If Python is not working in Visual Studio Code Terminal, you receive Python is not recognized, or the script fails to execute, follow these solutions.
Does this issue occur when all extensions are disabled?: Yes, partially I'm using remote development so I can't really disable that extension, this issue does not seem to arise when running in a wsl.
May be similar to #16286 where a future python update resolved the issue, but wanted to expedite an update if required. [NOTE: If you suspect that your issue is related to the Microsoft Python ...