diff --git a/src/vs/platform/extensions/common/extensionsApiProposals.ts b/src/vs/platform/extensions/common/extensionsApiProposals.ts
index 9a6636005b3d7..bd35500287e25 100644
--- a/src/vs/platform/extensions/common/extensionsApiProposals.ts
+++ b/src/vs/platform/extensions/common/extensionsApiProposals.ts
@@ -319,9 +319,6 @@ const _allApiProposals = {
 	shareProvider: {
 		proposal: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.shareProvider.d.ts',
 	},
-	showLocal: {
-		proposal: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.showLocal.d.ts',
-	},
 	speech: {
 		proposal: 'https://raw.githubusercontent.com/microsoft/vscode/main/src/vscode-dts/vscode.proposed.speech.d.ts',
 	},
diff --git a/src/vs/workbench/api/browser/mainThreadDialogs.ts b/src/vs/workbench/api/browser/mainThreadDialogs.ts
index 4ab41cf26636e..50f3a61b94d78 100644
--- a/src/vs/workbench/api/browser/mainThreadDialogs.ts
+++ b/src/vs/workbench/api/browser/mainThreadDialogs.ts
@@ -7,7 +7,6 @@ import { URI } from '../../../base/common/uri.js';
 import { MainThreadDiaglogsShape, MainContext, MainThreadDialogOpenOptions, MainThreadDialogSaveOptions } from '../common/extHost.protocol.js';
 import { extHostNamedCustomer, IExtHostContext } from '../../services/extensions/common/extHostCustomers.js';
 import { IFileDialogService, IOpenDialogOptions, ISaveDialogOptions } from '../../../platform/dialogs/common/dialogs.js';
-import { Schemas } from '../../../base/common/network.js';
 
 @extHostNamedCustomer(MainContext.MainThreadDialogs)
 export class MainThreadDialogs implements MainThreadDiaglogsShape {
@@ -47,7 +46,7 @@ export class MainThreadDialogs implements MainThreadDiaglogsShape {
 			canSelectMany: options?.canSelectMany,
 			defaultUri: options?.defaultUri ? URI.revive(options.defaultUri) : undefined,
 			title: options?.title || undefined,
-			availableFileSystems: options?.allowUIResources ? [Schemas.vscodeRemote, Schemas.file] : []
+			availableFileSystems: []
 		};
 		if (options?.filters) {
 			result.filters = [];
diff --git a/src/vs/workbench/api/common/extHost.api.impl.ts b/src/vs/workbench/api/common/extHost.api.impl.ts
index 6e68860da3f89..85ff1aa52b2c3 100644
--- a/src/vs/workbench/api/common/extHost.api.impl.ts
+++ b/src/vs/workbench/api/common/extHost.api.impl.ts
@@ -781,7 +781,7 @@ export function createApiFactoryAndRegisterActors(accessor: ServicesAccessor): I
 				return extHostQuickOpen.showInput(options, token);
 			},
 			showOpenDialog(options) {
-				return extHostDialogs.showOpenDialog(extension, options);
+				return extHostDialogs.showOpenDialog(options);
 			},
 			showSaveDialog(options) {
 				return extHostDialogs.showSaveDialog(options);
diff --git a/src/vs/workbench/api/common/extHostDialogs.ts b/src/vs/workbench/api/common/extHostDialogs.ts
index 8e98769e19cc4..05b3777694345 100644
--- a/src/vs/workbench/api/common/extHostDialogs.ts
+++ b/src/vs/workbench/api/common/extHostDialogs.ts
@@ -6,8 +6,6 @@
 import type * as vscode from 'vscode';
 import { URI } from '../../../base/common/uri.js';
 import { MainContext, MainThreadDiaglogsShape, IMainContext } from './extHost.protocol.js';
-import { checkProposedApiEnabled } from '../../services/extensions/common/extensions.js';
-import { IExtensionDescription } from '../../../platform/extensions/common/extensions.js';
 
 export class ExtHostDialogs {
 
@@ -17,10 +15,7 @@ export class ExtHostDialogs {
 		this._proxy = mainContext.getProxy(MainContext.MainThreadDialogs);
 	}
 
-	showOpenDialog(extension: IExtensionDescription, options?: vscode.OpenDialogOptions): Promise<URI[] | undefined> {
-		if (options?.allowUIResources) {
-			checkProposedApiEnabled(extension, 'showLocal');
-		}
+	showOpenDialog(options?: vscode.OpenDialogOptions): Promise<URI[] | undefined> {
 		return this._proxy.$showOpenDialog(options).then(filepaths => {
 			return filepaths ? filepaths.map(p => URI.revive(p)) : undefined;
 		});
diff --git a/src/vscode-dts/vscode.proposed.showLocal.d.ts b/src/vscode-dts/vscode.proposed.showLocal.d.ts
deleted file mode 100644
index 9a9294f596bbc..0000000000000
--- a/src/vscode-dts/vscode.proposed.showLocal.d.ts
+++ /dev/null
@@ -1,19 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-
-// https://github.com/microsoft/vscode/issues/131138
-
-declare module 'vscode' {
-
-	export interface OpenDialogOptions {
-		/**
-		 * Controls whether the dialog allows users to select local files via the "Show Local" button.
-		 * Extensions that set this to `true` should check the scheme of the selected file.
-		 * Resources with the `file` scheme come from the same extension host as the extension.
-		 * Resources with the `vscode-local` scheme come from an extension host running in the same place as the UI.
-		 */
-		allowUIResources?: boolean;
-	}
-}