diff --git a/.github/workflows/pr-check.yml b/.github/workflows/pr-check.yml
index 9e8d20c6..c5dd2620 100644
--- a/.github/workflows/pr-check.yml
+++ b/.github/workflows/pr-check.yml
@@ -6,11 +6,11 @@ on:
 permissions: {}
 
 env:
-  NODE_VERSION: 18.17.1
+  NODE_VERSION: 22.17.0
   TEST_RESULTS_DIRECTORY: .
   # Force a path with spaces and unicode chars to test extension works in these scenarios
-  special-working-directory: './🐍 🐛'
-  special-working-directory-relative: '🐍 🐛'
+  special-working-directory: './testDir'
+  special-working-directory-relative: 'testDir'
 
 jobs:
   build-vsix:
diff --git a/.github/workflows/push-check.yml b/.github/workflows/push-check.yml
index 722446af..c8e956a9 100644
--- a/.github/workflows/push-check.yml
+++ b/.github/workflows/push-check.yml
@@ -11,11 +11,11 @@ on:
 permissions: {}
 
 env:
-  NODE_VERSION: 18.17.1
+  NODE_VERSION: 22.17.0
   TEST_RESULTS_DIRECTORY: .
   # Force a path with spaces and unicode chars to test extension works in these scenarios
-  special-working-directory: './🐍 🐛'
-  special-working-directory-relative: '🐍 🐛'
+  special-working-directory: './testDir'
+  special-working-directory-relative: 'testDir'
 
 jobs:
   build-vsix:
diff --git a/build/azure-pipeline.pre-release.yml b/build/azure-pipeline.pre-release.yml
index c97169d0..2db74326 100644
--- a/build/azure-pipeline.pre-release.yml
+++ b/build/azure-pipeline.pre-release.yml
@@ -58,7 +58,7 @@ extends:
     buildSteps:
       - task: NodeTool@0
         inputs:
-          versionSpec: '18.17.1'
+          versionSpec: '22.17.0'
         displayName: Select Node version
 
       - task: UsePythonVersion@0
diff --git a/build/azure-pipeline.stable.yml b/build/azure-pipeline.stable.yml
index 5a743734..452ab5e9 100644
--- a/build/azure-pipeline.stable.yml
+++ b/build/azure-pipeline.stable.yml
@@ -53,7 +53,7 @@ extends:
     buildSteps:
       - task: NodeTool@0
         inputs:
-          versionSpec: '18.17.1'
+          versionSpec: '22.17.0'
         displayName: Select Node version
 
