setuptools
has changed the way it carries out editable installs which seems to have broken compatibility with various tools. For an in-depth explanation of the behavior refer to this page.
Setuptools provides a config option to stick to the old installation method.
Either by setting the following flag on install:
pip install -e . --config-settings editable_mode=compat
Or by setting the environment variable SETUPTOOLS_ENABLE_FEATURES="legacy-editable"
before installing, though this last method has the limtation explained in the note here:
Newer versions of pip no longer run the fallback command python setup.py develop when the pyproject.toml file is present. This means that setting the environment variable SETUPTOOLS_ENABLE_FEATURES="legacy-editable" will have no effect when installing a package with pip.
After reinstalling the desired package using legacy mode, you will probably need to either restart the editor, or in the case of VSCode run the command "Python: Restart language server" in Ctrl+Shift+P