Integrated terminal activates base conda environment instead of configured environment

[AntonioDEM]

Does this issue occur when all extensions are disabled?: No (This appears to be related to Python extension functionality)

• VS Code Version: 1.104.0
• Node.js: 22.18.0
• OS Version: Darwin x64 23.6.0, Sonoma 14.6.1 (23G93)

Issue Description

VS Code fails to automatically activate the correct conda environment in integrated terminal despite python.terminal.activateEnvironment: true setting and correct Python interpreter configuration.

Steps to Reproduce:

1. Install conda/miniconda and create a conda environment (e.g., conda create -n node-dev python=3.x)
2. Open VS Code and create a new workspace/project
3. Configure workspace settings:

   {
       "python.defaultInterpreterPath": "/Users/[username]/miniconda3/envs/node-dev/bin/python",
       "python.condaPath": "/Users/[username]/miniconda3/bin/conda",
       "python.terminal.activateEnvironment": true,
       "terminal.integrated.inheritEnv": false
   }

4. Verify the correct Python interpreter is selected (should show in status bar)
5. Open a new integrated terminal (`Cmd+``)
6. Observe the terminal prompt and run echo $CONDA_DEFAULT_ENV

Expected Result:

• Terminal should show (node-dev) in prompt
• echo $CONDA_DEFAULT_ENV should output node-dev
• VS Code should automatically activate the conda environment specified by the Python interpreter

Actual Result:

• Terminal shows (base) in prompt (or no environment activated)
• echo $CONDA_DEFAULT_ENV outputs base (or empty)
• The base conda environment is activated instead of the configured one
• Manual conda activate node-dev works correctly

Additional Information:

Environment Details:

• Shell: zsh (default on macOS)
• Conda properly initialized in .zshrc
• which conda returns a shell function (normal conda setup)
• Python extension correctly identifies the interpreter (visible in status bar)

Configuration Files:

// Workspace settings
{
    "python.defaultInterpreterPath": "/Users/tony/miniconda3/envs/node-dev/bin/python",
    "python.condaPath": "/Users/tony/miniconda3/bin/conda",
    "python.terminal.activateEnvironment": true,
    "terminal.integrated.inheritEnv": false
}

Workaround that works:
Creating a custom terminal profile manually activates the correct environment:

{
    "terminal.integrated.defaultProfile.osx": "conda-env",
    "terminal.integrated.profiles.osx": {
        "conda-env": {
            "path": "/bin/zsh",
            "args": ["-l", "-c", "conda activate node-dev; exec zsh"]
        }
    }
}

However, this shouldn't be necessary when python.terminal.activateEnvironment: true is configured.

Tested scenarios:

• ✅ Custom terminal profile with manual conda activate
• ❌ python.terminal.activateEnvironment: true (should work but doesn't)
• ❌ Various terminal.integrated.env.osx configurations
• ✅ Manual activation after terminal opens

This issue affects productivity as developers need to manually activate the correct environment every time they open a new terminal, despite having the correct configuration.

[AntonioDEM]

Auto-Activate Conda Environment in VS Code

Quick Setup

VS Code doesn't automatically activate conda environments despite correct configuration. This solution provides automatic conda environment activation for both VS Code integrated terminal and regular terminal.

1. Workspace Configuration

Create .code-workspace in your project root:

{
    "folders": [{"path": "."}],
    "settings": {
        "python.defaultInterpreterPath": "/Users/[USERNAME]/miniconda3/envs/[ENV_NAME]/bin/python",
        "python.terminal.activateEnvironment": true,
        "terminal.integrated.defaultProfile.osx": "conda-auto",
        "terminal.integrated.profiles.osx": {
            "conda-auto": {
                "path": "/bin/zsh",
                "args": ["-l", "-c", "source /Users/[USERNAME]/miniconda3/etc/profile.d/conda.sh && conda activate [ENV_NAME]; exec zsh"]
            }
        }
    }
}

2. Auto-activation in Terminal

Add to ~/.zshrc:

# Auto-activate conda environment for specific projects
if [[ "$PWD" == *"your-project-name"* ]]; then
    conda activate your-env-name 2>/dev/null
fi

3. Restart & Test

1. source ~/.zshrc
2. Restart VS Code
3. Open integrated terminal → Should show (your-env-name)

Replace:

• [USERNAME] → your macOS username
• [ENV_NAME] → your conda environment name
• your-project-name → part of your project folder name

Why This Works

• VS Code Profile: Ensures activation in integrated terminal
• zshrc Auto-activation: Works in regular terminal when navigating to project
• Double Safety: If one fails, the other covers it

---

[eleanorjboyd]

Thank you for the bug report! Will investigate

[AntonioDEM]

Thank you for the bug report! Will investigate

I wrote the smart conda workspace extension these days. I'm not an expert, so I hope this helps you find a solution. https://github.com/AntonioDEM/smart-conda-terminal

[eleanorjboyd]

Hi! Trying this myself and it works. I added your settings.json you suggested, then I went through and selected the node-dev environment via the select interpreter and it works. Did you go through the "select interpreter" flow? After selecting the right env via the UI you should see these two settings updated

    "python-envs.defaultEnvManager": "ms-python.python:conda",
    "python-envs.defaultPackageManager": "ms-python.python:conda",

Is your issue that you can't get it work this way or that you want it without the UI intervention?

[eleanorjboyd]

Can you also check the value of this setting for you python-envs.terminal.autoActivationType?