diff --git a/package-lock.json b/package-lock.json
index d91c018a3..192a22ba1 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -25,7 +25,7 @@
         "@types/glob": "^8.0.0",
         "@types/node": "^18.11.9",
         "@types/stack-utils": "^2.0.1",
-        "@types/vscode": "1.78.0",
+        "@types/vscode": "1.86.0",
         "@types/which": "^2.0.1",
         "@types/ws": "^8.5.3",
         "@typescript-eslint/eslint-plugin": "^5.44.0",
@@ -40,7 +40,7 @@
         "typescript": "^4.9.3"
       },
       "engines": {
-        "vscode": "^1.78.0"
+        "vscode": "^1.86.0"
       }
     },
     "node_modules/@ampproject/remapping": {
@@ -824,9 +824,9 @@
       "dev": true
     },
     "node_modules/@types/vscode": {
-      "version": "1.78.0",
-      "resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.78.0.tgz",
-      "integrity": "sha512-LJZIJpPvKJ0HVQDqfOy6W4sNKUBBwyDu1Bs8chHBZOe9MNuKTJtidgZ2bqjhmmWpUb0TIIqv47BFUcVmAsgaVA==",
+      "version": "1.86.0",
+      "resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.86.0.tgz",
+      "integrity": "sha512-DnIXf2ftWv+9LWOB5OJeIeaLigLHF7fdXF6atfc7X5g2w/wVZBgk0amP7b+ub5xAuW1q7qP5YcFvOcit/DtyCQ==",
       "dev": true
     },
     "node_modules/@types/which": {
@@ -5144,9 +5144,9 @@
       "dev": true
     },
     "@types/vscode": {
-      "version": "1.78.0",
-      "resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.78.0.tgz",
-      "integrity": "sha512-LJZIJpPvKJ0HVQDqfOy6W4sNKUBBwyDu1Bs8chHBZOe9MNuKTJtidgZ2bqjhmmWpUb0TIIqv47BFUcVmAsgaVA==",
+      "version": "1.86.0",
+      "resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.86.0.tgz",
+      "integrity": "sha512-DnIXf2ftWv+9LWOB5OJeIeaLigLHF7fdXF6atfc7X5g2w/wVZBgk0amP7b+ub5xAuW1q7qP5YcFvOcit/DtyCQ==",
       "dev": true
     },
     "@types/which": {
diff --git a/package.json b/package.json
index 3f54f1458..e404476bc 100644
--- a/package.json
+++ b/package.json
@@ -10,7 +10,7 @@
     "url": "https://github.com/microsoft/playwright-vscode/issues"
   },
   "engines": {
-    "vscode": "^1.78.0"
+    "vscode": "^1.86.0"
   },
   "categories": [
     "Testing"
@@ -128,7 +128,7 @@
     "@types/glob": "^8.0.0",
     "@types/node": "^18.11.9",
     "@types/stack-utils": "^2.0.1",
-    "@types/vscode": "1.78.0",
+    "@types/vscode": "1.86.0",
     "@types/which": "^2.0.1",
     "@types/ws": "^8.5.3",
     "@typescript-eslint/eslint-plugin": "^5.44.0",
diff --git a/src/extension.ts b/src/extension.ts
index 08ab72bed..78464278d 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -292,17 +292,30 @@ export class Extension implements RunHooks {
       }
 
       const model = new TestModel(this._vscode, this._playwrightTest, workspaceFolderPath, configFileUri.fsPath, playwrightInfo, this._envProvider.bind(this));
-      this._models.push(model);
-      this._testTree.addModel(model);
       const configError = await model.listFiles();
       if (configError) {
         configErrors.set(configError.location?.file ?? configFilePath, configError);
         continue;
       }
 
-      for (const project of model.projects.values()) {
-        await this._createRunProfile(project);
-        this._workspaceObserver.addWatchFolder(project.testDir);
+      this._models.push(model);
+      this._testTree.addModel(model);
+    }
+
+    // Update list of run profiles.
+    {
+      // rebuildModel can run concurrently, swapping run profiles needs to be sync.
+      const existingProfiles = this._runProfiles;
+      this._runProfiles = new Map();
+      for (const model of this._models) {
+        for (const project of model.allProjects().values()) {
+          this._createRunProfile(project, existingProfiles);
+          this._workspaceObserver.addWatchFolder(project.testDir);
+        }
+      }
+      for (const [id, profile] of existingProfiles) {
+        if (!this._runProfiles.has(id))
+          profile.dispose();
       }
     }
 
@@ -332,7 +345,7 @@ export class Extension implements RunHooks {
         if (error?.location) {
           const range = new this._vscode.Range(
               new this._vscode.Position(Math.max(error.location.line - 4, 0), 0),
-              new this._vscode.Position(error.location.line - 1, error.location.column - 1),
+              new this._vscode.Position(Math.max(error.location.line - 1, 0), Math.max(error.location.column - 1, 0)),
           );
           this._vscode.window.activeTextEditor?.revealRange(range);
         }
@@ -349,25 +362,26 @@ export class Extension implements RunHooks {
     })) as NodeJS.ProcessEnv;
   }
 
