diff --git a/src/client/interpreter/virtualEnvs/activatedEnvLaunch.ts b/src/client/interpreter/virtualEnvs/activatedEnvLaunch.ts
index 21bcc12b0d06..6b4334e13100 100644
--- a/src/client/interpreter/virtualEnvs/activatedEnvLaunch.ts
+++ b/src/client/interpreter/virtualEnvs/activatedEnvLaunch.ts
@@ -85,12 +85,9 @@ export class ActivatedEnvironmentLaunch implements IActivatedEnvironmentLaunch {
 
     @cache(-1, true)
     private async _selectIfLaunchedViaActivatedEnv(doNotBlockOnSelection = false): Promise<string | undefined> {
-        if (this.workspaceService.workspaceFile) {
-            // Assuming multiroot workspaces cannot be directly launched via `code .` command.
-            return undefined;
-        }
         if (process.env.VSCODE_CLI !== '1') {
             // We only want to select the interpreter if VS Code was launched from the command line.
+            traceLog("Skipping ActivatedEnv Detection:  process.env.VSCODE_CLI !== '1'");
             return undefined;
         }
         traceVerbose('VS Code was not launched from the command line');
diff --git a/src/test/interpreters/virtualEnvs/activatedEnvLaunch.unit.test.ts b/src/test/interpreters/virtualEnvs/activatedEnvLaunch.unit.test.ts
index 2ebdecd000d1..860970bd641e 100644
--- a/src/test/interpreters/virtualEnvs/activatedEnvLaunch.unit.test.ts
+++ b/src/test/interpreters/virtualEnvs/activatedEnvLaunch.unit.test.ts
@@ -263,37 +263,6 @@ suite('Activated Env Launch', async () => {
             expect(_promptIfApplicable.notCalled).to.equal(true, 'Prompt should not be displayed');
         });
 
-        test('Does not update interpreter path if a multiroot workspace is opened', async () => {
-            process.env.VIRTUAL_ENV = virtualEnvPrefix;
-            interpreterService
-                .setup((i) => i.getInterpreterDetails(TypeMoq.It.isAny()))
-                .returns(() => Promise.resolve(({ envName: 'base' } as unknown) as PythonEnvironment));
-            workspaceService.setup((w) => w.workspaceFile).returns(() => uri);
-            const workspaceFolder: WorkspaceFolder = { name: 'one', uri, index: 0 };
-            workspaceService.setup((w) => w.workspaceFolders).returns(() => [workspaceFolder]);
-            pythonPathUpdaterService
-                .setup((p) =>
-                    p.updatePythonPath(
-                        TypeMoq.It.isValue(virtualEnvPrefix),
-                        TypeMoq.It.isValue(ConfigurationTarget.WorkspaceFolder),
-                        TypeMoq.It.isValue('load'),
-                        TypeMoq.It.isValue(uri),
-                    ),
-                )
-                .returns(() => Promise.resolve())
-                .verifiable(TypeMoq.Times.never());
-            activatedEnvLaunch = new ActivatedEnvironmentLaunch(
-                workspaceService.object,
-                appShell.object,
-                pythonPathUpdaterService.object,
-                interpreterService.object,
-                processServiceFactory.object,
-            );
-            const result = await activatedEnvLaunch.selectIfLaunchedViaActivatedEnv();
-            expect(result).to.be.equal(undefined, 'Incorrect value');
-            pythonPathUpdaterService.verifyAll();
-        });
-
         test('Returns `undefined` if env was already selected', async () => {
             activatedEnvLaunch = new ActivatedEnvironmentLaunch(
                 workspaceService.object,