diff --git a/packages/zowe-explorer/__tests__/__unit__/extension.unit.test.ts b/packages/zowe-explorer/__tests__/__unit__/extension.unit.test.ts
index 02844adc82..d1a3631f85 100644
--- a/packages/zowe-explorer/__tests__/__unit__/extension.unit.test.ts
+++ b/packages/zowe-explorer/__tests__/__unit__/extension.unit.test.ts
@@ -351,6 +351,11 @@ async function createGlobalMocks() {
             "zowe.automaticProfileValidation": true,
         }),
     });
+    jest.spyOn(ProfilesUtils, "getProfileInfo").mockResolvedValue({
+        getTeamConfig: jest.fn().mockReturnValue({
+            exists: jest.fn(),
+        }),
+    } as any);
     Object.defineProperty(globalMocks.mockProfilesCache, "getProfileInfo", {
         value: jest.fn(() => {
             return { value: globalMocks.mockProfCacheProfileInfo, configurable: true };
diff --git a/packages/zowe-explorer/__tests__/__unit__/utils/ProfilesUtils.unit.test.ts b/packages/zowe-explorer/__tests__/__unit__/utils/ProfilesUtils.unit.test.ts
index 27c037fe82..2f20c7d619 100644
--- a/packages/zowe-explorer/__tests__/__unit__/utils/ProfilesUtils.unit.test.ts
+++ b/packages/zowe-explorer/__tests__/__unit__/utils/ProfilesUtils.unit.test.ts
@@ -1033,6 +1033,8 @@ describe("ProfilesUtils unit tests", () => {
                     { name: null, type: "zosmf", error: "failed" as any },
                 ],
             } as any);
+            jest.spyOn(ZoweLocalStorage, "getValue").mockReturnValue(Definitions.V1MigrationStatus.JustMigrated);
+            jest.spyOn(ZoweLocalStorage, "setValue").mockImplementation();
             Object.defineProperty(vscode.workspace, "openTextDocument", { value: jest.fn().mockReturnValue({}), configurable: true });
             Object.defineProperty(Gui, "showTextDocument", { value: jest.fn(), configurable: true });
             const onlyV1ProfsExistMock = new MockedProperty(imperative.ProfileInfo, "onlyV1ProfilesExist", {
@@ -1070,6 +1072,13 @@ describe("ProfilesUtils unit tests", () => {
 
         it("should prompt user if v1 profiles detected and Create New is selected", async () => {
             const mockReadProfilesFromDisk = jest.fn();
+            jest.spyOn(vscode.workspace, "getConfiguration").mockReturnValue({
+                persistent: true,
+                get: jest.fn(),
+                has: jest.fn(),
+                inspect: jest.fn(),
+                update: jest.fn(),
+            });
             const profInfoSpy = jest.spyOn(ProfilesUtils, "getProfileInfo").mockResolvedValue({
                 readProfilesFromDisk: mockReadProfilesFromDisk,
                 getTeamConfig: jest.fn().mockReturnValue([]),
@@ -1077,6 +1086,8 @@ describe("ProfilesUtils unit tests", () => {
             } as never);
             const infoMsgSpy = jest.spyOn(Gui, "infoMessage").mockResolvedValueOnce("Create New");
 
