diff --git a/packages/pyright-internal/src/analyzer/analysis.ts b/packages/pyright-internal/src/analyzer/analysis.ts
index a4d3a0996..ce99e64b2 100644
--- a/packages/pyright-internal/src/analyzer/analysis.ts
+++ b/packages/pyright-internal/src/analyzer/analysis.ts
@@ -26,7 +26,6 @@ export interface AnalysisResults {
     checkingOnlyOpenFiles: boolean;
     requiringAnalysisCount: RequiringAnalysisCount;
     fatalErrorOccurred: boolean;
-    configParseErrorOccurred: boolean;
     elapsedTime: number;
     error?: Error | undefined;
     reason: 'analysis' | 'tracking';
@@ -75,7 +74,6 @@ export function analyzeProgram(
                 requiringAnalysisCount: requiringAnalysisCount,
                 checkingOnlyOpenFiles: program.isCheckingOnlyOpenFiles(),
                 fatalErrorOccurred: false,
-                configParseErrorOccurred: false,
                 elapsedTime,
                 reason: 'analysis',
             });
@@ -94,7 +92,6 @@ export function analyzeProgram(
             requiringAnalysisCount: { files: 0, cells: 0 },
             checkingOnlyOpenFiles: true,
             fatalErrorOccurred: true,
-            configParseErrorOccurred: false,
             elapsedTime: 0,
             error: debug.getSerializableError(e),
             reason: 'analysis',
diff --git a/packages/pyright-internal/src/analyzer/backgroundAnalysisProgram.ts b/packages/pyright-internal/src/analyzer/backgroundAnalysisProgram.ts
index 0a9b261ea..066081456 100644
--- a/packages/pyright-internal/src/analyzer/backgroundAnalysisProgram.ts
+++ b/packages/pyright-internal/src/analyzer/backgroundAnalysisProgram.ts
@@ -273,7 +273,6 @@ export class BackgroundAnalysisProgram {
                 requiringAnalysisCount: this._program.getFilesToAnalyzeCount(),
                 checkingOnlyOpenFiles: this._program.isCheckingOnlyOpenFiles(),
                 fatalErrorOccurred: false,
-                configParseErrorOccurred: false,
                 elapsedTime: 0,
                 reason: 'tracking',
             });
diff --git a/packages/pyright-internal/src/analyzer/service.ts b/packages/pyright-internal/src/analyzer/service.ts
index 6edbf740a..6a1a6a47e 100644
--- a/packages/pyright-internal/src/analyzer/service.ts
+++ b/packages/pyright-internal/src/analyzer/service.ts
@@ -1178,7 +1178,6 @@ export class AnalyzerService {
                 fileContents = this.fs.readFileSync(fileUri, 'utf8');
             } catch {
                 this._console.error(`Config file "${fileUri.toUserVisibleString()}" could not be read.`);
-                this._reportConfigParseError();
                 return undefined;
             }
 
