The April 2025 release of the Python and Jupyter extensions for Visual Studio Code is now available. This update introduces enhancements to the Copilot experience in Notebooks, improved support for editable installs, faster and more reliable diagnostics, and the addition of custom Node.js arguments with Pylance, and more!
You could use uv workspaces. It means you only have one venv though.
A VSCode multi-root workspace might also work.