diff --git a/vscode/src/ruby.ts b/vscode/src/ruby.ts
index 2fae0b124..24278f278 100644
--- a/vscode/src/ruby.ts
+++ b/vscode/src/ruby.ts
@@ -150,7 +150,6 @@ export class Ruby implements RubyInterface {
       }
 
       this.fetchRubyVersionInfo();
-      this.deleteGcEnvironmentVariables();
       await this.setupBundlePath();
       this._error = false;
     } catch (error: any) {
@@ -172,6 +171,8 @@ export class Ruby implements RubyInterface {
     const { env, version, yjit } = await manager.activate();
     const [major, minor, _patch] = version.split(".").map(Number);
 
+    this.sanitizeEnvironment(env);
+
     // We need to set the process environment too to make other extensions such as Sorbet find the right Ruby paths
     process.env = env;
     this._env = env;
@@ -240,12 +241,20 @@ export class Ruby implements RubyInterface {
     }
   }
 
-  private deleteGcEnvironmentVariables() {
-    Object.keys(this._env).forEach((key) => {
+  // Deletes environment variables that are known to cause issues for launching the Ruby LSP. For example, GC tuning
+  // variables or verbose settings
+  private sanitizeEnvironment(env: NodeJS.ProcessEnv) {
+    // Delete all GC tuning variables
+    Object.keys(env).forEach((key) => {
       if (key.startsWith("RUBY_GC")) {
-        delete this._env[key];
+        delete env[key];
       }
     });
+
+    // Delete verbose or debug related settings. These often make Bundler or other dependencies print things to STDOUT,
+    // which breaks the client/server communication
+    delete env.VERBOSE;
+    delete env.DEBUG;
   }
 
   private async setupBundlePath() {
diff --git a/vscode/src/test/suite/ruby.test.ts b/vscode/src/test/suite/ruby.test.ts
index c7d1a136c..57c73d0f3 100644
--- a/vscode/src/test/suite/ruby.test.ts
+++ b/vscode/src/test/suite/ruby.test.ts
@@ -1,3 +1,4 @@
+/* eslint-disable no-process-env */
 import * as assert from "assert";
 import * as path from "path";
 
@@ -9,10 +10,16 @@ import { WorkspaceChannel } from "../../workspaceChannel";
 import { LOG_CHANNEL } from "../../common";
 
 suite("Ruby environment activation", () => {
-  let ruby: Ruby;
+  const workspacePath = path.dirname(
+    path.dirname(path.dirname(path.dirname(__dirname))),
+  );
+  const workspaceFolder: vscode.WorkspaceFolder = {
+    uri: vscode.Uri.file(workspacePath),
+    name: path.basename(workspacePath),
+    index: 0,
+  };
 
   test("Activate fetches Ruby information when outside of Ruby LSP", async () => {
-    // eslint-disable-next-line no-process-env
     const manager = process.env.CI
       ? ManagerIdentifier.None
       : ManagerIdentifier.Chruby;
@@ -31,24 +38,12 @@ suite("Ruby environment activation", () => {
         },
       } as unknown as vscode.WorkspaceConfiguration);
 
-    const workspacePath = path.dirname(
-      path.dirname(path.dirname(path.dirname(__dirname))),
-    );
-
     const context = {
       extensionMode: vscode.ExtensionMode.Test,
     } as vscode.ExtensionContext;
     const outputChannel = new WorkspaceChannel("fake", LOG_CHANNEL);
 
-    ruby = new Ruby(
-      context,
-      {
-        uri: vscode.Uri.file(workspacePath),
-        name: path.basename(workspacePath),
-        index: 0,
-      } as vscode.WorkspaceFolder,
-      outputChannel,
-    );
+    const ruby = new Ruby(context, workspaceFolder, outputChannel);
     await ruby.activateRuby();
 
     assert.ok(ruby.rubyVersion, "Expected Ruby version to be set");
@@ -60,4 +55,44 @@ suite("Ruby environment activation", () => {
 
     configStub.restore();
   }).timeout(10000);
+
+  test("Deletes verbose and GC settings from activated environment", async () => {
+    const manager = process.env.CI
+      ? ManagerIdentifier.None
+      : ManagerIdentifier.Chruby;
+
+    const configStub = sinon
+      .stub(vscode.workspace, "getConfiguration")
+      .returns({
+        get: (name: string) => {
+          if (name === "rubyVersionManager") {
+            return manager;
+          } else if (name === "bundleGemfile") {
+            return "";
+          }
+
+          return undefined;
+        },
+      } as unknown as vscode.WorkspaceConfiguration);
+
+    const context = {
+      extensionMode: vscode.ExtensionMode.Test,
+    } as vscode.ExtensionContext;
+    const outputChannel = new WorkspaceChannel("fake", LOG_CHANNEL);
+
+    const ruby = new Ruby(context, workspaceFolder, outputChannel);
+
+    process.env.VERBOSE = "1";
+    process.env.DEBUG = "WARN";
+    process.env.RUBY_GC_HEAP_GROWTH_FACTOR = "1.7";
+    await ruby.activateRuby();
+
+    assert.strictEqual(ruby.env.VERBOSE, undefined);
+    assert.strictEqual(ruby.env.DEBUG, undefined);
+    assert.strictEqual(ruby.env.RUBY_GC_HEAP_GROWTH_FACTOR, undefined);
+    delete process.env.VERBOSE;
+    delete process.env.DEBUG;
+    delete process.env.RUBY_GC_HEAP_GROWTH_FACTOR;
+    configStub.restore();
+  });
 });