chore: Update Vitest & related dependencies (M2-8932)

[andrevitalb]

📝 Description

🔗 Jira Ticket M2-8932

This PR updates vitest & related dependencies to v1.6.1 to address this critical Dependabot alert.

✏️ Notes

This issue imposes a low to medium risk for this project mainly due to the following.

1. This is a dev dependency - only used during development, not in production
2. The vulnerability requires:
   • Vitest UI to be running.
   • Developer to visit a malicious website while running tests.
   • The attacker needs to know the exact test file path to exploit.

The issue is solved in v1.6.1, and upgrading to this version only comes with a minor version bump and no additional changes.

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[mbanting]

CI tests work as expected

Local tests work as expected

> yarn test
> yarn test:watch
> yarn test:ui 
> yarn coverage

Reminder that for branch naming the format should be something like chore/M2-8932-update-vitest. Thanks!