Found the solution here:
https://github.com/sebastianbergmann/phpunit/issues/2353
Apparently phpunit does not overwrite existing environment variables by default, you need to explicitly add a force="true" like:
<php>
<env name="DB_CONNECTION" value="test_mysql" force="true"/>
<env name="APP_ENV" value="testing" force="true"/>
</php>
Maybe it makes sense to add this to the default phpunit.xml of laravel bootstrap project?
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