-  private async _createRunProfile(project: TestProject) {
+  private _createRunProfile(project: TestProject, existingProfiles: Map<string, vscodeTypes.TestRunProfile>) {
     const configFile = project.model.config.configFile;
     const configName = path.basename(configFile);
     const folderName = path.basename(path.dirname(configFile));
     const projectPrefix = project.name ? `${project.name} — ` : '';
     const keyPrefix = configFile + ':' + project.name;
-    let runProfile = this._runProfiles.get(keyPrefix + ':run');
+    let runProfile = existingProfiles.get(keyPrefix + ':run');
     const projectTag = this._testTree.projectTag(project);
     const isDefault = false;
     const supportsContinuousRun = this._settingsModel.allowWatchingFiles.get();
-    if (!runProfile) {
+    if (!runProfile)
       runProfile = this._testController.createRunProfile(`${projectPrefix}${folderName}${path.sep}${configName}`, this._vscode.TestRunProfileKind.Run, this._scheduleTestRunRequest.bind(this, configFile, project.name, false), isDefault, projectTag, supportsContinuousRun);
-      this._runProfiles.set(keyPrefix + ':run', runProfile);
-    }
-    let debugProfile = this._runProfiles.get(keyPrefix + ':debug');
-    if (!debugProfile) {
+    this._runProfiles.set(keyPrefix + ':run', runProfile);
+    let debugProfile = existingProfiles.get(keyPrefix + ':debug');
+    if (!debugProfile)
       debugProfile = this._testController.createRunProfile(`${projectPrefix}${folderName}${path.sep}${configName}`, this._vscode.TestRunProfileKind.Debug, this._scheduleTestRunRequest.bind(this, configFile, project.name, true), isDefault, projectTag, supportsContinuousRun);
-      this._runProfiles.set(keyPrefix + ':debug', debugProfile);
-    }
+    this._runProfiles.set(keyPrefix + ':debug', debugProfile);
+
+    runProfile.onDidChangeDefault(enabled => project.model.setProjectEnabled(project, enabled));
+    debugProfile.onDidChangeDefault(enabled => project.model.setProjectEnabled(project, enabled));
   }
 
   private _scheduleTestRunRequest(configFile: string, projectName: string, isDebug: boolean, request: vscodeTypes.TestRunRequest, cancellationToken?: vscodeTypes.CancellationToken) {
@@ -380,7 +394,7 @@ export class Extension implements RunHooks {
     const model = this._models.find(m => m.config.configFile === configFile);
     if (!model)
       return;
-    const project = model.projects.get(projectName);
+    const project = model.allProjects().get(projectName);
     if (!project)
       return;
 
@@ -690,7 +704,10 @@ located next to Run / Debug Tests toolbar buttons.`);
         const allErrors = new Set<string>();
         const errorsByFile = new MultiMap<string, TestError>();
         for (const model of this._models.slice()) {
-          const errors = await model.listTests([...files]).catch(e => console.log(e)) || [];
+          const filteredFiles = model.narrowDownFilesToEnabledProjects(files);
+          if (!filteredFiles.size)
+            continue;
+          const errors = await model.listTests([...filteredFiles]).catch(e => console.log(e)) || [];
           for (const error of errors) {
             if (!error.location || !error.message)
               continue;
@@ -728,7 +745,7 @@ located next to Run / Debug Tests toolbar buttons.`);
         diagnostics.push({
           severity: this._vscode.DiagnosticSeverity.Error,
           source: 'playwright',
-          range: new this._vscode.Range(error.location!.line - 1, error.location!.column - 1, error.location!.line, 0),
+          range: new this._vscode.Range(Math.max(error.location!.line - 1, 0), Math.max(error.location!.column - 1, 0), error.location!.line, 0),
           message: error.message!,
         });
       }
diff --git a/src/reusedBrowser.ts b/src/reusedBrowser.ts
index 59f373234..c272d73eb 100644
--- a/src/reusedBrowser.ts
+++ b/src/reusedBrowser.ts
@@ -15,7 +15,7 @@
  */
 
 import { TestConfig } from './playwrightTest';
-import { TestModel, TestProject } from './testModel';
+import type { TestModel } from './testModel';
 import { createGuid } from './utils';
 import * as vscodeTypes from './vscodeTypes';
 import path from 'path';
@@ -324,7 +324,7 @@ export class ReusedBrowser implements vscodeTypes.Disposable {
   }
 
   private async _createFileForNewTest(model: TestModel) {
-    const project = model.projects.values().next().value as TestProject;
+    const project = model.enabledProjects()[0];
     if (!project)
       return;
     let file;
diff --git a/src/testModel.ts b/src/testModel.ts
index 099c0fe4e..7d6b1c53d 100644
--- a/src/testModel.ts
+++ b/src/testModel.ts
@@ -60,17 +60,16 @@ export type TestProject = {
   name: string;
   testDir: string;
   model: TestModel;
-  isFirst: boolean;
   files: Map<string, TestFile>;
+  isEnabled: boolean;
 };
 
 export class TestModel {
   private _vscode: vscodeTypes.VSCode;
   readonly config: TestConfig;
-  readonly projects = new Map<string, TestProject>();
+  private _projects = new Map<string, TestProject>();
   private _didUpdate: vscodeTypes.EventEmitter<void>;
   readonly onUpdated: vscodeTypes.Event<void>;
-  readonly allFiles = new Set<string>();
   private _playwrightTest: PlaywrightTest;
   private _fileToSources: Map<string, string[]> = new Map();
   private _sourceToFile: Map<string, string> = new Map();
@@ -85,6 +84,28 @@ export class TestModel {
     this.onUpdated = this._didUpdate.event;
   }
 
+  setProjectEnabled(project: TestProject, enabled: boolean) {
+    project.isEnabled = enabled;
+    this._didUpdate.fire();
+  }
+
+  allProjects(): Map<string, TestProject> {
+    return this._projects;
+  }
+
+  enabledProjects(): TestProject[] {
+    return [...this._projects.values()].filter(p => p.isEnabled);
+  }
+
+  enabledFiles(): string[] {
+    const result: string[] = [];
+    for (const project of this.enabledProjects()) {
+      for (const file of project.files.keys())
+        result.push(file);
+    }
+    return result;
+  }
+
   async listFiles(): Promise<TestError | undefined> {
     const report = await this._playwrightTest.listFiles(this.config);
     if (report.error)
@@ -102,29 +123,28 @@ export class TestModel {
     const projectsToKeep = new Set<string>();
     for (const projectReport of report.projects) {
       projectsToKeep.add(projectReport.name);
-      let project = this.projects.get(projectReport.name);
+      let project = this._projects.get(projectReport.name);
       if (!project)
-        project = this._createProject(projectReport, projectReport === report.projects[0]);
+        project = this._createProject(projectReport);
       this._updateProject(project, projectReport);
     }
 
