python.envFile does not get sourced in terminals

[tibbe]

Type: Bug

Behaviour

It used to be the case that a .env file in the project root directory would get sourced when opening a new terminal in that project. This no longer happens.

Steps to reproduce:

1. Open a new terminal in a Python project with a .env file in its root.

Diagnostic data

launch.json configuration

<No launch.json>

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

2025-08-04 10:28:43.935 [info] Python interpreter path: ./.venv/bin/python
2025-08-04 10:28:44.020 [info] > /opt/homebrew/bin/pyenv which python
2025-08-04 10:28:44.020 [info] cwd: ~/work/benetics/backend
2025-08-04 10:28:44.308 [info] > conda info --json
2025-08-04 10:28:44.457 [error] [
  'Failed to activate a workspace, Class name = v, completed in 540ms, has a falsy return value, Arg 1: <Uri:/Users/tibbe/work/benetics/backend/benetics/api/main.py>, Return Value: undefined',
  Error: command 'python.getRecommendedEnvironment' already exists
      at Ab.registerCommand (file:///Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/api/node/extensionHostProcess.js:112:40266)
      at Object.registerCommand (file:///Applications/Visual%20Studio%20Code.app/Contents/Resources/app/out/vs/workbench/api/node/extensionHostProcess.js:164:104895)
      at p.activate (/Users/tibbe/.vscode/extensions/ms-python.python-2025.10.1-darwin-arm64/out/client/extension.js:2:529744)
      at /Users/tibbe/.vscode/extensions/ms-python.python-2025.10.1-darwin-arm64/out/client/extension.js:2:2457
      at Array.map (<anonymous>)
      at v.activateWorkspace (/Users/tibbe/.vscode/extensions/ms-python.python-2025.10.1-darwin-arm64/out/client/extension.js:2:2447)
]
2025-08-04 10:28:44.457 [info] Starting Pylance language server.
2025-08-04 10:28:53.567 [info] Python interpreter path: ~/.pyenv/versions/3.11.11/bin/python

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

XXX

Extension version: 2025.10.1
VS Code version: Code 1.102.3 (Universal) (488a1f239235055e34e673291fb8d8c810886f81, 2025-07-29T03:00:23.339Z)
OS version: Darwin arm64 24.5.0
Modes:

• Python version (& distribution if applicable, e.g. Anaconda): 3.11.11
• Type of virtual environment used (e.g. conda, venv, virtualenv, etc.): Pyenv
• Value of the python.languageServer setting: Default

User Settings

Multiroot scenario, following user settings may not apply:

languageServer: "Pylance"

Installed Extensions

Extension Name	Extension Id	Version
boto3-ide	Bot	0.6.0
copilot	Git	1.350.0
copilot-chat	Git	0.29.1
debugpy	ms-	2025.10.0
even-better-toml	tam	0.21.2
gitlens	eam	17.3.3
js-debug	ms-	1.102.0
js-debug-companion	ms-	1.1.3
jupyter	ms-	2025.6.0
jupyter-keymap	ms-	1.1.2
jupyter-renderers	ms-	1.3.0
lldb-dap	llv	0.2.15
markdown-preview-github-styles	bie	2.2.0
mypy-type-checker	ms-	2025.2.0
prettier-vscode	esb	11.0.0
python	ms-	2025.10.1
rainbow-csv	mec	3.20.0
remote-containers	ms-	0.422.1
rewrap	stk	1.16.3
ruff	cha	2025.24.0
rust-analyzer	rus	0.3.2563
swift-vscode	swi	2.10.0
vscode-eslint	dba	3.0.10
vscode-github-actions	git	0.27.2
vscode-jest	Ort	6.4.4
vscode-js-profile-table	ms-	1.0.10
vscode-jupyter-cell-tags	ms-	0.1.9
vscode-jupyter-slideshow	ms-	0.1.6
vscode-lldb	vad	1.11.5
vscode-pull-request-github	Git	0.114.3
vscode-pylance	ms-	2025.7.1
vscode-python-envs	ms-	1.2.0

System Info

Item	Value
CPUs	Apple M1 Pro (8 x 2400)
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: enabled_on video_decode: enabled video_encode: enabled webgl: enabled webgl2: enabled webgpu: enabled webnn: disabled_off
Load (avg)	13, 12, 16
Memory (System)	16.00GB (0.27GB free)
Process Argv	--crash-reporter-id ed2662a8-8445-4e6c-a43a-bb8dbcde152c
Screen Reader	no
VM	0%

A/B Experiments

vsliv368cf:30146710
binariesv615:30325510
h48ei257:31000450
nativeloc1:31344060
dwcopilot:31170013
6074i472:31201624
dwoutputs:31242946
copilot_t_ci:31333650
e5gg6876:31282496
pythoneinst12:31285622
c7cif404:31314491
996jf627:31283433
pythonrdcb7:31342333
usemplatestapi:31297334
0aa6g176:31307128
747dc170:31275177
6518g693:31334701
aj953862:31281341
generatesymbolt:31295002
convertfstringf:31295003
pylancequickfixt:31358882
9d2cg352:31346308
convertlamdaf:31358879
usemarketplace:31343026
nesew2to5:31336538
agentclaude:31350858
b6b4d950:31327385
replacestringexc:31350595
nes-set-on:31351930
onetestforazureexp:31335613
6abeh943:31336334
yijiwantestdri0626-t:31336930
0927b901:31350571
ji9b5146:31348712
45650338:31358607
0cj2b977:31352657
gaj49834:31355361

[tibbe]

If you look at the Python > Output section above it looks like the extension throws an error.

[bmmaurer]

We're having the same issue here - we are using variables in the .env file to store access tokens in order to download private packages using requirements.txt. This is not working anymore even though the stored access tokens are still valid.

Edit: looks like a duplicate of #25294 ?

[eleanorjboyd]

yes dup of #25294 working on getting in the fix