diff --git a/package.json b/package.json
index 855723427..219fbe00c 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@databricks/databricks-vscode",
-    "version": "2.16.0",
+    "version": "2.17.0",
     "private": true,
     "workspaces": [
         "packages/*"
diff --git a/packages/databricks-vscode-types/CHANGELOG.md b/packages/databricks-vscode-types/CHANGELOG.md
index b0e842498..0a1a79171 100644
--- a/packages/databricks-vscode-types/CHANGELOG.md
+++ b/packages/databricks-vscode-types/CHANGELOG.md
@@ -1,3 +1,9 @@
+# Release: v2.17.0
+
+## packages/databricks-vscode-types
+
+## (2026-09-10)
+
 # Release: v2.16.0
 
 ## packages/databricks-vscode-types
diff --git a/packages/databricks-vscode-types/package.json b/packages/databricks-vscode-types/package.json
index 3d24b748a..b90f03260 100644
--- a/packages/databricks-vscode-types/package.json
+++ b/packages/databricks-vscode-types/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@databricks/databricks-vscode-types",
-    "version": "2.16.0",
+    "version": "2.17.0",
     "description": "Package with types and interfaces to develop extensions to the Databricks VSCode plugin",
     "main": "index.js",
     "types": "index.d.ts",
diff --git a/packages/databricks-vscode/CHANGELOG.md b/packages/databricks-vscode/CHANGELOG.md
index eef729243..c6e4fc305 100644
--- a/packages/databricks-vscode/CHANGELOG.md
+++ b/packages/databricks-vscode/CHANGELOG.md
@@ -1,3 +1,16 @@
+# Release: v2.17.0
+
+## packages/databricks-vscode
+
+## (2026-09-10)
+
+-   Add a Python environment setup preset picker to choose a Full, DB Connect, or Python-only environment (#2179) ([f7e0004](https://github.com/databricks/databricks-vscode/commit/f7e0004))
+-   Recover from a dependency constraint conflict during Python setup by offering to retry as a DB Connect environment (#2186) ([06cfbf1](https://github.com/databricks/databricks-vscode/commit/06cfbf1))
+-   Add recovery UX for Python download failures (#2164) ([ea38e82](https://github.com/databricks/databricks-vscode/commit/ea38e82))
+-   Show an actionable error when Python setup hits a merge conflict on a `pyproject.toml` without a `[project]` table (#2180) ([685670e](https://github.com/databricks/databricks-vscode/commit/685670e))
+-   Preserve script stdout when an Upload-and-Run file fails (#2171) ([05ebc1c](https://github.com/databricks/databricks-vscode/commit/05ebc1c))
+-   Update Databricks CLI to v1.16.0 (#2175, #2183) ([51c8bc6](https://github.com/databricks/databricks-vscode/commit/51c8bc6)) — see the [CLI release notes](https://github.com/databricks/cli/releases) for changes
+
 # Release: v2.16.0
 
 ## packages/databricks-vscode
diff --git a/packages/databricks-vscode/package.json b/packages/databricks-vscode/package.json
index afdfd0901..b29c9bb5b 100644
--- a/packages/databricks-vscode/package.json
+++ b/packages/databricks-vscode/package.json
@@ -4,7 +4,7 @@
     "description": "IDE support for Databricks",
     "publisher": "databricks",
     "license": "LicenseRef-LICENSE",
-    "version": "2.16.0",
+    "version": "2.17.0",
     "engines": {
         "vscode": "^1.86.0",
         "node": ">=22.0"