Playwright has documentation about how to parametrize tests from using project/fixture options:

import { test as base } from '@playwright/test';

export type TestOptions = {
  person: string;
};

export const test = base.extend<TestOptions>({
  person: ['John', { option: true }],
});

test('test 1', async ({ page, person }) => {
  await page.goto(`/index.html`);
  await expect(page.locator('#node'))
         .toContainText(person); // person is John
});

And also has examples of creating many tests from parameters:

const people = ['Alice', 'Bob']; // This can be read from a file for example
for (const name of people) {
  test(`testing with ${name}`, async () => {
  });
}

However, there is no mention about how to do both things, being able to read information from the parameters, for example, where is a file containing data located, and use that to create parametrized tests.
Here is some pseudo code of what I want that does not work:

test.describe('test 1', async ({ peopleFile }) => {
  const people = fs.readFileSync(peopleFile);
    for (const name of people) {
      test(`testing with ${name}`, async () => {
      });
    }
});

Is there any way to do something like this?