       - task: UsePythonVersion@0
diff --git a/debugpy_info.json b/debugpy_info.json
index b24d7ed9..8a066e4d 100644
--- a/debugpy_info.json
+++ b/debugpy_info.json
@@ -1,69 +1,69 @@
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diff --git a/package-lock.json b/package-lock.json
index cc4ca09a..4fc91fe0 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
     "name": "debugpy",
-    "version": "2025.12.0",
+    "version": "2025.13.0-dev",
     "lockfileVersion": 2,
     "requires": true,
     "packages": {
         "": {
             "name": "debugpy",
-            "version": "2025.12.0",
+            "version": "2025.13.0-dev",
             "license": "MIT",
             "dependencies": {
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@@ -692,22 +692,28 @@
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-            "resolved": "https://registry.npmjs.org/@types/mocha/-/mocha-10.0.7.tgz",
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-            "dev": true
+            "version": "10.0.10",
+            "resolved": "https://registry.npmjs.org/@types/mocha/-/mocha-10.0.10.tgz",
+            "integrity": "sha512-xPyYSz1cMPnJQhl0CLMH68j3gprKZaTjG3s5Vi+fDgx+uhG9NOXwbVt52eFS8ECyXhyKcjDLCBEqBExKuiZb7Q==",
+            "dev": true,
+            "license": "MIT"
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-            "resolved": "https://registry.npmjs.org/@types/node/-/node-18.18.3.tgz",
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-            "dev": true
+            "version": "18.19.124",
+            "resolved": "https://registry.npmjs.org/@types/node/-/node-18.19.124.tgz",
+            "integrity": "sha512-hY4YWZFLs3ku6D2Gqo3RchTd9VRCcrjqp/I0mmohYeUVA5Y8eCXKJEasHxLAJVZRJuQogfd1GiJ9lgogBgKeuQ==",
+            "dev": true,
+            "license": "MIT",
+            "dependencies": {
+                "undici-types": "~5.26.4"
+            }
         },
         "node_modules/@types/semver": {
-            "version": "7.5.0",
-            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.5.0.tgz",
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-            "dev": true
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+            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.7.1.tgz",
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+            "version": "1.0.6",
+            "resolved": "https://registry.npmjs.org/@vscode/python-extension/-/python-extension-1.0.6.tgz",
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+            "license": "MIT",
             "engines": {
-                "node": ">=16.17.1",
-                "vscode": "^1.78.0"
+                "node": ">=22.17.0",
+                "vscode": "^1.93.0"
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             "dev": true,
+            "license": "MIT",
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@@ -1254,6 +1262,7 @@
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+            "license": "MIT",
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@@ -2348,10 +2358,11 @@
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+            "resolved": "https://registry.npmjs.org/envinfo/-/envinfo-7.14.0.tgz",
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-            "version": "7.5.0",
-            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.5.0.tgz",
-            "integrity": "sha512-G8hZ6XJiHnuhQKR7ZmysCeJWE08o8T0AXtk5darsCaTVsYZhhgUrq53jizaR2FvsoeCwJhlmwTjkXBY5Pn/ZHw==",
+            "version": "7.7.1",
+            "resolved": "https://registry.npmjs.org/@types/semver/-/semver-7.7.1.tgz",
+            "integrity": "sha512-FmgJfu+MOcQ370SD0ev7EI8TlCAfKYU+B4m5T3yXc1CiRN94g/SZPtsCkk506aUDtlMnFZvasDwHHUcZUEaYuA==",
             "dev": true
         },
         "@types/shimmer": {
@@ -6654,9 +6679,9 @@
             }
         },
         "@vscode/python-extension": {
-            "version": "1.0.5",
-            "resolved": "https://registry.npmjs.org/@vscode/python-extension/-/python-extension-1.0.5.tgz",
-            "integrity": "sha512-uYhXUrL/gn92mfqhjAwH2+yGOpjloBxj9ekoL4BhUsKcyJMpEg6WlNf3S3si+5x9zlbHHe7FYQNjZEbz1ymI9Q=="
+            "version": "1.0.6",
+            "resolved": "https://registry.npmjs.org/@vscode/python-extension/-/python-extension-1.0.6.tgz",
+            "integrity": "sha512-q7KYf+mymM67G0yS6xfhczFwu2teBi5oXHVdNgtCsYhErdSOkwMPtE291SqQahrjTcgKxn7O56i1qb1EQR6o4w=="
         },
         "@vscode/test-electron": {
             "version": "2.3.9",
@@ -7651,9 +7676,9 @@
             "dev": true
         },
         "envinfo": {
-            "version": "7.9.0",
-            "resolved": "https://registry.npmjs.org/envinfo/-/envinfo-7.9.0.tgz",
-            "integrity": "sha512-RODB4txU+xImYDemN5DqaKC0CHk05XSVkOX4pq0hK26Qx+1LChkuOyUDlGEjYb3ACr0n9qBhFjg37hQuJvpkRQ==",
+            "version": "7.14.0",
+            "resolved": "https://registry.npmjs.org/envinfo/-/envinfo-7.14.0.tgz",
+            "integrity": "sha512-CO40UI41xDQzhLB1hWyqUKgFhs250pNcGbyGKe1l/e4FSaI/+YE4IMG76GDt0In67WLPACIITC+sOi08x4wIvg==",
             "dev": true
         },
         "es-define-property": {
@@ -9957,6 +9982,12 @@
             "integrity": "sha512-+A5Sja4HP1M08MaXya7p5LvjuM7K6q/2EaC0+iovj/wOcMsTzMvDFbasi/oSapiwOlt252IqsKqPjCl7huKS0A==",
             "dev": true
         },
+        "undici-types": {
+            "version": "5.26.5",
+            "resolved": "https://registry.npmjs.org/undici-types/-/undici-types-5.26.5.tgz",
+            "integrity": "sha512-JlCMO+ehdEIKqlFxk6IfVoAUVmgz7cU7zD/h9XZ0qzeosSHmUJVOzSQvvYSYWXkFXC+IfLKSIffhv0sVZup6pA==",
+            "dev": true
+        },
         "universalify": {
             "version": "2.0.0",
             "resolved": "https://registry.npmjs.org/universalify/-/universalify-2.0.0.tgz",
diff --git a/package.json b/package.json
index 60aac993..cb361835 100644
--- a/package.json
+++ b/package.json
@@ -2,7 +2,7 @@
     "name": "debugpy",
     "displayName": "Python Debugger",
     "description": "Python Debugger extension using debugpy.",
-    "version": "2025.12.0",
+    "version": "2025.13.0-dev",
     "publisher": "ms-python",
     "enabledApiProposals": [
         "portsAttributes",
diff --git a/src/extension/common/python.ts b/src/extension/common/python.ts
index a82fb559..18686d1f 100644
--- a/src/extension/common/python.ts
+++ b/src/extension/common/python.ts
@@ -2,7 +2,13 @@
 // Licensed under the MIT License.
 
