Type: Bug

Behaviour

Expected vs. Actual

Expected: VSC to correctly discover and load all test files in the Testing panel.

Actual: VSC fails to recognize any test files. VSC will attempt to find test (after re-running Tests: Refresh Tests in command pallette), but does not succeed.

Steps to reproduce:

Here is a layout of my current directory containing test files
tree

├─projects
├    |── __init__.py
├    |── subfolder1
├        ├─ __init__.py
├        ├─ subfolder2
├           |── __init__.py
├           |── test_file.py

And here is a python snippet from my settings.json

"python.testing.pytestArgs": [
        "."
    ],
    "python.testing.unittestEnabled": false,
    "python.testing.pytestEnabled": true,

I tried downgrading the Python vscode extension to version 2022.8 per this issue, but still no luck.

Diagnostic data

• Python version (& distribution if applicable, e.g. Anaconda): 3.13.2
• Type of virtual environment used (e.g. conda, venv, virtualenv, etc.): Micromamba (also tested in a conda environment)
• Value of the python.languageServer setting: Pylance

NA - no output is shown in Output Panel

languageServer: "Pylance"

formatting
• provider: "black"
• blackArgs: "<placeholder>"

testing
• pytestArgs: "<placeholder>"
• pytestEnabled: true

Extension version: 2022.8.0
VS Code version: Code 1.97.0 (Universal) (33fc5a94a3f99ebe7087e8fe79fbe1d37a251016, 2025-02-04T22:41:26.688Z)
OS version: Darwin arm64 24.3.0
Modes: