Thanks for helping solve my issue, even though it didn't directly involve Kedro :). It's also addressed by VS Code themselves: https://code.visualstudio.com/docs/python/testing#_pytest-configuration-settings. They suggest putting the --no-cov into vscode's launch.json -- which didn't solve my issue, because the setting was superseded by the pytest settings in Kedro's default pyproject.toml file. But now that I've added it to pyproject.toml,

[tool.pytest.ini_options] \n addopts=...

, it works like a charm 🥰