+            jest.spyOn(ZoweLocalStorage, "getValue").mockReturnValue(Definitions.V1MigrationStatus.JustMigrated);
+            jest.spyOn(ZoweLocalStorage, "setValue").mockImplementation();
             const onlyV1ProfsExistMock = new MockedProperty(imperative.ProfileInfo, "onlyV1ProfilesExist", {
                 configurable: true,
                 get: () => true,
@@ -1102,12 +1113,17 @@ describe("ProfilesUtils unit tests", () => {
             const executeCommandMock = jest.spyOn(vscode.commands, "executeCommand").mockImplementation();
             blockMocks.getValueMock.mockReturnValueOnce(Definitions.V1MigrationStatus.JustMigrated);
             blockMocks.setValueMock.mockImplementation();
+            jest.spyOn(ProfilesUtils, "getProfileInfo").mockResolvedValue({
+                getTeamConfig: jest.fn().mockReturnValue({ exists: false }),
+            } as any);
+            const onlyV1ProfilesExistMock = new MockedProperty(imperative.ProfileInfo, "onlyV1ProfilesExist", { get: () => true });
             const v1ProfileOptsMock = jest.spyOn(ProfilesUtils as any, "v1ProfileOptions").mockResolvedValue(ProfilesConvertStatus.CreateNewSelected);
             await ProfilesUtils.handleV1MigrationStatus();
             expect(executeCommandMock.mock.lastCall?.[0]).toBe("zowe.ds.addSession");
             expect(v1ProfileOptsMock).toHaveBeenCalled();
             blockMocks.getValueMock.mockRestore();
             blockMocks.setValueMock.mockRestore();
+            onlyV1ProfilesExistMock[Symbol.dispose]();
         });
 
         it("should reload the window once if the user just migrated from v1", async () => {
diff --git a/packages/zowe-explorer/src/utils/ProfilesUtils.ts b/packages/zowe-explorer/src/utils/ProfilesUtils.ts
index e3407a6005..a7369eaef5 100644
--- a/packages/zowe-explorer/src/utils/ProfilesUtils.ts
+++ b/packages/zowe-explorer/src/utils/ProfilesUtils.ts
@@ -367,15 +367,20 @@ export class ProfilesUtils {
         // VS Code registers our updated TreeView IDs. Otherwise, VS Code's "Refresh Extensions" option will break v3 init.
         const ussPersistentSettings = vscode.workspace.getConfiguration("Zowe-USS-Persistent");
         const upgradingFromV1 = ZoweLocalStorage.getValue<Definitions.V1MigrationStatus>(Definitions.LocalStorageKey.V1_MIGRATION_STATUS);
+        const mProfileInfo = await ProfilesUtils.getProfileInfo();
         if (ussPersistentSettings != null && upgradingFromV1 == null && imperative.ProfileInfo.onlyV1ProfilesExist) {
             await ZoweLocalStorage.setValue(Definitions.LocalStorageKey.V1_MIGRATION_STATUS, Definitions.V1MigrationStatus.JustMigrated);
             await vscode.commands.executeCommand("workbench.action.reloadWindow");
         }
-        const userSelection = imperative.ProfileInfo.onlyV1ProfilesExist ? await this.v1ProfileOptions() : undefined;
+
+        if (upgradingFromV1 == null || mProfileInfo.getTeamConfig().exists || !imperative.ProfileInfo.onlyV1ProfilesExist) {
+            return;
+        }
+        const userSelection = await this.v1ProfileOptions();
 
         // Open the "Add Session" quick pick if the user selected "Create New" in the v1 migration prompt.
         if (userSelection === ProfilesConvertStatus.CreateNewSelected) {
-            vscode.commands.executeCommand("zowe.ds.addSession", SharedTreeProviders.ds);
+            await vscode.commands.executeCommand("zowe.ds.addSession", SharedTreeProviders.ds);
         }
     }
 
@@ -563,10 +568,12 @@ export class ProfilesUtils {
         switch (selection) {
             case createButton:
                 ZoweLogger.info("Create new team configuration chosen.");
+                await ZoweLocalStorage.setValue(Definitions.LocalStorageKey.V1_MIGRATION_STATUS, undefined);
                 return ProfilesConvertStatus.CreateNewSelected;
             case convertButton:
                 ZoweLogger.info("Convert v1 profiles to team configuration chosen.");
                 await this.convertV1Profs();
+                await ZoweLocalStorage.setValue(Definitions.LocalStorageKey.V1_MIGRATION_STATUS, undefined);
                 return ProfilesConvertStatus.ConvertSelected;
             default:
                 return undefined;