Python Virtual Environment not Activating Automatically

Describe the Bug

When Cursor starts it doesn’t activate the venv automatically. If I click the + button for a new terminal or click New… Terminal it will activate for that terminal manually. In the AI conversation tab, the terminal it uses also has to be manually activated, or when it runs the Python script, the dependencies will be missing until it activates the venv.

The workaround is to ask it to activate the venv every time it opens a new terminal, or to make a rule telling it to manually activate the venv, but it’s supposed to be activated automatically right??

Steps to Reproduce

Open cursor and notice the terminal says (base) not the venv. The virtual environment really isn’t activated.

Expected Behavior

The virtual environment is supposed to activate automatically when the terminal opens.

Screenshots / Screen Recordings

dev-screenshot.png

Operating System

Windows 10/11

Current Cursor Version (Menu → About Cursor → Copy)

Version: 1.4.5 (user setup)
VSCode Version: 1.99.3
Commit: af58d92614edb1f72bdd756615d131bf8dfa5290
Date: 2025-08-13T02:08:56.371Z
Electron: 34.5.8
Chromium: 132.0.6834.210
Node.js: 20.19.1
V8: 13.2.152.41-electron.0
OS: Windows_NT x64 10.0.26100

Does this stop you from using Cursor

No - Cursor works, but with this issue

The AI in cursor says:
The issue might be that Cursor IDE doesn’t fully support the VS Code Python extension’s auto-activation features.