Cannot import datasets in VSCode virtual environment

Im running a Python virtual environment on VScode.
On the line
from datasets import load_dataset
I am getting the error message ModuleNotFoundError: No module named ‘datasets’.

I read all posts on this forum about this topic, but cannot solve the problem:

  • the environment is using Python 3.11.4
  • pip3 confirms that datasets 2.17.1 is installed

What am I doing wrong?