diff --git a/src/compiler/sys.ts b/src/compiler/sys.ts
index 2b8b376d34059..ca1b0ba458d90 100644
--- a/src/compiler/sys.ts
+++ b/src/compiler/sys.ts
@@ -965,7 +965,7 @@ export function createSystemWatchFunctions({
             ];
         sysLog(`Enabling watchFactory ${isString(options.watchFactory) ? options.watchFactory : JSON.stringify(options.watchFactory)} from candidate paths: ${searchPaths.join(",")}`);
         const { resolvedModule, errorLogs, pluginConfigEntry } = resolveModule<UserWatchFactoryModule>(
-            isString(options.watchFactory) ? { name: options.watchFactory } : options.watchFactory,
+            getWatchFactoryPlugin(options),
             searchPaths,
             getSystem(),
             sysLog
@@ -983,6 +983,11 @@ export function createSystemWatchFunctions({
         return setUserWatchFactory(options, /*userWatchFactory*/ undefined);
     }
 
+    function getWatchFactoryPlugin(options: WatchOptions) {
+        const plugin = isString(options.watchFactory) ? { name: options.watchFactory } : options.watchFactory!;
+        return options.getHost?.().getPluginWithConfigOverride(plugin) || plugin;
+    }
+
     function setUserWatchFactory(options: WatchOptions, userWatchFactory: UserWatchFactory | undefined) {
         setWatchOptionInternalProperty(options, "getResolvedWatchFactory", userWatchFactory ? () => userWatchFactory : returnUndefined);
         return userWatchFactory;
diff --git a/src/compiler/types.ts b/src/compiler/types.ts
index 06f4c1e43239b..bad44d2c94fce 100644
--- a/src/compiler/types.ts
+++ b/src/compiler/types.ts
@@ -6790,6 +6790,7 @@ export interface UserWatchFactory {
 /**@internal*/
 export interface WatchOptionsFactoryHost {
     searchPaths: readonly string[];
+    getPluginWithConfigOverride(plugin: PluginImport): PluginImport;
 }
 export interface WatchOptions {
     watchFile?: WatchFileKind;
diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index ede9f375d48b4..e9e4c387f4080 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -827,7 +827,7 @@ export class ProjectService {
     public readonly pluginProbeLocations: readonly string[];
     public readonly allowLocalPluginLoads: boolean;
     /** @internal */
-    currentPluginConfigOverrides: Map<string, any> | undefined;
+    private currentPluginConfigOverrides: Map<string, any> | undefined;
 
     public readonly typesMapLocation: string | undefined;
 
@@ -3138,7 +3138,8 @@ export class ProjectService {
     /** @internal */
     private setWatchOptionsFactoryHost(options: WatchOptions, canonicalConfigFilePath: NormalizedPath | undefined) {
         setWatchOptionInternalProperty(options, "getHost", memoize(() => ({
-            searchPaths: this.getProjectPluginSearchPaths(canonicalConfigFilePath)
+            searchPaths: this.getProjectPluginSearchPaths(canonicalConfigFilePath),
+            getPluginWithConfigOverride: plugin => this.getPluginWithConfigOverride(plugin),
         })));
     }
 
@@ -4185,6 +4186,18 @@ export class ProjectService {
         return searchPaths;
     }
 
