I've confirmed that this is indeed happening... but only in the VS Code Extension. If you run the test directly:
sfdx force:apex:test:run -w 10 -t TestFail
You'll get the correct output.
VS Code Extension Output
10:54:53.884 Starting Run Apex Tests
=== Test Summary
As Phil commented, this type of question is primarily opinion-based, so I think you will get multiple answers.
For me, a unit test should test a single piece of the code, like a specific method, regardless of its usage in the business process. The unit test serves the purpose of asserting that this unit of code works as intended given multiple inputs.
@Vinay thanks for pointing me to that. It is a new feature that is causing it. In the settings there is a new feature that needs to be disabled and that fixed it for me.
Salesforcedx-vscode-core > Experimental: Use Apex Library
Disable - Use Apex Library for Apex CLI Commands