Jupyter Notebooks do not run

[sravanpannala]

Environment data

• VS Code version: 1.98.2 (same issue with latest code insiders both with current and pre-release python and jupyter extensions)
• Jupyter Extension version (available under the Extensions sidebar):
  2025.2.0
• Python Extension version (available under the Extensions sidebar): 2025.2.0
• OS (Windows | Mac | Linux distro) and version: Windows 11
• Python and/or Anaconda version: 3.12.9
• Type of virtual environment used (N/A | venv | virtualenv | conda | ...): venv
• Jupyter server running: Local

Expected behaviour

Jupyter Notebooks do not run, the code doesn't execut

Actual behaviour

Expect jupyter cells to run

Steps to reproduce:

[NOTE: Self-contained, minimal reproducing code samples are extremely helpful and will expedite addressing your issue]

1. I can select the python virtual environment in the list of available jupyter kernels. Then I try to run a cell in a new jupyter notebook.
2. At this point I would expect the cell to run. Instead it doesn't. The waiting symbol shows up on the cell but it never goes away.
3. I have tried this also with a fresh virtual environment, deleting the previous one and the issue still persists.
4. I have also created a separate kernel using python -m ipykernel install --user --name venv command, but the new kernel isn't working too
5. The jupyter notebook works when launced via jupyter lab and jupyter notebook. So, only the notebooks in VSCode aren't working.

Logs

Output for Jupyter in the Output panel (View→Output, change the drop-down the upper-right of the Output panel to Jupyter)

14:19:50.868 [info] Starting Kernel (Python Path: ~\Documents\NBA\.venv\Scripts\python.exe, Venv, 3.12.9) for '~\Documents\NBA\team_ratings\nba_SOS_adj_V1p1_rolling.ipynb' (disableUI=true)
14:19:50.892 [info] Process Execution: ~\Documents\NBA\.venv\Scripts\python.exe -c "import ipykernel; print(ipykernel.__version__); print("5dc3a68c-e34e-4080-9c3e-2a532b2ccb4d"); print(ipykernel.__file__)"
14:20:11.015 [info] Starting Kernel (Python Path: ~\Documents\NBA\.venv\Scripts\python.exe, Venv, 3.12.9) for '~\Documents\NBA\team_ratings\test_working.ipynb' (disableUI=true)
14:20:11.048 [info] Process Execution: ~\Documents\NBA\.venv\Scripts\python.exe -c "import ipykernel; print(ipykernel.__version__); print("5dc3a68c-e34e-4080-9c3e-2a532b2ccb4d"); print(ipykernel.__file__)"
14:20:39.398 [info] Dispose Kernel '~\Documents\NBA\team_ratings\test_working.ipynb' associated with '~\Documents\NBA\team_ratings\test_working.ipynb'
14:20:39.405 [warn] Failed to shutdown kernel, .undefined.-xfrozen_modules=off.c:\Users\~\Documents\NBA\.venv\Scripts\python.exe.c:\Users\~\Documents\NBA\.venv\Scripts\python.exe.-xfrozen_modules=off#-m#ipykernel_launcher [TypeError: Cannot read properties of undefined (reading 'dispose')
	at Z_.shutdown (C:\Users\~\scoop\persist\vscode\data\extensions\ms-toolsai.jupyter-2025.2.0-win32-x64\dist\extension.node.js:301:13745)
	at async eT.shutdown (C:\Users\~\scoop\persist\vscode\data\extensions\ms-toolsai.jupyter-2025.2.0-win32-x64\dist\extension.node.js:301:22578)]
14:21:05.303 [info] Starting Kernel (Python Path: ~\Documents\NBA\.venv\Scripts\python.exe, Venv, 3.12.9) for '~\Documents\NBA\team_ratings\test_working.ipynb' (disableUI=true)
14:21:05.341 [info] Process Execution: ~\Documents\NBA\.venv\Scripts\python.exe -c "import ipykernel; print(ipykernel.__version__); print("5dc3a68c-e34e-4080-9c3e-2a532b2ccb4d"); print(ipykernel.__file__)"