Syntax errors when running ansible playbook via VSCode extension

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Removing this post

The file you are trying to run is not a playbook, its a tasks list.

In vscode, seem to be running an actual playbook, seemingly at tests/local_setup/main.yml

Try:

ansible-playbook /root/dev/repo-name/tests/local_setup/main.yml

Not sure if you can specify variables by the extension, but there are plenty places you can set such variables:
See Using Variables — Ansible Community Documentation

For role, it might make sense to put some sensible default value under tests/local_setup/roles/validation/defaults/main.yml.

For more complete list of places to put variables (and their precedence) can be found in the variable precedence docs