-    for (const projectName of this.projects.keys()) {
+    for (const projectName of this._projects.keys()) {
       if (!projectsToKeep.has(projectName))
-        this.projects.delete(projectName);
+        this._projects.delete(projectName);
     }
 
-    this._recalculateAllFiles();
     this._didUpdate.fire();
   }
 
-  private _createProject(projectReport: ProjectConfigWithFiles, isFirst: boolean): TestProject {
+  private _createProject(projectReport: ProjectConfigWithFiles): TestProject {
     const project: TestProject = {
       model: this,
       ...projectReport,
-      isFirst,
       files: new Map(),
+      isEnabled: true,
     };
-    this.projects.set(project.name, project);
+    this._projects.set(project.name, project);
     return project;
   }
 
@@ -157,7 +177,7 @@ export class TestModel {
     change.deleted = this._mapFilesToSources(change.deleted);
 
     if (change.deleted.size) {
-      for (const project of this.projects.values()) {
+      for (const project of this._projects.values()) {
         for (const file of change.deleted) {
           if (project.files.has(file)) {
             project.files.delete(file);
@@ -169,7 +189,7 @@ export class TestModel {
 
     if (change.created.size) {
       let hasMatchingFiles = false;
-      for (const project of this.projects.values()) {
+      for (const project of this._projects.values()) {
         for (const file of change.created) {
           if (file.startsWith(project.testDir))
             hasMatchingFiles = true;
@@ -179,12 +199,9 @@ export class TestModel {
         await this.listFiles();
     }
 
-    if (change.created.size || change.deleted.size)
-      this._recalculateAllFiles();
-
     if (change.changed.size) {
       const filesToLoad = new Set<string>();
-      for (const project of this.projects.values()) {
+      for (const project of this._projects.values()) {
         for (const file of change.changed) {
           const testFile = project.files.get(file);
           if (!testFile || !testFile.entries())
@@ -200,17 +217,13 @@ export class TestModel {
   }
 
   async listTests(files: string[]): Promise<TestError[]> {
-    const sourcesToLoad = files.filter(f => this.allFiles.has(f));
-    if (!sourcesToLoad.length)
-      return [];
-
-    const { entries, errors } = await this._playwrightTest.listTests(this.config, sourcesToLoad);
-    this._updateProjects(entries, sourcesToLoad);
+    const { entries, errors } = await this._playwrightTest.listTests(this.config, files);
+    this._updateProjects(entries, files);
     return errors;
   }
 
   private _updateProjects(projectEntries: Entry[], requestedFiles: string[]) {
-    for (const [projectName, project] of this.projects) {
+    for (const [projectName, project] of this._projects) {
       const projectEntry = projectEntries.find(e => e.title === projectName);
       const filesToDelete = new Set(requestedFiles);
       for (const fileEntry of projectEntry?.children || []) {
@@ -232,7 +245,7 @@ export class TestModel {
 
   updateFromRunningProjects(projectEntries: Entry[]) {
     for (const projectEntry of projectEntries) {
-      const project = this.projects.get(projectEntry.title);
+      const project = this._projects.get(projectEntry.title);
       if (project)
         this._updateFromRunningProject(project, projectEntry);
     }
@@ -252,14 +265,6 @@ export class TestModel {
     this._didUpdate.fire();
   }
 
-  private _recalculateAllFiles() {
-    this.allFiles.clear();
-    for (const project of this.projects.values()) {
-      for (const file of project.files.values())
-        this.allFiles.add(file.file);
-    }
-  }
-
   async runTests(projects: TestProject[], locations: string[] | null, testListener: TestListener, parametrizedTestTitle: string | undefined, token: vscodeTypes.CancellationToken) {
     locations = locations || [];
     await this._playwrightTest.runTests(this.config, projects.map(p => p.name), locations, testListener, parametrizedTestTitle, token);
@@ -281,4 +286,15 @@ export class TestModel {
     }
     return result;
   }
+
+  narrowDownFilesToEnabledProjects(fileNames: Set<string>) {
+    const result = new Set<string>();
+    for (const project of this.enabledProjects()) {
+      for (const fileName of fileNames) {
+        if (project.files.has(fileName))
+          result.add(fileName);
+      }
+    }
+    return result;
+  }
 }
diff --git a/src/testTree.ts b/src/testTree.ts
index 9622ca2e0..8baba1f6b 100644
--- a/src/testTree.ts
+++ b/src/testTree.ts
@@ -35,6 +35,7 @@ export class TestTree {
   private _testGeneration = '';
 
   // Global test item map location => fileItem that are files.
+  private _rootItems = new Map<string, vscodeTypes.TestItem>();
   private _folderItems = new Map<string, vscodeTypes.TestItem>();
   private _fileItems = new Map<string, vscodeTypes.TestItem>();
 
@@ -79,6 +80,7 @@ export class TestTree {
       this._loadingItem.parent.children.delete(this._loadingItem.id);
     else if (this._testController.items.get(this._loadingItem.id))
       this._testController.items.delete(this._loadingItem.id);
+    this._update();
   }
 
   addModel(model: TestModel) {
@@ -102,8 +104,7 @@ export class TestTree {
   private _update() {
     const allFiles = new Set<string>();
     for (const model of this._models)
-      model.allFiles.forEach(f => allFiles.add(f));
-
+      model.enabledFiles().forEach(f => allFiles.add(f));
     for (const file of allFiles) {
       if (!this._belongsToWorkspace(file))
         continue;
@@ -111,7 +112,7 @@ export class TestTree {
       const signature: string[] = [];
       const entriesByTitle: EntriesByTitle = new MultiMap();
       for (const model of this._models) {
-        for (const testProject of model.projects.values()) {
+        for (const testProject of model.enabledProjects()) {
           const testFile = testProject.files.get(file);
           if (!testFile || !testFile.entries())
             continue;
@@ -131,13 +132,28 @@ export class TestTree {
     }
 
     for (const [location, fileItem] of this._fileItems) {
-      if (!allFiles.has(location)) {
-        this._fileItems.delete(location);
-        fileItem.parent?.children.delete(fileItem.id);
-      }
+      if (!allFiles.has(location))
+        this._removeEmptyFileIfNeeded(location, fileItem);
     }
   }
 
