Does this issue occur when all extensions are disabled?: Yes/No

• VS Code Version: 1.60.0
• OS Version: windows

Steps to Reproduce:

1.click Testing
2.expend folder tree
3.all of child folder is root folder name, and those root folder can be expend.

update 2021-09-04
this is my setting.json on project root.

  "python.testing.pytestArgs": [
    "vulman-api", "vulman-core"
  ],
  "python.testing.pytestEnabled": true,

my project dir begin with workspace, and vulman-api, vulman-core within workspace.
when i check testing, i found my testing directory tree only has workspace, and click workspace still workspace.
When I click on the front arrow, Will be displayed vulman-core, but it was replaced workspace immediately.

like this

• workspace
  • workspace
    • workspace
      • workspace

my project:

• workspace
  • vulman-core
    • test
  • vulman-api
    • api_test