Only use activated environment from terminal if VSCode was launched via CLI (#20667)

Closes #20644

Author: Kartik Raj

src/client/interpreter/virtualEnvs/activatedEnvLaunch.ts

@@ -9,7 +9,7 @@ import { IProcessServiceFactory } from '../../common/process/types';
 import { sleep } from '../../common/utils/async';
 import { cache } from '../../common/utils/decorators';
 import { Common, Interpreters } from '../../common/utils/localize';
-import { traceError, traceLog, traceWarn } from '../../logging';
+import { traceError, traceLog, traceVerbose, traceWarn } from '../../logging';
 import { Conda } from '../../pythonEnvironments/common/environmentManagers/conda';
 import { sendTelemetryEvent } from '../../telemetry';
 import { EventName } from '../../telemetry/constants';
@@ -89,6 +89,11 @@ export class ActivatedEnvironmentLaunch implements IActivatedEnvironmentLaunch {
             // Assuming multiroot workspaces cannot be directly launched via `code .` command.
             return undefined;
         }
+        if (process.env.VSCODE_CLI !== '1') {
+            // We only want to select the interpreter if VS Code was launched from the command line.
+            traceVerbose('VS Code was not launched from the command line, not selecting activated interpreter');
+            return undefined;
+        }
         const prefix = await this.getPrefixOfSelectedActivatedEnv();
         if (!prefix) {
             this._promptIfApplicable().ignoreErrors();

src/test/interpreters/virtualEnvs/activatedEnvLaunch.unit.test.ts

@@ -29,7 +29,8 @@ suite('Activated Env Launch', async () => {
     let activatedEnvLaunch: ActivatedEnvironmentLaunch;
     let _promptIfApplicable: sinon.SinonStub;
 
-    suite('Method getPrefixOfSelectedActivatedEnv()', () => {
+    suite('Method selectIfLaunchedViaActivatedEnv()', () => {
+        const oldVSCodeCLI = process.env.VSCODE_CLI;
         const oldCondaPrefix = process.env.CONDA_PREFIX;
         const oldCondaShlvl = process.env.CONDA_SHLVL;
         const oldVirtualEnv = process.env.VIRTUAL_ENV;
@@ -41,6 +42,7 @@ suite('Activated Env Launch', async () => {
             processServiceFactory = TypeMoq.Mock.ofType<IProcessServiceFactory>();
             _promptIfApplicable = sinon.stub(ActivatedEnvironmentLaunch.prototype, '_promptIfApplicable');
             _promptIfApplicable.returns(Promise.resolve());
+            process.env.VSCODE_CLI = '1';
         });
 
         teardown(() => {
@@ -59,6 +61,11 @@ suite('Activated Env Launch', async () => {
             } else {
                 delete process.env.VIRTUAL_ENV;
             }
+            if (oldVSCodeCLI) {
+                process.env.VSCODE_CLI = oldVSCodeCLI;
+            } else {
+                delete process.env.VSCODE_CLI;
+            }
             sinon.restore();
         });
 
@@ -94,6 +101,39 @@ suite('Activated Env Launch', async () => {
             pythonPathUpdaterService.verifyAll();
         });
 
+        test('Does not update interpreter path if VSCode is not launched via CLI', async () => {
+            delete process.env.VSCODE_CLI;
+            process.env.CONDA_PREFIX = condaPrefix;
+            process.env.CONDA_SHLVL = '1';
+            interpreterService
+                .setup((i) => i.getInterpreterDetails(TypeMoq.It.isAny()))
+                .returns(() => Promise.resolve(({ envName: 'env' } as unknown) as PythonEnvironment));
+            workspaceService.setup((w) => w.workspaceFile).returns(() => undefined);
+            const workspaceFolder: WorkspaceFolder = { name: 'one', uri, index: 0 };
+            workspaceService.setup((w) => w.workspaceFolders).returns(() => [workspaceFolder]);
+            pythonPathUpdaterService
+                .setup((p) =>
+                    p.updatePythonPath(
+                        TypeMoq.It.isValue(condaPrefix),
+                        TypeMoq.It.isValue(ConfigurationTarget.WorkspaceFolder),
+                        TypeMoq.It.isValue('load'),
+                        TypeMoq.It.isValue(uri),
+                    ),
+                )
+                .returns(() => Promise.resolve())
+                .verifiable(TypeMoq.Times.never());
+            activatedEnvLaunch = new ActivatedEnvironmentLaunch(
+                workspaceService.object,
+                appShell.object,
+                pythonPathUpdaterService.object,
+                interpreterService.object,
+                processServiceFactory.object,
+            );
+            const result = await activatedEnvLaunch.selectIfLaunchedViaActivatedEnv();
+            expect(result).to.be.equal(undefined, 'Incorrect value');
+            pythonPathUpdaterService.verifyAll();
+        });
+
         test('Updates interpreter path with the base conda prefix if activated and environment var is configured to not auto activate it', async () => {
             process.env.CONDA_PREFIX = condaPrefix;
             process.env.CONDA_SHLVL = '1';