I'm a developer on this extension. In the marketplace tab in VSCode you can right click the python extension and select "Install another version" when you do that it will pop up a list of all the old versions of the extension. This should allow you to go back and find the version that works for your VSCode.
Answer from Ian Huff on Stack OverflowVSCode 1.45.1: Failed to install 'ms-python.python'
Failed to install 'ms-python.python'
Failed to install 'ms-python.python'
Unable to install python extension from visual studio code
Close the installation program and follow:
- On the desktop, press Windows key+R to open a Run dialog.
- Type
msiexec /unreg, and press Enter. - Follow the first step again.
- Type
msiexec /regserver, and press Enter.
In this link you can find more information.
- Go to Task Manager -> Details Tab -> End Task 'msiexec.exe'
- Try install again.

I know this is an old post but I recently ran into this exact same issue. It was caused by my machine having pending Windows updates that needed a restart to be applied.
Once you've reset your machine remove the C:\Python27 folder (this is important).
Rerun the installer and it should work with no issues :-)
Please provide the environment you have installed.
if windows 2008 R2, because of the rights issue, you need to cancel the installation of pip, it is best not to install in C.
msiexec.exe /quiet /i python-2.7.10.amd64.msi ADDLOCAL=DefaultFeature TARGETDIR=D:\python27
Hi Lance Volcanix,
Modifying REGISTRY settings incorrectly can cause serious problems that may prevent your computer from booting properly. Microsoft cannot guarantee that any problems resulting from the configuring of REGISTRY settings can be solved. Modifications of these settings are at your own risk.Before you modify the registry, make sure to back it up and make sure that you understand how to restore the registry if a problem occurs. For information about how to back up, restore, and edit the registry, click on the link below.*http://support.microsoft.com/kb/256986/EN-US/*
Follow the instructions in the link below which might help you in resolving the issue.
1. Click on Start.
2. Type in Administrative tools in start search and hit enter.
3. In Administrative tools open Local Security Policy.
4. In Local Security Policy right click Software Restriction Policies and click “New Software Rectriction Policy”.
5. Now Left click on software restriction policies and in the right-hand window you should see enforcement.
6. Double-click on enforcement and set the policy to apply to “All Users Except Local Administrators”
Check if the issue is resolved.
If that does not work, you may go ahead and follow the instructions below.
1. Click on start.
2. Type in Regedit and hit enter.
3. Locate HKLM\Software\Policies\Microsoft\Windows\Installer
Create: DisableMSI Type: REG_DWORD value = 0 Browse to HKEY_CLASSES_ROOT\Installer\Products\
Search the list for the product that is causing the error and delete the folder in the products folder and check if the issue is resolved.
Using Third Party Software, including hardware drivers can cause serious problems that may prevent your computer from booting properly. Microsoft cannot guarantee that any problems resulting from the use of Third Party Software can be solved. Using Third Party Software is at your own risk.
Please post back and let us know if this has helped to resolve your issue.
Regards,
KarthiK TP
1. Click on Start.
2. Type in Administrative tools in start search and hit enter.
3. In Administrative tools open Local Security Policy.
4. In Local Security Policy right click Software Restriction Policies and click “New Software Rectriction Policy”.
5. Now Left click on software restriction policies and in the right-hand window you should see enforcement.
6. Double-click on enforcement and set the policy to apply to “All Users Except Local Administrators”
1. Click on start.
2. Type in Regedit and hit enter.
3. Locate HKLM\Software\Policies\Microsoft\Windows*Installer*
I've used bold on the problems in the above
When I right click on 'Software Restriction Policies', it gives me the option to delete all of the contents of the section :/, but no option to select 'New Software Rectriction Policy'. Even after i changed the enforce option to 'all users except local admin' and rebooted, it didn't let me install
In regedit, I went throught the necesary path, H_key_local_machine, all the way to windows, but there was no 'installer' subfolder.
Help, please :'(