diff --git a/.vscode/settings.json b/.vscode/settings.json
index 2ea7220cd5..e14c039bb7 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -60,6 +60,7 @@
     "TCGETS",
     "tcpip",
     "TCSETS",
+    "templateversions",
     "testid",
     "tfexec",
     "tfjson",
diff --git a/site/src/xServices/createWorkspace/createWorkspaceXService.ts b/site/src/xServices/createWorkspace/createWorkspaceXService.ts
index 2988972fed..610bf8c7a2 100644
--- a/site/src/xServices/createWorkspace/createWorkspaceXService.ts
+++ b/site/src/xServices/createWorkspace/createWorkspaceXService.ts
@@ -45,6 +45,12 @@ export const createWorkspaceMachine = createMachine(
       },
     },
     tsTypes: {} as import("./createWorkspaceXService.typegen").Typegen0,
+    on: {
+      SELECT_TEMPLATE: {
+        actions: ["assignSelectedTemplate"],
+        target: "gettingTemplateSchema",
+      },
+    },
     states: {
       gettingTemplates: {
         invoke: {