Python in Visual Studio Code - July 2025 Release - Microsoft for Python Developers Blog
Briefly

In July 2025, the Python, Pylance, and Jupyter extensions will be released for Visual Studio Code. The Python Environments extension will now be an optional dependency with the Python extension, enabling automatic installations alongside other extensions. This feature includes one-click environment setup and automatic terminal activation. Additionally, PyREPL has been disabled for Python 3.13 to fix terminal issues. Other enhancements and fixes have been made to improve functionality with Python and Jupyter Notebooks in Visual Studio Code.
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, and all supported UI for environment and package management.
We have disabled PyREPL for Python 3.13 and above to address indentation and cursor issues in the interactive terminal.
The controlled roll-out allows us to gather early feedback and ensure reliability before general availability.
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.
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