When Python Environments selects a Python executable, it does not escape spaces, leading to errors like The term 'C:\Program' is not recognized as a name of a cmdlet, function, script file, or executable program. if Python is installed in C:\Program Files\. Creating a Virtual Environment does not help because Python Environment strips the quotes around the paths in the pyvenv.cfg file.
Proposed solution: If the path is unquoted, quote it.
Workarounds: Currently none, the extension needs to be disabled to run Python scripts.