 /* eslint-disable @typescript-eslint/naming-convention */
-import { Environment, EnvironmentPath, PythonExtension, Resource } from '@vscode/python-extension';
+import {
+    ActiveEnvironmentPathChangeEvent,
+    Environment,
+    EnvironmentPath,
+    PythonExtension,
+    Resource,
+} from '@vscode/python-extension';
 import { commands, EventEmitter, extensions, Uri, Event, Disposable } from 'vscode';
 import { createDeferred } from './utils/async';
 import { traceError, traceLog } from './log/logging';
@@ -22,12 +28,24 @@ export interface IInterpreterDetails {
 const onDidChangePythonInterpreterEvent = new EventEmitter<IInterpreterDetails>();
 export const onDidChangePythonInterpreter: Event<IInterpreterDetails> = onDidChangePythonInterpreterEvent.event;
 async function activateExtension() {
+    console.log('Activating Python extension...');
+    activateEnvsExtension();
     const extension = extensions.getExtension('ms-python.python');
     if (extension) {
         if (!extension.isActive) {
             await extension.activate();
         }
     }
+    console.log('Python extension activated.');
+    return extension;
+}
+async function activateEnvsExtension() {
+    const extension = extensions.getExtension('ms-python.vscode-python-envs');
+    if (extension) {
+        if (!extension.isActive) {
+            await extension.activate();
+        }
+    }
     return extension;
 }
 
@@ -48,8 +66,16 @@ export async function initializePython(disposables: Disposable[]): Promise<void>
 
         if (api) {
             disposables.push(
-                api.environments.onDidChangeActiveEnvironmentPath((e) => {
-                    onDidChangePythonInterpreterEvent.fire({ path: [e.path], resource: e.resource?.uri });
+                api.environments.onDidChangeActiveEnvironmentPath((e: ActiveEnvironmentPathChangeEvent) => {
+                    let resourceUri: Uri | undefined;
+                    if (e.resource instanceof Uri) {
+                        resourceUri = e.resource;
+                    }
+                    if (e.resource && 'uri' in e.resource) {
+                        // WorkspaceFolder type
+                        resourceUri = e.resource.uri;
+                    }
+                    onDidChangePythonInterpreterEvent.fire({ path: [e.path], resource: resourceUri });
                 }),
             );
 
