The July 2021 release of Visual Studio Code (1.59) introduced a new testing API and Test Explorer UI. From v0.6.0 this API is used by AL Test Runner.
Improvements
UI
The biggest improvement is the Test Explorer view which shows your test codeunits, their test methods and the status of each.
Hovering over a test gives you three icons to run, debug or open an editor at the test.
You can run and debug all the tests in a given codeunit by hovering over the codeunit name or run and debug all tests at the top.
The filter box allows you to easily find specific tests, which I’ve found useful in projects which several test codeunits and hundreds of tests.
You can also filter to only show failed tests or only test which are present in the codeunit in the current editor. The explorer supports different ways of sorting and displaying the tests.
Icons are added into the gutter alongside test methods in the editor. Left click to run the test or right click to see this context menu with more options.
The old “Run Test” and “Debug Test” codelens actions are also still added above the test definition.
Commands & Shortcuts
A whole set of new commands are introduced with keyboard chords beginning with Ctrl + ; The existing AL Test Runner keyboard shortcuts still work but there are some nice options in the new set – like “Test: Rerun Last Run” to repeat the last run test without having to navigate to it again.
Using the Test Explorer
Using the Test Explorer is pretty self-explanatory if you’ve already been using AL Test Runner. When you open your workspace/folder the tests should be automatically discovered and loaded into the Test Explorer view. On first opening all of the tests will have no status i.e. neither pass or fail – but results from now on will be persisted.
Running one or more tests – regardless of where you run them from (Test Explorer, Command Palette, CodeLens, Keyboard Shortcut) – will start a test run. You’ll see “Running tests…” in the Status Bar.
Once the test(s) have finished running you’ll see the results at the top of the Test Explorer, “x / y tests passed (z %)”, and the status icons by each test will be updated.
If the tests do not actually run e.g. because your container isn’t started then the test run will not finish and “Running tests” will continue to spin at the bottom of the screen. You can stop the run manually from the top of the Test Explorer, fix the problem and go again.
James Pearson 
I’m not sure if I’m missing something but the tests often do no show up in the test explorer. Sometimes they will if I close and reopen the containing folder. I also get the spinning ‘Running tests’ in the status bar even after all tests completed. It will say something like 3/6 100%. I don’t know what that is about starting containers. That’s a Docker thing, isn’t it? I’m not using Docker.
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By the way, this is with Pester.
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