+  private _removeEmptyFileIfNeeded(location: string, fileItem: vscodeTypes.TestItem) {
+    this._fileItems.delete(location);
+    fileItem.parent?.children.delete(fileItem.id);
+    if (fileItem.parent && !fileItem.parent?.children.size)
+      this._removeEmptyFolderIfNeeded(path.dirname(location), fileItem.parent);
+  }
+
+  private _removeEmptyFolderIfNeeded(location: string, folderItem: vscodeTypes.TestItem) {
+    if (this._rootItems.has(location))
+      return;
+    this._folderItems.delete(location);
+    const children = folderItem.parent?.children || this._testController.items;
+    children.delete(folderItem.id);
+    if (folderItem.parent && !children.size)
+      this._removeEmptyFolderIfNeeded(path.dirname(location), folderItem.parent);
+  }
+
   private _belongsToWorkspace(file: string) {
     for (const workspaceFolder of this._vscode.workspace.workspaceFolders || []) {
       if (file.startsWith(workspaceFolder.uri.fsPath))
@@ -202,12 +218,14 @@ export class TestTree {
       error: undefined,
     };
     this._folderItems.set(uri.fsPath, testItem);
+    this._rootItems.set(uri.fsPath, testItem);
     return testItem;
   }
 
   private _createRootFolderItem(folder: string): vscodeTypes.TestItem {
     const folderItem = this._testController.createTestItem(this._id(folder), path.basename(folder), this._vscode.Uri.file(folder));
     this._folderItems.set(folder, folderItem);
+    this._rootItems.set(folder, folderItem);
     return folderItem;
   }
 
diff --git a/tests/global-errors.spec.ts b/tests/global-errors.spec.ts
index 5d8e95fc4..07d932a3d 100644
--- a/tests/global-errors.spec.ts
+++ b/tests/global-errors.spec.ts
@@ -28,7 +28,7 @@ test('should report duplicate test title', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
diff --git a/tests/list-files.spec.ts b/tests/list-files.spec.ts
index c14021ca9..bed216225 100644
--- a/tests/list-files.spec.ts
+++ b/tests/list-files.spec.ts
@@ -16,6 +16,7 @@
 
 import { expect, test } from './utils';
 import { Extension } from '../out/extension';
+import { TestRunProfileKind } from './mock/vscode';
 
 test('should list files', async ({ activate }) => {
   const { vscode, testController } = await activate({
@@ -26,7 +27,7 @@ test('should list files', async ({ activate }) => {
     `,
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -44,7 +45,7 @@ test('should list files top level if no testDir', async ({ activate }, testInfo)
     `,
   }, { rootDir: testInfo.outputPath('myWorkspace') });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - test.spec.ts
   `);
   expect(vscode).toHaveExecLog(`
@@ -64,7 +65,7 @@ test('should list only test files', async ({ activate }) => {
     `,
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -79,7 +80,7 @@ test('should list folders', async ({ activate }) => {
     'tests/a/b/c/d/test-c.spec.ts': ``,
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - a
         - b
@@ -103,7 +104,7 @@ test('should pick new files', async ({ activate }) => {
     'tests/test-1.spec.ts': ``
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
   `);
@@ -117,7 +118,7 @@ test('should pick new files', async ({ activate }) => {
     workspaceFolder.addFile('tests/test-2.spec.ts', '')
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -135,7 +136,7 @@ test('should not pick non-test files', async ({ activate }) => {
     'tests/test-1.spec.ts': ``
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
   `);
@@ -146,7 +147,7 @@ test('should not pick non-test files', async ({ activate }) => {
     workspaceFolder.addFile('tests/test-2.spec.ts', ''),
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -158,7 +159,7 @@ test('should tolerate missing testDir', async ({ activate }) => {
     'playwright.config.js': `module.exports = { testDir: 'tests' }`,
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
   `);
 
   await Promise.all([
@@ -166,7 +167,7 @@ test('should tolerate missing testDir', async ({ activate }) => {
     workspaceFolder.addFile('tests/test.spec.ts', '')
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -180,7 +181,7 @@ test('should remove deleted files', async ({ activate }) => {
     'tests/test-3.spec.ts': ``,
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -196,7 +197,7 @@ test('should remove deleted files', async ({ activate }) => {
     workspaceFolder.removeFile('tests/test-2.spec.ts')
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-3.spec.ts
@@ -215,7 +216,7 @@ test('should do nothing for not loaded changed file', async ({ activate }) => {
     'tests/test-3.spec.ts': ``,
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -229,7 +230,7 @@ test('should do nothing for not loaded changed file', async ({ activate }) => {
   expect(changed).toBeFalsy();
 });
 
-test('should support multiple configs', async ({ activate }) => {
+test('should switch between configs', async ({ activate }) => {
   const { vscode, testController } = await activate({
     'tests1/playwright.config.js': `module.exports = { testDir: '.' }`,
     'tests2/playwright.config.js': `module.exports = { testDir: '.' }`,
@@ -242,13 +243,24 @@ test('should support multiple configs', async ({ activate }) => {
       test(two', async () => {});
     `,
   });
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
+  `);
+
+  expect(vscode).toHaveExecLog(`
+    tests1> playwright list-files -c playwright.config.js
+    tests2> playwright list-files -c playwright.config.js
+  `);
+
+  const profiles = testController.runProfilesByKind(TestRunProfileKind.Run);
+  profiles[0].isDefault = false;
+  profiles[1].isDefault = true;
+
+  await expect(testController).toHaveTestTree(`
     - tests2
       - test.spec.ts
   `);
-
   expect(vscode).toHaveExecLog(`
     tests1> playwright list-files -c playwright.config.js
     tests2> playwright list-files -c playwright.config.js
@@ -273,7 +285,7 @@ test('should support multiple projects', async ({ activate }) => {
       test(two', async () => {});
     `,
   });
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
       - test2.spec.ts
@@ -284,7 +296,7 @@ test('should support multiple projects', async ({ activate }) => {
   `);
 });
 
