It wasn't my project. Afaict it's a standard pytest setup with the Litestar framework (unused in my tests) and an in-memory mock Postgre transaction with like five records per test, so choose for yourself which part of this is 'catastrophically wrong'. However, I can indeed agree that most of it is trash.
Same approach with dozens upon dozens of tests worked snappily as heck in PHP, haven't yet tried it with my beloved Lua.