Conda environment in VSCode has to be restarted to show correct packages

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When starting vscode from the terminal with a conda environment active, the integrated terminal will show all of my packages from my system python when using pip list, even though conda info --envs shows that the correct environment is active. I am on MacOS Sonoma 14.3 if that is important.

Starting from my terminal, I activate the environment, check packages, and launch vscode.

terminal window

In the integrated terminal, it seems to be active, but wrong packages showing

integrated vscode terminal

But if I deactivate the environment and then immediately reactivate, it shows the correct packages. integrated vscode terminal after reset

If I kill the integrated terminal and restart it, it goes back to showing the incorrect packages. I would appreciate any help.

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