I have a python project for which I have activated a virtualenv and installed everything in requirements.txt.
This has been done manually through
python -m venv /path/to/new/virtual/environment
and
pip install -r requirements.txt
However the VSCode fails to resolve the additional dependencies (and marks the corresponding imported libraries with a squiggled line as per the screenshot below)
Is there something additional that needs to be configured on VSCode level to make this work?

Make sure you activate your virtual environment.
This can be done by executing the activate script in the terminal:
/pathtovenv/venvname/scripts/activate