I'll add that this behaviour is not consistent with that of runBlocking. The example below is probably redundant, given the excellent example provided by the OP, other than to show the test that uses runBlocking passes, while runBlockingTest causes this to fail.

coroutines v1.3.7
kotlin v1.3.72

class SomeException : Exception()

class RunawayTest {
    @Test
    fun `runBlocking should cancel coroutines on exception`() {
        var job: Job? = null
        assertFailsWith<SomeException> {
            runBlocking {

                job =launch {
                    while (true) {
                        delay(1000)
                    }
                }

                throw SomeException()
            }
        }

        assertTrue(job!!.isCancelled)
    }

    @Test
    fun `runBlockingTest should cancel coroutines on exception`() {
        var job: Job? = null
        assertFailsWith<SomeException> {
            runBlockingTest {

                job = launch {
                    while (true) {
                        delay(1000)
                    }
                }

                throw SomeException()
            }
        }

        assertTrue(job!!.isCancelled)

    }

}

Right now I am using a try / finally to stop the coroutine after assertion failed. I tried using assertFailsWith but doesn't seem like it's implemented yet? Have you found a solution on this? @mrf7

This bug does affect all kind of exceptions. I throw an IllegalStateException and the coroutine das not stop. It feels like the delay has no affect and that the coroutine has no chance to react.

    @Test
    fun foo(): Unit = testCoroutineScope.runBlockingTest {
        launch {
            while(true) {
                delay(1000)
                LOG.debug("hello world")
            }
        }
        advanceTimeBy(1000)
        throw IllegalStateException("boom")
    }

Right now I am using a try / finally to stop the coroutine after assertion failed. I tried using assertFailsWith but doesn't seem like it's implemented yet? Have you found a solution on this? @mrf7

It's been a long time since I raised this so I dont remember for sure but I don't think I found a real solution to it. If I remember right I just made some workaround that either avoids launching the coroutine in the test or manually cleans up the coroutine before failing the test.

I've also stumbled upon this.

runBlockingTest {
    launch {
        error("Fail.")
    }

    delay(1_000) // expected: IllegalStateException: Fail.

    Mutex(locked = true).lock() // actual: IllegalStateException: This job has not completed yet
}

Makes it hard to find the root cause of such errors in more complex scenarios.
Works well when using runBlocking instead.

I also encountered this issue yesterday. Spent a lot of hours narrowing down to this root cause. Turns out my business logic has a custom implementation of the throttle operation that uses a while & delay combo similar to below:

@Test
fun test() = runBlockingTest {
  launch {
    while (isActive) {
      delay(1000)
    }
  }
}

I'm thinking that, maybe runBlockingTest should have thrown an exception instead of hanging forever like that? @qwwdfsad

I'm using coroutine v1.4.2 & kotlin v1.4.30.

I also find this behaviour unexpected.

This is due to the fact that the test scope created by runBlockingTest does not have a Job, so structured concurrency doesn't apply and children are not cancelled.

A very easy way to workaround it is to use runBlockingTest(Job()) { ... }.

Are there any plans to fix it in the library? Or is this scope lacking a Job for a reason?