+    /** @internal */
+    getPluginWithConfigOverride(pluginConfigEntry: PluginImport) {
+        const configurationOverride = this.currentPluginConfigOverrides?.get(pluginConfigEntry.name);
+        if (configurationOverride) {
+            // Preserve the name property since it's immutable
+            const pluginName = pluginConfigEntry.name;
+            pluginConfigEntry = configurationOverride;
+            pluginConfigEntry.name = pluginName;
+        }
+        return pluginConfigEntry;
+    }
+
     /** @internal */
     requestEnablePlugin(project: Project, pluginConfigEntry: PluginImport, searchPaths: string[]) {
         if (!this.host.importPlugin && !this.host.require) {
diff --git a/src/server/project.ts b/src/server/project.ts
index ba114dcaa3153..5a2df5b916c21 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -1679,15 +1679,7 @@ export abstract class Project implements LanguageServiceHost, ModuleResolutionHo
      */
     endEnablePlugin({ pluginConfigEntry, resolvedModule, errorLogs }: BeginEnablePluginResult) {
         if (resolvedModule) {
-            const configurationOverride = this.projectService.currentPluginConfigOverrides?.get(pluginConfigEntry.name);
-            if (configurationOverride) {
-                // Preserve the name property since it's immutable
-                const pluginName = pluginConfigEntry.name;
-                pluginConfigEntry = configurationOverride;
-                pluginConfigEntry.name = pluginName;
-            }
-
-            this.enableProxy(resolvedModule, pluginConfigEntry);
+            this.enableProxy(resolvedModule, this.projectService.getPluginWithConfigOverride(pluginConfigEntry));
         }
         else {
             forEach(errorLogs, message => this.projectService.logger.info(message));
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js
index 92d0e23a09c57..2f49d677d34f8 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js
@@ -139,7 +139,7 @@ Info 10   [00:00:33.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 11   [00:00:34.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 12   [00:00:35.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Info 13   [00:00:36.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js
index 3509086b80dad..bdb5b79b13d61 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js
@@ -136,7 +136,7 @@ Info 10   [00:00:33.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 11   [00:00:34.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 12   [00:00:35.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin"} and options: {"watchFactory":"myplugin"}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":"myplugin"}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"}
 Info 13   [00:00:36.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-object.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-object.js
index 92d0e23a09c57..2f49d677d34f8 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-object.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride-object.js
@@ -139,7 +139,7 @@ Info 10   [00:00:33.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 11   [00:00:34.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 12   [00:00:35.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Info 13   [00:00:36.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride.js
index 3509086b80dad..bdb5b79b13d61 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-as-configuration-of-host-with-pluginOverride.js
@@ -136,7 +136,7 @@ Info 10   [00:00:33.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 11   [00:00:34.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 12   [00:00:35.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin"} and options: {"watchFactory":"myplugin"}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":"myplugin"}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"}
 Info 13   [00:00:36.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js
index df5c2499c5a5d..26e56b2eea8c7 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads-object.js
@@ -218,7 +218,7 @@ Info 13   [00:00:36.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 14   [00:00:37.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 15   [00:00:38.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin2 from /a/pluginprobe1/node_modules
-Require:: Module myplugin2 created with config: {"name":"myplugin2","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}}
+Require:: Module myplugin2 created with config: {"init2":"initialConfig2","name":"myplugin2"} and options: {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}}
 Custom myplugin2watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}}
 Info 16   [00:00:39.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
@@ -239,7 +239,7 @@ Info 17   [00:00:40.000] FileWatcher:: Close:: WatchInfo: /user/username/project
 Info 18   [00:00:41.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 19   [00:00:42.000] Local plugin loading enabled; adding /user/username/projects/myproject to search paths
 CustomRequire:: Resolving myplugin from /user/username/projects/myproject/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Info 20   [00:00:43.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js
index 16a9edb829c5d..eb795f2c68600 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-allowLocalPluginLoads.js
@@ -215,7 +215,7 @@ Info 13   [00:00:36.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 14   [00:00:37.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 15   [00:00:38.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin2"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin2 from /a/pluginprobe1/node_modules
-Require:: Module myplugin2 created with config: {"name":"myplugin2"} and options: {"watchFactory":"myplugin2"}
+Require:: Module myplugin2 created with config: {"init2":"initialConfig2","name":"myplugin2"} and options: {"watchFactory":"myplugin2"}
 Custom myplugin2watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin2"}
 Info 16   [00:00:39.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
@@ -233,7 +233,7 @@ Info 17   [00:00:40.000] FileWatcher:: Close:: WatchInfo: /user/username/project
 Info 18   [00:00:41.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 19   [00:00:42.000] Local plugin loading enabled; adding /user/username/projects/myproject to search paths
 CustomRequire:: Resolving myplugin from /user/username/projects/myproject/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin"} and options: {"watchFactory":"myplugin"}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":"myplugin"}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"}
 Info 20   [00:00:43.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":"myplugin"} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":"myplugin"}
