diff --git a/server/channels/app/plugin.go b/server/channels/app/plugin.go
index fbfd68f6575..f9ce0633ca8 100644
--- a/server/channels/app/plugin.go
+++ b/server/channels/app/plugin.go
@@ -284,17 +284,9 @@ func (ch *Channels) syncPlugins() *model.AppError {
 
 			logger := ch.srv.Log().With(mlog.String("plugin_id", pluginID))
 
-			// Only handle managed plugins with .filestore flag file.
-			_, err := os.Stat(filepath.Join(*ch.cfgSvc.Config().PluginSettings.Directory, pluginID, managedPluginFileName))
-			if os.IsNotExist(err) {
-				logger.Warn("Skipping sync for unmanaged plugin")
-			} else if err != nil {
-				logger.Error("Skipping sync for plugin after failure to check if managed", mlog.Err(err))
-			} else {
-				logger.Info("Removing local installation of managed plugin before sync")
-				if err := ch.removePluginLocally(pluginID); err != nil {
-					logger.Error("Failed to remove local installation of managed plugin before sync", mlog.Err(err))
-				}
+			logger.Info("Removing local installation of managed plugin before sync")
+			if err := ch.removePluginLocally(pluginID); err != nil {
+				logger.Error("Failed to remove local installation of managed plugin before sync", mlog.Err(err))
 			}
 		}(plugin.Manifest.Id)
 	}
diff --git a/server/channels/app/plugin_install.go b/server/channels/app/plugin_install.go
index 629763d7896..b00ee339d13 100644
--- a/server/channels/app/plugin_install.go
+++ b/server/channels/app/plugin_install.go
@@ -12,7 +12,6 @@
 //   - plugins prepackged with the server in the prepackaged_plugins/ directory
 //   - plugins transitionally prepackaged with the server in the prepackaged_plugins/ directory
 //   - plugins installed to the filestore (amazons3 or local, alongisde files and images)
-//   - unmanaged plugins manually extracted to the confgured local directory
 //     ┌────────────────────────────┐
 //     │ ┌────────────────────────┐ │
 //     │ │prepackaged_plugins/    │ │
@@ -23,14 +22,11 @@
 //     │              │             │
 //     │              ▼             │
 //     │ ┌────────────────────────┐ │
-//     │ │plugins/                │ │
-//     │ │    unmanaged/          │ │
-//     │ │    filestore/          │ │   ┌────────────────────────┐
-//     │ │      .filestore        │ │   │s3://bucket/plugins/    │
+//     │ │plugins/                │ │   ┌────────────────────────┐
+//     │ │    filestore/          │ │   │s3://bucket/plugins/    │
 //     │ │    prepackaged/        │◀┼───│    filestore.tar.gz    │
-//     │ │      .filestore        │ │   │    transitional.tar.gz │
-//     │ │    transitional/       │ │   └────────────────────────┘
-//     │ │      .filestore        │ │
+//     │ │    transitional/       │ │   │    transitional.tar.gz │
+//     │ │                        │ │   └────────────────────────┘
 //     │ └────────────────────────┘ │
 //     │                   ┌────────┤
 //     │                   │ server │
@@ -45,13 +41,8 @@
 // release. On first startup, they are unpacked just like prepackaged plugins, but also get copied
 // to the filestore. On future startups, the server uses the version in the filestore.
 //
-// Plugins are installed to the filestore when the user installs via the marketplace or manually
-// uploads a plugin bundle. (Or because the plugin is transitionally prepackaged).
-//
-// Unmanaged plugins were manually extracted by into the configured local directory. This legacy
-// method of installing plugins is distinguished from other extracted plugins by the absence of a
-// flag file (.filestore). Managed plugins unconditionally override unmanaged plugins. A future
-// version of Mattermost will likely drop support for unmanaged plugins.
+// Plugins are installed to the filestore when the user installs via the marketplace or system
+// console. (Or because the plugin is transitionally prepackaged).
 //
 // ### Enabling a Plugin
 //
@@ -98,10 +89,6 @@ import (
 	"github.com/mattermost/mattermost/server/v8/platform/shared/filestore"
 )
 
-// managedPluginFileName is the file name of the flag file that marks
-// a local plugin folder as "managed" by the file store.
-const managedPluginFileName = ".filestore"
-
 // fileStorePluginFolder is the folder name in the file store of the plugin bundles installed.
 const fileStorePluginFolder = "plugins"
 
@@ -506,13 +493,6 @@ func (ch *Channels) installExtractedPlugin(manifest *model.Manifest, fromPluginD
 		return nil, model.NewAppError("installExtractedPlugin", "app.plugin.mvdir.app_error", nil, "", http.StatusInternalServerError).Wrap(err)
 	}
 
-	// Flag plugin locally as managed by the filestore.
-	f, err := os.Create(filepath.Join(bundlePath, managedPluginFileName))
-	if err != nil {
-		return nil, model.NewAppError("installExtractedPlugin", "app.plugin.flag_managed.app_error", nil, "", http.StatusInternalServerError).Wrap(err)
-	}
-	f.Close()
-
 	if manifest.HasWebapp() {
 		updatedManifest, err := pluginsEnvironment.UnpackWebappBundle(manifest.Id)
 		if err != nil {
diff --git a/server/i18n/en.json b/server/i18n/en.json
index 1baf6f5e939..9e6223db54b 100644
--- a/server/i18n/en.json
+++ b/server/i18n/en.json
@@ -6458,10 +6458,6 @@
     "id": "app.plugin.filesystem.app_error",
     "translation": "Encountered filesystem error."
   },
-  {
-    "id": "app.plugin.flag_managed.app_error",
-    "translation": "Unable to set plugin as managed by the file store."
-  },
   {
     "id": "app.plugin.get_cluster_plugin_statuses.app_error",
     "translation": "Unable to get plugin statuses from the cluster."