Cannot activate environment on macos after 2018.1.2 update

After updating to 2018.1.2 I, Pycharm no longer sees my virtual environment. OS is macOS Sierra 10.12.6. 

For example, when I open my project and then open the Pycharm's terminal, it says:

bash: /Users/userblah/anaconda/envs/project_blah/bin/activate /Users/blah/anaconda/envs/project_blah: No such file or directory
computer_name:project_blah userblah$

Next, if I do activate it myself, either from the Pycharm terminal or the macos terminal it puts me in an environment called (root) and not the name of the environment I actually activated:

computer_name:project_blah userblah$ source /Users/userblah/anaconda/envs/project_blah/bin/activate
(root) computer_name:project_blah userblah$

I tried to create a new conda environment from scratch, same problem: when starting the terminal within pycharm, it can't find the project directory. 

Any idea how to fix? 

[EDIT] All my colleagues have the same issue...

Thanks