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-object.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-object.js
index fe6e9777a99a2..205d60b6ce4d9 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-object.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride-object.js
@@ -218,7 +218,7 @@ Info 13   [00:00:36.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 14   [00:00:37.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 15   [00:00:38.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin2 from /a/pluginprobe1/node_modules
-Require:: Module myplugin2 created with config: {"name":"myplugin2","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}}
+Require:: Module myplugin2 created with config: {"init2":"initialConfig2","name":"myplugin2"} and options: {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}}
 Custom myplugin2watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}}
 Info 16   [00:00:39.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
@@ -238,7 +238,7 @@ Info 16   [00:00:39.000] Config: /user/username/projects/myproject/tsconfig.json
 Info 17   [00:00:40.000] FileWatcher:: Close:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin2","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 18   [00:00:41.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Info 19   [00:00:42.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride.js
index c8193b44cc2a3..e64c5caba4018 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-as-well-as-configuration-of-host-with-pluginOverride.js
@@ -215,7 +215,7 @@ Info 13   [00:00:36.000] For info: /user/username/projects/myproject/a.ts :: Con
 Info 14   [00:00:37.000] Creating configuration project /user/username/projects/myproject/tsconfig.json
 Info 15   [00:00:38.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin2"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin2 from /a/pluginprobe1/node_modules
-Require:: Module myplugin2 created with config: {"name":"myplugin2"} and options: {"watchFactory":"myplugin2"}
+Require:: Module myplugin2 created with config: {"init2":"initialConfig2","name":"myplugin2"} and options: {"watchFactory":"myplugin2"}
 Custom myplugin2watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin2"}
 Info 16   [00:00:39.000] Config: /user/username/projects/myproject/tsconfig.json : {
  "rootNames": [
@@ -232,7 +232,7 @@ Info 16   [00:00:39.000] Config: /user/username/projects/myproject/tsconfig.json
 Info 17   [00:00:40.000] FileWatcher:: Close:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin2"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 18   [00:00:41.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin"} and options: {"watchFactory":"myplugin"}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":"myplugin"}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"}
 Info 19   [00:00:42.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":"myplugin"} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":"myplugin"}
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads-object.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads-object.js
index 60469b30d7bf2..635eac849ac31 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads-object.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads-object.js
@@ -110,7 +110,7 @@ Info 10   [00:00:33.000] FileWatcher:: Close:: WatchInfo: /user/username/project
 Info 11   [00:00:34.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 12   [00:00:35.000] Local plugin loading enabled; adding /user/username/projects/myproject to search paths
 CustomRequire:: Resolving myplugin from /user/username/projects/myproject/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Info 13   [00:00:36.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads.js
index de0cdc243ae03..ddd5b7f28d6ad 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-allowLocalPluginLoads.js
@@ -107,7 +107,7 @@ Info 10   [00:00:33.000] FileWatcher:: Close:: WatchInfo: /user/username/project
 Info 11   [00:00:34.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 12   [00:00:35.000] Local plugin loading enabled; adding /user/username/projects/myproject to search paths
 CustomRequire:: Resolving myplugin from /user/username/projects/myproject/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin"} and options: {"watchFactory":"myplugin"}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":"myplugin"}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"}
 Info 13   [00:00:36.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":"myplugin"} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":"myplugin"}
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-object.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-object.js
index 218703f5afde3..0130352bef600 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-object.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride-object.js
@@ -109,7 +109,7 @@ Info 9    [00:00:32.000] Config: /user/username/projects/myproject/tsconfig.json
 Info 10   [00:00:33.000] FileWatcher:: Close:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 11   [00:00:34.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin","myconfig":"somethingelse"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
 Info 12   [00:00:35.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":{"name":"myplugin","myconfig":"somethingelse"}}
diff --git a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride.js b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride.js
index aa776fc21fc48..e76d9827439d9 100644
--- a/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride.js
+++ b/tests/baselines/reference/tsserver/watchEnvironment/watchFactory-in-config-file-with-pluginOverride.js
@@ -106,7 +106,7 @@ Info 9    [00:00:32.000] Config: /user/username/projects/myproject/tsconfig.json
 Info 10   [00:00:33.000] FileWatcher:: Close:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 undefined Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 Info 11   [00:00:34.000] FileWatcher:: Added:: WatchInfo: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"} Project: /user/username/projects/myproject/tsconfig.json WatchType: Config file
 CustomRequire:: Resolving myplugin from /a/pluginprobe1/node_modules
-Require:: Module myplugin created with config: {"name":"myplugin"} and options: {"watchFactory":"myplugin"}
+Require:: Module myplugin created with config: {"init":"initialConfig","name":"myplugin"} and options: {"watchFactory":"myplugin"}
 Custom watchFile: /user/username/projects/myproject/tsconfig.json 2000 {"watchFactory":"myplugin"}
 Info 12   [00:00:35.000] DirectoryWatcher:: Added:: WatchInfo: /user/username/projects/myproject 1 {"watchFactory":"myplugin"} Config: /user/username/projects/myproject/tsconfig.json WatchType: Wild card directory
 Custom watchDirectory: /user/username/projects/myproject true {"watchFactory":"myplugin"}