Added edge case code for solving issue 10825

src/_pytest/reports.py

@@ -340,6 +340,12 @@ class TestReport(BaseReport):
                 str,
                 TerminalRepr,
             ] = None
+        elif call.excinfo and when in ("setup", "teardown"):
+            outcome = "passed"
+            longrepr = excinfo
+            TerminalWriter().write(
+                msg=f"<Warning! You are using '{when}' file in your code>", Yellow=True
+            )
         else:
             if not isinstance(excinfo, ExceptionInfo):
                 outcome = "failed"

testing/test_setup.py

@@ -0,0 +1,15 @@
+def foo():
+    """
+    >>> foo()
+    'bar'
+    """
+    return "bar"
+
+
+def setup():
+    # """
+    # >>> setup()
+    # 'ban'
+    # """
+    # return "ban"
+    raise RuntimeError("Setup called!!! Oh No")