diff --git a/src/service-override/files.ts b/src/service-override/files.ts
index 4133f022..ab7eb045 100644
--- a/src/service-override/files.ts
+++ b/src/service-override/files.ts
@@ -56,7 +56,7 @@ import { BrowserElevatedFileService } from 'vs/workbench/services/files/browser/
 import { IElevatedFileService } from 'vs/workbench/services/files/common/elevatedFileService.service'
 import * as resources from 'vs/base/common/resources'
 import { VSBuffer } from 'vs/base/common/buffer'
-import { type ReadableStreamEvents, listenStream, newWriteableStream } from 'vs/base/common/stream'
+import { type ReadableStreamEvents, newWriteableStream } from 'vs/base/common/stream'
 import { CancellationToken } from 'vs/base/common/cancellation'
 import { checkServicesNotInitialized, registerServiceInitializePreParticipant } from '../lifecycle'
 import { logsPath } from '../workbench'
@@ -762,8 +762,8 @@ class OverlayFileSystemProvider
     FileSystemProviderCapabilities.FileReadStream |
     FileSystemProviderCapabilities.FileAppend
 
-  private async readFromDelegates<T>(
-    caller: (delegate: IFileSystemProviderWithFileReadWriteCapability) => Promise<T>,
+  private readFromDelegates<T>(
+    caller: (delegate: IFileSystemProviderWithFileReadWriteCapability) => T,
     token?: CancellationToken
   ) {
     if (this.delegates.length === 0) {
@@ -775,7 +775,7 @@ class OverlayFileSystemProvider
         throw new Error('Cancelled')
       }
       try {
-        return await caller(delegate)
+        return caller(delegate)
       } catch (err) {
         errors.push(err)
         if (err instanceof FileSystemProviderError) {
@@ -859,48 +859,29 @@ class OverlayFileSystemProvider
     opts: IFileReadStreamOptions,
     token: CancellationToken
   ): ReadableStreamEvents<Uint8Array> {
-    const writableStream = newWriteableStream<Uint8Array>(
-      (data) => VSBuffer.concat(data.map((data) => VSBuffer.wrap(data))).buffer
-    )
-    this.readFromDelegates(async (delegate) => {
+    return this.readFromDelegates<ReadableStreamEvents<Uint8Array>>((delegate) => {
       if (hasFileReadStreamCapability(delegate)) {
-        const stream = delegate.readFileStream(resource, opts, token)
-        await new Promise<void>((resolve, reject) => {
-          let dataReceived = false
-          listenStream(
-            stream,
-            {
-              onData(data) {
-                dataReceived = true
-                void writableStream.write(data)
-              },
-              onEnd() {
-                writableStream.end()
-                resolve()
-              },
-              onError(err) {
-                if (!dataReceived) {
-                  reject(err)
-                } else {
-                  writableStream.error(err)
-                }
-              }
-            },
-            token
-          )
-        })
+        return delegate.readFileStream(resource, opts, token)
       } else {
-        let data = await this.readFile(resource)
-        if (typeof opts.position === 'number' || typeof opts.length === 'number') {
-          data = data.slice(opts.position ?? 0, opts.length)
-        }
-        return writableStream.end(data)
-      }
-    }, token).catch((err) => {
-      writableStream.error(err)
-    })
+        const writableStream = newWriteableStream<Uint8Array>(
+          (data) => VSBuffer.concat(data.map((data) => VSBuffer.wrap(data))).buffer
+        )
+        ;(async () => {
+          try {
+            let data = await this.readFile(resource)
+            if (typeof opts.position === 'number' || typeof opts.length === 'number') {
+              data = data.slice(opts.position ?? 0, opts.length)
+            }
 
-    return writableStream
+            writableStream.end(data)
+          } catch (err) {
+            writableStream.error(err as Error)
+          }
+        })()
+
+        return writableStream
+      }
+    }, token)
   }
 
   async readdir(resource: URI): Promise<[string, FileType][]> {