-test('should support multiple projects with filter', async ({ activate }) => {
+test('should switch between multiple projects with filter', async ({ activate }) => {
   const { vscode, testController } = await activate({
     'playwright.config.js': `module.exports = {
       testDir: './tests',
@@ -306,9 +318,21 @@ test('should support multiple projects with filter', async ({ activate }) => {
       test(three', async () => {});
     `,
   });
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
+  `);
+
+  expect(vscode).toHaveExecLog(`
+    > playwright list-files -c playwright.config.js
+  `);
+
+  const profiles = testController.runProfilesByKind(TestRunProfileKind.Run);
+  profiles[0].isDefault = false;
+  profiles[1].isDefault = true;
+
+  await expect(testController).toHaveTestTree(`
+    - tests
       - test2.spec.ts
   `);
 
@@ -325,7 +349,7 @@ test('should list files in relative folder', async ({ activate }) => {
       test('one', async () => {});
     `,
   });
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -334,7 +358,7 @@ test('should list files in relative folder', async ({ activate }) => {
   `);
 });
 
-test('should list files in multi-folder workspace', async ({ activate }, testInfo) => {
+test('should list files in multi-folder workspace with project switching', async ({ activate }, testInfo) => {
   const { vscode, testController } = await activate({}, {
     workspaceFolders: [
       [testInfo.outputPath('folder1'), {
@@ -358,10 +382,19 @@ test('should list files in multi-folder workspace', async ({ activate }, testInf
   const context = { subscriptions: [] };
   await extension.activate(context);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - folder1
       - test.spec.ts
     - folder2
+  `);
+
+  const profiles = testController.runProfilesByKind(TestRunProfileKind.Run);
+  profiles[0].isDefault = false;
+  profiles[1].isDefault = true;
+
+  await expect(testController).toHaveTestTree(`
+    - folder1
+    - folder2
       - test.spec.ts
   `);
 });
@@ -376,7 +409,7 @@ test('should ignore errors when listing files', async ({ activate }) => {
     `,
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
diff --git a/tests/list-tests.spec.ts b/tests/list-tests.spec.ts
index 0530c4601..eed51972e 100644
--- a/tests/list-tests.spec.ts
+++ b/tests/list-tests.spec.ts
@@ -27,7 +27,7 @@ test('should list tests on expand', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -55,7 +55,7 @@ test('should list tests for visible editors', async ({ activate }) => {
   await vscode.openEditors('**/test*.spec.ts');
   await new Promise(f => testController.onDidChangeTestItem(f));
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
         - one [2:0]
@@ -92,7 +92,7 @@ test('should list suits', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -134,7 +134,7 @@ test('should discover new tests', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -176,7 +176,7 @@ test('should discover new tests with active editor', async ({ activate }) => {
     vscode.openEditors('**/test2.spec.ts'),
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
       - test2.spec.ts
@@ -200,7 +200,7 @@ test('should discover tests on add + change', async ({ activate }) => {
     workspaceFolder.addFile('test.spec.ts', ``)
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - test.spec.ts
   `);
 
@@ -214,7 +214,7 @@ test('should discover tests on add + change', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - test.spec.ts
       - one [2:0]
   `);
@@ -251,7 +251,7 @@ test('should discover new test at existing location', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - two [2:0]
@@ -281,7 +281,7 @@ test('should remove deleted tests', async ({ activate }) => {
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -296,7 +296,7 @@ test('should remove deleted tests', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -321,7 +321,7 @@ test('should forget tests after error before first test', async ({ activate }) =
 
   await testController.expandTestItems(/test.spec.ts/);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -338,7 +338,7 @@ test('should forget tests after error before first test', async ({ activate }) =
     `)
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -362,7 +362,7 @@ test('should regain tests after error is fixed', async ({ activate }) => {
     > playwright test -c playwright.config.js --list --reporter=null tests/test.spec.ts
   `);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -376,7 +376,7 @@ test('should regain tests after error is fixed', async ({ activate }) => {
     `)
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -404,9 +404,13 @@ test('should support multiple configs', async ({ activate }) => {
     `,
   });
 
+  const runProfiles = testController.runProfilesByKind(vscode.TestRunProfileKind.Run);
+  runProfiles[0].isDefault = true;
+  runProfiles[1].isDefault = true;
+
   await testController.expandTestItems(/test.spec/);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
         - one [2:0]
@@ -442,9 +446,13 @@ test('should support multiple projects', async ({ activate }) => {
     `,
   });
 
+  const runProfiles = testController.runProfilesByKind(vscode.TestRunProfileKind.Run);
+  runProfiles[0].isDefault = true;
+  runProfiles[1].isDefault = true;
+
   await testController.expandTestItems(/test1.spec/);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
         - one [2:0]
@@ -468,7 +476,7 @@ test('should list parametrized tests', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [3:0]
@@ -491,7 +499,7 @@ test('should list tests in parametrized groups', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - level 1 [3:0]
@@ -514,7 +522,7 @@ test('should not run config reporters', async ({ activate }, testInfo) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -524,7 +532,7 @@ test('should not run config reporters', async ({ activate }, testInfo) => {
 });
 
 test('should list tests in multi-folder workspace', async ({ activate }, testInfo) => {
-  const { testController } = await activate({}, {
+  const { vscode, testController } = await activate({}, {
     workspaceFolders: [
       [testInfo.outputPath('folder1'), {
         'playwright.config.js': `module.exports = { testDir: './' }`,
@@ -543,8 +551,12 @@ test('should list tests in multi-folder workspace', async ({ activate }, testInf
     ]
   });
 
+  const runProfiles = testController.runProfilesByKind(vscode.TestRunProfileKind.Run);
+  runProfiles[0].isDefault = true;
+  runProfiles[1].isDefault = true;
+
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - folder1
       - test.spec.ts
         - one [2:0]
@@ -555,7 +567,7 @@ test('should list tests in multi-folder workspace', async ({ activate }, testInf
 });
 
 test('should merge items from different projects', async ({ activate }, testInfo) => {
-  const { testController } = await activate({
+  const { vscode, testController } = await activate({
     'playwright.config.ts': `module.exports = {
       projects: [
         { name: 'desktop', grepInvert: /mobile|tablet/ },
@@ -573,6 +585,11 @@ test('should merge items from different projects', async ({ activate }, testInfo
       });`,
   });
 
