Display problematic environments towards the end of the interpreters list

src/client/interpreter/configuration/environmentTypeComparer.ts

@@ -41,6 +41,12 @@ export class EnvironmentTypeComparer implements IInterpreterComparer {
      * Always sort with newest version of Python first within each subgroup.
      */
     public compare(a: PythonEnvironment, b: PythonEnvironment): number {
+        if (isProblematicCondaEnvironment(a)) {
+            return 1;
+        }
+        if (isProblematicCondaEnvironment(b)) {
+            return -1;
+        }
         // Check environment location.
         const envLocationComparison = compareEnvironmentLocation(a, b, this.workspaceFolderPath);
         if (envLocationComparison !== 0) {
@@ -84,6 +90,9 @@ export class EnvironmentTypeComparer implements IInterpreterComparer {
         // because we would have to add a way to match environments to a workspace.
         const workspaceUri = this.interpreterHelper.getActiveWorkspaceUri(resource);
         const filteredInterpreters = interpreters.filter((i) => {
+            if (isProblematicCondaEnvironment(i)) {
+                return false;
+            }
             if (getEnvLocationHeuristic(i, workspaceUri?.folderUri.fsPath || '') === EnvLocationHeuristic.Local) {
                 return true;
             }
@@ -152,6 +161,10 @@ function isBaseCondaEnvironment(environment: PythonEnvironment): boolean {
     );
 }
 
+export function isProblematicCondaEnvironment(environment: PythonEnvironment): boolean {
+    return environment.envType === EnvironmentType.Conda && environment.path === 'python';
+}
+
 /**
  * Compare 2 Python versions in decending order, most recent one comes first.
  */

src/client/interpreter/configuration/interpreterSelector/commands/setInterpreter.ts

@@ -28,6 +28,7 @@ import { EnvironmentType } from '../../../../pythonEnvironments/info';
 import { captureTelemetry, sendTelemetryEvent } from '../../../../telemetry';
 import { EventName } from '../../../../telemetry/constants';
 import { IInterpreterService, PythonEnvironmentsChangedEvent } from '../../../contracts';
+import { isProblematicCondaEnvironment } from '../../environmentTypeComparer';
 import {
     IInterpreterQuickPickItem,
     IInterpreterSelector,
@@ -354,11 +355,7 @@ export class SetInterpreterCommand extends BaseInterpreterSelectorCommand {
                 this.setRecommendedItem(interpreterSuggestions, items, resource);
                 // Add warning label to certain environments
                 items.forEach((item, i) => {
-                    if (
-                        isInterpreterQuickPickItem(item) &&
-                        item.interpreter.path === 'python' &&
-                        item.interpreter.envType === EnvironmentType.Conda
-                    ) {
+                    if (isInterpreterQuickPickItem(item) && isProblematicCondaEnvironment(item.interpreter)) {
                         if (!items[i].label.includes(Octicons.Warning)) {
                             items[i].label = `${Octicons.Warning} ${items[i].label}`;
                         }

src/client/pythonEnvironments/base/locators/composite/resolverUtils.ts

@@ -67,7 +67,7 @@ export async function resolveBasicEnv(env: BasicEnvInfo, useCache = false): Prom
 
 function getSearchLocation(env: PythonEnvInfo): Uri | undefined {
     const folders = getWorkspaceFolders();
-    const isRootedEnv = folders.some((f) => isParentPath(env.executable.filename, f));
+    const isRootedEnv = folders.some((f) => isParentPath(env.executable.filename, f) || isParentPath(env.location, f));
     if (isRootedEnv) {
         // For environments inside roots, we need to set search location so they can be queried accordingly.
         // In certain usecases environment directory can itself be a root, for eg. `python -m venv .`.

src/test/configuration/environmentTypeComparer.unit.test.ts

@@ -233,6 +233,19 @@ suite('Environment sorting', () => {
             } as PythonEnvironment,
             expected: 1,
         },
+        {
+            title: 'Problematic environments should come last',
+            envA: {
+                envType: EnvironmentType.Conda,
+                envPath: path.join(workspacePath, '.venv'),
+                path: 'python',
+            } as PythonEnvironment,
+            envB: {
+                envType: EnvironmentType.System,
+                version: { major: 3, minor: 10, patch: 2 },
+            } as PythonEnvironment,
+            expected: 1,
+        },
     ];
 
     testcases.forEach(({ title, envA, envB, expected }) => {