WSL2 - Django test runner - Django is not importable in this environment

I'm currently trying to get my Django project up and running with WSL2.

The regular runservers run fine - here are their settings:

but when trying to configure a test runner I get an Error: Django is not importable in this environment.

Weirdly, I can continue and run the tests anyway but it does give me warnings that it is not configured correctly.

Is there a way to fix this so I can just debug tests from within the editor without warnings?