Github Action failed: Test directory not found

My Github action is failing due to the file path.

Any ideas?

I'm using the almost default action there for Laravel:

name: Laravel

on:
  push:
    branches: [ dev, master ]
  pull_request:
    branches: [ dev, master ]

jobs:
  laravel-tests:

    runs-on: ubuntu-latest

    steps:
    - uses: actions/checkout@v2
    - name: Setup PHP
      uses: shivammathur/setup-php@v2
      with:
        php-version: '7.4' 
    - name: Install Node Dependencies
      run: touch ~/.npmrc \
        && echo "@***:registry=http://npm.***.com/" > ~/.npmrc \
        && echo "//npm.***.com/:_authToken=\"${{ secrets.NPM_AUTH_TOKEN }}\"" >> ~/.npmrc \
        && echo "unsafe-perm=true" >> ~/.npmrc \
        && npm install
    - name: Copy .env
      run: php -r "file_exists('.env') || copy('.env.example', '.env');"
    - name: Install Dependencies
      run: composer install -q --no-ansi --no-interaction --no-scripts --no-progress --prefer-dist
    - name: Generate key
      run: php artisan key:generate
    - name: Directory Permissions
      run: chmod -R 777 storage bootstrap/cache
    - name: Create Database
      run: |
        mkdir -p database
        touch database/database.sqlite
    - name: Execute tests (Unit and Feature tests) via PHPUnit
      env:
        DB_CONNECTION: sqlite
        DB_DATABASE: database/database.sqlite
      run: vendor/bin/phpunit