python extension that recommends terminal.integrated.inheritEnv: false causes Terminal to fail on Linux

Environment data

• VS Code version: 1.50.1
• Extension version (available under the Extensions sidebar): 2020.9.114305
• OS and version: Ubuntu 20.04
• Python version (& distribution if applicable, e.g. Anaconda): conda python 3.8
• Type of virtual environment used (N/A | venv | virtualenv | conda | …): conda
• 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: Pylance

Expected behaviour

Terminal works

Actual behaviour

Terminal doesn’t work

Steps to reproduce:

See https://github.com/microsoft/vscode/issues/76542 and comment https://github.com/microsoft/vscode/issues/76542#issuecomment-619703916

The prompt

causes this setting to be injected, and then Terminal stops working on Ubuntu. It takes a lot of google searching to find out that this is the root cause.

[karthiknadig]

If terminal.integrated.inheritEnv: false is causing issues, I recommend turn it back on. But do these steps to have a better experience with conda in general.

1. Turn off auto activation. To do this, disable these two settings, ideally only for the project you are working on:
2. Exit VS Code.
3. Open Anaconda Prompt, navigate to your project.
4. Activate the environment that you want.
5. Run code . or code project.code-workspace to launch VS Code.

This will give you an activated environment, and the extension will not have to try and activate every time a terminal is created.

[karrtikr]

According to https://github.com/microsoft/vscode/issues/76542 this should no longer be an issue.