diff --git a/build.gradle.kts b/build.gradle.kts
index f85c1fb88..df20e94aa 100644
--- a/build.gradle.kts
+++ b/build.gradle.kts
@@ -133,6 +133,7 @@ dependencies {
     }
   }
 
+  implementation("com.typesafe:config:1.4.3")
   implementation("org.commonmark:commonmark:0.22.0")
   implementation("org.commonmark:commonmark-ext-gfm-tables:0.22.0")
   implementation("org.eclipse.lsp4j:org.eclipse.lsp4j.jsonrpc:0.23.1")
diff --git a/gradle.properties b/gradle.properties
index 1c4fb4c21..d54150100 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -24,4 +24,4 @@ kotlin.daemon.jvmargs=-Xmx2g -Xms500m
 nodeBinaries.commit=8755ae4c05fd476cd23f2972049111ba436c86d4
 nodeBinaries.version=v20.12.2
 cody.autocomplete.enableFormatting=true
-cody.commit=23af99f690659084d820461a73a6fb094e52e998
+cody.commit=5dccf8dc97191083cc3fe2209b11edb0ebea0017
diff --git a/src/main/kotlin/com/sourcegraph/config/ConfigUtil.kt b/src/main/kotlin/com/sourcegraph/config/ConfigUtil.kt
index 93abe6a55..c7074348a 100644
--- a/src/main/kotlin/com/sourcegraph/config/ConfigUtil.kt
+++ b/src/main/kotlin/com/sourcegraph/config/ConfigUtil.kt
@@ -1,7 +1,6 @@
 package com.sourcegraph.config
 
 import com.google.gson.JsonObject
-import com.google.gson.JsonParser
 import com.intellij.ide.plugins.PluginManagerCore
 import com.intellij.openapi.diagnostic.Logger
 import com.intellij.openapi.editor.Editor
@@ -17,6 +16,9 @@ import com.sourcegraph.cody.config.CodyAuthenticationManager
 import com.sourcegraph.cody.config.ServerAuthLoader
 import com.sourcegraph.cody.config.SourcegraphServerPath
 import com.sourcegraph.cody.config.SourcegraphServerPath.Companion.from
+import com.typesafe.config.ConfigFactory
+import com.typesafe.config.ConfigRenderOptions
+import com.typesafe.config.ConfigValueFactory
 import java.nio.file.Path
 import java.nio.file.Paths
 import kotlin.io.path.readText
@@ -80,7 +82,7 @@ object ConfigUtil {
             UserLevelConfig.getAutocompleteProviderType()?.vscodeSettingString(),
         debug = isCodyDebugEnabled(),
         verboseDebug = isCodyVerboseDebugEnabled(),
-        customConfiguration = getCustomConfiguration(project, customConfigContent),
+        customConfigurationJson = getCustomConfiguration(project, customConfigContent),
     )
   }
 
@@ -131,22 +133,23 @@ object ConfigUtil {
   }
 
   @JvmStatic
-  fun getCustomConfiguration(project: Project, customConfigContent: String?): Map<String, Any> {
-    val settingsProperties =
-        try {
-          val text = customConfigContent ?: getSettingsFile(project).readText()
-          val jsonObj = JsonParser.parseString(text).asJsonObject
-          jsonObj.keySet().associateWith { jsonObj[it] }
-        } catch (e: Exception) {
-          logger.info("No user defined settings file found. Proceeding with empty custom config")
-          emptyMap()
-        }
+  fun getCustomConfiguration(project: Project, customConfigContent: String?): String {
     // Needed by Edit commands to trigger smart-selection; without it things break.
     // So it isn't optional in JetBrains clients, which do not offer language-neutral solutions
     // to this problem; instead we hardwire it to use the indentation-based provider.
     val additionalProperties = mapOf("cody.experimental.foldingRanges" to "indentation-based")
 
-    return settingsProperties + additionalProperties
+    return try {
+      val text = customConfigContent ?: getSettingsFile(project).readText()
+      val config = ConfigFactory.parseString(text).resolve()
+      additionalProperties.forEach { (key, value) ->
+        config.withValue(key, ConfigValueFactory.fromAnyRef(value))
+      }
+      config.root().render(ConfigRenderOptions.defaults().setOriginComments(false))
+    } catch (e: Exception) {
+      logger.info("No user defined settings file found. Proceeding with empty custom config")
+      ""
+    }
   }
 
   @JvmStatic