Intellisense and Code navigation fails in New language when using package names

Environment data

• VS Code version: Insiders
• Extension version (available under the Extensions sidebar): Master
• OS and version: Mac
• Python version (& distribution if applicable, e.g. Anaconda): 3.6
• Type of virtual environment used (N/A | venv | virtualenv | conda | …): N/A

Actual behavior

• Code navigation does not work
• Intellisense does not work

Expected behavior

Code navigation should work.

Steps to reproduce:

1. Open an empty folder in VSC
2. Create a folder mypkg1
3. Add empty __init__.py and __main__.py files in the above mypkg1 dir
4. Add a file named bar.py in the above directory with the following contents:

def do_something():
   pass

1. Create a file named foo.py in the above directory with the following contents:

from mypkg1.bar import do_something


do_something()

1. Note, while typing from mypkg1. there’s no auto completion (intellisense). This works in Jedi.
2. Try to go to definition of do_something, will not go into bar.py file.
3. Notice the squigglies under mymod1.bar.
4. Message in Problems window is [Python (analysis)] Unable to resolve 'mymod1.bar'. IntelliSense may be missing for this module.

This works in Jedi, both intellisense and code navigation.

FYI - This was identified while working on PTVSD.

[leandrorebelo]

I have the same problem.

The vscode and language server are updated.

vscode version: 1.25.1 Architecture: x64

[PEKTOP]

I have the same problem.

Version: 1.26.0
Commit: 4e9361845dc28659923a300945f84731393e210d
Date: 2018-08-13T16:25:59.521Z
Electron: 2.0.5
Chrome: 61.0.3163.100
Node.js: 8.9.3
V8: 6.1.534.41
Architecture: x64