Venv not working when in a sub directory

Environment data

• VS Code version: 1.50.1
• Extension version (available under the Extensions sidebar): v2020.10.332292344
• OS and version:

Distributor ID:	Ubuntu
Description:	Ubuntu 18.04.5 LTS

• Python version (& distribution if applicable, e.g. Anaconda): 3.8 in venv
• Type of virtual environment used (N/A | venv | virtualenv | conda | …): venv
• Relevant/affected Python packages and their versions: XXX
• Relevant/affected Python-related VS Code extensions and their versions: XXX
• Value of the python.languageServer setting: jedi

[NOTE: If you suspect that your issue is related to the Microsoft Python Language Server (python.languageServer: 'Microsoft'), please download our new language server Pylance from the VS Code marketplace to see if that fixes your issue]

Expected behaviour

I expect the python binary inside dev/venv to be used

Actual behaviour

The default interpreter is always selected

Steps to reproduce:

1. Create dev/ folder
2. Create venv/ in dev/
3. Try to use the python interpreter in VSCode from dev/venv/bin/python

[katsar0v]

In the meantime, what happens if you click on “Enter interpreter path…” and type it in there?

I tried to type it, the default interpreter is used instead…

[Silun]

I also cannot change my interpreter any more. It doesn’t matter which one I select (all different conda environments), it always just stays with the one that it defaults to on startup of VSC.

I have tried reinstalling the extensions and deleting their files from \.vscode\extensions\, but to no avail. The problem should not be related to jedi or pylance as it persists even when none of them are enabled or installed. It is a pretty jarring problem as there seems to be no way to use python in VSC for the moment, safe for changing the one environment I can use every time I want to do something different.

If I use conda activate other-environment it will show the (other-environment) in the terminal, but it won’t actually use that environment. At least that is what it looks like because imports from other-environment clearly aren’t working.

Edit: “Enter interpreter path…” and selecting the environment manually does not solve the problem. VSC just ignores that the same way it ignores selections from the list.

Edit2: Okay, this is a surprise. There was a doubled pythonpath line in one of the settings files and switching the environments would only change the first occurence, not the second, thus getting stuck in the one environment. That seems like unintended behavior but would be a different issue altogether.