diff --git a/internal/filer_test.go b/internal/filer_test.go
index bc4c94808..207ce68e8 100644
--- a/internal/filer_test.go
+++ b/internal/filer_test.go
@@ -736,6 +736,44 @@ func TestAccWorkspaceFilesExtensionsDirectoriesAreNotNotebooks(t *testing.T) {
 	assert.ErrorIs(t, err, fs.ErrNotExist)
 }
 
+func TestAccWorkspaceFilesExtensionsNotebooksAreNotReadAsFiles(t *testing.T) {
+	t.Parallel()
+
+	ctx := context.Background()
+	wf, _ := setupWsfsExtensionsFiler(t)
+
+	// Create a notebook
+	err := wf.Write(ctx, "foo.ipynb", strings.NewReader(jupyterNotebookContent1))
+	require.NoError(t, err)
+
+	// Reading foo should fail. Even though the WSFS name for the notebook is foo
+	// reading the notebook should only work with the .ipynb extension.
+	_, err = wf.Read(ctx, "foo")
+	assert.ErrorIs(t, err, fs.ErrNotExist)
+
+	_, err = wf.Read(ctx, "foo.ipynb")
+	assert.NoError(t, err)
+}
+
+func TestAccWorkspaceFilesExtensionsNotebooksAreNotStatAsFiles(t *testing.T) {
+	t.Parallel()
+
+	ctx := context.Background()
+	wf, _ := setupWsfsExtensionsFiler(t)
+
+	// Create a notebook
+	err := wf.Write(ctx, "foo.ipynb", strings.NewReader(jupyterNotebookContent1))
+	require.NoError(t, err)
+
+	// Reading foo should fail. Even though the WSFS name for the notebook is foo
+	// reading the notebook should only work with the .ipynb extension.
+	_, err = wf.Stat(ctx, "foo")
+	assert.ErrorIs(t, err, fs.ErrNotExist)
+
+	_, err = wf.Read(ctx, "foo.ipynb")
+	assert.NoError(t, err)
+}
+
 func TestAccWorkspaceFilesExtensions_ExportFormatIsPreserved(t *testing.T) {
 	t.Parallel()
 
diff --git a/internal/helpers.go b/internal/helpers.go
index 3bf387757..2c917127c 100644
--- a/internal/helpers.go
+++ b/internal/helpers.go
@@ -581,11 +581,10 @@ func setupWsfsFiler(t *testing.T) (filer.Filer, string) {
 }
 
 func setupWsfsExtensionsFiler(t *testing.T) (filer.Filer, string) {
-	t.Log(GetEnvOrSkipTest(t, "CLOUD_ENV"))
+	_, wt := acc.WorkspaceTest(t)
 
-	w := databricks.Must(databricks.NewWorkspaceClient())
-	tmpdir := TemporaryWorkspaceDir(t, w)
-	f, err := filer.NewWorkspaceFilesExtensionsClient(w, tmpdir)
+	tmpdir := TemporaryWorkspaceDir(t, wt.W)
+	f, err := filer.NewWorkspaceFilesExtensionsClient(wt.W, tmpdir)
 	require.NoError(t, err)
 
 	return f, tmpdir
diff --git a/libs/filer/workspace_files_extensions_client.go b/libs/filer/workspace_files_extensions_client.go
index b24ecf7ee..ace079968 100644
--- a/libs/filer/workspace_files_extensions_client.go
+++ b/libs/filer/workspace_files_extensions_client.go
@@ -245,6 +245,17 @@ func (w *workspaceFilesExtensionsClient) Write(ctx context.Context, name string,
 
 // Try to read the file as a regular file. If the file is not found, try to read it as a notebook.
 func (w *workspaceFilesExtensionsClient) Read(ctx context.Context, name string) (io.ReadCloser, error) {
+	// Ensure that the file / notebook exists. We do this check here to avoid reading
+	// the content of a notebook called `foo` when the user actually wanted
+	// to read the content of a file called `foo`.
+	//
+	// To read the content of a notebook called `foo` in the workspace the user
+	// should use the name with the extension included like `foo.ipynb` or `foo.sql`.
+	_, err := w.Stat(ctx, name)
+	if err != nil {
+		return nil, err
+	}
+
 	r, err := w.wsfs.Read(ctx, name)
 
 	// If the file is not found, it might be a notebook.
@@ -301,6 +312,22 @@ func (w *workspaceFilesExtensionsClient) Delete(ctx context.Context, name string
 func (w *workspaceFilesExtensionsClient) Stat(ctx context.Context, name string) (fs.FileInfo, error) {
 	info, err := w.wsfs.Stat(ctx, name)
 
+	// If an object is found and it is not a notebook, return the stat object. This check is done
+	// to avoid returning the stat for a notebook called `foo` when the user actually
+	// wanted to stat a file called `foo`.
+	//
+	// To stat the metadata of a notebook called `foo` in the workspace the user
+	// should use the name with the extension included like `foo.ipynb` or `foo.sql`.
+	if err == nil && info.Sys().(workspace.ObjectInfo).ObjectType != workspace.ObjectTypeNotebook {
+		return info, nil
+	}
+
+	// If a notebook is found by the workspace files client, without having stripped
+	// the extension, this implies that no file with the same name exists.
+	if err == nil && info.Sys().(workspace.ObjectInfo).ObjectType == workspace.ObjectTypeNotebook {
+		return nil, FileDoesNotExistError{name}
+	}
+
 	// If the file is not found, it might be a notebook.
 	if errors.As(err, &FileDoesNotExistError{}) {
 		stat, serr := w.getNotebookStatByNameWithExt(ctx, name)
@@ -316,7 +343,7 @@ func (w *workspaceFilesExtensionsClient) Stat(ctx context.Context, name string)
 		return wsfsFileInfo{ObjectInfo: stat.ObjectInfo}, nil
 	}
 
-	return info, err
+	return nil, err
 }
 
 // Note: The import API returns opaque internal errors for namespace clashes