Can not select conda Python evironment as Python interpreter

Hi,
I open this issue as a follow up of this issue.

When I try to select my conda environment in Python: Select Interpreter. It looks like it's not actually switching the interpreter.
The conda environment I would like select is base (3.12.7) ~/miniconda3/bin/python.
The environment in which the interpreter is "stuck" is Python 3.12.3 /usr/bin/python.

In the example below, plotly is installed only in the base environment.
It looks like it can't find plotly which makes me suspect that the interpreter is not actually changed.

Strangely, in the Select Interpreter menu, the grayed out text is actually correct.

So I'm not exactly sure what's going on but it would useful if my packages would be found again.
I'm on Ubuntu and I installed the pre-release version of Python environments (1.27.10931008) within code-insiders.

Many thanks,