diff --git a/cmd/defaults.yaml b/cmd/defaults.yaml
index ae1103908..de89d7f45 100644
--- a/cmd/defaults.yaml
+++ b/cmd/defaults.yaml
@@ -1320,7 +1320,6 @@ DefaultInstance:
   Features:
     LoginDefaultOrg: true # ZITADEL_DEFAULTINSTANCE_FEATURES_LOGINDEFAULTORG
     UserSchema: # ZITADEL_DEFAULTINSTANCE_FEATURES_USERSCHEMA
-    TokenExchange: # ZITADEL_DEFAULTINSTANCE_FEATURES_TOKENEXCHANGE
     ImprovedPerformance: # ZITADEL_DEFAULTINSTANCE_FEATURES_IMPROVEDPERFORMANCE
     # https://github.com/zitadel/zitadel/blob/main/internal/feature/feature.go#L64-L68
     #   - 1 # OrgByID
diff --git a/cmd/setup/config_test.go b/cmd/setup/config_test.go
index c14bd6f05..182b73435 100644
--- a/cmd/setup/config_test.go
+++ b/cmd/setup/config_test.go
@@ -40,6 +40,7 @@ DefaultInstance:
   Features:
     LoginDefaultOrg: true
     UserSchema: true
+    ConsoleUseV2UserApi: true
     LoginV2:
       Required: true
       BaseURI: 'http://zitadel:8080'
@@ -51,8 +52,9 @@ Actions:
 `},
 		want: func(t *testing.T, config *Config) {
 			assert.Equal(t, config.DefaultInstance.Features, &command.InstanceFeatures{
-				LoginDefaultOrg: gu.Ptr(true),
-				UserSchema:      gu.Ptr(true),
+				LoginDefaultOrg:               gu.Ptr(true),
+				UserSchema:                    gu.Ptr(true),
+				ManagementConsoleUseV2UserApi: gu.Ptr(true),
 				LoginV2: &feature.LoginV2{
 					Required: true,
 					BaseURI:  &url.URL{Scheme: "http", Host: "zitadel:8080"},
diff --git a/cmd/start/config_test.go b/cmd/start/config_test.go
index 36ac50571..e2988299b 100644
--- a/cmd/start/config_test.go
+++ b/cmd/start/config_test.go
@@ -76,6 +76,7 @@ DefaultInstance:
   Features:
     LoginDefaultOrg: true
     UserSchema: true
+    ConsoleUseV2UserApi: true
     LoginV2:
       Required: true
       BaseURI: 'http://zitadel:8080'
@@ -87,8 +88,9 @@ Actions:
 `},
 		want: func(t *testing.T, config *Config) {
 			assert.Equal(t, config.DefaultInstance.Features, &command.InstanceFeatures{
-				LoginDefaultOrg: gu.Ptr(true),
-				UserSchema:      gu.Ptr(true),
+				LoginDefaultOrg:               gu.Ptr(true),
+				UserSchema:                    gu.Ptr(true),
+				ManagementConsoleUseV2UserApi: gu.Ptr(true),
 				LoginV2: &feature.LoginV2{
 					Required: true,
 					BaseURI:  &url.URL{Scheme: "http", Host: "zitadel:8080"},
diff --git a/internal/command/instance_features.go b/internal/command/instance_features.go
index 806832606..3568c1e32 100644
--- a/internal/command/instance_features.go
+++ b/internal/command/instance_features.go
@@ -20,7 +20,7 @@ type InstanceFeatures struct {
 	OIDCSingleV1SessionTermination *bool
 	LoginV2                        *feature.LoginV2
 	PermissionCheckV2              *bool
-	ManagementConsoleUseV2UserApi  *bool
+	ManagementConsoleUseV2UserApi  *bool `mapstructure:"ConsoleUseV2UserApi"` // for backwards compatibility we need to change this back to the old config name
 	EnableRelationalTables         *bool
 }