diff --git a/src/Agent.Worker/Handlers/LegacyPowerShellHandler.cs b/src/Agent.Worker/Handlers/LegacyPowerShellHandler.cs
index 8c8868c346..211a1b6208 100644
--- a/src/Agent.Worker/Handlers/LegacyPowerShellHandler.cs
+++ b/src/Agent.Worker/Handlers/LegacyPowerShellHandler.cs
@@ -209,7 +209,11 @@ public async Task RunAsync()
             AddPrependPathToEnvironment();
 
             // Add proxy setting to LegacyVSTSPowerShellHost.exe.config
-            AddProxySetting();
+            var agentProxy = HostContext.GetService<IVstsAgentWebProxy>();
+            if (!string.IsNullOrEmpty(agentProxy.ProxyAddress))
+            {
+                AddProxySetting(agentProxy);
+            }
 
             // Invoke the process.
             using (var processInvoker = HostContext.CreateService<IProcessInvoker>())
@@ -376,7 +380,7 @@ protected virtual void AddLegacyHostEnvironmentVariables(string scriptFile, stri
             }
         }
 
-        private void AddProxySetting()
+        private void AddProxySetting(IVstsAgentWebProxy agentProxy)
         {
             string appConfig = Path.Combine(HostContext.GetDirectory(WellKnownDirectory.LegacyPSHost), _appConfigFileName);
             ArgUtil.File(appConfig, _appConfigFileName);
@@ -395,68 +399,64 @@ private void AddProxySetting()
                 File.Copy(appConfigRestore, appConfig);
             }
 
-            var agentProxy = HostContext.GetService<IVstsAgentWebProxy>();
-            if (!string.IsNullOrEmpty(agentProxy.ProxyAddress))
+            XmlDocument psHostAppConfig = new XmlDocument();
+            using (var appConfigStream = new FileStream(appConfig, FileMode.Open, FileAccess.Read))
             {
-                XmlDocument psHostAppConfig = new XmlDocument();
-                using (var appConfigStream = new FileStream(appConfig, FileMode.Open, FileAccess.Read))
-                {
-                    psHostAppConfig.Load(appConfigStream);
-                }
+                psHostAppConfig.Load(appConfigStream);
+            }
 
-                var configuration = psHostAppConfig.SelectSingleNode("configuration");
-                ArgUtil.NotNull(configuration, "configuration");
+            var configuration = psHostAppConfig.SelectSingleNode("configuration");
+            ArgUtil.NotNull(configuration, "configuration");
 
-                var exist_defaultProxy = psHostAppConfig.SelectSingleNode("configuration/system.net/defaultProxy");
-                if (exist_defaultProxy == null)
+            var exist_defaultProxy = psHostAppConfig.SelectSingleNode("configuration/system.net/defaultProxy");
+            if (exist_defaultProxy == null)
+            {
+                var system_net = psHostAppConfig.SelectSingleNode("configuration/system.net");
+                if (system_net == null)
                 {
-                    var system_net = psHostAppConfig.SelectSingleNode("configuration/system.net");
-                    if (system_net == null)
-                    {
-                        Trace.Verbose("Create system.net section in appconfg.");
-                        system_net = psHostAppConfig.CreateElement("system.net");
-                    }
+                    Trace.Verbose("Create system.net section in appconfg.");
+                    system_net = psHostAppConfig.CreateElement("system.net");
+                }
 
-                    Trace.Verbose("Create defaultProxy section in appconfg.");
-                    var defaultProxy = psHostAppConfig.CreateElement("defaultProxy");
-                    defaultProxy.SetAttribute("useDefaultCredentials", "true");
+                Trace.Verbose("Create defaultProxy section in appconfg.");
+                var defaultProxy = psHostAppConfig.CreateElement("defaultProxy");
+                defaultProxy.SetAttribute("useDefaultCredentials", "true");
 
