Python Environments Extension for VS Code- April Update

Python Environments — April 2026 Release

We’re excited to announce the latest update to the Python Environments extension for Visual Studio Code. This release focuses on startup performance, reliability, and quality-of-life improvements for terminals and package management.

Faster startup

Activation is now noticeably snappier, especially on remote and containerized workspaces. We made three key changes:

Lazy manager discovery. Pipenv, pyenv, and poetry environments are no longer discovered eagerly on startup. Instead, detection is deferred until you actually interact with one of those managers — for example, by opening a project that uses a Pipfile or pyproject.toml with a poetry backend. This eliminates unnecessary work for the majority of users who rely on venv, uv, or conda. (#1423, #1408)

Faster environment resolution. The path from “extension activated” to “interpreter ready” is shorter. Resolution during startup and interpreter selection now completes with less overhead. (#1419)

Narrower default workspace scanning. The default search pattern for virtual environments was ./**/.venv, which triggered a recursive scan of the entire workspace tree. On large projects — and especially over Remote-SSH — this could cause the Python Environment Tools (PET) process to hang for 30+ seconds during configuration, leading to cascading timeouts and restart loops (see #1460, #1434). The default is now .venv and */.venv, which covers the standard layout without deep traversal. If you have virtual environments nested more than one level deep, you can add custom paths via the python-envs.workspaceSearchPaths setting. (#1419)

Improved reliability

PET crash recovery. When the PET process crashed mid-refresh, the extension could end up in a broken state with no environments visible. We now retry the refresh after a crash and handle empty or malformed responses defensively, so a transient PET failure no longer leaves you with a blank environment list. (#1442, #1447, #1444)

Conda base environment fix. After a window reload, the conda base environment could be incorrectly restored as a different named environment — making it appear that your interpreter selection had silently changed. This is now fixed. (#1412)

Environment updates and terminals

Auto-refreshing package lists. You no longer need to manually refresh the package view after running pip install or pip uninstall. The extension now watches for metadata changes in site-packages and updates the package list automatically. (#1420)

Multi-project terminal creation. In workspaces with multiple Python projects, creating a new terminal now prompts you to choose which project’s environment to activate, rather than picking one silently. (#1401)

PowerShell activation on Windows. Virtual environment activation via PowerShell could fail if the system execution policy blocked scripts. The extension now sets a process-scoped execution policy before running activation, so .ps1 activate scripts work out of the box without requiring system-wide policy changes. (#1414)

Try the update today and let us know how it works for you. If you run into issues, please file them on GitHub.