Test Discovery Fails - Reports as PyTest not installed

Testing was working yesterday; I signed off around 4:45pm EST, got up this morning and encountered issues discovering and importing the packages from vscode. To me it appears as though the root of the workspace is not being added to the path.

Example: executing python -m pytest ETC from c:/projects/customers/CUSTOMERX/PROJECTX/ adds that to the path, specifying ./tests/ searches ./tests for tests and I can import the high level package from there. I feel as if the break is likely in this area.

Environment data

• VS Code version: XXX Version: 1.35.1 (user setup) Commit: c7d83e57cd18f18026a8162d042843bda1bcf21f Date: 2019-06-12T14:30:02.622Z Electron: 3.1.8 Chrome: 66.0.3359.181 Node.js: 10.2.0 V8: 6.6.346.32 OS: Windows_NT x64 10.0.17134

• Extension version (available under the Extensions sidebar): 2019.6.22090 (25 June 2019)

• Python version (& distribution if applicable, e.g. Anaconda): Anaconda 2019.03 for Windows python version 3.6.8

• Type of virtual environment used (N/A | venv | virtualenv | conda | …): N/A base

• Relevant/affected Python packages and their versions: pytest

• Jedi or Language Server? (i.e. what is "python.jediEnabled" set to; more info #3977): Jedi enabled (output indicates it started jedi python language engine)

Expected behaviour

Discover Unit Tests - for example below works:

c:\projects\customers\CUSTOMERX\PROJECTX>python -m pytest --doctest-modules --junitxml=./tests/junit/test-results.xml --cov=./PACKAGEX/ ./tests/ --cov-report=xml:./tests/junit/coverage.xml --cov-report=html:./tests/junit/cov_html
================================================= test session starts =================================================
platform win32 -- Python 3.6.8, pytest-4.6.2, py-1.8.0, pluggy-0.12.0
rootdir: c:\projects\customers\CUSTOMERX\PACKAGEX, inifile: setup.cfg
plugins: arraydiff-0.3, cov-2.7.1, doctestplus-0.3.0, openfiles-0.3.2, remotedata-0.3.1
collected 14 items

tests\test_system_files.py ..                                                                                    [ 14%]

Actual behaviour

From the python test log (outputs) - Tried pytest 4.6.2, 4.6.3 and 4.4.1

python C:\Users\DrCrook\.vscode\extensions\ms-python.python-2019.6.22090\pythonFiles\testing_tools\run_adapter.py discover pytest -- -s --cache-clear c:\projects\customers\CUSTOMERX\PROJECTX
Test Discovery failed: 
Error: ============================= test session starts =============================
platform win32 -- Python 3.6.8, pytest-4.4.1, py-1.8.0, pluggy-0.12.0
rootdir: c:\projects\customers\CUSTOMERX\PROJECTX, inifile: setup.cfg
plugins: arraydiff-0.3, cov-2.7.1, doctestplus-0.3.0, openfiles-0.3.2, remotedata-0.3.1
collected 0 items / 9 errors

=================================== ERRORS ====================================
_________________ ERROR collecting tests/test_system_files.py _________________
ImportError while importing test module 'c:\projects\customers\CUSTOMERX\PROJECTX\tests\test_system_files.py'.
Hint: make sure your test modules/packages have valid Python names.
Traceback:
tests\test_system_files.py:6: in <module>
    from PACKAGEX.result import Result
E   ModuleNotFoundError: No module named 'PACKAGEX'

My folder structure:

/root
   /PACKAGEX
        /submoduleX
        /submoduleY
   /tests
        /helpers
        /test_submoduleX
        /test_submoduleY

.vscode/settings.json

{
    "python.testing.pytestArgs": [
    "--verbose",
    "--rootdir",
    "${workspaceFolder}",
    "${workspaceFolder}/tests"
    ],
    "python.testing.cwd": "${workspaceFolder}",
    "python.testing.unittestEnabled": false,
    "python.testing.nosetestsEnabled": false,
    "python.testing.pytestEnabled": true,
    "python.pythonPath": "C:\\ProgramData\\Anaconda3\\python.exe"
   }

[lukasz-migas]

Same problem here. Downgrading to the previous version (2019.5.18875) fixes the problem.

[KsenoJiva]

I noticed that the TestExplorer shows all Paths as lowercase. Therefore it could not find folders and modules within. In your case PACKAGEX might be uppercase too. Might there be a connection?