diff --git a/src/playwrightTestServer.ts b/src/playwrightTestServer.ts
index a4ccd37f2..1f98fd1d4 100644
--- a/src/playwrightTestServer.ts
+++ b/src/playwrightTestServer.ts
@@ -120,6 +120,7 @@ export class PlaywrightTestServer {
     try {
       if (type === 'setup') {
         const { report, status } = await testServer.runGlobalSetup({});
+        testListener.onStdOut?.('\x1b[2mRunning global setup if any\u2026\x1b[0m\n');
         for (const message of report)
           teleReceiver.dispatch(message);
         return status;
@@ -189,7 +190,6 @@ export class PlaywrightTestServer {
   }
 
   async debugTests(items: vscodeTypes.TestItem[], runOptions: PlaywrightTestRunOptions, reporter: reporterTypes.ReporterV2, token: vscodeTypes.CancellationToken): Promise<void> {
-    const configFolder = path.dirname(this._model.config.configFile);
     const configFile = path.basename(this._model.config.configFile);
     const args = ['test-server', '-c', configFile];
 
@@ -212,7 +212,7 @@ export class PlaywrightTestServer {
         type: 'pwa-node',
         name: debugSessionName,
         request: 'launch',
-        cwd: configFolder,
+        cwd: this._model.config.workspaceFolder,
         env: {
           ...process.env,
           CI: this._options.isUnderTest ? undefined : process.env.CI,
@@ -330,15 +330,21 @@ export class PlaywrightTestServer {
       resolvePath: (rootDir: string, relativePath: string) => this._vscode.Uri.file(path.join(rootDir, relativePath)).fsPath,
     });
     return new Promise<void>(resolve => {
-      const disposable = testServer.onReport(message => {
-        if (token.isCancellationRequested && message.method !== 'onEnd')
-          return;
-        teleReceiver.dispatch(message);
-        if (message.method === 'onEnd') {
-          disposable.dispose();
+      const disposables = [
+        testServer.onReport(message => {
+          if (token.isCancellationRequested && message.method !== 'onEnd')
+            return;
+          teleReceiver.dispatch(message);
+          if (message.method === 'onEnd') {
+            disposables.forEach(d => d.dispose());
+            resolve();
+          }
+        }),
+        testServer.onClose(() => {
+          disposables.forEach(d => d.dispose());
           resolve();
-        }
-      });
+        }),
+      ];
     });
   }
 
diff --git a/src/playwrightTestTypes.ts b/src/playwrightTestTypes.ts
index 71972a5fd..cab742cc1 100644
--- a/src/playwrightTestTypes.ts
+++ b/src/playwrightTestTypes.ts
@@ -29,6 +29,7 @@ export type PlaywrightTestRunOptions = {
   headed?: boolean;
   workers?: string | number;
   trace?: 'on' | 'off';
+  video?: 'on' | 'off';
   reuseContext?: boolean;
   connectWsEndpoint?: string;
 };
diff --git a/src/testModel.ts b/src/testModel.ts
index 1786c65b7..a785355d6 100644
--- a/src/testModel.ts
+++ b/src/testModel.ts
@@ -468,19 +468,24 @@ export class TestModel {
     const showBrowser = this._options.settingsModel.showBrowser.get() && !!externalOptions.connectWsEndpoint;
 
     let trace: 'on' | 'off' | undefined;
+    let video: 'on' | 'off' | undefined;
+
     if (this._options.settingsModel.showTrace.get())
       trace = 'on';
     // "Show browser" mode forces context reuse that survives over multiple test runs.
     // Playwright Test sets up `tracesDir` inside the `test-results` folder, so it will be removed between runs.
     // When context is reused, its ongoing tracing will fail with ENOENT because trace files
     // were suddenly removed. So we disable tracing in this case.
-    if (this._options.settingsModel.showBrowser.get())
+    if (this._options.settingsModel.showBrowser.get()) {
       trace = 'off';
+      video = 'off';
+    }
 
     const options: PlaywrightTestRunOptions = {
       headed: showBrowser && !this._options.isUnderTest,
       workers: showBrowser ? 1 : undefined,
       trace,
+      video,
       reuseContext: showBrowser,
       connectWsEndpoint: showBrowser ? externalOptions.connectWsEndpoint : undefined,
     };
@@ -501,6 +506,7 @@ export class TestModel {
     const options: PlaywrightTestRunOptions = {
       headed: !this._options.isUnderTest,
       workers: 1,
+      video: 'off',
       trace: 'off',
       reuseContext: false,
       connectWsEndpoint: externalOptions.connectWsEndpoint,
diff --git a/src/upstream/testServerInterface.ts b/src/upstream/testServerInterface.ts
index 6c7d5c86c..71eccdaac 100644
--- a/src/upstream/testServerInterface.ts
+++ b/src/upstream/testServerInterface.ts
@@ -94,6 +94,7 @@ export interface TestServerInterface {
     timeout?: number,
     reporters?: string[],
     trace?: 'on' | 'off';
+    video?: 'on' | 'off';
     projects?: string[];
     reuseContext?: boolean;
     connectWsEndpoint?: string;
diff --git a/tests/debug-tests.spec.ts b/tests/debug-tests.spec.ts
index a2c6fe8f0..d194d5f4c 100644
--- a/tests/debug-tests.spec.ts
+++ b/tests/debug-tests.spec.ts
@@ -141,3 +141,39 @@ test('should debug error', async ({ activate }, testInfo) => {
 
