diff --git a/.config/requirements-dev.in b/.config/requirements-dev.in
deleted file mode 100644
index fe0aabf..0000000
--- a/.config/requirements-dev.in
+++ /dev/null
@@ -1,8 +0,0 @@
-black
-mypy
-pre-commit
-pydoclint
-pytest
-ruff
-toml-sort
-types-PyYAML
diff --git a/.config/requirements-test.in b/.config/requirements-test.in
index d6333f2..b697209 100644
--- a/.config/requirements-test.in
+++ b/.config/requirements-test.in
@@ -1,4 +1,12 @@
-pytest
+black
 coverage[toml]
+mypy
+pip-tools
+pre-commit
+pydoclint
+pytest
 pytest-xdist
+ruff
+toml-sort
 tox
+types-PyYAML
diff --git a/.gitignore b/.gitignore
index 1b1aca1..f409493 100644
--- a/.gitignore
+++ b/.gitignore
@@ -168,4 +168,7 @@ cython_debug/
 # Version created and populated by setuptools_scm
 /src/*/_version.py
 
+# Coverage files
+*.lcov
+
 .DS_Store
diff --git a/.vscode/extensions.json b/.vscode/extensions.json
index 37de469..d26386e 100644
--- a/.vscode/extensions.json
+++ b/.vscode/extensions.json
@@ -1,9 +1,13 @@
 {
   "recommendations": [
+    "charliermarsh.ruff",
+    "esbenp.prettier-vscode",
+    "markis.code-coverage",
     "ms-python.black-formatter",
+    "ms-python.debugpy",
+    "ms-python.mypy-type-checker",
     "ms-python.pylint",
-    "charliermarsh.ruff",
-    "matangover.mypy",
-    "esbenp.prettier-vscode"
+    "ms-python.python",
+    "streetsidesoftware.code-spell-checker"
   ]
 }
diff --git a/.vscode/settings.json b/.vscode/settings.json
index 95b3f85..77ac4e9 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -1,18 +1,20 @@
 {
-  "python.testing.unittestEnabled": false,
-  "python.testing.pytestEnabled": true,
-  // Override the pyproject.toml and disable xdist to enable test debugging
-  "python.testing.pytestArgs": ["-n0", "--dist", "no"],
+  "[jsonc]": {
+    "editor.defaultFormatter": "esbenp.prettier-vscode"
+  },
   "[python]": {
-    "editor.formatOnSave": true,
     "editor.codeActionsOnSave": {
-      "source.fixAll": "explicit"
+      "source.fixAll": "explicit",
+      "source.organizeImports": "explicit"
     },
-    "editor.defaultFormatter": "charliermarsh.ruff"
+    "editor.defaultFormatter": "ms-python.black-formatter",
+    "editor.formatOnSave": true
   },
-  "mypy.runUsingActiveInterpreter": true,
-  "mypy.targets": ["src", "tests"],
-  "[jsonc]": {
-    "editor.defaultFormatter": "esbenp.prettier-vscode"
-  }
+  "markiscodecoverage.searchCriteria": "coverage.lcov",
+  "mypy-type-checker.importStrategy": "fromEnvironment",
+  "mypy-type-checker.preferDaemon": true,
+  "mypy-type-checker.reportingScope": "workspace",
+  "python.testing.pytestArgs": ["tests"],
+  "python.testing.pytestEnabled": true,
+  "python.testing.unittestEnabled": false
 }
diff --git a/pyproject.toml b/pyproject.toml
index f442f98..f6eae69 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -52,12 +52,12 @@ skip_covered = true
 skip_empty = true
 
 [tool.coverage.run]
-concurrency = ["multiprocessing", "thread"]
+source_pkgs = ["ansible_dev_environment"]
 # Do not use branch until bug is fixes:
 # https://github.com/nedbat/coveragepy/issues/605
 # branch = true
 parallel = true
-source = ["src"]
+concurrency = ["multiprocessing", "thread"]
 
 [tool.mypy]
 files = ["src", "tests"]
@@ -308,33 +308,42 @@ disable = [
   "unsubscriptable-object"
 ]
 
