Run All Tests Breaks If Regular Class Contains Test Method

I was trying to run all tests in a newly setup project and it kept saying “Doesnt exist on server” for every test method possible. Tried rebuilding OST and creating my own run all tests configuration but it didn’t help. I had to go 1 by 1 adding a new test to the configuration until i came across a class which contained a test method inside of it that broke the configuration. See the attached picture. Salesforce must be checking for test classes while illuminated cloud checks for test methods.

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