Testing #21298
conda init powershell script configures conda to automatically activate (base) environment in powershell.
- Powershell itself does not have a shell specific variable we can change to influence the shell prompt.
- For conda environments though,
conda init itself embeds a CONDA_PROMPT_MODIFIER variable into the powershell init script, which we can influence to change the prompt 😀
- For virtual environments, no such initialization is done hence this is what currently appears when opening a new terminal 🙁

In that case I'm hoping the learn more docs: https://github.com/microsoft/vscode-python/wiki/Activate-Environments-in-Terminal-Using-Environment-Variables could clarify it.
Testing #21298
conda init powershellscript configures conda to automatically activate(base)environment in powershell.conda inititself embeds aCONDA_PROMPT_MODIFIERvariable into the powershell init script, which we can influence to change the prompt 😀In that case I'm hoping the learn more docs: https://github.com/microsoft/vscode-python/wiki/Activate-Environments-in-Terminal-Using-Environment-Variables could clarify it.