Shell won't start venv after update

[PotterSys]

Type: Bug

Behaviour

Last friday, when starting a Terminal window, it ran automatically the activation script for venv on the project I'm working on.

However, today (monday) the script didn't appear. I read the Wiki page it appeared on the toaster message (https://github.com/microsoft/vscode-python/wiki/Activate-Environments-in-Terminal-Using-Environment-Variables); and therefore I ran the same command I did on friday. However, I've got an error as the terminal ran using the Python interpreter from the OS, and not the one from the virtual environment.

I tried out running the activation script and then my code, and worked as expected.

Steps to reproduce:

1. Open a new Terminal window within a project that have configured a virtual environment
2. Run a script that uses libraries installed only on the virtual environment

Diagnostic data

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

2025-07-14 10:02:35.717 [info] Experiment 'pythonTerminalEnvVarActivation' is active
2025-07-14 10:02:35.717 [info] Native locator: Refresh started
2025-07-14 10:02:35.717 [info] Native locator: Refresh started
2025-07-14 10:02:35.913 [info] > pyenv which python
2025-07-14 10:02:35.913 [info] cwd: .
2025-07-14 10:02:36.365 [info] Native locator: Refresh finished in 24750 ms
2025-07-14 10:02:36.367 [info] Python interpreter path: .\.venv\Scripts\python.exe
2025-07-14 10:02:39.729 [info] > & ./.venv/Scripts/Activate.ps1 ; echo 'e8b39361-0157-4923-80e1-22d70d46dee6' ; python ~/.vscode/extensions/ms-python.python-2025.10.0-win32-x64/python_files/printEnvVariables.py
2025-07-14 10:02:39.729 [info] shell: powershellCore
2025-07-14 10:02:41.750 [info] Starting Pylance language server.
2025-07-14 10:02:46.954 [info] > ~\AppData\Local\Microsoft\WindowsApps\python3.12.exe ~/.vscode/extensions/ms-python.python-2025.10.0-win32-x64/python_files/printEnvVariables.py
2025-07-14 10:02:46.954 [info] shell: powershellCore
2025-07-14 10:02:52.471 [info] Setting environment variable DB_ORACLE_LIBDIR in collection to C:\\Projects\\2025\\07\\[project name]\\libs\\ora_instantclient_11_2 {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.471 [info] Setting environment variable DB_ORACLE_PASS in collection to RRHH {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.471 [info] Setting environment variable DB_ORACLE_TNS in collection to BASEPROD {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.471 [info] Setting environment variable DB_ORACLE_TNSDIR in collection to C:\\Projects\\2025\\07\\[project name]\\config {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.471 [info] Setting environment variable DB_ORACLE_USER in collection to RRHH {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.471 [info] Prepending environment variable PATH in collection with c:\Users\[username]\.vscode\extensions\ms-python.python-2025.10.0-win32-x64\python_files\deactivate\powershell;C:\Projects\2025\07\[project name]\.venv\Scripts; {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.471 [info] Setting environment variable VIRTUAL_ENV in collection to C:\Projects\2025\07\[project name]\.venv {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.471 [info] Setting environment variable VIRTUAL_ENV_PROMPT in collection to .venv {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:02:52.474 [info] Send text to terminal: & C:/Users/[username]/AppData/Local/Microsoft/WindowsApps/python3.12.exe c:\Users\[username]\.vscode\extensions\ms-python.python-2025.10.0-win32-x64\python_files\printEnvVariablesToFile.py c:\Users\[username]\.vscode\extensions\ms-python.python-2025.10.0-win32-x64\python_files\deactivate\powershell\envVars.txt
