[Python] Visual Studio Code not letting me choose Virtual environment Python

This is a bug I cannot wrap my head around. I should first mention that everything works perfectly on PyCharm notebook Professional Edition (but I prefer VSCode's way of using notebooks).

When I click on Select Kernel, I only see my two base Python environments. Both work. I would however like to use one of my virtual environment. So I used the >Python: Select Interpreter option:

Here, it's easy for me to find the path/to/python.exe of my virtual environment (Python 3.12.5) by clicking on Enter interpreter path:

However, when I click and locate path/to/python.exe, nothing happens.

There is still the Select Kernel button saying that I have not selected any Python environment for my notebook.

Things I did:

• I restarted my computer.
• I uninstalled VSCode, and reinstalled VSCode.
• I looked for Windows Updates.
• I looked for VSCode Updates. None were found. I'm on 1.97.2.
• I installed ipykernel to my virtual environment but it was already installed.
• I made sure I had the Python extension enabled on VSCode.
• I made sure I had the jupyter extension enabled on VSCode.
• I made sure the base environments worked as expected when choosing them in Select Kernel. They did.
• I made sure everything worked with my virtual environments in PyCharm Professional. They did.
• I used python3 -m ipykernel install --user --name=projectname.

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