When using the shellStartup activation type in a remote VS Code environment, the Python environment isn't activated in the terminal where the debugger is launched. This affects all environments that need to be activated, like Conda and Pixi.
The issue only happens when all three conditions are met:
- Remote environment
shellStartup activation type
- Launching the debugger (integrated terminal)
Opening a regular terminal in the same remote environment works fine. Debugging locally also works fine. Setting autoActivationType to command works around the issue.
There is a fix waiting for review over here microsoft/vscode#300428.