+  const runProfiles = testController.runProfilesByKind(vscode.TestRunProfileKind.Run);
+  runProfiles[0].isDefault = true;
+  runProfiles[1].isDefault = true;
+  runProfiles[2].isDefault = true;
+
   await testController.expandTestItems(/test.spec.ts/);
   await testController.expandTestItems(/group/);
   expect(testController.renderTestTree({ renderTags: true })).toBe(`
diff --git a/tests/mock/vscode.ts b/tests/mock/vscode.ts
index 1a39e7c2b..7dee29a72 100644
--- a/tests/mock/vscode.ts
+++ b/tests/mock/vscode.ts
@@ -17,7 +17,7 @@
 import fs from 'fs';
 import glob from 'glob';
 import path from 'path';
-import { Disposable, EventEmitter } from './events';
+import { Disposable, EventEmitter, Event } from './events';
 import minimatch from 'minimatch';
 import { spawn } from 'child_process';
 import which from 'which';
@@ -245,14 +245,29 @@ class TestItem {
 }
 
 class TestRunProfile {
+  private _isDefault = true;
+  readonly didChangeDefault = new EventEmitter<boolean>();
+  readonly onDidChangeDefault: Event<boolean> | undefined;
+
   constructor(
     private testController: TestController,
     readonly label: string,
     readonly kind: TestRunProfileKind,
     readonly runHandler: (request: TestRunRequest, token: CancellationToken) => Promise<void>,
-    readonly isDefault: boolean,
+    isDefault: boolean,
     private runProfiles: TestRunProfile[]) {
     runProfiles.push(this);
+    this.onDidChangeDefault = this.didChangeDefault.event;
+    this._isDefault = isDefault;
+  }
+
+  get isDefault(): boolean | undefined {
+    return this._isDefault;
+  }
+
+  set isDefault(value: boolean) {
+    this._isDefault = value;
+    this.didChangeDefault.fire(value);
   }
 
   async run(include?: TestItem[], exclude?: TestItem[]): Promise<TestRun> {
@@ -416,12 +431,22 @@ export class TestController {
     this.items = new TestItem(this, id, label);
   }
 
+  runProfilesByKind(kind: TestRunProfileKind): TestRunProfile[] {
+    return this.runProfiles.filter(p => p.kind === kind);
+  }
+
   createTestItem(id: string, label: string, uri?: Uri): TestItem {
     return new TestItem(this, id, label, uri);
   }
 
   createRunProfile(label: string, kind: TestRunProfileKind, runHandler: (request: TestRunRequest, token: CancellationToken) => Promise<void>, isDefault?: boolean): TestRunProfile {
-    return new TestRunProfile(this, label, kind, runHandler, !!isDefault, this.runProfiles);
+    // Enable first profile by default, lazily.
+    const isFirst = !this.runProfilesByKind(kind).length;
+    const profile = new TestRunProfile(this, label, kind, runHandler, !!isDefault, this.runProfiles);
+    setTimeout(() => {
+      profile.isDefault = isFirst;
+    }, 0);
+    return profile;
   }
 
   createTestRun(request: TestRunRequest, name?: string, persist?: boolean): TestRun {
@@ -767,8 +792,10 @@ export class VSCode {
   readonly l10n = new L10n();
   lastWithProgressData = undefined;
   private _hoverProviders: Map<string, HoverProvider> = new Map();
+  readonly version: string;
 
-  constructor(baseDir: string, browser: Browser) {
+  constructor(readonly versionNumber: number, baseDir: string, browser: Browser) {
+    this.version = String(versionNumber);
     this.context = { subscriptions: [], extensionUri: Uri.file(baseDir) };
     this._browser = browser;
 
@@ -939,7 +966,7 @@ export class VSCode {
           return;
         }
         initializedPage.evaluate((data: any) => {
-          const event = new Event('message');
+          const event = new globalThis.Event('message');
           (event as any).data = data;
           globalThis.dispatchEvent(event);
         }, data).catch(() => {});
diff --git a/tests/profile-discovery.spec.ts b/tests/profile-discovery.spec.ts
index 18b54d0ad..d329c1bd2 100644
--- a/tests/profile-discovery.spec.ts
+++ b/tests/profile-discovery.spec.ts
@@ -33,11 +33,11 @@ test('should create run & debug profiles', async ({ activate }, testInfo) => {
 
   expect(runProfiles[0].label).toBe(profileTitle);
   expect(runProfiles[0].kind).toBe(vscode.TestRunProfileKind.Run);
-  expect(runProfiles[0].isDefault).toBeFalsy();
+  expect(runProfiles[0].isDefault).toBeTruthy();
 
   expect(runProfiles[1].label).toBe(profileTitle);
   expect(runProfiles[1].kind).toBe(vscode.TestRunProfileKind.Debug);
-  expect(runProfiles[1].isDefault).toBeFalsy();
+  expect(runProfiles[1].isDefault).toBeTruthy();
 
   expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
@@ -57,19 +57,19 @@ test('should create run & debug profile per project', async ({ activate }, testI
 
   expect(runProfiles[0].label).toBe('projectA — ' + configPath);
   expect(runProfiles[0].kind).toBe(vscode.TestRunProfileKind.Run);
-  expect(runProfiles[0].isDefault).toBeFalsy();
+  expect(runProfiles[0].isDefault).toBeTruthy();
 
   expect(runProfiles[1].label).toBe('projectA — ' + configPath);
   expect(runProfiles[1].kind).toBe(vscode.TestRunProfileKind.Debug);
-  expect(runProfiles[1].isDefault).toBeFalsy();
+  expect(runProfiles[1].isDefault).toBeTruthy();
 
