poetry install doesnt create .env folder inside project folder with Anaconda python 3.9 env - anaconda3

Question

I have anaconda 3.8 on windows 10. I created python3.9 virtual environment and set poetry config virtualenvs.in-project true. But when I do poetry install it doesnt create the .envn folder inside the project. Below is the poetry env info results:
(python39) C:\Users\username\Developer\Packages\test5>poetry env info
Virtualenv
Python: 3.9.6
Implementation: CPython
Path: C:\Users\username\Anaconda3\envs\python39
Valid: True
System
Platform: win32
OS: nt
Python: C:\Users\username\Anaconda3\envs\python39***
However, when deactivate the python39 environment and run poetry install it creates the .envn folder inside project. and the poetry env info results the following:
Virtualenv
Python: 3.9.6
Implementation: CPython
Path: C:\Users\username\Developer\Packages\test2\.venv
Valid: True
System
Platform: win32
OS: nt
Python: C:\Users\username\Anaconda3\envs\python39
how can I make it work in python39 environment?

Answer 1

This is an expected behavior. Whenever poetry detect it's running within a virtual environment it will not create a new one ( Exception: condas "base" environment is not detected as a virtual environment).
To create an in-project venv for python3.9 using conda you can do this:
set the config to virtualenvs.in-project true
without being in a venv run poetry run env use /path/to/python3.9 once
run poetry install
Also have a look into the docs about poetry env use.
(Question and are answer are cross-posted in poetry's issue tracker)