I had this problem in Python development environment wherein a breakpoint is not hit while trying to debug tests. It turns out that this is a known issue and a work around is available via the launch.json file.

{
    "version": "0.2.0",
    "configurations": [
        {
            "name": "Debug Tests",
            "type": "python",
            "request": "launch",
            "purpose": [
                "debug-test"
            ],
            "console": "integratedTerminal",
            "justMyCode": false,
            "env": {
                "PYTEST_ADDOPTS": "--no-cov"
            }
        }
    ]
}

Below is the explanation form Microsoft.

NOTE: If you have the pytest-cov coverage module installed, VS Code doesn’t stop at breakpoints while debugging because pytest-cov is using the same technique to access the source code being run. To prevent this behavior, include --no-cov in pytestArgs when debugging tests, for example by adding "env": {"PYTEST_ADDOPTS": "--no-cov"} to your debug configuration.

Microsoft documentation: link

Found the solution from this stackoverflow post.