   expect(runProfiles[2].label).toBe('projectB — ' + configPath);
   expect(runProfiles[2].kind).toBe(vscode.TestRunProfileKind.Run);
-  expect(runProfiles[1].isDefault).toBeFalsy();
+  expect(runProfiles[2].isDefault).toBeFalsy();
 
   expect(runProfiles[3].label).toBe('projectB — ' + configPath);
   expect(runProfiles[3].kind).toBe(vscode.TestRunProfileKind.Debug);
-  expect(runProfiles[1].isDefault).toBeFalsy();
+  expect(runProfiles[3].isDefault).toBeFalsy();
 
   expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
diff --git a/tests/run-tests.spec.ts b/tests/run-tests.spec.ts
index 3c836e765..4921769b8 100644
--- a/tests/run-tests.spec.ts
+++ b/tests/run-tests.spec.ts
@@ -287,7 +287,8 @@ test('should only create test run if file belongs to context', async ({ activate
     `,
   });
 
-  const profiles = testController.runProfiles.filter(p => p.kind === vscode.TestRunProfileKind.Run);
+  const profiles = testController.runProfilesByKind(vscode.TestRunProfileKind.Run);
+  profiles.forEach(p => p.isDefault = true);
   let testRuns: TestRun[] = [];
   testController.onDidCreateTestRun(run => testRuns.push(run));
 
@@ -347,36 +348,6 @@ test('should only create test run if folder belongs to context', async ({ activa
   `);
 });
 
-test('should only create test run if test belongs to context', async ({ activate }) => {
-  const { vscode, testController } = await activate({
-    'tests1/playwright.config.js': `module.exports = { testDir: '.' }`,
-    'tests2/playwright.config.js': `module.exports = { testDir: '.' }`,
-    'tests1/foo1/bar1/test1.spec.ts': `
-      import { test } from '@playwright/test';
-      test('one', async () => {});
-    `,
-    'tests2/foo2/bar2/test2.spec.ts': `
-      import { test } from '@playwright/test';
-      test('two', async () => {});
-    `,
-  });
-
-  await testController.expandTestItems(/test2.spec.ts/);
-  const profiles = testController.runProfiles.filter(p => p.kind === vscode.TestRunProfileKind.Run);
-  const testRuns: TestRun[] = [];
-  testController.onDidCreateTestRun(run => testRuns.push(run));
-  const items = testController.findTestItems(/two/);
-  await Promise.all(profiles.map(p => p.run(items)));
-  expect(testRuns).toHaveLength(1);
-
-  expect(vscode).toHaveExecLog(`
-    tests1> playwright list-files -c playwright.config.js
-    tests2> playwright list-files -c playwright.config.js
-    tests2> playwright test -c playwright.config.js --list --reporter=null foo2/bar2/test2.spec.ts
-    tests2> playwright test -c playwright.config.js foo2/bar2/test2.spec.ts:3
-  `);
-});
-
 test('should run all projects at once', async ({ activate }) => {
   const { vscode, testController } = await activate({
     'playwright.config.js': `module.exports = {
@@ -516,7 +487,7 @@ test('should not remove other tests when running focused test', async ({ activat
   const testItems = testController.findTestItems(/two/);
   await testController.run(testItems);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -701,14 +672,14 @@ test('should list tests in relative folder', async ({ activate }) => {
     foo/bar> playwright test -c playwright.config.js --list --reporter=null ../../tests/test.spec.ts
   `);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
   `);
 });
 
-test('should specify project', async ({ activate }) => {
+test('should filter selected project', async ({ activate }) => {
   const { vscode, testController } = await activate({
     'playwright.config.js': `module.exports = {
       projects: [
@@ -727,7 +698,7 @@ test('should specify project', async ({ activate }) => {
   });
 
   const testItems = testController.findTestItems(/test.spec/);
-  expect(testItems.length).toBe(2);
+  expect(testItems.length).toBe(1);
   const testRun = await testController.run(testItems);
   expect(testRun.renderLog()).toBe(`
     tests1 > test.spec.ts > one [2:0]
@@ -846,7 +817,7 @@ test('should discover tests after running one test', async ({ activate }) => {
 
   await testController.expandTestItems(/test2.spec.ts/);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test1.spec.ts
         - one [2:0]
@@ -917,38 +888,6 @@ test('should run tests for folders above root', async ({ activate }) => {
   `);
 });
 
-test('should show warning when tests do not belong to projects', async ({ activate }) => {
-  const { vscode, testController } = await activate({
-    'tests1/playwright.config.js': `module.exports = { testDir: '.' }`,
-    'tests2/playwright.config.js': `module.exports = { testDir: '.' }`,
-    'tests1/test1.spec.ts': `
-      import { test } from '@playwright/test';
-      test('one', async () => {});
-    `,
-    'tests2/test2.spec.ts': `
-      import { test } from '@playwright/test';
-      test('two', async () => {});
-    `,
-  });
-
-  const profile = testController.runProfiles.find(p => p.kind === vscode.TestRunProfileKind.Run)!;
-  let testRuns: TestRun[] = [];
-  testController.onDidCreateTestRun(run => testRuns.push(run));
-
-  {
-    testRuns = [];
-    const items = testController.findTestItems(/test2.spec/);
-    await profile.run(items);
-  }
-
-  expect(vscode).toHaveExecLog(`
-    tests1> playwright list-files -c playwright.config.js
-    tests2> playwright list-files -c playwright.config.js
-  `);
-
-  expect(vscode.warnings[0]).toContain('Selected test is outside of the Default Profile (config)');
-});
-
 test('should produce output twice', async ({ activate }) => {
   const { testController } = await activate({
     'playwright.config.js': `module.exports = {
diff --git a/tests/source-map.spec.ts b/tests/source-map.spec.ts
index 5db7ac7ad..5904bf4d7 100644
--- a/tests/source-map.spec.ts
+++ b/tests/source-map.spec.ts
@@ -23,7 +23,7 @@ test('should list files', async ({ activate }) => {
     'build/test.spec.js': testSpecJs('test.spec'),
     'build/test.spec.js.map': testSpecJsMap('test.spec'),
   });
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
   `);
@@ -41,7 +41,7 @@ test('should list tests on expand', async ({ activate }) => {
   });
 
