I am trying to run PyTest using the Testing extension in VSCode, but it's failing.
My directory structure is as follows:

conftest.py (empty)
src

__init__.py (has important_function that is imported in main.py)
main.py


test

__init__.py (empty)
test_main.py



Before I had the src/__init__.py, PyTest was able to find the tests without problems.
But now it says:
ImportError: cannot import name 'important_function' from '__init__' (/Users/ynusinovich/.vscode/extensions/ms-python.python-2022.20.1/pythonFiles/testing_tools/__init__.py)
It seems like VSCode decided to look for the function in its own __init__ folder, instead of in my src folder. Is there any way to direct it to the correct location?
Temporary solution:
I renamed the __init__.py in the src folder to utils, and now VSCode's PyTest is no longer confused about where to look for important_function.
Error Collecting PyTests After __init__.py Added to src Folder