Playwright VSCode extension not picking up my tests

As the title says. As of yet, I've been exclusively running playwright from the CLI, but I want to play around with the locator generators in the VSCode extension. However, when I install the Playwright extension and open the "Tests" tab, no tests show up. I have playwright.config.js at the root of my vscode workspace, and test/xyz.spec.js, matching the testDir option in my config file. But the tests don't show up. When I try clicking the "refresh" button in the test tab, I get a vscode warning telling me "Please install Playwright Test via running npm i --save-dev @playwright/test" - but I already have that installed. It's in my package.json and I can run things fine from the CLI. I ran the install anyways, but it didn't change anything.