I have a test automation project using TypeScript, WebdriverIO, and Mocha. Previously, the test project was standalone, and I was able to use the Mocha Test Explorer extension in VS Code to run test scripts conveniently.

Recently, we migrated the test project inside the main application project under an e2e folder. Now, the project structure looks like this:

main_app/
│── src/
│── e2e/
│   │── node_modules/
│   │── test/
│   │   │── example.test.ts
│   │── package.json
│── package.json
│── ...

After this migration, Mocha Test Explorer stopped working. It no longer detects or runs the tests inside e2e/test/.

I suspect the issue might be related to having two package.json files—one in the root (main-app/package.json) and one inside e2e/. The test dependencies are installed inside e2e/node_modules/.

What I've Tried:

1. Checked that mocha and mocha-explorer are installed inside e2e/.
2. Updated mochaExplorer.files in .vscode/settings.json to:

{
  "mochaExplorer.files": "e2e/test/**/*.test.ts"
}

3. Tried running tests manually with npx mocha e2e/test/**/*.test.ts, which works fine.
4. Restarted VS Code and reinstalled Mocha Test Explorer.

Question: How can I configure Mocha Test Explorer to detect and run tests inside e2e/test/ while keeping the e2e folder inside the main application project?

Would I need to adjust any workspace settings or specify a different mocha path for the extension? Any insights would be appreciated!