selecting "set as workspace env" doesn't work

[eleanorjboyd]

Testing #24503

1. attempt to select a global env as the workspace env
2. 🐛 nothing happens, a new terminal still activates the old selected .venv
3. did check and the interpreter used (like the one in the bottom bar) is correct so it is getting set for the workspace but not selected for the terminal?

global-no-update.mov

[karthiknadig]

@eleanorjboyd Can you repro this if you have python extension activate features disabled?

[karthiknadig]

This should be fixed.