We’re excited to announce the July 2025 release of the Python, Pylance and Jupyter extensions for Visual Studio Code!

This release includes the following announcements:

• Python Environments included as part of the Python extension
• Disabled PyREPL for Python 3.13

If you’re interested, you can check the full list of improvements in our changelogs for the Python, Jupyter and Pylance extensions.

Python Environments included as part of the Python extension

We’ve begun the roll-out of the Python Environments extension as an optional dependency with the Python extension. What this means is that you might now begin to see the Python Environments extension automatically installed alongside the Python extension, similar to the Python Debugger and Pylance extensions. You can find its features by clicking the Python icon that appears in the Activity Bar. This controlled roll-out allows us to gather early feedback and ensure reliability before general availability.

The Python Environments extension includes all the core capabilities we’ve introduced so far including: one-click environment setup using Quick Create, automatic terminal activation (via "python-envs.terminal.autoActivationType" setting), and all supported UI for environment and package management.

To use the Python Environments extension during the roll-out, make sure the extension is installed and add the following to your VS Code settings.json file:

"python.useEnvironmentsExtension": true

Disabled PyREPL for Python 3.13

We have disabled PyREPL for Python 3.13 and above to address indentation and cursor issues in the interactive terminal. For more details, see Disable PyREPL for >= 3.13.

Other Changes and Enhancements

We have also added small enhancements and fixed issues requested by users that should improve your experience working with Python and Jupyter Notebooks in Visual Studio Code. Some notable changes include:

• Polished terminal activation support for Poetry versions greater than 2.0.0 in the Python Environments extension (vscode-python-environments#529).
• .venv folders generating by the Python Environments extension are now git-ignored by default (vscode-python-environments#552).
• Improved the environment deletion process through the Python Environments extension (vscode-python-environments#481 and vscode-python-environments#505).
• Quick Create environment creation now provides an option to set up multiple virtual environments which are uniquely named within the same workspace (vscode-python-environments#477).
• The Pylance extension now includes several experimental MCP tools, which offer access to Pylance’s documentation, import analysis, environment management, and more. These tools are still under active development and continue to be polished.

We would also like to extend special thanks to this month’s contributors:

• @jezdez Fixed conda listing in README.md in vscode-python-environments#80
• @robwoods-cam Added note for Python Pre-release requirement in vscode-python-environments#111
• @almarouk Remove tilde from conda path in settings in vscode-python-environments#122
• @flying-sheep Handle all shells de/activation in vscode-python-environments#137

Try out these new improvements by downloading the Python extension and the Jupyter extension from the Marketplace, or install them directly from the extensions view in Visual Studio Code (Ctrl + Shift + X or ⌘ + ⇧ + X). You can learn more about Python support in Visual Studio Code in the documentation. If you run into any problems or have suggestions, please file an issue on the Python VS Code GitHub page.