cc @michael-ud - if you can build Zed, I'd appreciate it if you could
give this a go with your project. Otherwise I can provide a link to
download of current nightly via an e-mail for you to try out (if you
want).
This change will land in Preview (if merged) on next Wednesday and then
it'll be in Stable a week after that.
Related to: #20402
Release Notes:

- python: Zed now searches for virtual environments in intermediate
directories between a root of the worktree and the location of
pyproject.toml applicable to the currently focused file.