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Issue setting pythonpath in a remote (SSH) environment after setting a venv path

See original GitHub issue

Environment data

VS Code version: 1.47.3
Extension version (available under the Extensions sidebar): 2020.7.96456
OS and version: Mac OS 10.15.6 (local) and Ubuntu (server) 20.04
Python version (& distribution if applicable, e.g. Anaconda): 3.8.2
Type of virtual environment used (N/A | venv | virtualenv | conda | …): N/A
Relevant/affected Python packages and their versions: N/A
Relevant/affected Python-related VS Code extensions and their versions: N/A
Value of the python.languageServer setting: Jedi

Expected behaviour

Loading a python file (which activates the extension) and having my local python version in /bin/python3 used

Actual behaviour

Loading python interpreter fails silently

Steps to reproduce:

Tried out debugging for the first time locally, and it went great! decided to try out the new(ish) remote ssh extension to my ubuntu server. Working on a venv, I manually selected the python path (in my case ./bin/python3). Finishing that, I exited. Connecting again (via Remote-SSH - Connect to Host) I open the terminal, and open a python file in my home directory (using code pythonfile.py). I get the error “No Python interpreter is selected. You need to select a Python interpreter to enable features such as IntelliSense, linting, and debugging.” in the bottom right, and when I select /bin/python3, the “Select Python Interpreter” button is still yellow. Strangely, as a work around, I can open the home directory in a new window (code ~/) and I my python install is correctly identified automatically.

Logs

Output for Python in the Output panel (View→Output, change the drop-down the upper-right of the Output panel to Python)

Starting Jedi Python language engine.
Error 2020-08-12 20:27:55: Diagnostic Code: InvalidPythonInterpreterDiagnostic, Message: No Python interpreter is selected. You need to select a Python interpreter to enable features such as IntelliSense, linting, and debugging.
Diagnostic Code: InvalidPythonInterpreterDiagnostic, Message: No Python interpreter is selected. You need to select a Python interpreter to enable features such as IntelliSense, linting, and debugging.

Linter 'pylint' is not installed. Please install it or select another linter".
TypeError [ERR_INVALID_ARG_VALUE]: The argument 'file' cannot be empty. Received ''
> /usr/bin/python3 ~/.vscode-server/extensions/ms-python.python-2020.7.96456/pythonFiles/pyvsc-run-isolated.py pip --version
> conda info --json
> conda --version