Recently there was an update to Azure Data Studio (1.50) that broke PowerShell Notebooks that needed to have Python installed and modules updated. It was bugged (found an issue on Github) Basically in a nutshell version requirements were changed and it broke python installing the needed modules and gave an error saying that there were conflicts when installing modules.
There was an update needed to change those versions. A contributor made the changes for the January 2025 release. As was indicated, the January 2025 release and actually a patch to it (v1.51.0) that makes this issue fixed. You can now install a Python release and use it to get the prerequisites installed for use with PowerShell Notebooks.
If you are in ADS and want to pull the update, you can go to Help | Check Updates as illustrated below.

When you install the update, ensure that you see Help | About screen like below.


Creating a new Notebook, will either change the Kernel or will allow you to point to a version of Python and then install the Notebook prerequisites. When complete you will see this at the end.
