diff --git a/extensions/ql-vscode/test/e2e/README.md b/extensions/ql-vscode/test/e2e/README.md
index c62724bb7..cbfd3337e 100644
--- a/extensions/ql-vscode/test/e2e/README.md
+++ b/extensions/ql-vscode/test/e2e/README.md
@@ -1,17 +1,18 @@
 ## VS Code CodeQL E2E Tests
 
-When running the tests locally on a mac a different processor has to be emulated, which makes everythign VERY slow. Hence many timeouts in the test.
+When running the tests locally on a mac a different processor has to be emulated, which makes everythign VERY slow. Therefore we need to add higher timeouts in the test, so that they pass locally.
 
 ### How to use locally
 
 Setup
 
-- run `docker-compose build` from the e2e test folder `vscode-codeql/extensions/ql-vscode/test/e2e`
-- run `docker-compose up` from the e2e test folder `vscode-codeql/extensions/ql-vscode/test/e2e`
+- go to the e2e test folder on your terminal
+- run `docker-compose build`
+- run `docker-compose up`
 
 Run tests
 
-- run  `npx playwright test --ui` from the vscode-codeql folder `vscode-codeql/extensions/ql-vscode` to follow the test while it's running. This UI has a 'locator' tool with which elements on the test screen can be 
+- run  `npx playwright test --ui` from the e2e test folder to follow the test while it's running. This UI has a 'locator' tool with which elements on the test screen can be found
 - use `npx playwright test --debug` to follow the test in real time and interact with the interface, e.g. press enter or input into fields, stop and start
 
-If you get failures after the first test run you can try to remove the volume data, e.g. by running `docker-compose down -v`. Sometimes already existing queries from former runs change the input the extension needs.
+During the test elements are created in the docker volume, e.g. the downloaded database or query data. This might interfer with other tests or when running a test twice. If that happens restart your docker volume by using `docker-compose down -v` and `docker-compose up`. Sometimes already existing queries from former runs change the input the extension needs.
diff --git a/extensions/ql-vscode/playwright.config.ts b/extensions/ql-vscode/test/e2e/playwright.config.ts
similarity index 98%
rename from extensions/ql-vscode/playwright.config.ts
rename to extensions/ql-vscode/test/e2e/playwright.config.ts
index bdd47ce3d..c1e68c0a4 100644
--- a/extensions/ql-vscode/playwright.config.ts
+++ b/extensions/ql-vscode/test/e2e/playwright.config.ts
@@ -10,7 +10,7 @@ import { defineConfig, devices } from "@playwright/test";
  * See https://playwright.dev/docs/test-configuration.
  */
 export default defineConfig({
-  testDir: "./test/e2e",
+  testDir: ".",
 
   timeout: 5 * 60 * 1000,
   /* Run tests in files in parallel */
diff --git a/extensions/ql-vscode/tsconfig.json b/extensions/ql-vscode/tsconfig.json
index 19759b3dc..93f7cb0f2 100644
--- a/extensions/ql-vscode/tsconfig.json
+++ b/extensions/ql-vscode/tsconfig.json
@@ -24,5 +24,5 @@
     "noEmit": true
   },
   "include": ["src/**/*.ts"],
-  "exclude": ["node_modules", "test", "**/view"]
+  "exclude": ["node_modules", "*.config.ts", "test", "**/view"]
 }