2025-07-14 10:16:37.547 [info] Discover tests for workspace name: [project name] - uri: c:\Projects\2025\07\[project name]\inc\pdf.py
2025-07-14 10:18:09.271 [info] Discover tests for workspace name: [project name] - uri: c:\Projects\2025\07\[project name]\inc\creator.py
2025-07-14 10:18:50.956 [info] Experiment 'pythonTerminalEnvVarActivation' is active
2025-07-14 10:18:50.956 [info] Native locator: Refresh started
2025-07-14 10:18:50.956 [info] Native locator: Refresh started
2025-07-14 10:18:51.181 [info] > pyenv which python
2025-07-14 10:18:51.181 [info] cwd: .
2025-07-14 10:18:51.434 [info] Python interpreter path: .\.venv\Scripts\python.exe
2025-07-14 10:18:51.442 [info] Native locator: Refresh finished in 9774 ms
2025-07-14 10:18:51.988 [info] > & ./.venv/Scripts/Activate.ps1 ; echo 'e8b39361-0157-4923-80e1-22d70d46dee6' ; python ~/.vscode/extensions/ms-python.python-2025.10.0-win32-x64/python_files/printEnvVariables.py
2025-07-14 10:18:51.988 [info] shell: powershellCore
2025-07-14 10:18:55.375 [info] > ~\AppData\Local\Microsoft\WindowsApps\python3.12.exe ~/.vscode/extensions/ms-python.python-2025.10.0-win32-x64/python_files/printEnvVariables.py
2025-07-14 10:18:55.375 [info] shell: powershellCore
2025-07-14 10:18:57.870 [info] Starting Pylance language server.
2025-07-14 10:18:59.154 [info] Setting environment variable DB_ORACLE_LIBDIR in collection to C:\\Projects\\2025\\07\\[project name]\\libs\\ora_instantclient_11_2 {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.154 [info] Setting environment variable DB_ORACLE_PASS in collection to RRHH {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.154 [info] Setting environment variable DB_ORACLE_TNS in collection to BASEPROD {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.154 [info] Setting environment variable DB_ORACLE_TNSDIR in collection to C:\\Projects\\2025\\07\\[project name]\\config {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.154 [info] Setting environment variable DB_ORACLE_USER in collection to RRHH {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.154 [info] Prepending environment variable PATH in collection with c:\Users\[username]\.vscode\extensions\ms-python.python-2025.10.0-win32-x64\python_files\deactivate\powershell;C:\Projects\2025\07\[project name]\.venv\Scripts; {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.154 [info] Setting environment variable VIRTUAL_ENV in collection to C:\Projects\2025\07\[project name]\.venv {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.154 [info] Setting environment variable VIRTUAL_ENV_PROMPT in collection to .venv {"applyAtShellIntegration":true,"applyAtProcessCreation":true}
2025-07-14 10:18:59.156 [info] Send text to terminal: & C:/Users/[username]/AppData/Local/Microsoft/WindowsApps/python3.12.exe c:\Users\[username]\.vscode\extensions\ms-python.python-2025.10.0-win32-x64\python_files\printEnvVariablesToFile.py c:\Users\[username]\.vscode\extensions\ms-python.python-2025.10.0-win32-x64\python_files\deactivate\powershell\envVars.txt

