VSCode: "Shell Integration failed to activate"

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It used to work fine, but recently whenever I run my code (Python), I get the message "Shell Integration failed to activate" when I hover my mouse over the active terminal. The active Python terminal doesn't recognize any command line commands like "pip" anymore (see screenshot)

What can I do? I played around with a couple of settings as described here, but nothing seems to work. My current setting.json file looks like this:

{    
"python.defaultInterpreterPath": "C:\\Users\\cleme\\AppData\\Local\\Programs\\Python\\Python310\\python.exe",
"terminal.integrated.profiles.windows": {
    "PowerShell": {
        "path": "C:\\Windows\\system32\\WindowsPowerShell\\v1.0\\powershell.exe",
        "source": "PowerShell",
        "icon": "terminal-powershell",
    }
},
"terminal.integrated.defaultProfile.windows": "PowerShell"

}

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