[Bug]: Playwright VSC Extension (with Show Browser enabled) prevent recording traces even option in config is on

[jaktestowac]

Version

1.48.1

Steps to reproduce

VSCode (1.94.2) with extension Playwright Test for VSCode (v1.1.7)
Default clean Playwright installation:
npm init playwright@latest --yes -- --quiet --browser=chromium

Set traces recording in playwright config:

  use: {
    trace: 'on',
  },

Set Show Browser in Testing -> PLAYWRIGHT -> SETTINGS

Run any test with Extension runner (green arrow):

No traces recorded in folder test-results

Similar terminal command:
npx playwright test --headed --grep='has title'
It run test in browser and record traces (respect config settings).

Expected behavior

Traces recorded while Show Browser enabled

Actual behavior

Traces not recorded, config settings not respected

Additional context

Traces are very helpful to find additional context after running tests. Limiting it only to Trace Viewer while using plugin make some discoveries harder.

In example Visual Testing with Trace Viewer and Browser differ. I wish to have recorded traces - but still use the browser and extension to quickly run tests (without using terminal)

Environment

System:
Windows 11

VSCode (1.94.2)
Playwright Test for VSCode (v1.1.7)

Browsers: Chromium (127.0.2651.74)