**Repro Steps** 1. Open a workspace with Python files and a `.venv` in the workspace and an empty workspace `settings.json` 2. Observe that the status bar shows the `.venv` as the selected environment 3. Click the status bar and select a global interpreter from the dropdown **Expected Behavior** The interpreter switches to the selected global one, and the status bar updates accordingly. **Actual Behavior** The status bar still shows the venv as the selected environment https://github.com/user-attachments/assets/672fe5bc-baeb-4329-b464-f1d17e48ee84 This does not repro before the changes in https://github.com/microsoft/vscode-python-environments/pull/1120 Root cause still needs investigation, but we may want to revert the changes in the meantime.