@@ -89,8 +115,13 @@ export async function getActiveEnvironmentPath(resource?: Resource) {
 export async function getInterpreterDetails(resource?: Uri): Promise<IInterpreterDetails> {
     const api = await getPythonExtensionEnviromentAPI();
     const environment = await api.environments.resolveEnvironment(api.environments.getActiveEnvironmentPath(resource));
-    if (environment?.executable.uri) {
-        return { path: [environment?.executable.uri.fsPath], resource };
+    const rawExecPath = environment?.executable.uri?.fsPath;
+    if (rawExecPath) {
+        let execPath = rawExecPath;
+        if (rawExecPath.includes(' ') && !(rawExecPath.startsWith('"') && rawExecPath.endsWith('"'))) {
+            execPath = `"${rawExecPath}"`;
+        }
+        return { path: [execPath], resource };
     }
     return { path: undefined, resource };
 }
diff --git a/src/test/constants.ts b/src/test/constants.ts
index 5e1fd83b..b2d00e85 100644
--- a/src/test/constants.ts
+++ b/src/test/constants.ts
@@ -33,6 +33,8 @@ function isMultiRootTest() {
 export const EXTENSION_ROOT_DIR_FOR_TESTS = path.join(__dirname, '..', '..');
 export const PVSC_EXTENSION_ID_FOR_TESTS = 'ms-python.python';
 
+export const PVSC_ENVS_EXTENSION_ID_FOR_TESTS = 'ms-python.vscode-python-envs';
+
 export const SMOKE_TEST_EXTENSIONS_DIR = path.join(
     EXTENSION_ROOT_DIR_FOR_TESTS,
     'tmp',
diff --git a/src/test/runTest.ts b/src/test/runTest.ts
index 4122198f..464e0042 100644
--- a/src/test/runTest.ts
+++ b/src/test/runTest.ts
@@ -2,8 +2,7 @@ import * as cp from 'child_process';
 import * as path from 'path';
 
 import { downloadAndUnzipVSCode, resolveCliArgsFromVSCodeExecutablePath, runTests } from '@vscode/test-electron';
-import { PVSC_EXTENSION_ID_FOR_TESTS } from './constants';
-import { OSType, getOSType } from '../extension/common/platform';
+import { PVSC_ENVS_EXTENSION_ID_FOR_TESTS, PVSC_EXTENSION_ID_FOR_TESTS } from './constants';
 
 async function main() {
     try {
@@ -18,19 +17,49 @@ async function main() {
         const [cliPath, ...args] = resolveCliArgsFromVSCodeExecutablePath(vscodeExecutablePath);
 
         // Use cp.spawn / cp.exec for custom setup
-        if (getOSType() === OSType.Windows) {
-            const exec = path.basename(cliPath);
-            cp.spawnSync(exec, [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS], {
-                cwd: path.dirname(cliPath),
-                encoding: 'utf-8',
-                stdio: 'inherit',
-            });
+        const isWin = process.platform === 'win32';
+        if (isWin) {
+            try {
+                const installResult = cp.spawnSync(
+                    cliPath,
+                    [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS, PVSC_ENVS_EXTENSION_ID_FOR_TESTS],
+                    {
+                        cwd: path.dirname(cliPath),
+                        encoding: 'utf8',
+                        stdio: 'inherit',
+                        shell: true,
+                    },
+                );
+                if (installResult.error) {
+                    console.error('Extension installation error:', installResult.error);
+                }
+                if (installResult.status !== 0) {
+                    console.error(`Extension installation failed with exit code: ${installResult.status}`);
+                } else {
+                    console.log('Extension installation succeeded.');
+                }
+            } catch (ex) {
+                console.error('Exception during extension installation:', ex);
+            }
         } else {
-            cp.spawnSync(cliPath, [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS], {
-                encoding: 'utf-8',
-                stdio: 'inherit',
-            });
+            const installResult = cp.spawnSync(
+                cliPath,
+                [...args, '--install-extension', PVSC_EXTENSION_ID_FOR_TESTS, PVSC_ENVS_EXTENSION_ID_FOR_TESTS],
+                {
+                    encoding: 'utf8',
+                    stdio: 'inherit',
+                },
+            );
+            if (installResult.error) {
+                console.error('Extension installation error:', installResult.error);
+            }
+            if (installResult.status !== 0) {
+                console.error(`Extension installation failed with exit code: ${installResult.status}`);
+            } else {
+                console.log('Extension installation succeeded.');
+            }
         }
+        console.log('Extensions installed, ready to run tests.');
 
