"Invalid Python selected" prompt is shown when create environment command is used in a multi-root workspace

[luabud]

Type: Bug

Behaviour

Expected vs. Actual

When using the create environment command in a multi-root workspace, I'm seeing the "Invalid Python selected" notification even though the new venv is correctly selected:

Steps to reproduce:

1. Create a multi-root workspace, ensuring the root-folder is open as its own separate workspace, as well as at least one of its subfolders (i.e. follow the scenario outlined here: https://github.com/microsoft/vscode-python/wiki/Mono-Repo-Set%E2%80%90up-Guide#scenario-2-separate-virtual-environments)
2. Add a file.exclude setting to exclude the subfolder that you opened as its own workspace from the top-level folder (to avoid "repeated" entries in the file explorer)
3. Run the create environment command and select the "subfolder workspace ".
4. The command runs succesfully and the interpreter is correctly picked up, but the "invalid Python selected" prompt shows up.

I reproduced it by cloning https://github.com/microsoft/responsible-ai-toolbox/ and creating the following .code-workspace file under responsible-ai-toolbox/.vscode

{
	"folders": [
		{
			"path": ".."
		},
		{
			"path": "../erroranalysis"
		},
		{
			"path": "../nlp_feature_extractors"
		},
		{
			"path": "../rai_core_flask"
		},
		{
			"path": "../raiutils"
		},
		{
			"path": "../responsibleai"
		},
		{
			"path": "../raiwidgets"
		}
	],
	"settings": {
		"files.exclude": {
			"erroranalysis/**": true,
			"nlp_feature_extractors/**": true,
			"rai_core_flask/**": true,
			"raiutils/**": true,
			"responsibleai/**": true,
			"raiwidgets/**": true	
		}
	}
}

Diagnostic data

• Python version (& distribution if applicable, e.g. Anaconda): 3.9.13
• Type of virtual environment used (e.g. conda, venv, virtualenv, etc.): Venv
• Value of the python.languageServer setting: Pylance

Output for Python in the Output panel (View→Output, change the drop-down the upper-right of the Output panel to Python)

XXX

User Settings

Multiroot scenario, following user settings may not apply:

languageServer: "Pylance"

testing
• pytestEnabled: true

experiments
• optInto: ["pythonTestAdapter","regionCommentDiagnostics"]

Extension version: 2023.23.13471011
VS Code version: Code - Insiders 1.86.0-insider (f87fb292c3af22e51a7f5c628496cd8d6fd9ecd5, 2023-12-13T08:07:18.340Z)
OS version: Windows_NT x64 10.0.22621
Modes:

System Info

Item	Value
CPUs	11th Gen Intel(R) Core(TM) i7-1185G7 @ 3.00GHz (8 x 2995)
GPU Status	2d_canvas: enabled canvas_oop_rasterization: enabled_on direct_rendering_display_compositor: disabled_off_ok gpu_compositing: enabled multiple_raster_threads: enabled_on opengl: enabled_on rasterization: enabled raw_draw: disabled_off_ok skia_graphite: disabled_off video_decode: enabled video_encode: enabled vulkan: disabled_off webgl: enabled webgl2: enabled webgpu: enabled
Load (avg)	undefined
Memory (System)	31.71GB (6.85GB free)
Process Argv	--log trace --log ms-python.autopep8=debug --crash-reporter-id 11494669-52ca-4f2c-aa0e-29172189cc8e
Screen Reader	no
VM	0%

A/B Experiments

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[karthiknadig]

@karrtikr This is the same problem I had seen a few months ago with the same repo. Basically, after the environment is created for one of the workspace folder, we call the update interpreter API with workspace folder URI and executable to the new environment. For some reason it triggers validation of python for other folders.

[karrtikr]

I tried to reproduce it again but I'm not able to. Marking it as "needs spike" to investigate further.