Environment data

• VS Code version: 1.61.0 - insider
• Jupyter Extension version (available under the Extensions sidebar): v2021.9.1001294413

Steps to reproduce:

1. Create new notebook
2. Select kernel is always available despite having the default kernel for jupyter notebooks selected
   

Expected behavior

Notebook to be created with the default kernel selected

Actual behavior

Select kernel always available

*On a related note, is this a regression? Before core supported notion of default kernel, Jupyter extension used to automatically assign the kernel that was last used in a notebook.