I am using Poetry from within a conda environment; with Poetry being installed by conda (poetry is present in the environment.yaml file). This might not be ideal but for a specific setup this seems to work well.

When running poetry install, a venv is not created because Poetry detect that a virtual environment (the Conda one) is already active.

I believe that we should be able to force Poetry to create a virtual environment anyway: the Conda environment is more "physical" than virtual in this case, as it replaces the system Python.

The same issue occurs when doing poetry shell from within the Conda environment, after creating the virtual environment with the following workaround: I deactivate the Conda environment, use the full path to Poetry (in the bin directory of the Conda environment) and do poetry install.