diff --git a/Cargo.lock b/Cargo.lock
index 6c1709101ef9d5bd3e7ceda492ac671de6b10a1a..59b13ad68675fe1904a6f6544f4fbf9d73b4afd6 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -11615,7 +11615,7 @@ dependencies = [
 [[package]]
 name = "pet"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "clap",
  "env_logger 0.10.2",
@@ -11653,7 +11653,7 @@ dependencies = [
 [[package]]
 name = "pet-conda"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "env_logger 0.10.2",
  "lazy_static",
@@ -11672,7 +11672,7 @@ dependencies = [
 [[package]]
 name = "pet-core"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "clap",
  "lazy_static",
@@ -11687,7 +11687,7 @@ dependencies = [
 [[package]]
 name = "pet-env-var-path"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "lazy_static",
  "log",
@@ -11703,16 +11703,17 @@ dependencies = [
 [[package]]
 name = "pet-fs"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
+ "windows-sys 0.59.0",
 ]
 
 [[package]]
 name = "pet-global-virtualenvs"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11725,7 +11726,7 @@ dependencies = [
 [[package]]
 name = "pet-homebrew"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "lazy_static",
  "log",
@@ -11743,7 +11744,7 @@ dependencies = [
 [[package]]
 name = "pet-jsonrpc"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "env_logger 0.10.2",
  "log",
@@ -11756,7 +11757,7 @@ dependencies = [
 [[package]]
 name = "pet-linux-global-python"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11769,7 +11770,7 @@ dependencies = [
 [[package]]
 name = "pet-mac-commandlinetools"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11782,7 +11783,7 @@ dependencies = [
 [[package]]
 name = "pet-mac-python-org"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11795,7 +11796,7 @@ dependencies = [
 [[package]]
 name = "pet-mac-xcode"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11808,7 +11809,7 @@ dependencies = [
 [[package]]
 name = "pet-pipenv"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11821,7 +11822,7 @@ dependencies = [
 [[package]]
 name = "pet-pixi"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11833,7 +11834,7 @@ dependencies = [
 [[package]]
 name = "pet-poetry"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "base64 0.22.1",
  "lazy_static",
@@ -11854,7 +11855,7 @@ dependencies = [
 [[package]]
 name = "pet-pyenv"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "lazy_static",
  "log",
@@ -11872,7 +11873,7 @@ dependencies = [
 [[package]]
 name = "pet-python-utils"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "env_logger 0.10.2",
  "lazy_static",
@@ -11889,7 +11890,7 @@ dependencies = [
 [[package]]
 name = "pet-reporter"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "env_logger 0.10.2",
  "log",
@@ -11903,7 +11904,7 @@ dependencies = [
 [[package]]
 name = "pet-telemetry"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "env_logger 0.10.2",
  "lazy_static",
@@ -11918,7 +11919,7 @@ dependencies = [
 [[package]]
 name = "pet-uv"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "pet-core",
@@ -11930,7 +11931,7 @@ dependencies = [
 [[package]]
 name = "pet-venv"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11942,7 +11943,7 @@ dependencies = [
 [[package]]
 name = "pet-virtualenv"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11954,7 +11955,7 @@ dependencies = [
 [[package]]
 name = "pet-virtualenvwrapper"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "log",
  "msvc_spectre_libs",
@@ -11967,7 +11968,7 @@ dependencies = [
 [[package]]
 name = "pet-windows-registry"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "lazy_static",
  "log",
@@ -11985,7 +11986,7 @@ dependencies = [
 [[package]]
 name = "pet-windows-store"
 version = "0.1.0"
-source = "git+https://github.com/microsoft/python-environment-tools.git?rev=1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da#1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da"
+source = "git+https://github.com/microsoft/python-environment-tools.git?rev=d5b5bb0c4558a51d8cc76b514bc870fd1c042f16#d5b5bb0c4558a51d8cc76b514bc870fd1c042f16"
 dependencies = [
  "lazy_static",
  "log",
diff --git a/Cargo.toml b/Cargo.toml
index 60487de0946eb65c9cc9deee3cb5ea24d487b697..ffc7fa0f1a876ab8672c09a223b0b926fd477433 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -594,13 +594,13 @@ partial-json-fixer = "0.5.3"
 parse_int = "0.9"
 pciid-parser = "0.8.0"
 pathdiff = "0.2"
-pet = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da" }
-pet-conda = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da" }
-pet-core = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da" }
-pet-fs = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da" }
-pet-poetry = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da" }
-pet-reporter = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da" }
-pet-virtualenv = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "1e86914c3ce2f3a08c0cedbcb0615a7f9fa7a5da" }
+pet = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "d5b5bb0c4558a51d8cc76b514bc870fd1c042f16" }
+pet-conda = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "d5b5bb0c4558a51d8cc76b514bc870fd1c042f16" }
+pet-core = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "d5b5bb0c4558a51d8cc76b514bc870fd1c042f16" }
+pet-fs = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "d5b5bb0c4558a51d8cc76b514bc870fd1c042f16" }
+pet-poetry = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "d5b5bb0c4558a51d8cc76b514bc870fd1c042f16" }
+pet-reporter = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "d5b5bb0c4558a51d8cc76b514bc870fd1c042f16" }
+pet-virtualenv = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "d5b5bb0c4558a51d8cc76b514bc870fd1c042f16" }
 portable-pty = "0.9.0"
 postage = { version = "0.5", features = ["futures-traits"] }
 pretty_assertions = { version = "1.3.0", features = ["unstable"] }
diff --git a/crates/languages/src/python.rs b/crates/languages/src/python.rs
index 0babfb7b11bbe8957c670fb9d6e7d009f779051c..d3b2dab028f627d7797feb6f710aebc83a1996d4 100644
--- a/crates/languages/src/python.rs
+++ b/crates/languages/src/python.rs
@@ -1200,7 +1200,16 @@ impl ToolchainLister for PythonToolchainProvider {
         config.workspace_directories = Some(
             subroot_relative_path
                 .ancestors()
-                .map(|ancestor| worktree_root.join(ancestor.as_std_path()))
+                .map(|ancestor| {
+                    // remove trailing separator as it alters the environment name hash used by Poetry.
+                    let path = worktree_root.join(ancestor.as_std_path());
+                    let path_str = path.to_string_lossy();
+                    if path_str.ends_with(std::path::MAIN_SEPARATOR) && path_str.len() > 1 {
+                        PathBuf::from(path_str.trim_end_matches(std::path::MAIN_SEPARATOR))
+                    } else {
+                        path
+                    }
+                })
                 .collect(),
         );
         for locator in locators.iter() {