I had similar issue
This was my old .csproj
<ItemGroup>
<PackageReference Include="xunit" Version="2.4.1" />
<PackageReference Include="xunit.runner.visualstudio" Version="2.4.3">
<IncludeAssets>runtime; build; native; contentfiles; analyzers; buildtransitive</IncludeAssets>
<PrivateAssets>all</PrivateAssets>
</PackageReference>
and I added Microsoft.NET.Test.Sdk
<ItemGroup>
<PackageReference Include="Microsoft.NET.Test.Sdk" Version="16.5.0" />
<PackageReference Include="xunit" Version="2.4.1" />
<PackageReference Include="xunit.runner.visualstudio" Version="2.4.3">
<IncludeAssets>runtime; build; native; contentfiles; analyzers; buildtransitive</IncludeAssets>
<PrivateAssets>all</PrivateAssets>
</PackageReference>
That made test discovery working again.
Another thought: removing and re-adding packages should pull in correct packages (maybe).