Laravel Multi-database PHPUnit Setup

So I have a brand new Laravel app, spiced with the default Breeze scaffolding(Inertia). I want to create a mult-tenant (with multiple DBs setup) application using Spatie's multi-tanancy package. On my routes/web.php i have this testing route:

//...
Route::get('/test_tenancy', function () {
    $tenant = \App\Models\PosTenant::create([
             'name' => 'Mash',
            'domain' => 'mash.loclahost',
            'database' => 'tenant_mash',
         ]);

    dd($tenant);
});
//...

It works perfectly and also creates a database:

//PosTenant model

class PosTenant extends Tenant
{
    use HasFactory, HasFactory;

    protected $table = 'tenants';

    protected $fillable = ['name', 'domain', 'database'];

    protected static function booted()
    {
        static::creating(fn(PosTenant $model) => $model->newDb());
    }

    public function newDb()
    {
        // add logic to create database
          \DB::statement("CREATE DATABASE $this->database" );
    }
}

The issue: Everything blows up when I run through the same process in my tests. Here's the error:

Illuminate\Database\QueryException : SQLSTATE[HY000]: General error: 1 near "database": syntax error (SQL: create database tenant_mash;)
 /var/www/html/vendor/laravel/framework/src/Illuminate/Database/Connection.php:742
 /var/www/html/vendor/laravel/framework/src/Illuminate/Database/Connection.php:702
 /var/www/html/vendor/laravel/framework/src/Illuminate/Database/Connection.php:528
...

My TestCase class:

namespace Tests;

use Illuminate\Foundation\Testing\TestCase as BaseTestCase;
use Spatie\Multitenancy\Concerns\UsesMultitenancyConfig;

abstract class TestCase extends BaseTestCase
{
    use CreatesApplication, UsesMultitenancyConfig;
}

My actual test class comes with breeze...so it was green untill I introduced multitenancy. See also how I switch database (as done by Mohamed):

 protected function setUp(): void
    {
        parent::setUp();
        $this->withoutExceptionHandling();

        config([
            'database.connections.landlord' => [
                'driver' => 'sqlite',
                'database' => ':memory:'
            ],

            'database.connections.tenant' => [
                'driver' => 'sqlite',
                'database' => ':memory:'
            ]
        ]);

        $this->artisan('migrate --database=landlord --path=database/migrations/landlord');
        $this->artisan('tenants:artisan migrate');

         $tenant = PosTenant::create([
             'name' => 'Mash',
            'domain' => 'mash.loclahost',
            'database' => 'tenant_mash',
         ]);
        dd('tennat'. $tenant);


        $tenant->makeCurrent();
        Session::start();
    }

    public function test_confirm_password_screen_can_be_rendered()
    {

        $user = User::factory()->create();

        $response = $this->actingAs($user)->get('/confirm-password');

        $response->assertStatus(200);
    }
//...more methods...

What could I be doing wrong?