VSCode Not Using Conda Python

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I saw a previous and related issue for VSCode, but the thread is closed: https://github.com/microsoft/vscode-python/issues/7293

I have been using VS Code for some time and the behavior always was as expected. However, over the last week or so, after activating a conda environment and a terminal in VS Code, the terminal within VS Code uses the system default, and not the conda environment as it previosuly did.

I am very stumped. Any thoughts as to what could have caused VS Code to ignore the conda environment's python interpreter? If I use the terminal (MacOS), the conda environment behaves as expected.

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