+[tool.pytest.ini_options]
+addopts = "-ra --showlocals --durations=10"
+testpaths = "tests"
+tmp_path_retention_policy = "failed"
+verbosity_assertions = 2
+
 [tool.ruff]
 builtins = ["__"]
 fix = true
 line-length = 100
-select = ["ALL"]
 target-version = "py310"
 
-[tool.ruff.flake8-pytest-style]
+[tool.ruff.lint]
+select = ["ALL"]
+
+[tool.ruff.lint.flake8-pytest-style]
 parametrize-values-type = "tuple"
 
-[tool.ruff.isort]
+[tool.ruff.lint.isort]
 lines-after-imports = 2 # Ensures consistency for cases when there's variable vs function/class definitions after imports
 lines-between-types = 1 # Separate import/from with 1 line
 
-[tool.ruff.per-file-ignores]
+[tool.ruff.lint.per-file-ignores]
 # SLF001: Allow private member access in tests
 # S101 Allow assert in tests
 # S602 Allow shell in test
 # T201 Allow print in tests
 "tests/**" = ["SLF001", "S101", "S602", "T201"]
+# SIM108, file is generated
+"_version.py" = ["SIM108"]
 
-[tool.ruff.pydocstyle]
+[tool.ruff.lint.pydocstyle]
 convention = "pep257"
 
 [tool.setuptools.dynamic]
 dependencies = {file = [".config/requirements.in"]}
-optional-dependencies.dev = {file = [".config/requirements-dev.in"]}
 optional-dependencies.docs = {file = [".config/requirements-docs.in"]}
 optional-dependencies.test = {file = [".config/requirements-test.in"]}
 
diff --git a/tests/conftest.py b/tests/conftest.py
new file mode 100644
index 0000000..0feff89
--- /dev/null
+++ b/tests/conftest.py
@@ -0,0 +1,19 @@
+"""Global conftest.py for pytest.
+
+The root package import below happens before the pytest workers are forked, so it
+picked up by the initial coverage process for a source match.
+
+Without it, coverage reports the following false positive error:
+
+CoverageWarning: No data was collected. (no-data-collected)
+
+This works in conjunction with the coverage source_pkg set to the package such that
+a `coverage run --debug trace` shows the source package and file match.
+
+<...>
+Imported source package 'ansible_dev_environment' as '/**/src/<package>/__init__.py'
+<...>
+Tracing '/**/src/<package>/__init__.py'
+"""
+
+import ansible_dev_environment  # noqa: F401
diff --git a/tox.ini b/tox.ini
index f1bff98..baee09c 100644
--- a/tox.ini
+++ b/tox.ini
@@ -25,20 +25,23 @@ pass_env =
     TERM
     USER
 set_env =
+    COVERAGE_FILE = {env:COVERAGE_FILE:{envdir}/.coverage.{envname}}
     COVERAGE_PROCESS_START = {toxinidir}/pyproject.toml
     FORCE_COLOR = 1
     PIP_CONSTRAINT = {toxinidir}/.config/constraints.txt
     PRE_COMMIT_COLOR = always
     TERM = xterm-256color
 commands_pre =
-    sh -c "rm -f .coverage* coverage.xml 2>/dev/null || true"
+    python -c 'import pathlib; pathlib.Path("{env_site_packages_dir}/cov.pth").write_text("import coverage; coverage.process_startup()")'
+    sh -c "rm -f {envdir}/.coverage* 2>/dev/null || true"
 commands =
-    coverage run -m pytest {posargs}
-commands_post =
-    py,py{39,310,311,312}: sh -c "coverage combine .coverage.*"
-    py,py{39,310,311,312}: coverage xml
-    py,py{39,310,311,312}: coverage report
-    git diff --exit-code
+    coverage run -m pytest {posargs:-n auto}
+    {py,py310,py311,py312,py313}: sh -c " \
+      coverage combine -q --data-file={envdir}/.coverage {envdir}/.coverage.* && \
+      coverage xml --data-file={envdir}/.coverage -o {envdir}/coverage.xml --ignore-errors --fail-under=0 && \
+      COVERAGE_FILE={envdir}/.coverage coverage lcov --fail-under=0 --ignore-errors -q && \
+      COVERAGE_FILE={envdir}/.coverage coverage report --fail-under=0 --ignore-errors \
+      "
 allowlist_externals =
     git
     rm