I managed to find a solution.
- I saved and closed the solution
- Opened the Project Dependencies Mass Update Tool
- Selected Local and Official and pressed next
- Searched for Python, there was only version 1.0.6 there
- I ticked include prerelease and the 1.1.6 version showed up
- I closed the mass update tool
- Opened the project I was working on
- Opened Package manager
- Now the 1.1.6 was available for the python activity so I updated it and it now works.
I do not know if the mass update tool made the trick or if it was simply closing and opening the project that soleved the issue.