diff --git a/src/crc-start.ts b/src/crc-start.ts
index e8fe973..3df7789 100644
--- a/src/crc-start.ts
+++ b/src/crc-start.ts
@@ -83,7 +83,7 @@ export async function startCrc(
         return true;
       }
     }
-    console.error(err);    
+    console.error(err);
     provider.updateStatus('stopped');
     throw new Error(`${productName} start error: ${err}`);
   }
diff --git a/src/extension.ts b/src/extension.ts
index 2a69339..16e062b 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -37,9 +37,9 @@ import { registerOpenTerminalCommand } from './dev-terminal';
 import { commandManager } from './command';
 import { registerOpenConsoleCommand } from './crc-console';
 import { registerLogInCommands } from './login-commands';
-import { defaultLogger } from './logger';
 import { pushImageToCrcCluster } from './image-handler';
 import type { Preset } from './types';
+import { needSetup, setUpCrc } from './crc-setup';
 
 const CRC_PUSH_IMAGE_TO_CLUSTER = 'crc.image.push.to.cluster';
 const CRC_PRESET_KEY = 'crc.crcPreset';
@@ -220,9 +220,7 @@ function registerProviderConnectionFactory(
 ): void {
   connectionFactoryDisposable = provider.setKubernetesProviderConnectionFactory(
     {
-      initialize: async () => {
-        await createCrcVm(provider, extensionContext, telemetryLogger, defaultLogger);
-      },
+      initialize: () => initializeCrc(provider, extensionContext, telemetryLogger),
       create: async (params, logger) => {
         await presetChanged(provider, extensionContext, telemetryLogger);
         await saveConfig(params);
@@ -258,16 +256,38 @@ async function createCrcVm(
   }
 }
 
+async function initializeCrc(
+  provider: extensionApi.Provider,
+  extensionContext: extensionApi.ExtensionContext,
+  telemetryLogger: extensionApi.TelemetryLogger,
+): Promise<void> {
+  const hasSetupFinished = await setUpCrc(true);
+  if (!hasSetupFinished) {
+    throw new Error(`Failed at initializing ${productName}`);
+  }
+
+  await needSetup();
+  await connectToCrc();
+  await presetChanged(provider, extensionContext, telemetryLogger);
+  addCommands(telemetryLogger);
+  await syncPreferences(provider, extensionContext, telemetryLogger);
+  return presetChanged(provider, extensionContext, telemetryLogger);
+}
+
 function addCommands(telemetryLogger: extensionApi.TelemetryLogger): void {
-  registerOpenTerminalCommand();
-  registerOpenConsoleCommand();
-  registerLogInCommands();
-  registerDeleteCommand();
-
-  commandManager.addCommand(CRC_PUSH_IMAGE_TO_CLUSTER, image => {
-    telemetryLogger.logUsage('pushImage');
-    return pushImageToCrcCluster(image);
-  });
+  try {
+    registerOpenTerminalCommand();
+    registerOpenConsoleCommand();
+    registerLogInCommands();
+    registerDeleteCommand();
+
+    commandManager.addCommand(CRC_PUSH_IMAGE_TO_CLUSTER, image => {
+      telemetryLogger.logUsage('pushImage');
+      pushImageToCrcCluster(image);
+    });
+  } catch (e) {
+    // do nothing
+  }
 }
 
 function deleteCommands(): void {
@@ -335,7 +355,7 @@ function registerOpenShiftLocalCluster(
       } catch (e) {
         logger.error(e);
         throw e;
-      }      
+      }
     },
     stop: () => {
       provider.updateStatus('stopping');
@@ -406,6 +426,6 @@ async function presetChanged(
     // podman connection
     registerPodmanConnection(provider, extensionContext);
   } else if (preset === 'openshift' || preset === 'microshift') {
-    registerOpenShiftLocalCluster(getPresetLabel(preset), provider, extensionContext, telemetryLogger);
+    await registerOpenShiftLocalCluster(getPresetLabel(preset), provider, extensionContext, telemetryLogger);
   }
 }
diff --git a/src/util.spec.ts b/src/util.spec.ts
index 74ed568..a01153c 100644
--- a/src/util.spec.ts
+++ b/src/util.spec.ts
@@ -21,23 +21,23 @@ import { expect, test, vi } from 'vitest';
 import { getLoggerCallback } from './util';
 
 test('check logger passed to getLoggerCallback is actually called with data', async () => {
-    const logMock = vi.fn();
-    const logger = {
-        log: logMock,
-    } as unknown as extensionApi.Logger;
-    const callback = getLoggerCallback(undefined, logger);
-    callback('data');
-    expect(logMock).toBeCalledWith('data');
+  const logMock = vi.fn();
+  const logger = {
+    log: logMock,
+  } as unknown as extensionApi.Logger;
+  const callback = getLoggerCallback(undefined, logger);
+  callback('data');
+  expect(logMock).toBeCalledWith('data');
 });
 
 test('check logger passed to getLoggerCallback is actually called with data', async () => {
-    const logMock = vi.fn();
-    const context = {
-        log: {
-            log: logMock,
-        },
-    } as unknown as extensionApi.LifecycleContext;
-    const callback = getLoggerCallback(context);
-    callback('data2');
-    expect(logMock).toBeCalledWith('data2');
-});
\ No newline at end of file
+  const logMock = vi.fn();
+  const context = {
+    log: {
+      log: logMock,
+    },
+  } as unknown as extensionApi.LifecycleContext;
+  const callback = getLoggerCallback(context);
+  callback('data2');
+  expect(logMock).toBeCalledWith('data2');
+});