diff --git a/templates/default/.envrc b/templates/default/.envrc
index 9706a5e..6ca825e 100644
--- a/templates/default/.envrc
+++ b/templates/default/.envrc
@@ -3,6 +3,7 @@
 
 # Automatically reload when this file changes
 watch_file ./nix/devshells/default.nix
+watch_file ./nix/devshells/rust.nix
 watch_file ./nix/*.nix
 
 # Load `nix develop`
diff --git a/templates/default/.vscode/settings.json b/templates/default/.vscode/settings.json
index 0067b69..f298c94 100644
--- a/templates/default/.vscode/settings.json
+++ b/templates/default/.vscode/settings.json
@@ -11,15 +11,18 @@
     // settings for 'nil' LSP
     "nil": {
       "formatting": {
-        "command": ["treefmt-nix", "--stdin", "neverexists.nix"]
+        "command": ["treefmt", "--stdin", "neverexists.nix"]
       }
     }
   },
-
   "[rust]": {
     "editor.formatOnSave": true,
     "editor.defaultFormatter": "rust-lang.rust-analyzer"
   },
   "rust-analyzer.interpret.tests": true,
-  "rust-analyzer.cfg.setTest": true
+  "rust-analyzer.cfg.setTest": true,
+
+  // FIXME(upstream): without these treefmt-vscode will look for a config
+  "treefmt.command": "treefmt",
+  "treefmt.config": ""
 }
diff --git a/templates/default/nix/devshells/default.nix b/templates/default/nix/devshells/default.nix
index 29ac272..1e2472c 100644
--- a/templates/default/nix/devshells/default.nix
+++ b/templates/default/nix/devshells/default.nix
@@ -8,21 +8,12 @@ pkgs.mkShell {
   packages = [
     flake.formatter.${system}
     pkgs.jq
+    pkgs.nil
   ];
 
   # Add environment variables
   env = { };
 
   # Load custom bash code
-  shellHook =
-    # TODO(blocked/upstream): remove this once https://github.com/isbecker/treefmt-vscode/issues/3 is resolved
-    # (flake.inputs.nixago.lib.${system}.make {
-    #   data = flake.formatter.${system}.settings;
-    #   output = "treefmt.toml";
-    #   format = "toml";
-    # }).shellHook
-    # +
-    ''
-      echo $(git rev-parse --show-toplevel)
-    '';
+  shellHook = '''';
 }