   await testController.expandTestItems(/test.spec.ts/);
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -65,7 +65,7 @@ test('should list tests for visible editors', async ({ activate }) => {
   await vscode.openEditors('**/test.spec.ts');
   await new Promise(f => testController.onDidChangeTestItem(f));
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - one [2:0]
@@ -86,7 +86,7 @@ test('should pick new files', async ({ activate }) => {
     'build/test-1.spec.js.map': testSpecJsMap('test-1.spec'),
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
   `);
@@ -102,7 +102,7 @@ test('should pick new files', async ({ activate }) => {
     workspaceFolder.addFile('build/test-2.spec.js.map', testSpecJsMap('test-2.spec')),
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -128,7 +128,7 @@ test('should remove deleted files', async ({ activate }) => {
     'build/test-3.spec.js.map': testSpecJsMap('test-3.spec'),
   });
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-2.spec.ts
@@ -146,7 +146,7 @@ test('should remove deleted files', async ({ activate }) => {
     workspaceFolder.removeFile('build/test-2.spec.js.map'),
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test-1.spec.ts
       - test-3.spec.ts
@@ -179,7 +179,7 @@ test('should discover new tests', async ({ activate }) => {
     workspaceFolder.changeFile('build/test.spec.js.map', testSpecJsMapAfter),
   ]);
 
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
         - new [2:0]
diff --git a/tests/track-configs.spec.ts b/tests/track-configs.spec.ts
index 8d2c2f58f..c1b9c0e7f 100644
--- a/tests/track-configs.spec.ts
+++ b/tests/track-configs.spec.ts
@@ -14,11 +14,12 @@
  * limitations under the License.
  */
 
+import { TestRunProfileKind } from './mock/vscode';
 import { expect, test } from './utils';
 
 test('should load first config', async ({ activate }) => {
   const { vscode, testController, workspaceFolder } = await activate({});
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
   `);
 
   workspaceFolder.addFile('playwright.config.js', `module.exports = { testDir: 'tests' }`);
@@ -27,11 +28,10 @@ test('should load first config', async ({ activate }) => {
     test('one', async () => {});
   `);
 
-  const golden = `
+  await expect(testController).toHaveTestTree(`
     - tests
       - test.spec.ts
-  `;
-  while (testController.renderTestTree() !== golden) await new Promise(f => setTimeout(f, 200));
+  `);
 
   expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright.config.js
@@ -46,7 +46,7 @@ test('should load second config', async ({ activate }) => {
       test('one', async () => {});
     `,
   });
-  expect(testController).toHaveTestTree(`
+  await expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
   `);
@@ -57,13 +57,16 @@ test('should load second config', async ({ activate }) => {
     test('one', async () => {});
   `);
 
-  const golden = `
+  await expect.poll(() => testController.runProfilesByKind(TestRunProfileKind.Run)).toHaveLength(2);
+  const profiles = testController.runProfilesByKind(TestRunProfileKind.Run);
+  profiles.forEach(p => p.isDefault = true);
+
+  await expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
     - tests2
       - test.spec.ts
-  `;
-  while (testController.renderTestTree() !== golden) await new Promise(f => setTimeout(f, 200));
+  `);
 
   expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright1.config.js
@@ -85,7 +88,11 @@ test('should remove model for config', async ({ activate }) => {
       test('one', async () => {});
     `,
   });
-  expect(testController).toHaveTestTree(`
+
+  const profiles = testController.runProfilesByKind(TestRunProfileKind.Run);
+  profiles.forEach(p => p.isDefault = true);
+
+  await expect(testController).toHaveTestTree(`
     - tests1
       - test.spec.ts
     - tests2
@@ -94,11 +101,10 @@ test('should remove model for config', async ({ activate }) => {
 
   workspaceFolder.removeFile('playwright1.config.js');
 
-  const golden = `
+  await expect(testController).toHaveTestTree(`
     - tests2
       - test.spec.ts
-  `;
-  while (testController.renderTestTree() !== golden) await new Promise(f => setTimeout(f, 200));
+  `);
 
   expect(vscode).toHaveExecLog(`
     > playwright list-files -c playwright1.config.js
diff --git a/tests/utils.ts b/tests/utils.ts
index 849630f9f..05e145662 100644
--- a/tests/utils.ts
+++ b/tests/utils.ts
@@ -33,15 +33,16 @@ type TestFixtures = {
 export type WorkerOptions = {
   useTestServer: boolean;
   showBrowser: boolean;
+  vsCodeVersion: number;
 };
 
 // Make sure connect tests work with the locally-rolled version.
 process.env.PW_VERSION_OVERRIDE = require('@playwright/test/package.json').version;
 
 export const expect = baseExpect.extend({
-  toHaveTestTree(testController: TestController, expectedTree: string) {
+  async toHaveTestTree(testController: TestController, expectedTree: string) {
     try {
-      expect(testController.renderTestTree()).toBe(expectedTree);
+      await expect.poll(() => testController.renderTestTree()).toBe(expectedTree);
       return { pass: true, message: () => '' };
     } catch (e) {
       return {
@@ -69,9 +70,10 @@ export const expect = baseExpect.extend({
 export const test = baseTest.extend<TestFixtures, WorkerOptions>({
   useTestServer: [false, { option: true, scope: 'worker' }],
   showBrowser: [false, { option: true, scope: 'worker' }],
+  vsCodeVersion: [1.86, { option: true, scope: 'worker' }],
 
-  vscode: async ({ browser }, use) => {
-    await use(new VSCode(path.resolve(__dirname, '..'), browser));
+  vscode: async ({ browser, vsCodeVersion }, use) => {
+    await use(new VSCode(vsCodeVersion, path.resolve(__dirname, '..'), browser));
   },
 
   activate: async ({ vscode, showBrowser, useTestServer }, use, testInfo) => {