Terminal activates conda environment even when python.terminal.activateEnvironment is false

[suifengwudong]

VS Code version: Latest (2026)
Python extension version: 2026.2.0
OS: Windows

Problem: Despite setting
python.terminal.activateEnvironment: false in settings.json, the Python extension still automatically activates the selected Conda environment in the integrated terminal upon opening.

Steps to reproduce:

1. Set \python.terminal.activateEnvironment: false in VS Code user settings.
2. Select a Conda environment's Python interpreter in VS Code.
3. Open a new integrated terminal.
4. The terminal activates the selected Conda environment automatically.

Expected behavior: The terminal should not activate any Conda environment when the setting is false.

Actual behavior: The terminal activates the selected Conda environment regardless of the setting.

This issue persists even after clearing cache, refreshing interpreters, and restarting VS Code.

[anthonykim1]

Does behavior change if you:

Try install https://marketplace.visualstudio.com/items?itemName=ms-python.vscode-python-envs
Also add "python.useEnvironmentsExtension": true, to your settings.json.

There is also python-envs.terminal.autoActivationType you can change to off and see if that changes the behavior.

[suifengwudong]

Thanks for looking into this. After rigorous testing today (including temporarily disabling my custom pwsh lazy-load profile to test Conda direct loading), here is the latest finding:

It appears that the original issue has been naturally fixed in recent updates of the Python extension. When using the current version with just "python.terminal.activateEnvironment": false, VS Code accurately respects the setting and no longer attempts to inject conda activate into newly launched integrated terminals, regardless of whether the new Environment Manager extension is enabled or not.

The provided workaround works, but is practically no longer necessary since the base configuration is being respected again. I will close this issue for now. Thanks!