diff --git a/arduino-ide-extension/src/browser/create/create-features.ts b/arduino-ide-extension/src/browser/create/create-features.ts
index befce589d..23ab77c21 100644
--- a/arduino-ide-extension/src/browser/create/create-features.ts
+++ b/arduino-ide-extension/src/browser/create/create-features.ts
@@ -8,6 +8,10 @@ import { AuthenticationSession } from '../../node/auth/types';
 import { ArduinoPreferences } from '../arduino-preferences';
 import { AuthenticationClientService } from '../auth/authentication-client-service';
 import { LocalCacheFsProvider } from '../local-cache/local-cache-fs-provider';
+import {
+  ARDUINO_CLOUD_FOLDER,
+  REMOTE_SKETCHBOOK_FOLDER,
+} from '../utils/constants';
 import { CreateUri } from './create-uri';
 
 export type CloudSketchState = 'push' | 'pull';
@@ -128,8 +132,8 @@ export class CreateFeatures implements FrontendApplicationContribution {
       return undefined;
     }
     return dataDirUri
-      .resolve('RemoteSketchbook')
-      .resolve('ArduinoCloud')
+      .resolve(REMOTE_SKETCHBOOK_FOLDER)
+      .resolve(ARDUINO_CLOUD_FOLDER)
       .isEqualOrParent(new URI(sketch.uri));
   }
 
diff --git a/arduino-ide-extension/src/browser/local-cache/local-cache-fs-provider.ts b/arduino-ide-extension/src/browser/local-cache/local-cache-fs-provider.ts
index e65c56e85..3bfefeccf 100644
--- a/arduino-ide-extension/src/browser/local-cache/local-cache-fs-provider.ts
+++ b/arduino-ide-extension/src/browser/local-cache/local-cache-fs-provider.ts
@@ -16,6 +16,10 @@ import {
 import { AuthenticationClientService } from '../auth/authentication-client-service';
 import { AuthenticationSession } from '../../common/protocol/authentication-service';
 import { ConfigService } from '../../common/protocol';
+import {
+  ARDUINO_CLOUD_FOLDER,
+  REMOTE_SKETCHBOOK_FOLDER,
+} from '../utils/constants';
 
 export namespace LocalCacheUri {
   export const scheme = 'arduino-local-cache';
@@ -107,7 +111,7 @@ export class LocalCacheFsProvider
       return;
     }
     this._localCacheRoot = localCacheUri;
-    for (const segment of ['RemoteSketchbook', 'ArduinoCloud']) {
+    for (const segment of [REMOTE_SKETCHBOOK_FOLDER, ARDUINO_CLOUD_FOLDER]) {
       this._localCacheRoot = this._localCacheRoot.resolve(segment);
       await fileService.createFolder(this._localCacheRoot);
     }
diff --git a/arduino-ide-extension/src/browser/theia/markers/problem-manager.ts b/arduino-ide-extension/src/browser/theia/markers/problem-manager.ts
index 4d1e0d084..73b98163c 100644
--- a/arduino-ide-extension/src/browser/theia/markers/problem-manager.ts
+++ b/arduino-ide-extension/src/browser/theia/markers/problem-manager.ts
@@ -9,6 +9,10 @@ import { Marker } from '@theia/markers/lib/common/marker';
 import { ProblemManager as TheiaProblemManager } from '@theia/markers/lib/browser/problem/problem-manager';
 import { ConfigServiceClient } from '../../config/config-service-client';
 import debounce = require('lodash.debounce');
+import {
+  ARDUINO_CLOUD_FOLDER,
+  REMOTE_SKETCHBOOK_FOLDER,
+} from '../../utils/constants';
 
 @injectable()
 export class ProblemManager extends TheiaProblemManager {
@@ -16,12 +20,18 @@ export class ProblemManager extends TheiaProblemManager {
   private readonly configService: ConfigServiceClient;
 
   private dataDirUri: URI | undefined;
+  private cloudCacheDirUri: URI | undefined;
 
   @postConstruct()
   protected override init(): void {
     super.init();
     this.dataDirUri = this.configService.tryGetDataDirUri();
-    this.configService.onDidChangeDataDirUri((uri) => (this.dataDirUri = uri));
+    this.configService.onDidChangeDataDirUri((uri) => {
+      this.dataDirUri = uri;
+      this.cloudCacheDirUri = this.dataDirUri
+        ?.resolve(REMOTE_SKETCHBOOK_FOLDER)
+        .resolve(ARDUINO_CLOUD_FOLDER);
+    });
   }
 
   override setMarkers(
@@ -29,7 +39,13 @@ export class ProblemManager extends TheiaProblemManager {
     owner: string,
     data: Diagnostic[]
   ): Marker<Diagnostic>[] {
-    if (this.dataDirUri && this.dataDirUri.isEqualOrParent(uri)) {
+    if (
+      this.dataDirUri &&
+      this.dataDirUri.isEqualOrParent(uri) &&
+      this.cloudCacheDirUri && // Do not disable the diagnostics for cloud sketches https://github.com/arduino/arduino-ide/issues/669
+      !this.cloudCacheDirUri.isEqualOrParent(uri)
+    ) {
+      // If in directories.data folder but not in the cloud sketchbook cache folder.
       return [];
     }
     return super.setMarkers(uri, owner, data);