Environment data
- VS Code version: 1.60.0
- Extension version (available under the Extensions sidebar): v2021.9.1230869389
- OS and version: MacOS 11.6
- Python version (& distribution if applicable, e.g. Anaconda): 3.9.1
- Type of virtual environment used (N/A | venv | virtualenv | conda | ...): pyenv
- Relevant/affected Python packages and their versions: pytest==6.2.5
- Value of the
python.languageServer setting: Pylance
Expected behaviour
This simple test should appear succeeded in UI :
def test_passing():
assert 42 == 42
Actual behaviour
The test is failed (red circle) with this reason :

Steps to reproduce:
The issue is very similar to #17270 which is closed by #17275
The only difference that in my case folder name is not starting with "py", but the whole folder name is "py":

- Have pytest installed and selected as a default test framework
- Put tests inside folder named "py". For example, "./tests/py/"
- Try to execute test
- The test is executed correctly, but test UI shows error.
Logs
Output for Python in the Output panel (View→Output, change the drop-down the upper-right of the Output panel to Python)
> ~/.pyenv/versions/3.9.1/envs/vscode_python_pytest/bin/python -m pytest --rootdir ~/projects/vscode_python_pytest --override-ini junit_family=xunit1 --junit-xml=/var/folders/0_/6w94lk1171vc_fpwbjqx02nw0000gn/T/tmp-14897brlMlEUuYALH.xml ./tests/py/test_something.py::test_passing
cwd: ~/projects/vscode_python_pytest
Environment data
python.languageServersetting: PylanceExpected behaviour
This simple test should appear succeeded in UI :
Actual behaviour
The test is failed (red circle) with this reason :

Steps to reproduce:
The issue is very similar to #17270 which is closed by #17275
The only difference that in my case folder name is not starting with "py", but the whole folder name is "py":

Logs
Output for
Pythonin theOutputpanel (View→Output, change the drop-down the upper-right of theOutputpanel toPython)