I am working on a data science project and my project tree looks like this:

data/
notebooks/
scripts/
utils/
- __init__.py
- utils1.py
- utils2.py
- utils3.py
- utils4.py
- tests/
-- test_utils1.py
-- test_utils2.py
-- test_utils3.py
-- test_utils4.py

I import functions I wrote in utils1.py, utils2.py, etc. to reuse throughout my notebooks and scripts. To run the tests for these, I cd into utils/ and then run python -m pytest from the terminal, which works fine.

I saw that there is a beaker icon for testing in VSCode, but my tests are not being discovered:

Contents of __init__.py look a little like this:

from utils.utils4 import foo, barfrom .utils1 import foo2, bar2from .utils2 import function1, function2from .utils3 import *

See the comment below for Output.

It breaks my flow to switch to the terminal each time I modify a utility function to verify tests are passing. How should I configure VSCode to make better use of the Test Explorer?

Update: see my comment for the solution

pytest works from the command line, therefore it is installed correctly (I use Anaconda). But within VS Code I simply cannot get it to work. In the log, I get this error:

python c:\Users\renan\.vscode\extensions\ms-python.python-2021.2.636928669\pythonFiles\testing_tools\run_adapter.py discover pytest -- --rootdir c:\Users\renan\Documents\Sources\Python-6502 -s --cache-clear
Test Discovery failed: 
TypeError: Cannot read property 'uri' of undefined

My settings.json is:

{
    "python.testing.cwd": ".",
    "python.testing.unittestEnabled": false,
    "python.testing.nosetestsEnabled": false,
    "python.testing.pytestEnabled": true,
    "python.pythonPath": "C:\\ProgramData\\Anaconda3\\python.exe"
}

Python version is 3.8.5, I am using the Python extension from the repo and my VSCode version is:

Version: 1.54.1 (user setup)
Commit: f30a9b73e8ffc278e71575118b6bf568f04587c8
Date: 2021-03-04T22:38:31.419Z (5 days ago)
Electron: 11.3.0
Chrome: 87.0.4280.141
Node.js: 12.18.3
V8: 8.7.220.31-electron.0
OS: Windows_NT x64 10.0.19042

What am I missing?