System info

• Playwright Version: [v1.32.1]
• Operating System: [Windows 11]
• Browser: [Chromium]
• Other info:
  • Base on default code after running 'npx init playwright@latest'
  • VSC extension: Playwright Test for VSCode v1.0.9
  • VSC: 1.76.2

Source code

• [x ] I provided exact source code that allows reproducing the issue locally.

Config file
Change made:

    trace: 'retain-on-failure',

Steps
Prerequisites:

• Create project using 'npx init playwright@latest' (valid for Playwright v1.32.1)
• Open it in VSC
• Add extension: Playwright Test for VSCode
• Change config to option trace: 'retain-on-failure',

Steps:

• Enable Show browser in Playwright tab in Testing view
• Run first test using Test Explorer
• Browser should be preserved
• Try run another test, Record at cursor etc

Expected
Browser preserved for next actions

Actual
Browser exits or crashes with error: Error: browser._newContextForReuse: Browser has been closed
Hitting button: Close all browsers trigger information: Can't close browsers while running tests