Environment data

• VS Code version: 1.58
• Jupyter Extension version: v2021.8.1013163132
• Python Extension version: v2021.6.944021595
• Pylance Extension version: v2021.7.2

Steps to reproduce:

1. Follow instructions here https://github.com/holoviz/holoviz/blob/master/doc/installation.rst but replace "anaconda-project run jupyter notebook" command with "anaconda-project run", followed by "code ."
2. Open "Setup" notebook
3. Change Python interpreter to the provided holoviz one
4. Reload to resolve diagnostics
5. Reload again and select corresponding kernel to holoviz env
6. Try to run first code cell
7. Get modal message prompting to install ipykernel, select install

Expected behavior

For ipykernel to install and be able to run cells

Actual behavior

Stuck in endless loop of being told to install ipykernel when trying to run cell

**Edit: I checked in through Conda CLI that ipykernel is actually installed here, yet I am stuck in the endless loop because it appears not to be finding it.