vscode-jupyter: Can't run cell, cell execution errors out with 'Canceled' notification

Environment data

• VS Code version: 1.53.0-insiders
• Jupyter Extension version (available under the Extensions sidebar): v2020.12.414227025
• Python Extension version (available under the Extensions sidebar): v2021.1.502429796
• OS (Windows | Mac | Linux distro) and version: Win 10 1909
• Python and/or Anaconda version: Python 3.9.0
• Type of virtual environment used (N/A | venv | virtualenv | conda | …): N/A
• Jupyter server running: Local

Expected behaviour

When opening this notebook: OCTImagePrediction Notebook I expect the cells to run as they had in the past as seen as the committed output in the repo.

Actual behaviour

Instead when I try to run cells with MagicPython set as the kernel and Python 3.9.0 set as the interpreter, the kernel doesn’t properly connect and I see a notification with just the word Canceled. Not sure what the exact error is.

Steps to reproduce:

[NOTE: Self-contained, minimal reproducing code samples are extremely helpful and will expedite addressing your issue]

1. Clone OCTImagePrediction
2. Open Notebook.ipynb
3. Set Python 3.9.0 as the interpreter
4. Verify the kernel is set to MagicPython
5. Click run on the first code cell.
6. See notebook attempt to connect to kernel but then errors out with Canceled

Logs

Error 2021-01-26 15:51:43: Failed to start the Daemon, StdErr:  Traceback (most recent call last):
  File "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\vscode_datascience_helpers\daemon\__main__.py", line 126, in main
    daemon_module = importlib.import_module(args.daemon_module)
  File "C:\Python39\lib\importlib\__init__.py", line 127, in import_module
    return _bootstrap._gcd_import(name[level:], package, level)
  File "<frozen importlib._bootstrap>", line 1030, in _gcd_import
  File "<frozen importlib._bootstrap>", line 1007, in _find_and_load
  File "<frozen importlib._bootstrap>", line 986, in _find_and_load_unlocked
  File "<frozen importlib._bootstrap>", line 680, in _load_unlocked
  File "<frozen importlib._bootstrap_external>", line 790, in exec_module
  File "<frozen importlib._bootstrap>", line 228, in _call_with_frames_removed
  File "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\vscode_datascience_helpers\kernel_launcher_daemon.py", line 22, in <module>
    from vscode_datascience_helpers.kernel_launcher import launch_kernel
  File "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\vscode_datascience_helpers\kernel_launcher.py", line 14, in <module>
    from ipython_genutils.encoding import getdefaultencoding
ModuleNotFoundError: No module named 'ipython_genutils'

During handling of the above exception, another exception occurred:

Traceback (most recent call last):
  File "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\pyvsc-run-isolated.py", line 26, in <module>
    runpy.run_module(module, run_name="__main__", alter_sys=True)
  File "C:\Python39\lib\runpy.py", line 210, in run_module
    return _run_module_code(code, init_globals, run_name, mod_spec)
  File "C:\Python39\lib\runpy.py", line 97, in _run_module_code
    _run_code(code, mod_globals, init_globals,
  File "C:\Python39\lib\runpy.py", line 87, in _run_code
    exec(code, run_globals)
  File "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\vscode_datascience_helpers\daemon\__main__.py", line 137, in <module>
    main()
  File "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\vscode_datascience_helpers\daemon\__main__.py", line 133, in main
    raise Exception("Failed to start daemon")
Exception: Failed to start daemon

Error 2021-01-26 15:51:43: Failed to start the Daemon, ProcEndEx Error: Timeout waiting for daemon to start
    at Timeout._onTimeout (c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\out\client\extension.js:32:202723)
    at listOnTimeout (internal/timers.js:549:17)
    at processTimers (internal/timers.js:492:7)
Error 2021-01-26 15:51:43: Failed  to start the Daemon, Ex Error: Timeout waiting for daemon to start
    at Timeout._onTimeout (c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\out\client\extension.js:32:202723)
    at listOnTimeout (internal/timers.js:549:17)
    at processTimers (internal/timers.js:492:7) {
  vslsStack: [ CallSite {}, CallSite {}, CallSite {} ]
}
Error 2021-01-26 15:51:43: Pinging Daemon Failed, Class name = h, completed in 5003ms, has a falsy return value, Arg 1: {}, Return Value: undefined Error: Timeout waiting for daemon to start
    at Timeout._onTimeout (c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\out\client\extension.js:32:202723)
    at listOnTimeout (internal/timers.js:549:17)
    at processTimers (internal/timers.js:492:7) {
  vslsStack: [ CallSite {}, CallSite {}, CallSite {} ]
}
Error 2021-01-26 15:51:43: Failed to create daemon, Class name = h, completed in 5007ms, has a falsy return value, , Return Value: undefined Error: Timeout waiting for daemon to start
    at Timeout._onTimeout (c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\out\client\extension.js:32:202723)
    at listOnTimeout (internal/timers.js:549:17)
    at processTimers (internal/timers.js:492:7) {
  vslsStack: [ CallSite {}, CallSite {}, CallSite {} ]
}
Error 2021-01-26 15:51:43: Failed to create the daemon service, defaulting to activated environment Error: Timeout waiting for daemon to start
    at Timeout._onTimeout (c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\out\client\extension.js:32:202723)
    at listOnTimeout (internal/timers.js:549:17)
    at processTimers (internal/timers.js:492:7) {
  vslsStack: [ CallSite {}, CallSite {}, CallSite {} ]
}
> C:\Python39\python.exe "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\pyvsc-run-isolated.py" ipykernel_launcher --ip=127.0.0.1 --stdin=9048 --control=9046 --hb=9045 --Session.signature_scheme="hmac-sha256" --Session.key=b"8e939b98-6ff0-4c3f-8e6d-3142c03c053d" --shell=9047 --transport="tcp" --iopub=9049 --f=C:\Users\TANHAK~1\AppData\Local\Temp\tmp-73688eh4ZJBUPkaO.json
cwd: c:\Users\Tanha Kabir\github\OCTImagePrediction
> C:\Python39\python.exe "c:\Users\Tanha Kabir\.vscode-insiders\extensions\ms-toolsai.jupyter-2020.12.414227025\pythonFiles\pyvsc-run-isolated.py" ipykernel_launcher --ip=127.0.0.1 --stdin=9048 --control=9046 --hb=9045 --Session.signature_scheme="hmac-sha256" --Session.key=b"8e939b98-6ff0-4c3f-8e6d-3142c03c053d" --shell=9047 --transport="tcp" --iopub=9049 --f=C:\Users\TANHAK~1\AppData\Local\Temp\tmp-73688eh4ZJBUPkaO.json
cwd: c:\Users\Tanha Kabir\github\OCTImagePrediction
Error 2021-01-26 15:51:56: Timed out waiting to get a heartbeat from kernel process.
Error 2021-01-26 15:52:13: Timed out waiting to get a heartbeat from kernel process.