diff --git a/packages/compass/src/main/application.ts b/packages/compass/src/main/application.ts
index eac65757320..e2e825df106 100644
--- a/packages/compass/src/main/application.ts
+++ b/packages/compass/src/main/application.ts
@@ -165,7 +165,6 @@ class CompassApplication {
     }
     await setupCSFLELibrary();
     setupTheme(this);
-    this.setupJavaScriptArguments();
     this.setupLifecycleListeners();
     this.setupApplicationMenu();
     this.setupWindowManager();
@@ -186,12 +185,6 @@ class CompassApplication {
     });
   }
 
-  private static setupJavaScriptArguments(): void {
-    // For Linux users with drivers that are avoided by Chromium we disable the
-    // GPU check to attempt to bypass the disabled WebGL settings.
-    app.commandLine.appendSwitch('ignore-gpu-blacklist', 'true');
-  }
-
   private static setupAutoUpdate(): void {
     CompassAutoUpdateManager.init(this);
   }
diff --git a/packages/compass/src/setup-hadron-distribution.ts b/packages/compass/src/setup-hadron-distribution.ts
index ea8ba62212a..5dfd772c682 100644
--- a/packages/compass/src/setup-hadron-distribution.ts
+++ b/packages/compass/src/setup-hadron-distribution.ts
@@ -32,6 +32,38 @@ if (
   // type `browser` indicates that we are in the main electron process
   process.type === 'browser'
 ) {
+  if (process.platform === 'linux') {
+    const isLibsecretInstalled = () => {
+      try {
+        process.dlopen({ exports: {} }, 'libsecret-1.so.0');
+        return true;
+      } catch (err: any) {
+        return err && err.message?.includes('did not self-register');
+      }
+    };
+
+    // For Linux users with drivers that are avoided by Chromium we disable the
+    // GPU check to attempt to bypass the disabled WebGL settings.
+    app.commandLine.appendSwitch('ignore-gpu-blacklist', 'true');
+
+    /**
+     * Default password store detection in Chromium relies on pre-defined set of
+     * values for XDG_CURRENT_DESKTOP env var. Even if the store is installed
+     * correctly, Chromium might fail to detect that. To try to work around that
+     * we explicitly set password-store to gnome-libsecret for any linux
+     * platform (we list gnome-keyring as a dependency for all compass
+     * installers on linux)
+     *
+     * @see {@link https://github.com/microsoft/vscode/issues/185212#issuecomment-1593271415}
+     */
+    if (
+      app.commandLine.hasSwitch('password-store') === false &&
+      isLibsecretInstalled()
+    ) {
+      app.commandLine.appendSwitch('password-store', 'gnome-libsecret');
+    }
+  }
+
   // Name and version are setup outside of Application and before anything else
   // so that if uncaught exception happens we already show correct name and
   // version