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":

1. Have pytest installed and selected as a default test framework
2. Put tests inside folder named "py". For example, "./tests/py/"
3. Try to execute test
4. The test is executed correctly, but test UI shows error.

Logs

> ~/.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