Output for Terminal

PS C:\Projects\2025\07\[project name]> python .\main.py
Traceback (most recent call last):
  File "C:\Projects\2025\07\[project name]\main.py", line 3, in <module>
    from inc.oracledb import OracleDb
  File "C:\Projects\2025\07\[project name]\inc\oracledb.py", line 1, in <module>
    from sqlalchemy import create_engine, URL as urnBuilder, insert, MetaData as alchemyMetadata, Table, text
ModuleNotFoundError: No module named 'sqlalchemy'

Extension version: 2025.10.0
VS Code version: Code 1.102.0 (cb0c47c0cfaad0757385834bd89d410c78a856c0, 2025-07-09T22:10:34.600Z)
OS version: Windows_NT x64 10.0.22621
Modes:

• Python version (& distribution if applicable, e.g. Anaconda): 3.12.10
• Type of virtual environment used (e.g. conda, venv, virtualenv, etc.): Venv
• Value of the python.languageServer setting: Default

User Settings

languageServer: "Pylance"

Installed Extensions

Extension Name	Extension Id	Version
autodocstring	njp	0.6.1
Bookmarks	ale	13.5.0
csdevkit	ms-	1.30.44
csharp	ms-	2.84.19
debugpy	ms-	2025.10.0
es7-react-js-snippets	dsz	4.4.3
gitlens	eam	17.3.0
indent-rainbow	ode	8.3.1
JavaScriptSnippets	xab	1.8.0
js-debug	ms-	1.102.0
js-debug-companion	ms-	1.1.3
openapi-preview	zoe	2.3.0
prettier-vscode	esb	11.0.0
python	ms-	2025.10.0
python-path	mge	0.0.14
python-resource-monitor	kai	0.3.0
python-snippets	cst	0.1.2
remote-wsl	ms-	0.99.0
sql-developer	Ora	25.2.0
vetur	oct	0.37.3
vsc-python-indent	Kev	1.21.0
vscode-containers	ms-	2.0.3
vscode-dotnet-runtime	ms-	2.3.6
vscode-eslint	dba	3.0.10
vscode-html-css	ecm	2.0.13
vscode-js-profile-table	ms-	1.0.10
vscode-openapi	42C	4.37.2
vscode-oracle-format	mp	0.1.5
vscode-pylance	ms-	2025.6.2
vscode-python-envs	ms-	0.3.11841011
vscode-xml	red	0.29.0
vscode-yaml	red	1.18.0
xml	Dot	2.5.1

System Info

Item	Value
CPUs	Intel(R) Core(TM) i7-7500U CPU @ 2.70GHz (4 x 2904)
GPU Status	2d_canvas: enabled canvas_oop_rasterization: enabled_on direct_rendering_display_compositor: disabled_off_ok gpu_compositing: enabled multiple_raster_threads: enabled_on opengl: enabled_on rasterization: enabled raw_draw: disabled_off_ok skia_graphite: disabled_off video_decode: enabled video_encode: enabled vulkan: disabled_off webgl: enabled webgl2: enabled webgpu: enabled webnn: disabled_off
Load (avg)	undefined
Memory (System)	15.89GB (5.63GB free)
Process Argv	--crash-reporter-id 65197e54-e930-40da-99a9-0845801a5d11
Screen Reader	no
VM	0%

A/B Experiments

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binariesv615:30325510
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azure-dev_surveyone:30548225
962ge761:30959799
2e7ec940:31000449
cppperfnew:31000557
dwnewjupyter:31046869
nativeloc1:31344060
5fd0e150:31155592
dwcopilot:31170013
6074i472:31201624
dwoutputs:31242946
hdaa2157:31222309
copilot_t_ci:31333650
e5gg6876:31282496
pythoneinst12:31285622
c7cif404:31314491
pythonpulldiag:31343502
996jf627:31283433
pythonrdcb7:31342333
usemplatestapi:31297334
0aa6g176:31307128
747dc170:31275177
aj953862:31281341
generatesymbolt:31295002
convertfstringf:31295003
pylancequickfixt:31329274
9d2cg352:31346308
usemarketplace:31343026
nesew2to5:31336538
agentclaude:31335815
nes-diff-11:31337487
63221493:31336333
yijiwantestdri0626-t:31336930
f76d9909:31342392

[eleanorjboyd]

Hello!
There are two options of what this could be caused by, the Python locator experiment or the python environments extension. If you can give the follow two options a try and let me know what they see that would be awesome.

Try setting the setting "python.locator": "js”, and try toggling it between the two options and see if that makes an impact

Try adding the setting python.useEnvironmentsExtension to false, reload the window and see if the experience changes

[eleanorjboyd]

I think this is a dup of #25284. I will continue to debug on that thread. If you don't think its a dup just comment and let me know what you think is different and I can reopen this. Thanks