-                    Trace.Verbose("Create proxy section in appconfg.");
-                    var proxy = psHostAppConfig.CreateElement("proxy");
-                    proxy.SetAttribute("proxyaddress", agentProxy.ProxyAddress);
-                    proxy.SetAttribute("bypassonlocal", "true");
+                Trace.Verbose("Create proxy section in appconfg.");
+                var proxy = psHostAppConfig.CreateElement("proxy");
+                proxy.SetAttribute("proxyaddress", agentProxy.ProxyAddress);
+                proxy.SetAttribute("bypassonlocal", "true");
 
-                    if (agentProxy.ProxyBypassList != null && agentProxy.ProxyBypassList.Count > 0)
+                if (agentProxy.ProxyBypassList != null && agentProxy.ProxyBypassList.Count > 0)
+                {
+                    Trace.Verbose("Create bypasslist section in appconfg.");
+                    var bypass = psHostAppConfig.CreateElement("bypasslist");
+                    foreach (string proxyBypass in agentProxy.ProxyBypassList)
                     {
-                        Trace.Verbose("Create bypasslist section in appconfg.");
-                        var bypass = psHostAppConfig.CreateElement("bypasslist");
-                        foreach (string proxyBypass in agentProxy.ProxyBypassList)
-                        {
-                            Trace.Verbose($"Create bypasslist.add section for {proxyBypass} in appconfg.");
-                            var add = psHostAppConfig.CreateElement("add");
-                            add.SetAttribute("address", proxyBypass);
-                            bypass.AppendChild(add);
-                        }
-
-                        defaultProxy.AppendChild(bypass);
+                        Trace.Verbose($"Create bypasslist.add section for {proxyBypass} in appconfg.");
+                        var add = psHostAppConfig.CreateElement("add");
+                        add.SetAttribute("address", proxyBypass);
+                        bypass.AppendChild(add);
                     }
 
-                    defaultProxy.AppendChild(proxy);
-                    system_net.AppendChild(defaultProxy);
-                    configuration.AppendChild(system_net);
+                    defaultProxy.AppendChild(bypass);
+                }
 
-                    using (var appConfigStream = new FileStream(appConfig, FileMode.Open, FileAccess.ReadWrite))
-                    {
-                        psHostAppConfig.Save(appConfigStream);
-                    }
+                defaultProxy.AppendChild(proxy);
+                system_net.AppendChild(defaultProxy);
+                configuration.AppendChild(system_net);
 
-                    ExecutionContext.Debug("Add Proxy setting in LegacyVSTSPowerShellHost.exe.config file.");
-                }
-                else
+                using (var appConfigStream = new FileStream(appConfig, FileMode.Open, FileAccess.ReadWrite))
                 {
-                    //proxy setting exist.
-                    ExecutionContext.Debug("Proxy setting already exist in LegacyVSTSPowerShellHost.exe.config file.");
+                    psHostAppConfig.Save(appConfigStream);
                 }
+
+                ExecutionContext.Debug("Add Proxy setting in LegacyVSTSPowerShellHost.exe.config file.");
+            }
+            else
+            {
+                //proxy setting exist.
+                ExecutionContext.Debug("Proxy setting already exist in LegacyVSTSPowerShellHost.exe.config file.");
             }
         }
 
diff --git a/src/Microsoft.VisualStudio.Services.Agent/Constants.cs b/src/Microsoft.VisualStudio.Services.Agent/Constants.cs
index d3bed4ac19..74a2bcb158 100644
--- a/src/Microsoft.VisualStudio.Services.Agent/Constants.cs
+++ b/src/Microsoft.VisualStudio.Services.Agent/Constants.cs
@@ -44,7 +44,7 @@ public enum OSPlatform
 
         public static class Agent
         {
-            public static readonly string Version = "2.122.0";
+            public static readonly string Version = "2.122.1";
 
 #if OS_LINUX
             public static readonly OSPlatform Platform = OSPlatform.Linux;