When selecting from the command palette Python: Select Interpreter, we can create a virtual environment using Venv or Conda. I propose to add to this list the faster https://github.com/astral-sh/uv tool, which creates an environment with:

uv venv --python path/to/interpreter

And install dependencies of the project in the current directory with the flag all with:

uv pip install -e .[all]

Or for a simple pip install command:

uv pip install numpy