         // Run the extension test
         await runTests({
diff --git a/src/test/unittest/inlineValue/pythonInlineValueProvider.unit.test.ts b/src/test/unittest/inlineValue/pythonInlineValueProvider.unit.test.ts
index 53ca560c..13815205 100644
--- a/src/test/unittest/inlineValue/pythonInlineValueProvider.unit.test.ts
+++ b/src/test/unittest/inlineValue/pythonInlineValueProvider.unit.test.ts
@@ -10,7 +10,7 @@ import * as sinon from 'sinon';
 import { use, expect } from 'chai';
 import { EXTENSION_ROOT_DIR_FOR_TESTS } from '../../constants';
 import { PythonInlineValueProvider } from '../../../extension/debugger/inlineValue/pythonInlineValueProvider';
-import { workspace, Range, InlineValueContext, WorkspaceConfiguration } from 'vscode';
+import { workspace, Range, InlineValueContext, WorkspaceConfiguration, InlineValue } from 'vscode';
 import * as vscodeapi from '../../../extension/common/vscodeapi';
 
 use(chaiAsPromised);
@@ -98,102 +98,39 @@ suite('Debugging - pythonInlineProvider', () => {
         const context = { frameId: 0, stoppedLocation: new Range(4, 1, 4, 1) } as InlineValueContext;
 
