Last Good Version

None

First Bad Version

v1.1.7

Steps to reproduce

1. Run npm init playwright@latest --yes -- --quiet --browser=chromium --browser=firefox --browser=webkit --gha --install-deps playwright-intro (Same if you do it through Playwright VS Code extension)
2. Open VS Code in playwright-intro directory.
3. Switch to Testing.

Generated sources are uploaded here: https://github.com/ahmad-elkomey/err-report-playwright-regression/tree/main

Expected behavior

Project and tests are expected to be recognized and there should be green play buttons next to every test name.

Actual behavior

Project and tests are not recognized/found. No green play buttons.

Additional context

No response

Environment

System:
   OS: Linux komey-dell 5.15.0-118-generic #128-Ubuntu SMP Fri Jul 5 09:28:59 UTC 2024 x86_64 x86_64 x86_64 GNU/Linux
   CPU: x86_64. 12 CPUs.Intel(R) Core(TM) i7-8850H CPU @ 2.60GHz

Binaries:
- npm 10.8.2
- node v22.6.0
- playwright 1.46.0
- VS Code 1.92.1 eaa41d57266683296de7d118f574d0c2652e1fc4 x64
- Playwright VS Code Extension 1.1.7