extension doesn't activate python venv in terminal windows.

The extension information says::

✅ Create activated terminals

However on every instance of VSCode I use, having this extension enabled breaks the auto-activation of python virtual environments in terminals that previously worked fine. This is consistent against multiple versions of VSCode, on multple versions of windows, both running locally and via RemotetSSH to various linux hosts, with various versions of python.

Expected behavior

Opening a terminal activates the selected virtual environment in it,

Actual behavior

Nothing happens other than I get annoyed.