VSCode terminal shows incorrect python version and path, launching terminal from anaconda works perf

I have been stuck on this one problem for hours now and believe I have tried everything outside of throwing my computer out of the window.

I have a virtual environment set up on Anaconda using python version 3.7 and Django version 2.1. If I activate this virtual environment from Anaconda everything works smoothly.

(movierecommender) bash-3.2$ python -V
Python 3.7.2
(movierecommender) bash-3.2$ python -m django --version
2.1.5

However when I try to activate the environment from a vscode terminal I get

(movierecommender) maxs-MBP:movies maxswann$ python -V
Python 2.7.10
(movierecommender) maxs-MBP:movies maxswann$ python -m django --version
/usr/bin/python: No module named django

I have Python 3.7.2 64-bit ('movierecommender':conda) showing as my python interpreter in the bottom left of my vscode window yet still get the wrong python version

I thought this may be to do with the PYTHONPATH but have tried unsetting and resetting even though I should not have to worry about this in Anaconda as it automatically adds: "python.pythonPath":"/Users/maxswann/anaconda3/envs/movierecommender/bin/python" to a settings.json.vscode file

using:

python -c "import sys; print(sys.path)"

Anaconda-launched terminal

['', '/Users/maxswann/anaconda3/envs/movierecommender/lib/python37.zip', '/Users/maxswann/anaconda3/envs/movierecommender/lib/python3.7', '/Users/maxswann/anaconda3/envs/movierecommender/lib/python3.7/lib-dynload', '/Users/maxswann/anaconda3/envs/movierecommender/lib/python3.7/site-packages']

Vs Code terminal

['', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python27.zip', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/plat-darwin', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/plat-mac', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/plat-mac/lib-scriptpackages', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/lib-tk', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/lib-old', '/System/Library/Frameworks/Python.framework/Versions/2.7/lib/python2.7/lib-dynload', '/Library/Python/2.7/site-packages', '/System/Library/Frameworks/Python.framework/Versions/2.7/Extras/lib/python', '/System/Library/Frameworks/Python.framework/Versions/2.7/Extras/lib/python/PyObjC']

As you can see it seems to be using the default mac OS python version.

Has anybody else had this problem before? I've been tearing hair out all day trying to fix this