diff --git a/libs/databrickscfg/ops.go b/libs/databrickscfg/ops.go
index ab6fb3e111..e5c9c39063 100644
--- a/libs/databrickscfg/ops.go
+++ b/libs/databrickscfg/ops.go
@@ -38,9 +38,14 @@ func GetConfiguredDefaultProfile(ctx context.Context, configFilePath string) (st
 }
 
 // GetConfiguredDefaultProfileFrom returns the explicit default profile from
-// [__settings__].default_profile, or "" when it is not set.
+// [__settings__].default_profile, or "" when it is not set or when the value
+// is the reserved __settings__ section name itself.
 func GetConfiguredDefaultProfileFrom(configFile *config.File) string {
-	return configFile.Section(databricksSettingsSection).Key(defaultProfileKey).String()
+	v := configFile.Section(databricksSettingsSection).Key(defaultProfileKey).String()
+	if v == databricksSettingsSection {
+		return ""
+	}
+	return v
 }
 
 // GetDefaultProfile returns the name of the default profile by loading the
diff --git a/libs/databrickscfg/ops_test.go b/libs/databrickscfg/ops_test.go
index bf4393a4f2..b418ec58a7 100644
--- a/libs/databrickscfg/ops_test.go
+++ b/libs/databrickscfg/ops_test.go
@@ -230,6 +230,11 @@ func TestGetDefaultProfile(t *testing.T) {
 			content: "[no-host]\naccount_id = abc\n\n[profile1]\nhost = https://abc\n",
 			want:    "profile1",
 		},
+		{
+			name:    "self-referencing __settings__ falls through to single profile",
+			content: "[__settings__]\ndefault_profile = __settings__\n\n[profile1]\nhost = https://abc\n",
+			want:    "profile1",
+		},
 	}
 
 	for _, tc := range testCases {
@@ -280,6 +285,11 @@ func TestGetConfiguredDefaultProfile(t *testing.T) {
 			content: "[__settings__]\n\n[profile1]\nhost = https://abc\n",
 			want:    "",
 		},
+		{
+			name:    "self-referencing __settings__ is ignored",
+			content: "[__settings__]\ndefault_profile = __settings__\n\n[profile1]\nhost = https://abc\n",
+			want:    "",
+		},
 	}
 
 	for _, tc := range testCases {