diff --git a/sema4ai/src/sema4ai_code/robocorp_language_server.py b/sema4ai/src/sema4ai_code/robocorp_language_server.py
index d0a97add..e7651a77 100644
--- a/sema4ai/src/sema4ai_code/robocorp_language_server.py
+++ b/sema4ai/src/sema4ai_code/robocorp_language_server.py
@@ -2284,7 +2284,10 @@ def _fix_wrong_agent_import(self, agent_dir, monitor: IMonitor) -> ActionResultD
 
                 # Move files and directories from the versioned folder to the root action directory
                 for item in temp_extract_path.rglob("*"):
-                    if item.is_file() and item.name != "metadata.json":
+                    if (
+                        item.is_file()
+                        and item.name != "__action_server_metadata__.json"
+                    ):
                         relative_path = item.relative_to(temp_extract_path)
                         final_path = zip_path.parent / relative_path
 
diff --git a/sema4ai/tests/sema4ai_code_tests/test_vscode_integration.py b/sema4ai/tests/sema4ai_code_tests/test_vscode_integration.py
index f1a24707..74219878 100644
--- a/sema4ai/tests/sema4ai_code_tests/test_vscode_integration.py
+++ b/sema4ai/tests/sema4ai_code_tests/test_vscode_integration.py
@@ -3093,3 +3093,6 @@ def test_fix_wrong_agent_import(
     assert not action_zip.exists()
     assert (action_zip.parent / "package.yaml").exists()
     assert not (temp_dir / "__agent_package_metadata__.json").exists()
+    assert not (
+        temp_dir / "actions/MyActions/action-one/__action_server_metadata__.json"
+    ).exists()