Quarto fails to render from VS Code on M1 Mac

Hello,

I just fired up the "getting started with Quarto" VS Code guide and find that rendering the test.qmd file fails. Initially this just told me that jupyter was not installed in my python environment (system default). After changing the python environment to a conda environment that does contain jupyter via VS Code's "select interpreter", I tried "render" again. The environment is successfully activated in the VS Code terminal, then quarto preview is run. I receive the following error in the terminal:

Starting python3613jvsc74a57bd0c4b8a0a3e1eea19bbfddc3f19fc9c87010820c404a90af92b6b3b84a34dac55f kernel...ERROR: 

[Errno 2] No such file or directory: '/Users/redacted/opt/miniconda3/envs/completely_different_environment/bin/python'

I do not understand why the process would try to use the python binary from a completely different environment after successfully activating my desired environment.

I can run code cells in the qmd doc in the VS Code interactive interpreter with no problem.

Running quarto preview from a non-VS Code terminal initially produces the following error:

ERROR: NotFound: No such file or directory (os error 2), remove '/Users/redacted/Library/Caches/quarto/jt/d6255704fbb60eac1deb'

NotFound: No such file or directory (os error 2), remove '/Users/redacted/Library/Caches/quarto/jt/d6255704fbb60eac1deb'
    at Object.removeSync (deno:runtime/js/30_fs.js:157:9)
    at connectToKernel (file:///Applications/quarto/bin/quarto.js:54706:18)
    at async executeKernelKeepalive (file:///Applications/quarto/bin/quarto.js:54500:31)
    at async Object.execute (file:///Applications/quarto/bin/quarto.js:55305:17)
    at async renderExecute (file:///Applications/quarto/bin/quarto.js:86468:27)
    at async renderFiles (file:///Applications/quarto/bin/quarto.js:86591:51)
    at async render (file:///Applications/quarto/bin/quarto.js:90678:21)
    at async renderForPreview (file:///Applications/quarto/bin/quarto.js:102412:26)
    at async render (file:///Applications/quarto/bin/quarto.js:102307:20)
    at async preview (file:///Applications/quarto/bin/quarto.js:102313:21)

but then simply re-running the same command successfully starts the kernel and renders a html file. So therefore I think this is either a problem with the Quarto VS Code extension or with VS Code itself.

I'm running on an M1 mac, with Quarto 1.3.353 and Quarto extension v1.85.0.

Thanks in advance!

Start by reproducing the failure with the getting-started VS Code guide, test.qmd, the reported conda environment, and the listed Quarto and extension versions. Compare the VS Code render path with quarto preview from a non-VS Code terminal, including the missing Python binary and Quarto cache errors. Done means rendering uses the selected environment reliably without the reported failures.