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"Python not installed" diagnostic despite showing an interpreter in the status bar #11870

@basharatusman

Description

@basharatusman

Environment data

  • VS Code version: 1.45.1
  • Extension version (available under the Extensions sidebar): 2020.5.78807
  • OS and version: Catalina 10.15.4
  • Python version (& distribution if applicable, e.g. Anaconda): 3.8.0
  • Type of virtual environment used (N/A | venv | virtualenv | conda | ...): venv

Expected behaviour

Be able to create a folder or workspace for Python projects.

Actual behaviour

Popup error saying that Python is not installed.

Steps to reproduce:

[NOTE: Self-contained, minimal reproducing code samples are extremely helpful and will expedite addressing your issue]

I just started using VSCode. I installed the Python Extension (2020.5.78807). I have python 3.8.0 installed. I can confirm that by running python --version in the terminal in VSCode. The interpreter in the bottom left of the screen shows as 3.8.0. Command pallet shows the same interpreter.

I can create a new file and save it as a .py and it works with no issues. However, if I create a folder or a workspace and then create a file in that, I get a popup saying that Python is not installed (source: Python(Extension).

The code still seems to run ok. I tried uninstalling and reinstalling the extension but no luck. Any thoughts on how I can get rid of this error?

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    area-environmentsFeatures relating to handling interpreter environmentsbugIssue identified by VS Code Team member as probable bugimportantIssue identified as high-priorityinfo-neededIssue requires more information from posterregressionBug didn't exist in a previous release

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