diff --git a/auth/oidc/classes/form/binding_username_claim.php b/auth/oidc/classes/form/binding_username_claim.php
index eeef1954b..42386222c 100644
--- a/auth/oidc/classes/form/binding_username_claim.php
+++ b/auth/oidc/classes/form/binding_username_claim.php
@@ -102,7 +102,12 @@ protected function definition() {
             throw new moodle_exception('missing_idp_type', 'auth_oidc');
         }
 
-        $mform->addElement('select', 'bindingusernameclaim', auth_oidc_config_name_in_form('binding_username_claim'), $bindingusernameoptions);
+        $mform->addElement(
+                'select',
+                'bindingusernameclaim',
+                auth_oidc_config_name_in_form('bindingusernameclaim'),
+                $bindingusernameoptions
+        );
         $mform->setDefault('bindingusernameclaim', 'auto');
         $mform->addElement('static', 'bindingusernameclaim_description', '', get_string($descriptionidentifier, 'auth_oidc'));
 
diff --git a/auth/oidc/classes/loginflow/base.php b/auth/oidc/classes/loginflow/base.php
index a4896ca91..4ebf692a5 100644
--- a/auth/oidc/classes/loginflow/base.php
+++ b/auth/oidc/classes/loginflow/base.php
@@ -731,6 +731,10 @@ protected function  get_oidc_username_from_token_claim(jwt $idtoken, string $bin
 
         if (empty($bindingusernameclaim)) {
             $bindingusernameclaim = get_config('auth_oidc', 'bindingusernameclaim');
+            if (empty($bindingusernameclaim)) {
+                $bindingusernameclaim = 'auto';
+                set_config('bindingusernameclaim', $bindingusernameclaim, 'auth_oidc');
+            }
         }
 
         switch ($bindingusernameclaim) {
diff --git a/auth/oidc/db/install.php b/auth/oidc/db/install.php
new file mode 100644
index 000000000..768eef90f
--- /dev/null
+++ b/auth/oidc/db/install.php
@@ -0,0 +1,35 @@
+<?php
+// This file is part of Moodle - http://moodle.org/
+//
+// Moodle is free software: you can redistribute it and/or modify
+// it under the terms of the GNU General Public License as published by
+// the Free Software Foundation, either version 3 of the License, or
+// (at your option) any later version.
+//
+// Moodle is distributed in the hope that it will be useful,
+// but WITHOUT ANY WARRANTY; without even the implied warranty of
+// MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.  See the
+// GNU General Public License for more details.
+//
+// You should have received a copy of the GNU General Public License
+// along with Moodle.  If not, see <http://www.gnu.org/licenses/>.
+
+/**
+ * Plugin installation script.
+ *
+ * @package auth_oidc
+ * @author Lai Wei <lai.wei@enovation.ie>
+ * @license http://www.gnu.org/copyleft/gpl.html GNU GPL v3 or later
+ * @copyright (C) 2014 onwards Microsoft, Inc. (http://microsoft.com/)
+ */
+
+/**
+ * Installation script.
+ */
+function xmldb_auth_oidc_install() {
+    // Set the default value for the bindingusernameclaim setting.
+    $bindingusernameclaimconfig = get_config('auth_oidc', 'bindingusernameclaim');
+    if (empty($bindingusernameclaimconfig)) {
+        set_config('bindingusernameclaim', 'auto', 'auth_oidc');
+    }
+}
diff --git a/auth/oidc/db/upgrade.php b/auth/oidc/db/upgrade.php
index 28c49da0a..b71b5c70f 100644
--- a/auth/oidc/db/upgrade.php
+++ b/auth/oidc/db/upgrade.php
@@ -499,5 +499,16 @@ function xmldb_auth_oidc_upgrade($oldversion) {
         upgrade_plugin_savepoint(true, 2023042431, 'auth', 'oidc');
     }
 
+    if ($oldversion < 2023042436) {
+        // Set the default value for the bindingusernameclaim setting.
+        $bindingusernameclaimconfig = get_config('auth_oidc', 'bindingusernameclaim');
+        if (empty($bindingusernameclaimconfig)) {
+            set_config('bindingusernameclaim', 'auto', 'auth_oidc');
+        }
+
+        // Oidc savepoint reached.
+        upgrade_plugin_savepoint(true, 2023042436, 'auth', 'oidc');
+    }
+
     return true;
 }
diff --git a/auth/oidc/lang/en/auth_oidc.php b/auth/oidc/lang/en/auth_oidc.php
index 3c7ec4544..773a46018 100644
--- a/auth/oidc/lang/en/auth_oidc.php
+++ b/auth/oidc/lang/en/auth_oidc.php
@@ -401,7 +401,7 @@
 <div class="existing_claims">{$a}</div>';
 $string['binding_username_auto'] = 'Choose automatically';
 $string['binding_username_custom'] = 'Custom';
-$string['binding_username_claim'] = 'Binding username claim';
+$string['bindingusernameclaim'] = 'Binding username claim';
 $string['customclaimname'] = 'Custom claim name';
 $string['customclaimname_description'] = 'This field is used only when the <b>Binding Username Claim</b> setting is set to <b>Custom</b>.';
 $string['binding_username_claim_help_ms_no_user_sync'] = 'The options for non Microsoft IdPs include:
diff --git a/auth/oidc/version.php b/auth/oidc/version.php
index 432712ecf..b51d00996 100644
--- a/auth/oidc/version.php
+++ b/auth/oidc/version.php
@@ -25,7 +25,7 @@
 
 defined('MOODLE_INTERNAL') || die();
 
-$plugin->version = 2023042435;
+$plugin->version = 2023042436;
 $plugin->requires = 2023042400;
 $plugin->release = '4.2.8';
 $plugin->component = 'auth_oidc';