I had the same issue (at least it seemed the same), however it is possible to work around it if you are using the Python extension in conjunction with Remote Debugging.

You can ignore the extension's activation failure if that is your primary use, since VSCode is still able to debug remotely using Python Remote Attach.

After some more work on this, I found that updating the Python Extension to the pre-release version cleared up the various errors that came with the recent updates.

Try disabling all other python extensions in VSCode. I had the same issue because a different Python VS extension was conflicting with the official extension. Here's a link that might be able to help you in more detail.

It's hard to give you a more specific answer for this type of question without knowing more about your setup.

EDIT: Look at the comment thread on this answer if you need more details

Please update the python extension to the latest version

or install the pre-release version directly. ( may be more useful to you )

this will basically solve your problem.

If the error continues, follow these steps:

1. Uninstall Python extension (if you have pylance uninstall it first). Uninstall any other extension that is failing.
2. Close all instances of VS Code.
3. Go to, %USERPROFILE%/.vscode/extensions (on windows) or ~/.vscode/extensions on Linux/Mac.
4. Delete any folder with the name starting with ms-python.python*
5. Start VS Code, and install Python extension (also pylance if you uninstalled it in step 1).

I managed to solve my problem by reverting to a previous jupyter extension version. My initial jupyter extension was v2021.5.745244803. I reverted to v2021.5.702919634 and the problem was resolved.

To revert a jupyter extension version:

1. Got to Extensions (Ctrl + Shift + X).
2. Click on the extension "Jupyter" from your list of Installed extensions in the Extensions pane on the left.
3. Alternatively to step 2:
   3.1. Type "jupyter" in the search field above the Extensions pane on the left.
   3.2. Select the extension named "Jupyter" by Microsoft (ms-toolsai.jupyter).
4. Click the down arrow in the "Uninstall" button underneath the number of downloads and star rating.
5. Click "Install Another Version..."

Chose a previous version. I chose the version immediately before the latest, and solved the problem for me.

I hope this helps if you run into the same problem.

I had this same issue and finally got it fixed!

If you are on an Linux and are using an Arch-based distro with AUR support, simply install the code-features package using:

yay -S code-features

or any AUR helper of your choosing.

On other operating systems, you should do the following:

Open your VSCode's product.json. I do not know where this file is on your operating system, so please do some research.

Look for the following line:

"extensionAllowedProposedApi": [ ...

Add the following entry to that array:

"ms-toolsai.jupyter": ["notebookConcatTextDocument", 
    "notebookControllerKind", "notebookDebugOptions", "notebookDeprecated", 
    "notebookEditor", "notebookEditorDecorationType", "notebookEditorEdit", 
    "notebookMessaging", "notebookMime", "notebookCellExecutionState", 
    "portsAttributes", "textDocumentNotebook", "quickPickSortByLabel"]

For example, if the line was originally:

"extensionAllowedProposedApi": [ "extension1", "extension2" ]

Then change it to:

"extensionAllowedProposedApi": [ "extension1", "extension2", 
    "ms-toolsai.jupyter": ["notebookConcatTextDocument", 
    "notebookControllerKind", "notebookDebugOptions", "notebookDeprecated", 
    "notebookEditor", "notebookEditorDecorationType", "notebookEditorEdit", 
    "notebookMessaging", "notebookMime", "notebookCellExecutionState", 
    "portsAttributes", "textDocumentNotebook", "quickPickSortByLabel"] ]

Note that with the second method, you will need to edit product.json every time you update VSCode.