Hi,

If you search for autopep8 and install this formatter it will work.

I think this was solved in a unfortunate way, because people who just had the Python extension installed, suddenly didn't have a working formatting function anymore because it was removed from the Python extension.
Furthermore, clicking "Install formatter" points you to the Python extension which is misleading.

Originally posted by @nahanoo in microsoft/vscode-python#22412 (comment)