VSCode’s testing framework breaks when referencing a file in a tertiary folder

I have a super simple test framework in VSCode as follows:

VSCode’s testing framework breaks when referencing a file in a tertiary folder

I have a super simple test framework in VSCode as follows:

VSCode’s testing framework breaks when referencing a file in a tertiary folder

I have a super simple test framework in VSCode as follows:

VSCode’s testing framework breaks when referencing a file in a tertiary folder

I have a super simple test framework in VSCode as follows: