Type: Bug

Behaviour

I use the Python Environments extension to load environment variables from a .env file. I noticed today that if I REMOVE an environment variable from the file:

• The Python Environments extension DOES NOT want to trigger a relaunch of the terminal, and
• The removed variable will persist even after the terminal is relaunched and will exist in any new terminals launched.

I set some environment variables needed for testing some code, but now I can't remove them. The old environment variables no longer present in the .env file are still injected into the terminal even after trying the following:

• Reloading the window
• Restarting VSCode
• Restarting WSL and restarting VSCode

Steps to reproduce:

1. Add an env var to the .env file (e.g. FOO="bar") and save the .env file. The Python Environments extension should want to trigger a relaunch of the terminal.
2. Relaunch the terminal.
3. Check that the environment variable is set in the terminal (e.g. via export).
4. Change the value of the variable the .env file (e.g. FOO="BAR") and save the .env file. The Python Environments extension should want to trigger a relaunch of the terminal.
5. Relaunch the terminal.
6. Check that the environment variable is set in the terminal (e.g. via export).
7. Remove the environment variable from the .env file and save it. The Python Environments extension DOES NOT want to trigger a relaunch of the terminal.
8. Relaunch the terminal.
9. Verify that the removed environment variable is STILL SET in the terminal.

Diagnostic data

Extension version: 2026.2.0
VS Code version: Code 1.109.4 (c3a26841a84f20dfe0850d0a5a9bd01da4f003ea, 2026-02-16T15:35:57.932Z)
OS version: Windows_NT x64 10.0.22631
Modes:
Remote OS version: Linux x64 6.6.87.2-microsoft-standard-WSL2
Remote OS version: Linux x64 6.6.87.2-microsoft-standard-WSL2

• Python version (& distribution if applicable, e.g. Anaconda): 3.12.3.final.0
• Type of virtual environment used (e.g. conda, venv, virtualenv, etc.): System
• Value of the python.languageServer setting: Default

envFile: "<placeholder>"

languageServer: "Pylance"

testing
• pytestArgs: "<placeholder>"
• pytestEnabled: true

vsliv368:30146709
binariesv615:30325510
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dwcopilot:31170013
dwoutputs:31242946
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e5gg6876:31282496
pythonrdcb7:31342333
6518g693:31463988
aj953862:31281341
4f60g487:31327383
63221493:31336333
envsdeactivate2:31464701
cloudbuttont:31379625
aihoversummaries_f:31453033
3efgi100_wstrepl:31403338
use-responses-api:31390855
anonusage:31403420
ec5jj548:31422691
cp_cls_t_966_ss:31454198
4je02754:31463857
find_all_ref_in_bg_f:31453035
a5gib710:31434435
7a04d226_do_not_restore_last_panel_session:31438103
cp_cls_c_1081:31454833
a43f0576c:31442824
e9c30283:31461165
idci7584:31464702
edit_mode_hidden:31461530
864ei723_large_tool_results_to_disk:31460878
notips:31457203
chat:31457767