Refactor test workflow to run backend tests together and improve output handling

Author: Kingshuk-Microsoft

.github/workflows/test.yml

@@ -50,21 +50,11 @@ jobs:
             echo "skip_tests=false" >> $GITHUB_ENV
           fi
 
-      - name: Run app.py tests separately (requires isolation due to mocking)
-        if: env.skip_tests == 'false'
-        run: |
-          set +x
-          python -m pytest src/tests/backend/test_app.py --cov=backend.app --cov-report= --cov-config=.coveragerc -q > /dev/null 2>&1 || true
-          echo "✓ app.py tests completed"
-
-      - name: Run all other backend tests with coverage
+      - name: Run backend tests with coverage
         if: env.skip_tests == 'false'
         run: |
+          python -m pytest src/tests/backend/test_app.py --cov=backend.app --cov-report= --cov-config=.coveragerc -q > /dev/null 2>&1
           python -m pytest src/tests/backend --cov=backend --cov-append --cov-report= --cov-config=.coveragerc --ignore=src/tests/backend/test_app.py -q
-      
-      - name: Generate combined coverage report
-        if: env.skip_tests == 'false'
-        run: |
           python -m coverage report --rcfile=.coveragerc
 
       # - name: Run tests with coverage