@@ -1201,7 +1200,6 @@ export class AnalyzerService {
                 this._console.error(
                     `Config file "${fileUri.toUserVisibleString()}" could not be parsed. Verify that format is correct.`
                 );
-                this._reportConfigParseError();
                 return undefined;
             }
         }
@@ -1920,19 +1918,4 @@ export class AnalyzerService {
             this.runAnalysis(this._backgroundAnalysisCancellationSource.token);
         }, timeUntilNextAnalysisInMs);
     }
-
-    private _reportConfigParseError() {
-        if (this._onCompletionCallback) {
-            this._onCompletionCallback({
-                diagnostics: [],
-                filesInProgram: 0,
-                requiringAnalysisCount: { files: 0, cells: 0 },
-                checkingOnlyOpenFiles: true,
-                fatalErrorOccurred: false,
-                configParseErrorOccurred: true,
-                elapsedTime: 0,
-                reason: 'analysis',
-            });
-        }
-    }
 }
diff --git a/packages/pyright-internal/src/backgroundAnalysisBase.ts b/packages/pyright-internal/src/backgroundAnalysisBase.ts
index abba67732..d56211900 100644
--- a/packages/pyright-internal/src/backgroundAnalysisBase.ts
+++ b/packages/pyright-internal/src/backgroundAnalysisBase.ts
@@ -560,7 +560,6 @@ export abstract class BackgroundAnalysisRunnerBase extends BackgroundThreadBase
             requiringAnalysisCount: requiringAnalysisCount,
             checkingOnlyOpenFiles: this.program.isCheckingOnlyOpenFiles(),
             fatalErrorOccurred: false,
-            configParseErrorOccurred: false,
             elapsedTime: 0,
             reason: 'analysis',
         });
@@ -763,7 +762,6 @@ export abstract class BackgroundAnalysisRunnerBase extends BackgroundThreadBase
                 requiringAnalysisCount: requiringAnalysisCount,
                 checkingOnlyOpenFiles: this.program.isCheckingOnlyOpenFiles(),
                 fatalErrorOccurred: false,
-                configParseErrorOccurred: false,
                 elapsedTime,
                 reason: 'tracking',
             });
diff --git a/packages/pyright-internal/src/pyright.ts b/packages/pyright-internal/src/pyright.ts
index 6a43e89d0..229c68ad0 100644
--- a/packages/pyright-internal/src/pyright.ts
+++ b/packages/pyright-internal/src/pyright.ts
@@ -543,23 +543,11 @@ const outputResults = (
  * checks for errors parsing config files and / or the baseline file and exits with a non-zero exit code
  * if there were any
  */
-const checkForErrors = (
-    exitStatus: Deferred<ExitStatus>,
-    configParseErrorOccurred: boolean,
-    console: ConsoleInterface
-): boolean => {
+const checkForErrors = (exitStatus: Deferred<ExitStatus>, console: ConsoleInterface) => {
     if (console instanceof StandardConsole && console.errorWasLogged) {
         console.errorWasLogged = false;
         exitStatus.resolve(ExitStatus.ConfigFileParseError);
-        return true;
-    }
-    // in basedpyright configParseErrorOccurred is redundant since we track the errors in the StandardConsole
-    // but we keep it just in case an upstream change relies on it without also calling console.error
-    if (configParseErrorOccurred) {
-        exitStatus.resolve(ExitStatus.ConfigFileParseError);
-        return true;
     }
-    return false;
 };
 
 async function runSingleThreaded(
@@ -579,9 +567,7 @@ async function runSingleThreaded(
             return;
         }
 
-        if (checkForErrors(exitStatus, results.configParseErrorOccurred, output)) {
-            return;
-        }
+        checkForErrors(exitStatus, output);
 
         const errorCount =
             args.createstub || args.verifytypes
@@ -774,9 +760,7 @@ async function runMultiThreaded(
                         return;
                     }
 
-                    if (checkForErrors(exitStatus, results.configParseErrorOccurred, console)) {
-                        return;
-                    }
+                    checkForErrors(exitStatus, console);
 
                     for (const fileDiag of results.diagnostics) {
                         fileDiagnostics.push(FileDiagnostics.fromJsonObj(fileDiag));
diff --git a/packages/pyright-internal/src/tests/config.test.ts b/packages/pyright-internal/src/tests/config.test.ts
index d193304f7..c5f30719d 100644
--- a/packages/pyright-internal/src/tests/config.test.ts
+++ b/packages/pyright-internal/src/tests/config.test.ts
@@ -398,8 +398,7 @@ test('both pyright and basedpyright in pyproject.toml', () => {
         'src/tests/samples/project_with_both_config_sections_in_pyproject_toml'
     );
     assert.strictEqual(configOptions.defaultPythonVersion!, undefined);
-    assert(analysisResult?.configParseErrorOccurred);
-    assert(!analysisResult.fatalErrorOccurred);
+    assert(!analysisResult?.fatalErrorOccurred);
 });
 
 test('invalid option value in pyproject.toml', () => {