vscode-jupyter: Python Interactive does not work in Remote - Containers

Environment data

• VS Code version: 1.35.0-insider (snap)
• Extension version (available under the Extensions sidebar): 2019.4.12954
• OS and version: Arch Linux
• Python version (& distribution if applicable, e.g. Anaconda): Anaconda
• Type of virtual environment used (N/A | venv | virtualenv | conda | …): conda
• Relevant/affected Python packages and their versions: jupyter 1.0.0

Expected behaviour

Interactive Python should work as described in Readme.md of vscode-dev-container example of Python 3 Anaconda. https://github.com/microsoft/vscode-dev-containers/tree/master/containers/python-3-anaconda

Actual behaviour

Debugging in container works but the Interactive Python does not. VSCode keeps trying to start the jupyter-server.

Steps to reproduce:

1. Follow the Readme in https://github.com/microsoft/vscode-dev-containers/tree/master/containers/python-3-anaconda

Logs

Starting Microsoft Python language server.
[Info  - 01:12:01] GetCurrentSearchPaths /opt/conda/bin/python 
[Info  - 01:12:01] Python search paths:
[Info  - 01:12:01]     /opt/conda/lib/python3.7
[Info  - 01:12:01]     /opt/conda/lib/python3.7/lib-dynload
[Info  - 01:12:01]     /opt/conda/lib/python3.7/site-packages
[Info  - 01:12:01] Configuration search paths:
[Info  - 01:12:02] Microsoft Python Language Server version 0.2.82.0
[Info  - 01:12:02] Initializing for /opt/conda/bin/python
##########Linting Output - pylint##########

--------------------------------------------------------------------
Your code has been rated at 10.00/10 (previous run: 10.00/10, +0.00)

Output from Console under the Developer Tools panel (toggle Developer Tools on under Help; turn on source maps to make any tracebacks be useful by running Enable source map support for extension debugging)

workbench.main.js:238 [Extension Host] (node:120) [DEP0005] DeprecationWarning: Buffer() is deprecated due to security and usability issues. Please use the Buffer.alloc(), Buffer.allocUnsafe(), or Buffer.from() methods instead.
t.log @ workbench.main.js:238
/var/lib/snapd/snap/code-insiders/149/usr/share/code-insiders/resources/app/out/vs/workbench/workbench.main.js:238 [Extension Host] Python Extension: Python Extension (Error in Failed to check if file needs to be fixed, method:doesFileNeedToBeFixed): Error: ENOENT: no such file or directory, open '/workspaces/vscode-dev-containers/containers/python-3-anaconda/.vscode/settings.json'
t.log @ /var/lib/snapd/snap/code-insiders/149/usr/share/code-insiders/resources/app/out/vs/workbench/workbench.main.js:238
/var/lib/snapd/snap/code-insiders/149/usr/share/code-insiders/resources/app/out/vs/workbench/workbench.main.js:238 [Extension Host] Python Extension: Python Extension (Error in Failed to check if file needs to be fixed, method:doesFileNeedToBeFixed): Error: ENOENT: no such file or directory, open '/root/.config/Code - Insiders/User/settings.json'
t.log @ /var/lib/snapd/snap/code-insiders/149/usr/share/code-insiders/resources/app/out/vs/workbench/workbench.main.js:238