diff --git a/gvfs-helper-client.c b/gvfs-helper-client.c
index a9f0a6fc5eb5f5..24d9700b29c397 100644
--- a/gvfs-helper-client.c
+++ b/gvfs-helper-client.c
@@ -191,35 +191,6 @@ static void gh_client__update_loose_cache(const char *line)
 	odb_loose_cache_add_new_oid(gh_client__chosen_odb, &oid);
 }
 
-/*
- * Update the packed-git list to include the newly created packfile.
- */
-static void gh_client__update_packed_git(const char *line)
-{
-	struct strbuf path = STRBUF_INIT;
-	const char *v1_filename;
-	struct packed_git *p;
-	int is_local;
-
-	if (!skip_prefix(line, "packfile ", &v1_filename))
-		BUG("update_packed_git: invalid line '%s'", line);
-
-	/*
-	 * ODB[0] is the local .git/objects.  All others are alternates.
-	 */
-	is_local = (gh_client__chosen_odb == the_repository->objects->sources);
-
-	strbuf_addf(&path, "%s/pack/%s",
-		    gh_client__chosen_odb->path, v1_filename);
-	strbuf_strip_suffix(&path, ".pack");
-	strbuf_addstr(&path, ".idx");
-
-	p = add_packed_git(the_repository, path.buf, path.len, is_local);
-	if (p)
-		packfile_store_add_pack(the_repository->objects->packfiles, p);
-	strbuf_release(&path);
-}
-
 /*
  * CAP_OBJECTS verbs return the same format response:
  *
@@ -279,7 +250,6 @@ static int gh_client__objects__receive_response(
 		}
 
 		else if (starts_with(line, "packfile")) {
-			gh_client__update_packed_git(line);
 			ghc |= GHC__CREATED__PACKFILE;
 			nr_packfile++;
 		}
@@ -300,6 +270,9 @@ static int gh_client__objects__receive_response(
 		}
 	}
 
+	if (ghc & GHC__CREATED__PACKFILE)
+		packfile_store_reprepare(the_repository->objects->packfiles);
+
 	*p_ghc = ghc;
 	*p_nr_loose = nr_loose;
 	*p_nr_packfile = nr_packfile;
diff --git a/t/t5799-gvfs-helper.sh b/t/t5799-gvfs-helper.sh
index 2ca443252e90b3..8fcab959e7b8af 100755
--- a/t/t5799-gvfs-helper.sh
+++ b/t/t5799-gvfs-helper.sh
@@ -1285,15 +1285,30 @@ test_expect_success 'integration: explicit commit/trees, implicit blobs: diff 2
 		>OUT.output 2>OUT.stderr
 '
 
+trace_has_queue_oid () {
+	oid=$1
+	grep "gh_client__queue_oid: $oid"
+}
+
+trace_has_immediate_oid () {
+	oid=$1
+	grep "gh_client__get_immediate: $oid"
+}
+
 test_expect_success 'integration: fully implicit: diff 2 commits' '
 	test_when_finished "per_test_cleanup" &&
 	start_gvfs_protocol_server &&
 
 	# Implicitly demand-load everything without any pre-seeding.
 	#
+	GIT_TRACE2_EVENT="$(pwd)/diff-trace.txt" \
 	git -C "$REPO_T1" -c core.useGVFSHelper=true \
 		diff $(cat m1.branch)..$(cat m3.branch) \
-		>OUT.output 2>OUT.stderr
+		>OUT.output 2>OUT.stderr &&
+
+	oid=$(git -C "$REPO_SRC" rev-parse main:file9.txt.t) &&
+	trace_has_queue_oid $oid <diff-trace.txt &&
+	! trace_has_immediate_oid $oid <diff-trace.txt
 '
 
 # T1 should be considered contaminated at this point.