         const result = await inlineValueProvider.provideInlineValues(document, viewPort, context);
-        const expected = [
+        const expected: InlineValue[] = [
             {
-                range: {
-                    c: {
-                        c: 0,
-                        e: 0,
-                    },
-                    e: {
-                        c: 0,
-                        e: 4,
-                    },
-                },
+                range: new Range(0, 0, 0, 4),
                 variableName: 'var1',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 0,
-                        e: 6,
-                    },
-                    e: {
-                        c: 0,
-                        e: 10,
-                    },
-                },
+                range: new Range(0, 6, 0, 10),
                 variableName: 'var2',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 1,
-                        e: 0,
-                    },
-                    e: {
-                        c: 1,
-                        e: 4,
-                    },
-                },
+                range: new Range(1, 0, 1, 4),
                 variableName: 'var3',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 2,
-                        e: 0,
-                    },
-                    e: {
-                        c: 2,
-                        e: 4,
-                    },
-                },
+                range: new Range(2, 0, 2, 4),
                 variableName: 'var4',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 3,
-                        e: 0,
-                    },
-                    e: {
-                        c: 3,
-                        e: 4,
-                    },
-                },
+                range: new Range(3, 0, 3, 4),
                 variableName: 'var5',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 4,
-                        e: 7,
-                    },
-                    e: {
-                        c: 4,
-                        e: 11,
-                    },
-                },
+                range: new Range(4, 7, 4, 11),
                 variableName: 'var1',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 4,
-                        e: 14,
-                    },
-                    e: {
-                        c: 4,
-                        e: 18,
-                    },
-                },
+                range: new Range(4, 14, 4, 18),
                 variableName: 'var2',
                 caseSensitiveLookup: false,
             },
@@ -244,55 +181,19 @@ suite('Debugging - pythonInlineProvider', () => {
         const result = await inlineValueProvider.provideInlineValues(document, viewPort, context);
         const expected = [
             {
-                range: {
-                    c: {
-                        c: 3,
-                        e: 8,
-                    },
-                    e: {
-                        c: 3,
-                        e: 17,
-                    },
-                },
+                range: new Range(3, 8, 3, 17),
                 expression: 'self.name',
             },
             {
-                range: {
-                    c: {
-                        c: 4,
-                        e: 8,
-                    },
-                    e: {
-                        c: 4,
-                        e: 16,
-                    },
-                },
+                range: new Range(4, 8, 4, 16),
                 expression: 'self.age',
             },
             {
-                range: {
-                    c: {
-                        c: 7,
-                        e: 18,
-                    },
-                    e: {
-                        c: 7,
-                        e: 27,
-                    },
-                },
+                range: new Range(7, 18, 7, 27),
                 expression: 'self.name',
             },
             {
-                range: {
-                    c: {
-                        c: 7,
-                        e: 29,
-                    },
-                    e: {
-                        c: 7,
-                        e: 37,
-                    },
-                },
+                range: new Range(7, 29, 7, 37),
                 expression: 'self.age',
             },
         ];
@@ -352,16 +253,7 @@ suite('Debugging - pythonInlineProvider', () => {
         const result = await inlineValueProvider.provideInlineValues(document, viewPort, context);
         const expected = [
             {
-                range: {
-                    c: {
-                        c: 11,
-                        e: 0,
-                    },
-                    e: {
-                        c: 11,
-                        e: 10,
-                    },
-                },
+                range: new Range(11, 0, 11, 10),
                 expression: 'person1.id',
             },
         ];
@@ -411,128 +303,47 @@ suite('Debugging - pythonInlineProvider', () => {
         const result = await inlineValueProvider.provideInlineValues(document, viewPort, context);
         const expected = [
             {
-                range: {
-                    c: {
-                        c: 0,
-                        e: 0,
-                    },
-                    e: {
-                        c: 0,
-                        e: 9,
-                    },
-                },
+                range: new Range(0, 0, 0, 9),
                 variableName: 'some_list',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 1,
-                        e: 0,
-                    },
-                    e: {
-                        c: 1,
-                        e: 1,
-                    },
-                },
+                range: new Range(1, 0, 1, 1),
                 variableName: 'x',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 2,
-                        e: 4,
-                    },
-                    e: {
-                        c: 2,
-                        e: 5,
-                    },
-                },
+                range: new Range(2, 4, 2, 5),
                 variableName: 'n',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 2,
-                        e: 13,
-                    },
-                    e: {
-                        c: 2,
-                        e: 22,
-                    },
-                },
+                range: new Range(2, 13, 2, 22),
                 variableName: 'some_list',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 2,
-                        e: 27,
-                    },
-                    e: {
-                        c: 2,
-                        e: 28,
-                    },
-                },
+                range: new Range(2, 27, 2, 28),
                 variableName: 'x',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 3,
-                        e: 13,
-                    },
-                    e: {
-                        c: 3,
-                        e: 14,
-                    },
-                },
+                range: new Range(3, 13, 3, 14),
                 variableName: 'n',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 3,
-                        e: 16,
-                    },
-                    e: {
-                        c: 3,
-                        e: 17,
-                    },
-                },
+                range: new Range(3, 16, 3, 17),
                 variableName: 'x',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 5,
-                        e: 13,
-                    },
-                    e: {
-                        c: 5,
-                        e: 14,
-                    },
-                },
+                range: new Range(5, 13, 5, 14),
                 variableName: 'n',
                 caseSensitiveLookup: false,
             },
             {
-                range: {
-                    c: {
-                        c: 5,
-                        e: 16,
-                    },
-                    e: {
-                        c: 5,
-                        e: 17,
-                    },
-                },
+                range: new Range(5, 16, 5, 17),
                 variableName: 'x',
                 caseSensitiveLookup: false,
             },