Conda Environment Not Activated in Integrated Terminal (Python Extension) (Python extension not activates the selected environment in the terminal without running any activation using environment variables)

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Describe the Bug

When using the Python extension in Cursor, selecting a Conda environment does not activate it in the integrated terminal without running any activation commands. The expected environment variables (CONDA_PREFIX, PATH, etc.) are not set, and the terminal does not reflect the selected Conda environment. This worked correctly in VS Code, where the terminal would automatically use the selected environment without needing to run conda activate.

Steps to Reproduce

Steps to Reproduce:

  1. Open Cursor on macOS (haven’t tested other os).
  2. Install the Python extension.
  3. Select a Conda environment using the Python: Select Interpreter command.
  4. Open a new integrated terminal.

Expected Behavior

The terminal should use the selected Conda environment’s Python and have all relevant environment variables set without running any command.

Operating System

MacOS

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.2.4
VSCode Version: 1.99.3
Commit: a8e95743c5268be73767c46944a71f4465d05c90
Date: 2025-07-10T16:53:59.659Z
Electron: 34.5.1
Chromium: 132.0.6834.210
Node.js: 20.19.0
V8: 13.2.152.41-electron.0
OS: Darwin arm64 24.5.0

Python extension (original): 2025.6.1
Python extension (Cursor’s): 1.0.7

VSCode (where I tested normal behavior): 1.102.1
Python extension (original, in VSCode): 2025.10.0

Additional Information

Additional Information:

This is about the feature described here: Activate Environments in Terminal Using Environment Variables · microsoft/vscode-python Wiki · GitHub

I found that Python extension in Cursor does not add Conda environment variables into the Terminal Environment Contributions. In VS Code, when I check “Show Environment Contributions” in the terminal, I see variables like:

CONDA_PREFIX=/opt/homebrew/anaconda3/envs/{env}
CONDA_DEFAULT_ENV={env}
PATH=/opt/homebrew/anaconda3/envs/{env}bin:...

In Cursor, these variables are missing from the Terminal Environment Contributions.

Also I found in a same time that IntelliSense (Pylance) and some other Python tools don’t work. I installed also Python extension from Cursor team, this helped with IntelliSense problem, but not with env one. I have both the official Microsoft Python extension and the Cursor team’s Python extension installed, but neither fixes the problem (IntelliSense problem fixed with Cursor’s extencion).

Does this stop you from using Cursor

Sometimes - I can sometimes use Cursor

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