diff --git a/src/session.ts b/src/session.ts
index a65484ecc1..ec2f3c0730 100644
--- a/src/session.ts
+++ b/src/session.ts
@@ -126,6 +126,8 @@ export class SessionManager implements Middleware {
 
         this.promptPowerShellExeSettingsCleanup();
 
+        this.migrateWhitespaceAroundPipeSetting();
+
         try {
             let powerShellExeDetails;
             if (this.sessionSettings.powerShellDefaultVersion) {
@@ -320,6 +322,18 @@ export class SessionManager implements Middleware {
             return resolvedCodeLens;
     }
 
+    // During preview, populate a new setting value but not remove the old value.
+    // TODO: When the next stable extension releases, then the old value can be safely removed. Tracked in this issue: https://github.com/PowerShell/vscode-powershell/issues/2693
+    private async migrateWhitespaceAroundPipeSetting() {
+        const configuration = vscode.workspace.getConfiguration(utils.PowerShellLanguageId);
+        const deprecatedSetting = 'codeFormatting.whitespaceAroundPipe'
+        if (configuration.has(deprecatedSetting) && !configuration.has('codeFormatting.addWhitespaceAroundPipe')) {
+            const configurationTarget = await Settings.getEffectiveConfigurationTarget(deprecatedSetting);
+            const value = configuration.get(deprecatedSetting, configurationTarget)
+            await Settings.change('codeFormatting.addWhitespaceAroundPipe', value, configurationTarget);
+        }
+    }
+
     private async promptPowerShellExeSettingsCleanup() {
         if (this.sessionSettings.powerShellExePath) {
             let warningMessage = "The 'powerShell.powerShellExePath' setting is no longer used. ";
diff --git a/src/settings.ts b/src/settings.ts
index a5f4cbd51e..5ed9fb6fdb 100644
--- a/src/settings.ts
+++ b/src/settings.ts
@@ -245,12 +245,32 @@ export function load(): ISettings {
     };
 }
 
-export async function change(settingName: string, newValue: any, global: boolean = false): Promise<void> {
-    const configuration: vscode.WorkspaceConfiguration =
-        vscode.workspace.getConfiguration(
-            utils.PowerShellLanguageId);
+// Get the ConfigurationTarget (read: scope) of where the *effective* setting value comes from
+export async function getEffectiveConfigurationTarget(settingName: string): Promise<vscode.ConfigurationTarget> {
+    const configuration = vscode.workspace.getConfiguration(utils.PowerShellLanguageId);
+
+    const detail = configuration.inspect(settingName);
+    let configurationTarget = null;
+    if (typeof detail.workspaceFolderValue !== "undefined") {
+        configurationTarget = vscode.ConfigurationTarget.WorkspaceFolder;
+    }
+    else if (typeof detail.workspaceValue !== "undefined") {
+        configurationTarget = vscode.ConfigurationTarget.Workspace;
+    }
+    else if (typeof detail.globalValue !== "undefined") {
+        configurationTarget = vscode.ConfigurationTarget.Global;
+    }
+    return configurationTarget;
+}
+
+export async function change(
+    settingName: string,
+    newValue: any,
+    configurationTarget?: vscode.ConfigurationTarget | boolean): Promise<void> {
+
+    const configuration = vscode.workspace.getConfiguration(utils.PowerShellLanguageId);
 
-    await configuration.update(settingName, newValue, global);
+    await configuration.update(settingName, newValue, configurationTarget);
 }
 
 function getWorkspaceSettingsWithDefaults<TSettings>(