VSCode terminal shows incorrect python version and path, launching terminal from anaconda works perfectly

Question

I have been stuck on this one problem for hours now and believe I have tried everything outside of throwing my computer out of the window.

I have a virtual environment s

Answer 1

The officially accepted answer by @Samuel was the correct answer at the time.

But VS Code has now provided a better way to handle it.

In short, open up your user settings and add this line of code:

    "terminal.integrated.inheritEnv": false,

This prevents stomping over whatever Python environment manager you are using (eg, venv, conda, etc).