diff --git a/scripts/extension-version.js b/scripts/extension-version.js
index 76084ef1b7..dfac1e39ee 100644
--- a/scripts/extension-version.js
+++ b/scripts/extension-version.js
@@ -1,10 +1,13 @@
 function nextExtensionVersion({ prismaVersion, extensionVersion }) {
+  const isBeta = prismaVersion.includes('beta')
   const derivedExtensionVersion = getDerivedExtensionVersion(
     stripPreReleaseText(prismaVersion),
+    isBeta,
   )
 
   const derivedExistingExtensionVersion = getDerivedExtensionVersion(
     extensionVersion,
+    isBeta,
   )
 
   if (derivedExtensionVersion === derivedExistingExtensionVersion) {
@@ -18,13 +21,22 @@ function stripPreReleaseText(version) {
   return version.replace('-alpha', '').replace('-beta', '').replace('-dev', '')
 }
 
-function getDerivedExtensionVersion(version) {
+function getDerivedExtensionVersion(version, isBeta = false) {
   const tokens = version.split('.')
+
+  // Because https://github.com/prisma/vscode/issues/121#issuecomment-623327393
+  if (isBeta && tokens.length === 4) {
+    tokens[2] = 1
+  }
+  if (isBeta && tokens.length === 3) {
+    tokens[1] = 1
+  }
+
   if (tokens.length === 4) {
     return tokens.slice(1).join('.')
   }
   if (tokens.length === 3) {
-    return version
+    return tokens.join('.')
   }
   throw new Error(
     `Version ${version} must have 3 or 4 tokens separated by "." character`,
diff --git a/scripts/extension-version.test.js b/scripts/extension-version.test.js
index 7fe76dd402..1f823e561b 100644
--- a/scripts/extension-version.test.js
+++ b/scripts/extension-version.test.js
@@ -9,7 +9,7 @@ describe('next extension version', () => {
         prismaVersion: '2.0.0-beta.3',
         extensionVersion: '0.0.35',
       }),
-    ).to.eq('0.0.3')
+    ).to.eq('0.1.3')
   })
 
   it('it should work with stable channel and extension only push', () => {
@@ -18,7 +18,7 @@ describe('next extension version', () => {
         prismaVersion: '2.0.0-beta.3',
         extensionVersion: '0.0.3',
       }),
-    ).to.eq('0.0.3.1')
+    ).to.eq('0.1.3.1')
   })
 
   it('it should work with stable channel and new prisma version', () => {
@@ -27,7 +27,7 @@ describe('next extension version', () => {
         prismaVersion: '2.0.0-beta.4',
         extensionVersion: '0.0.3',
       }),
-    ).to.eq('0.0.4')
+    ).to.eq('0.1.4')
   })
 
   it('it should work with stable channel and new prisma version after an extension only publish', () => {
@@ -36,7 +36,7 @@ describe('next extension version', () => {
         prismaVersion: '2.0.0-beta.4',
         extensionVersion: '0.0.3.1',
       }),
-    ).to.eq('0.0.4')
+    ).to.eq('0.1.4')
   })
 
   it('it should work with unstable channel and current version to new version schema', () => {