Type: Bug

Behaviour

Editing or removing variables in the workspace .env file does not propagate to integrated terminals. The previously-loaded values
persist in process.env of every newly-spawned terminal until the workspace's cached env is explicitly cleared via Python:
Clear Workspace Cache and Reload Window.

This looks like a regression of (or follow-up to) #25805, which was closed but which I'm still reproducing on
ms-python.python@2026.4.0. Note: my repro covers changed values, not only removed ones — both stick.

Steps to reproduce:

1. Workspace with .env:
   DATABASE_URL=postgresql://old-host:5432/db

2. Open the integrated terminal:
   $ echo $DATABASE_URL
   postgresql://old-host:5432/db

3. Edit .env →
   DATABASE_URL=postgresql://new-host:5433/db
   Save the file.

4. Close all terminals. Cmd+Q to fully quit VS Code. Reopen the workspace.

5. New terminal still reports the old value:
   $ echo $DATABASE_URL
   postgresql://old-host:5432/db

6. Run > Python: Clear Workspace Cache and Reload Window. New terminal now reports the new value.

The cached env survives:

• Closing/reopening terminals
• Developer: Reload Window
• Full Cmd+Q and relaunch
• Machine reboot.

Expected behavior

A new terminal should pick up the current contents of .env — at minimum on workspace reopen, ideally on file save (with a
debounce / "relaunch terminal?" prompt as #25805 originally suggested).

Workaround

Setting workspace "python.envFile": "" disables the loader. Fine for projects where .env is consumed by Node/dotenv at runtime,
but not viable for actual Python projects.

Environment

• VS Code: 1.121.0 (commit f6cfa2ea2403534de03f069bdf160d06451ed282, arm64)
• ms-python.python: 2026.4.0
• ms-python.vscode-pylance: 2026.2.1
• ms-python.vscode-python-envs: 1.30.0
• ms-python.debugpy: 2026.6.0
• macOS Darwin 25.5.0 (arm64), zsh
• Project: Next.js / Node (.env consumed by dotenv at runtime)

Related

• Removed env vars from .env file don't leave the environment #25805 (closed) — same root cause for removed variables; this report shows it also affects changed variables and persists
  across full quit/relaunch.

Diagnostic data

XXX

Extension version: 2026.4.0
VS Code version: Code 1.121.0 (f6cfa2ea2403534de03f069bdf160d06451ed282, 2026-05-19T11:51:53+02:00)
OS version: Darwin arm64 25.5.0
Modes:

• Python version (& distribution if applicable, e.g. Anaconda): 3.14.3
• Type of virtual environment used (e.g. conda, venv, virtualenv, etc.): Global
• Value of the python.languageServer setting: Default

envFile: "<placeholder>"

languageServer: "Pylance"

terminal
• activateEnvironment: false