diff --git a/.gitignore b/.gitignore
index db94fec2dc..1bf2706e43 100644
--- a/.gitignore
+++ b/.gitignore
@@ -50,7 +50,8 @@ bundle.mobile.js.map
 !.yarn/versions
 
 # VSCode
-.vscode
+.vscode/*
+!.vscode/settings.default.json
 
 # IntelliJ IDEA
 .idea
diff --git a/.oxlintrc.json b/.oxlintrc.json
index ed2c0a9e05..2b26a5b5b2 100644
--- a/.oxlintrc.json
+++ b/.oxlintrc.json
@@ -4,8 +4,8 @@
   "jsPlugins": ["./packages/eslint-plugin-actual/lib/index.js"],
   "env": {
     "browser": true,
-    "jest": true,
-    "node": true
+    "node": true,
+    "vitest": true
   },
   "globals": {
     "vi": "readonly",
diff --git a/.vscode/settings.default.json b/.vscode/settings.default.json
new file mode 100644
index 0000000000..dd1a72cc52
--- /dev/null
+++ b/.vscode/settings.default.json
@@ -0,0 +1,7 @@
+{
+  "typescript.tsdk": "node_modules/typescript/lib",
+  "editor.defaultFormatter": "oxc.oxc-vscode",
+  "vitest.nodeEnv": {
+    "NODE_OPTIONS": "--experimental-vm-modules --import ./packages/sync-server/register-loader.mjs --trace-warnings"
+  }
+}
diff --git a/packages/crdt/package.json b/packages/crdt/package.json
index 6b5d88ec07..445b34f196 100644
--- a/packages/crdt/package.json
+++ b/packages/crdt/package.json
@@ -12,7 +12,7 @@
     "build:node": "tsc --p tsconfig.dist.json",
     "proto:generate": "./bin/generate-proto",
     "build": "rm -rf dist && yarn run build:node",
-    "test": "vitest --run --globals"
+    "test": "vitest --run"
   },
   "dependencies": {
     "google-protobuf": "^3.21.4",
diff --git a/packages/crdt/vitest.config.mts b/packages/crdt/vitest.config.mts
new file mode 100644
index 0000000000..f13a7fbc70
--- /dev/null
+++ b/packages/crdt/vitest.config.mts
@@ -0,0 +1,11 @@
+import { defineConfig } from 'vitest/config';
+
+export default defineConfig({
+  test: {
+    globals: true,
+    include: ['src/**/*.test.(js|ts)'],
+    environment: 'node',
+    maxWorkers: 1,
+    isolate: false,
+  },
+});
diff --git a/packages/eslint-plugin-actual/vitest.config.mts b/packages/eslint-plugin-actual/vitest.config.mts
new file mode 100644
index 0000000000..c15a265401
--- /dev/null
+++ b/packages/eslint-plugin-actual/vitest.config.mts
@@ -0,0 +1,11 @@
+import { defineConfig } from 'vitest/config';
+
+export default defineConfig({
+  test: {
+    globals: true,
+    include: ['**/*.test.(js|ts)', '**/__tests__/*'],
+    environment: 'node',
+    maxWorkers: 1,
+    isolate: false,
+  },
+});
diff --git a/packages/loot-core/vitest.config.ts b/packages/loot-core/vitest.config.ts
index 4ac95de5d9..d7287868a6 100644
--- a/packages/loot-core/vitest.config.ts
+++ b/packages/loot-core/vitest.config.ts
@@ -30,7 +30,7 @@ export default defineConfig({
     alias: [
       {
         find: /^@actual-app\/crdt(\/.*)?$/,
-        replacement: path.resolve('../crdt/src$1'),
+        replacement: path.resolve(path.join(__dirname, '../crdt/src$1')),
       },
     ],
     extensions: resolveExtensions,
diff --git a/packages/sync-server/src/app-sync.test.ts b/packages/sync-server/src/app-sync.test.ts
index 116dc3c220..82c99edadb 100644
--- a/packages/sync-server/src/app-sync.test.ts
+++ b/packages/sync-server/src/app-sync.test.ts
@@ -18,6 +18,10 @@ const createUser = (userId, userName, role, owner = 0, enabled = 1) => {
   );
 };
 
+const deleteUser = (userId: string) => {
+  getAccountDb().mutate('DELETE FROM users WHERE id = ?', [userId]);
+};
+
 describe('/user-get-key', () => {
   it('returns 401 if the user is not authenticated', async () => {
     const res = await request(app).post('/user-get-key');
@@ -536,6 +540,8 @@ describe('/list-user-files', () => {
 
   it('returns a list of user files for an authenticated user', async () => {
     createUser('fileListAdminId', 'admin', ADMIN_ROLE, 1);
+    onTestFinished(() => deleteUser('fileListAdminId'));
+
     const fileId1 = crypto.randomBytes(16).toString('hex');
     const fileId2 = crypto.randomBytes(16).toString('hex');
     const fileName1 = 'file1.txt';
diff --git a/upcoming-release-notes/6505.md b/upcoming-release-notes/6505.md
new file mode 100644
index 0000000000..802986c82d
--- /dev/null
+++ b/upcoming-release-notes/6505.md
@@ -0,0 +1,6 @@
+---
+category: Maintenance
+authors: [jfdoming]
+---
+
+Add configuration to use built-in test explorer in VS Code
diff --git a/vitest.config.ts b/vitest.config.ts
new file mode 100644
index 0000000000..c1665c22f5
--- /dev/null
+++ b/vitest.config.ts
@@ -0,0 +1,18 @@
+import { defineConfig } from 'vitest/config';
+
+export default defineConfig({
+  test: {
+    projects: [
+      'packages/*/vitest.config.{ts,mts}',
+      'packages/component-library/vitest.web.config.ts',
+      {
+        extends: 'packages/loot-core/vitest.web.config.ts',
+        test: { name: 'loot-core-web', dir: 'packages/loot-core' },
+      },
+    ],
+    onConsoleLog: (log, type) => {
+      // print only console.error
+      return type === 'stderr';
+    },
+  },
+});