Vitest extension fails "No projects matched the filter: project-name"

[ddamiankowalski]

Describe the bug

I am trying to run the tests via VSCode using the Vitest extension, however the ouput fails with a specific error saying that the filtering projects process failed

Ouput

Error: Vitest failed to start: 
Error: No projects matched the filter "manage-users-feature".

vite config

/// <reference types='vitest' />
import { defineConfig } from 'vite';
import angular from '@analogjs/vite-plugin-angular';
import { nxViteTsPaths } from '@nx/vite/plugins/nx-tsconfig-paths.plugin';
import { nxCopyAssetsPlugin } from '@nx/vite/plugins/nx-copy-assets.plugin';

export default defineConfig(() => ({
  root: __dirname,
  cacheDir:
    '../../../../node_modules/.vite/libs/project-name/manage-users/feature',
  plugins: [
    angular({ tsconfig: `${__dirname}/tsconfig.spec.json` }),
    nxViteTsPaths(),
    nxCopyAssetsPlugin(['*.md']),
  ],
  test: {
    name: 'manage-users-feature',
    watch: false,
    globals: true,
    environment: 'jsdom',
    include: ['{src,tests}/**/*.{test,spec}.{js,mjs,cjs,ts,mts,cts,jsx,tsx}'],
    setupFiles: ['src/test-setup.ts'],
    reporters: ['default'],
    coverage: {
      reportsDirectory:
        '../../../../coverage/libs/project-name/manage-users/feature',
      provider: 'v8' as const,
    },
  },
}));

Reproduction

1. Click the green icon decorator in vscode
2. Test does not start
3. Output in console is generated

System Info

System:
    OS: macOS 26.5
    CPU: (8) arm64 Apple M3
    Memory: 93.42 MB / 16.00 GB
    Shell: 5.9 - /bin/zsh
  Binaries:
    Node: 24.14.0 - /Users/damiankowalski/.nvm/versions/node/v24.14.0/bin/node
    npm: 11.9.0 - /Users/damiankowalski/.nvm/versions/node/v24.14.0/bin/npm
    Watchman: 2025.08.25.00 - /opt/homebrew/bin/watchman
  Browsers:
    Chrome: 148.0.7778.181
    Firefox: 137.0
    Safari: 26.5

Used Package Manager

npm

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[github-actions]

Hello @ddamiankowalski. Please provide a minimal reproduction using a GitHub repository or StackBlitz (you can also use examples). Issues marked with needs reproduction will be closed if they have no activity within 3 days.