diff --git a/crates/agent_ui/src/agent_ui.rs b/crates/agent_ui/src/agent_ui.rs
index 8a0d26bcf0429c9ea42c74b0e14c547e7ddf15a2..a517ea866bc5c5ed18e807d2bcfd4cf0bcd77532 100644
--- a/crates/agent_ui/src/agent_ui.rs
+++ b/crates/agent_ui/src/agent_ui.rs
@@ -32,7 +32,7 @@ use client::Client;
 use command_palette_hooks::CommandPaletteFilter;
 use feature_flags::{AgentV2FeatureFlag, FeatureFlagAppExt as _};
 use fs::Fs;
-use gpui::{Action, App, Context, Entity, SharedString, UpdateGlobal, Window, actions};
+use gpui::{Action, App, Context, Entity, SharedString, Window, actions};
 use language::{
     LanguageRegistry,
     language_settings::{AllLanguageSettings, EditPredictionProvider},
@@ -44,7 +44,7 @@ use project::DisableAiSettings;
 use prompt_store::PromptBuilder;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
-use settings::{DockPosition, LanguageModelSelection, Settings as _, SettingsStore};
+use settings::{LanguageModelSelection, Settings as _, SettingsStore};
 use std::any::TypeId;
 use workspace::Workspace;
 
@@ -336,19 +336,6 @@ pub fn init(
         update_command_palette_filter(cx);
     })
     .detach();
-
-    cx.observe_flag::<AgentV2FeatureFlag, _>(|is_enabled, cx| {
-        SettingsStore::update_global(cx, |store, cx| {
-            store.update_default_settings(cx, |defaults| {
-                defaults.agent.get_or_insert_default().dock = Some(if is_enabled {
-                    DockPosition::Left
-                } else {
-                    DockPosition::Right
-                });
-            });
-        });
-    })
-    .detach();
 }
 
 fn update_command_palette_filter(cx: &mut App) {
diff --git a/crates/settings/src/settings_store.rs b/crates/settings/src/settings_store.rs
index d540f4ec9d28fb3253b4d9c6a61044e1879df85b..657d67fb64f33834c03125b67ea527997aaa5510 100644
--- a/crates/settings/src/settings_store.rs
+++ b/crates/settings/src/settings_store.rs
@@ -794,17 +794,6 @@ impl SettingsStore {
         edits
     }
 
-    /// Mutates the default settings in place and recomputes all setting values.
-    pub fn update_default_settings(
-        &mut self,
-        cx: &mut App,
-        update: impl FnOnce(&mut SettingsContent),
-    ) {
-        let default_settings = Rc::make_mut(&mut self.default_settings);
-        update(default_settings);
-        self.recompute_values(None, cx);
-    }
-
     /// Sets the default settings via a JSON string.
     ///
     /// The string should contain a JSON object with a default value for every setting.