diff --git a/cmd/argocd/commands/admin/dashboard.go b/cmd/argocd/commands/admin/dashboard.go
index 52a14a42d7a63..c75476ea8eb2d 100644
--- a/cmd/argocd/commands/admin/dashboard.go
+++ b/cmd/argocd/commands/admin/dashboard.go
@@ -28,7 +28,7 @@ func NewDashboardCommand() *cobra.Command {
 
 			compression, err := cache.CompressionTypeFromString(compressionStr)
 			errors.CheckError(err)
-			errors.CheckError(headless.StartLocalServer(ctx, &argocdclient.ClientOptions{Core: true}, initialize.RetrieveContextIfChanged(cmd.Flag("context")), &port, &address, compression))
+			errors.CheckError(headless.MaybeStartLocalServer(ctx, &argocdclient.ClientOptions{Core: true}, initialize.RetrieveContextIfChanged(cmd.Flag("context")), &port, &address, compression))
 			println(fmt.Sprintf("Argo CD UI is available at http://%s:%d", address, port))
 			<-ctx.Done()
 		},
diff --git a/cmd/argocd/commands/headless/headless.go b/cmd/argocd/commands/headless/headless.go
index bf893ef76ecbe..b375dfdc161e0 100644
--- a/cmd/argocd/commands/headless/headless.go
+++ b/cmd/argocd/commands/headless/headless.go
@@ -145,13 +145,17 @@ func testAPI(ctx context.Context, clientOpts *apiclient.ClientOptions) error {
 	return fmt.Errorf("failed to get version: %w", err)
 }
 
-// StartLocalServer allows executing command in a headless mode: on the fly starts Argo CD API server and
-// changes provided client options to use started API server port
-func StartLocalServer(ctx context.Context, clientOpts *apiclient.ClientOptions, ctxStr string, port *int, address *string, compression cache.RedisCompressionType) error {
+// MaybeStartLocalServer allows executing command in a headless mode. If we're in core mode, starts the Argo CD API
+// server on the fly and changes provided client options to use started API server port.
+//
+// If the clientOpts enables core mode, but the local config does not have core mode enabled, this function will
+// not start the local server.
+func MaybeStartLocalServer(ctx context.Context, clientOpts *apiclient.ClientOptions, ctxStr string, port *int, address *string, compression cache.RedisCompressionType) error {
 	flags := pflag.NewFlagSet("tmp", pflag.ContinueOnError)
 	clientConfig := cli.AddKubectlFlagsToSet(flags)
 	startInProcessAPI := clientOpts.Core
 	if !startInProcessAPI {
+		// Core mode is enabled on client options. Check the local config to see if we should start the API server.
 		localCfg, err := localconfig.ReadLocalConfig(clientOpts.ConfigPath)
 		if err != nil {
 			return fmt.Errorf("error reading local config: %w", err)
@@ -161,9 +165,11 @@ func StartLocalServer(ctx context.Context, clientOpts *apiclient.ClientOptions,
 			if err != nil {
 				return fmt.Errorf("error resolving context: %w", err)
 			}
+			// There was a local config file, so determine whether core mode is enabled per the config file.
 			startInProcessAPI = configCtx.Server.Core
 		}
 	}
+	// If we're in core mode, start the API server on the fly.
 	if !startInProcessAPI {
 		return nil
 	}
@@ -251,7 +257,9 @@ func NewClientOrDie(opts *apiclient.ClientOptions, c *cobra.Command) apiclient.C
 	ctx := c.Context()
 
 	ctxStr := initialize.RetrieveContextIfChanged(c.Flag("context"))
-	err := StartLocalServer(ctx, opts, ctxStr, nil, nil, cache.RedisCompressionNone)
+	// If we're in core mode, start the API server on the fly and configure the client `opts` to use it.
+	// If we're not in core mode, this function call will do nothing.
+	err := MaybeStartLocalServer(ctx, opts, ctxStr, nil, nil, cache.RedisCompressionNone)
 	if err != nil {
 		log.Fatal(err)
 	}