The recently added PEP660 support for editable package installs seems to interfere with assert rewriting. I get the following warning:
PytestAssertRewriteWarning: Module already imported so cannot be rewritten: __editable__...
This seems to be caused by the new __editable__* files in site-packages.
If I install the editable packages with --no-use-pep517 the __editable__* files aren't generated and the warnings are gone.