"SQLMesh LSP not found" error when using a Conda environment in VSCode

[jbailiss]

Hello.

I am very new to using SQLMesh and have fallen at one of the first hurdles. I would really appreciate some help to either confirm I have found a bug or suggest an alternative solution.

What works:

• Creating a venv, installing the VSCode extension (pip install "sqlmesh[lsp]") and selecting the venv as the interpreter in VSCode. I can open a model, click the LINEAGE tab in Output and see the model lineage.

What doesn't work:

• Creating a Conda environment, installing the VSCode extension and selecting the Conda environment as the interpreter in VSCode. The LINEAGE tab is visible in Output but returns an error.

I've tried deleting the Conda environment and recreating it but it still returns this error:

Where I work everything Python related is managed through centralised Conda environments so I'm going to struggle to convince people that this project should be a standalone virtual environment.

Am I missing something obvious that is causing the error with the Conda environment? Could someone please try to recreate to confirm if it's unique to my setup?

Thanks