feat: initial e2e setup with first test implemented

Author: refael-m

test/e2e/README.md

@@ -0,0 +1,71 @@
+# E2E Tests
+
+End-to-end tests for the Cloudinary VS Code extension using [WebdriverIO](https://webdriver.io/) and [wdio-vscode-service](https://github.com/webdriverio-community/wdio-vscode-service).
+
+## Setup
+
+```bash
+cd test/e2e
+pnpm install
+```
+
+## Running Tests
+
+```bash
+pnpm test:e2e
+```
+
+This will:
+1. Download a VS Code binary (if not already cached in `.wdio-vscode-service/`)
+2. Launch VS Code with the extension loaded
+3. Run all specs in `test/specs/`
+
+## Viewing Reports
+
+After a test run, generate and open the Allure report:
+
+```bash
+pnpm test:report
+```
+
+## Project Structure
+
+```
+test/e2e/
+├── wdio.conf.ts              # WebdriverIO configuration
+├── tsconfig.json              # TypeScript config for e2e tests
+├── package.json               # Dependencies (separate from root)
+├── test/
+│   └── specs/                 # Test spec files
+├── src/
+│   └── utils/                 # Page object utilities
+```
+
+## Writing Tests
+
+Tests use [Mocha](https://mochajs.org/) as the test framework and the `wdio-vscode-service` page objects to interact with VS Code.
+
+```ts
+import { activityBarUtils } from '../../src/utils/ActivityBarUtils'
+import { sideBarViewUtils } from '../../src/utils/SideBarViewUtils'
+
+it('should open the Cloudinary view', async () => {
+    await activityBarUtils.openView('Cloudinary')
+    await sideBarViewUtils.validateSideBarViewTitle('CLOUDINARY')
+    await sideBarViewUtils.validateContentItemsExist(['cats', 'dogs'])
+})
+```
+
+### Allure Reporting
+
+Steps are reported via `allureReporter.addStep()` inside utility methods. WebDriver-level steps (findElement, etc.) are disabled in the config to keep reports clean.
+
+## Configuration
+
+Key settings in `wdio.conf.ts`:
+
+| Setting | Value | Description |
+|---------|-------|-------------|
+| `browserVersion` | `'stable'` | VS Code version to test against |
+| `logLevel` | `'warn'` | Suppresses verbose WebDriver logs |
+| `extensionPath` | `../../` | Points to the root extension directory |