Unable to start Python application via powershell

[sveinse]

Version 1.20.1
Commit f88bbf9
Date 2018-02-13T15:34:36.336Z
Shell 1.7.9
Renderer 58.0.3029.110
Node 7.9.0
Architecture x64

On a completely fresh Windows 10 machine, using Python3, with the Py project having its own virtualenv. VSCode is setup to use the virtualenv. I am unable to start the following application because PS fails to parse the "${config.python.pythonPath}" which apparently resolves as "${workspaceFolder}" that PS does not understand.

{
    // Use IntelliSense to learn about possible attributes.
    // Hover to view descriptions of existing attributes.
    // For more information, visit: https://go.microsoft.com/fwlink/?linkid=830387
    "version": "0.2.0",
    "configurations": [

        {
            "name": "Matrixplay",
            "type": "python",
            "request": "launch",
            "stopOnEntry": true,
            "pythonPath": "${config:python.pythonPath}",
            "program": "${workspaceFolder}/matrixplay/__main__.py",
            "cwd": "${workspaceFolder}",
            "args": [],
            "console": "integratedTerminal",
            "env": {},
            //"envFile": "${workspaceFolder}/.env",
            "debugOptions": [
                "RedirectOutput", 
            ]
        }
    ]
}

PS C:\Svein\Prosjekt\matrixplay> cd 'C:\Svein\Prosjekt\matrixplay'; ${env:PYTHONIOENCODING}='UTF-8';
${env:PYTHONUNBUFFERED}='1'; & '${workspaceFolder}\venv3\Scripts\python.exe'
'C:\Users\svein\.vscode\extensions\ms-python.python-2018.1.0\pythonFiles\PythonTools\visualstudio_py_launcher.py' 
'C:\Svein\Prosjekt\matrixplay' '54097' '34806ad9-833a-4524-8cd6-18ca4aa74f14' 'DUMMYVALUE' 'C:\Svein\Prosjekt\matrixplay/matrixplay/__main__.py'

& : The term '${workspaceFolder}\venv3\Scripts\python.exe' is not recognized as the name of a cmdlet, function, script file, or operable program. Check the spelling of the name, or if a path was included, verify that the path is correct and try again.

At line:1 char:100
+ ... UFFERED}='1'; & '${workspaceFolder}\venv3\Scripts\python.exe' 'C:\Use ...
+                     ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
    + CategoryInfo          : ObjectNotFound: (${workspaceFold...ipts\python.exe:Strin
   g) [], CommandNotFoundException
    + FullyQualifiedErrorId : CommandNotFoundException

[weinand]

This issue was moved to microsoft/vscode-python#799