Python Test Output Throws InternalError

[pnelson-bto]

I am getting an Internal Error related to node_path in my Python Test Output. This was working as expected until yesterday when it seems that VSCode may have updated.

If I switch Python extension to pre-release version, the internal error goes away. However, the gutter decorations disappear.
Both v2023.16.0 and v2023.18.0 have the same issue.

If I switch Python extension to v2023.14.0, everything works as expected.