Why are dependencies not resolved with Poetry add?

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I am using Poetry as a dependency manager. I installed packages using 'poetry add'. Why are some packages not being resolved and reported as missing? Am I supposed to do a bunch of other configurations first before I can use Poetry?

When I run for example poetry add tenacity I get the following message:

The following packages are already present in the pyproject.toml and will be skipped:

  • tenacity

If you want to update it to the latest compatible version, you can use `poetry update package`.
If you prefer to upgrade it to the latest available version, you can use `poetry add package@latest`.

Nothing to add.

But in my project it shows tenacity underlined with yellow (VS Code) and 'Import tenacity cannot be resolved' So what did 'poetry add' then do? How do I fix this please?

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