diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index 8f192c4a0..db78bfbcb 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -20,7 +20,6 @@
       },
       // Add the IDs of extensions you want installed when the container is created.
       "extensions": [
-        "bungcip.better-toml",
         "batisteo.vscode-django",
         "bpruitt-goddard.mermaid-markdown-syntax-highlighting",
         "eamodio.gitlens",
@@ -28,10 +27,12 @@
         "hashicorp.terraform",
         "mhutchie.git-graph",
         "monosans.djlint",
-        "ms-python.python",
-        "ms-python.vscode-pylance",
         "mrorz.language-gettext",
-        "qwtel.sqlite-viewer"
+        "ms-python.python",
+        "ms-python.black-formatter",
+        "ms-python.flake8",
+        "qwtel.sqlite-viewer",
+        "tamasfe.even-better-toml"
       ]
     }
   }
diff --git a/.vscode/settings.json b/.vscode/settings.json
index b3ff8e30d..78ec3acc2 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -12,17 +12,10 @@
   "files.trimFinalNewlines": true,
   "files.trimTrailingWhitespace": true,
   "[python]": {
-    "editor.defaultFormatter": "ms-python.python"
+    "editor.defaultFormatter": "ms-python.black-formatter"
   },
-  "python.formatting.provider": "black",
   "python.languageServer": "Pylance",
-  "python.linting.enabled": true,
-  "python.linting.flake8Enabled": true,
-  "python.testing.pytestArgs": [
-    "tests/pytest",
-    "--import-mode=importlib",
-    "--no-migrations"
-  ],
+  "python.testing.pytestArgs": ["tests/pytest"],
   "python.testing.pytestEnabled": true,
   "python.testing.unittestEnabled": false,
   "[terraform]": {
diff --git a/tests/pytest/core/test_models.py b/tests/pytest/core/test_models.py
index eb345920b..6df589ce0 100644
--- a/tests/pytest/core/test_models.py
+++ b/tests/pytest/core/test_models.py
@@ -329,16 +329,18 @@ def test_TransitAgency_by_slug_nonmatching():
 
 @pytest.mark.django_db
 def test_TransitAgency_all_active(model_TransitAgency):
-    assert TransitAgency.objects.count() == 1
+    count = TransitAgency.objects.count()
+    assert count >= 1
 
     inactive_agency = TransitAgency.by_id(model_TransitAgency.id)
     inactive_agency.pk = None
     inactive_agency.active = False
     inactive_agency.save()
 
-    assert TransitAgency.objects.count() == 2
+    assert TransitAgency.objects.count() == count + 1
 
     result = TransitAgency.all_active()
 
-    assert len(result) == 1
+    assert len(result) > 0
     assert model_TransitAgency in result
+    assert inactive_agency not in result
diff --git a/tests/pytest/run.sh b/tests/pytest/run.sh
index 37b044199..8d06749e6 100755
--- a/tests/pytest/run.sh
+++ b/tests/pytest/run.sh
@@ -2,7 +2,7 @@
 set -eu
 
 # run normal pytests
-coverage run -m pytest --no-migrations
+coverage run -m pytest
 
 # clean out old coverage results
 rm -rf benefits/static/coverage