drupal 9 phpunit functional testing database user issue

I'm trying to get up and running with drupal php functional testing. However there seems to be something wrong with my phpunit.xml cofiguration. When running the test i get the following error:

PHPUnit 9.5.25 #StandWithUkraine

Testing /Applications/MAMP/htdocs/dl-staging/web/modules/custom
E                                                                   1 / 1 (100%)R

Time: 00:04.717, Memory: 12.00 MB

There was 1 error:

1) Drupal\Tests\dl_micro_mas\FunctionalJavascript\QITest::testQuotesInvoices
Drupal\Core\Installer\Exception\InstallerException: Resolve all issues below to continue the installation. For help configuring your database server, see the <a href="https://www.drupal.org/docs/8/install">installation handbook</a>, or contact your hosting provider.<ul><li>Database <em class="placeholder">dl_test/</em> not found. The server reports the following message when attempting to create the database: <em class="placeholder">SQLSTATE[HY000]: General error: 1007 Can&#039;t create database &#039;dl_test&#039;; database exists</em>.</li><li>Failed to <strong>CREATE</strong> a test table on your database server with the command <em class="placeholder">CREATE TABLE {drupal_install_test} (id int NOT NULL PRIMARY KEY)</em>. The server reports the following message: <em class="placeholder">SQLSTATE[3D000]: Invalid catalog name: 1046 No database selected: CREATE TABLE &quot;test21167818drupal_install_test&quot; (id int NOT NULL PRIMARY KEY); Array
(
)
</em>.<p>Are you sure the configured username has the necessary permissions to create tables in the database?</p></li></ul>

So this implies that phpunit doesn't have access to the database. However, i'm using the exact same database user login as on my drupal site.

This is my phpunit.xml file

<?xml version="1.0" encoding="UTF-8"?>
<!-- For how to customize PHPUnit configuration, see core/tests/README.md. -->
<!-- TODO set checkForUnintentionallyCoveredCode="true" once https://www.drupal.org/node/2626832 is resolved. -->
<!-- PHPUnit expects functional tests to be run with either a privileged user
 or your current system user. See core/tests/README.md and
 https://www.drupal.org/node/2116263 for details.
-->
<phpunit xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" bootstrap="web/core/tests/bootstrap.php" colors="true" beStrictAboutTestsThatDoNotTestAnything="true" beStrictAboutOutputDuringTests="true" beStrictAboutChangesToGlobalState="true" failOnWarning="true" printerClass="\Drupal\Tests\Listeners\HtmlOutputPrinter" cacheResult="false" xsi:noNamespaceSchemaLocation="https://schema.phpunit.de/9.3/phpunit.xsd">
  <php>
    <!-- Set error reporting to E_ALL. -->
    <ini name="error_reporting" value="32767"/>
    <!-- Do not limit the amount of memory tests take to run. -->
    <ini name="memory_limit" value="-1"/>
    <!-- Example SIMPLETEST_BASE_URL value: http://localhost -->
    <env name="SIMPLETEST_BASE_URL" value="http://www.website.build:8888"/>
    <!-- Example SIMPLETEST_DB value: mysql://username:password@localhost/databasename#table_prefix -->
    <env name="SIMPLETEST_DB" value="mysql://root:root@localhost:8889/dl_test/"/>
    <!-- Example BROWSERTEST_OUTPUT_DIRECTORY value: /path/to/webroot/browser_output -->
    <env name="BROWSERTEST_OUTPUT_DIRECTORY" value="browser_output"/>
    <!-- To have browsertest output use an alternative base URL. For example if
     SIMPLETEST_BASE_URL is an internal DDEV URL, you can set this to the
     external DDev URL so you can follow the links directly.
    -->
    <env name="BROWSERTEST_OUTPUT_BASE_URL" value=""/>
    <!-- To disable deprecation testing completely uncomment the next line. -->
    <env name="SYMFONY_DEPRECATIONS_HELPER" value="disabled"/>
    <!-- Example for changing the driver class for mink tests MINK_DRIVER_CLASS value: 'Drupal\FunctionalJavascriptTests\DrupalSelenium2Driver' -->
    <env name="MINK_DRIVER_CLASS" value=""/>
    <!-- Example for changing the driver args to mink tests MINK_DRIVER_ARGS value: '["http://127.0.0.1:8510"]' -->
    <env name="MINK_DRIVER_ARGS" value=""/>
    <!-- Example for changing the driver args to webdriver tests MINK_DRIVER_ARGS_WEBDRIVER value: '["chrome", { "chromeOptions": { "w3c": false } }, "http://localhost:4444/wd/hub"]' For using the Firefox browser, replace "chrome" with "firefox" -->
    <env name="MINK_DRIVER_ARGS_WEBDRIVER" value=""/>
  </php>
  <listeners>
    <listener class="\Drupal\Tests\Listeners\DrupalListener">
    </listener>
  </listeners>
  <!-- Filter for coverage reports. -->
</phpunit>

So what is wrong here? The database exists and the user exists. I'm out of ideas...