   testRun.token.source.cancel();
 });
+
+test('should end test run when stopping the debugging', async ({ activate }, testInfo) => {
+  const { vscode, testController } = await activate({
+    'playwright.config.js': `module.exports = { testDir: 'tests' }`,
+    'tests/test.spec.ts': `
+      import { test } from '@playwright/test';
+      test('should fail', async () => {
+        // Simulate breakpoint via stalling.
+        console.log('READY TO BREAK');
+        await new Promise(() => {});
+      });
+    `,
+  });
+
+  await testController.expandTestItems(/test.spec/);
+  const testItems = testController.findTestItems(/fail/);
+
+  const profile = testController.debugProfile();
+  const testRunPromise = new Promise<TestRun>(f => testController.onDidCreateTestRun(f));
+  profile.run(testItems);
+  const testRun = await testRunPromise;
+  await expect.poll(() => vscode.debug.output).toContain('READY TO BREAK');
+
+  const endPromise = new Promise(f => testRun.onDidEnd(f));
+  vscode.debug.stopDebugging();
+  await endPromise;
+
+  expect(testRun.renderLog({ messages: true })).toBe(`
+    tests > test.spec.ts > should fail [2:0]
+      enqueued
+      enqueued
+      started
+  `);
+
+  testRun.token.source.cancel();
+});
diff --git a/tests/mock/vscode.ts b/tests/mock/vscode.ts
index 8e4e7902a..df4d36aa0 100644
--- a/tests/mock/vscode.ts
+++ b/tests/mock/vscode.ts
@@ -19,7 +19,7 @@ import glob from 'glob';
 import path from 'path';
 import { Disposable, EventEmitter, Event } from '../../src/upstream/events';
 import minimatch from 'minimatch';
-import { spawn } from 'child_process';
+import { ChildProcessWithoutNullStreams, spawn } from 'child_process';
 import which from 'which';
 import { Browser, Page } from '@playwright/test';
 import { CancellationToken } from '../../src/vscodeTypes';
@@ -640,6 +640,7 @@ class Debug {
   output = '';
   dapFactories: any[] = [];
   private _dapSniffer: any;
+  private _debuggerProcess: ChildProcessWithoutNullStreams;
 
   constructor() {
   }
@@ -654,13 +655,13 @@ class Debug {
       this._dapSniffer = factory.createDebugAdapterTracker(session);
     this._didStartDebugSession.fire(session);
     const node = await which('node');
-    const subprocess = spawn(node, [configuration.program, ...configuration.args], {
+    this._debuggerProcess = spawn(node, [configuration.program, ...configuration.args], {
       cwd: configuration.cwd,
       stdio: 'pipe',
       env: configuration.env,
     });
 
-    subprocess.stdout.on('data', data => {
+    this._debuggerProcess.stdout.on('data', data => {
       this.output += data.toString();
       this._dapSniffer.onDidSendMessage({
         type: 'event',
@@ -671,10 +672,14 @@ class Debug {
         }
       });
     });
-    subprocess.stderr.on('data', data => this.output += data.toString());
+    this._debuggerProcess.stderr.on('data', data => this.output += data.toString());
     return true;
   }
 
+  stopDebugging() {
+    this._debuggerProcess.kill();
+  }
+
   simulateStoppedOnError(error: string, location: { file: string; line: number; }) {
     this._dapSniffer.onDidSendMessage({
       success: true,
diff --git a/tests/run-tests.spec.ts b/tests/run-tests.spec.ts
index 4ac96919c..89c70cd8e 100644
--- a/tests/run-tests.spec.ts
+++ b/tests/run-tests.spec.ts
@@ -1150,7 +1150,7 @@ test('should run tests for folders above root', async ({ activate }) => {
   `);
 });
 
-test('should produce output twice', async ({ activate }) => {
+test('should produce output twice', async ({ activate, overridePlaywrightVersion }) => {
   const { testController } = await activate({
     'playwright.config.js': `module.exports = {
       testDir: 'tests',
@@ -1168,12 +1168,13 @@ test('should produce output twice', async ({ activate }) => {
   expect(testItems.length).toBe(1);
 
   const testRun1 = await testController.run(testItems);
+  const runningGlobalSetup = overridePlaywrightVersion ? '' : '\n    Running global setup if any…';
   expect(testRun1.renderLog({ output: true })).toBe(`
     tests > test.spec.ts > one [2:0]
       enqueued
       started
       passed
-    Output:
+    Output:${runningGlobalSetup}
 
     Running 1 test using 1 worker