        {
-            encoding = priorText.Encoding;
-        }
-        else
-        {
-            // the existing encoding was never observed so is unknown.
-            encoding = null;
-        }
+        // use the encoding that we get from the new root
+        var encoding = newRoot.SyntaxTree.Encoding;
 
         var syntaxTreeFactory = LanguageServices.GetRequiredService<ISyntaxTreeFactoryService>();
 
diff --git a/src/Workspaces/MSBuildTest/VisualStudioMSBuildWorkspaceTests.cs b/src/Workspaces/MSBuildTest/VisualStudioMSBuildWorkspaceTests.cs
index 8ff00ac110e18..6d853aee9d3c3 100644
--- a/src/Workspaces/MSBuildTest/VisualStudioMSBuildWorkspaceTests.cs
+++ b/src/Workspaces/MSBuildTest/VisualStudioMSBuildWorkspaceTests.cs
@@ -2893,14 +2893,13 @@ class C { }";
             Assert.Equal(encoding.EncodingName, text.Encoding.EncodingName);
             Assert.Equal(fileContent, text.ToString());
 
-            // update root blindly again, after observing encoding, see that now encoding is known
+            // update root blindly again, after observing encoding, see that encoding is overridden to null
             var doc3 = document.WithSyntaxRoot(gen.CompilationUnit()); // empty CU
             var doc3text = await doc3.GetTextAsync();
-            Assert.NotNull(doc3text.Encoding);
-            Assert.Equal(encoding.EncodingName, doc3text.Encoding.EncodingName);
+            Assert.Null(doc3text.Encoding);
             var doc3tree = await doc3.GetSyntaxTreeAsync();
-            Assert.Equal(doc3text.Encoding, doc3tree.GetText().Encoding);
-            Assert.Equal(doc3text.Encoding, doc3tree.Encoding);
+            Assert.Null(doc3tree.Encoding);
+            Assert.Null(doc3tree.GetText().Encoding);
 
             // change doc to have no encoding, still succeeds at writing to disk with old encoding
             var root = await document.GetSyntaxRootAsync();