I have found out through unit tests that laravel uses sqlite as default database connection instead of mysql. Is this an known issue in laravel 7? I'm running laravel 7 in laradock on MacOS Catalina.
It's not an issue. It uses SQLite in-memory database for tests by default because it runs faster (most of the times) and doesn't require any additional setup (like creating a database). If you want to use MySQL for your tests, you should update DB_CONNECTION and DB_DATABASE env settings in phpunit.xml file.