vscode-python: Python installation not found

Opening new issue as asked by @karrtikr in the old issue and by @brettcannon in Related #9576:

There is an issue when I launch VsCode: the python extension says: “Python is not installed. Please download and install Python before using the extension.” But when I do Ctrl-Shift-P and Select Python Interpreter there is none proposed as it was before updating vscode. On top of that I can run my python program by clicking where the run icon (green arrow, top right corner) should be but the icon is missing (blank space).

You can see everything on the following screenshots:

• Maybe it is a permission issue where vscode would not be allowed to access /usr/bin/python3 or look for python installation, I don’t know…
• It could also be related with electron: I understood that there might be a workaround for Arch users but I still did not find any working solution for Ubuntu based distro.

Environment data

• VS Code version: 1.51.1
• Extension version (available under the Extensions sidebar): v2020.11.358366026
• OS and version: Linux (Pop_OS v20.10)
• Python version: Multiple versions but 3.8.3 64-bit
• Type of virtual environment used: N/A
• Value of the python.languageServer setting: “Pylance”, also works with “Microsoft”

Expected behaviour

Found python interpreter and launched without error. List of all python interpreters found on my computer when selecting python interpreter.

Actual behaviour

Error when launching vscode, no debug capability. Python interpreter not found (even when adding paths to settings.json). Still can execute scripts. No green arrow launch icon but clicking on where it is supposed to be still triggers the run through the terminal.

Additional information

Python output logs:

• python-output.log python.languageServer set to “Pylance”
• python-output.log python.languageServer set to “Microsoft”

I had had installed with the PopShop but I removed it and Installed the October update it with the .deb version.

Hope it helps. Ask me if you need any additional info.

Hope someone will be able to help me soon as it is a very annoying issue… Thanks