Create a new project from start.spring.io then add a config dir next to the POM.

java.lang.IllegalStateException: Failed to load ApplicationContext
    at org.springframework.test.context.cache.DefaultCacheAwareContextLoaderDelegate.loadContext(DefaultCacheAwareContextLoaderDelegate.java:132)
    at org.springframework.test.context.support.DefaultTestContext.getApplicationContext(DefaultTestContext.java:124)
    at org.springframework.test.context.web.ServletTestExecutionListener.setUpRequestContextIfNecessary(ServletTestExecutionListener.java:190)
    at org.springframework.test.context.web.ServletTestExecutionListener.prepareTestInstance(ServletTestExecutionListener.java:132)
    at org.springframework.test.context.TestContextManager.prepareTestInstance(TestContextManager.java:244)
    at org.springframework.test.context.junit.jupiter.SpringExtension.postProcessTestInstance(SpringExtension.java:138)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.lambda$invokeTestInstancePostProcessors$6(ClassBasedTestDescriptor.java:350)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.executeAndMaskThrowable(ClassBasedTestDescriptor.java:355)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.lambda$invokeTestInstancePostProcessors$7(ClassBasedTestDescriptor.java:350)
    at java.util.stream.ReferencePipeline$3$1.accept(ReferencePipeline.java:193)
    at java.util.stream.ReferencePipeline$2$1.accept(ReferencePipeline.java:175)
    at java.util.ArrayList$ArrayListSpliterator.forEachRemaining(ArrayList.java:1384)
    at java.util.stream.AbstractPipeline.copyInto(AbstractPipeline.java:482)
    at java.util.stream.AbstractPipeline.wrapAndCopyInto(AbstractPipeline.java:472)
    at java.util.stream.StreamSpliterators$WrappingSpliterator.forEachRemaining(StreamSpliterators.java:313)
    at java.util.stream.Streams$ConcatSpliterator.forEachRemaining(Streams.java:743)
    at java.util.stream.Streams$ConcatSpliterator.forEachRemaining(Streams.java:742)
    at java.util.stream.ReferencePipeline$Head.forEach(ReferencePipeline.java:647)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.invokeTestInstancePostProcessors(ClassBasedTestDescriptor.java:349)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.lambda$instantiateAndPostProcessTestInstance$4(ClassBasedTestDescriptor.java:270)
    at org.junit.platform.engine.support.hierarchical.ThrowableCollector.execute(ThrowableCollector.java:73)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.instantiateAndPostProcessTestInstance(ClassBasedTestDescriptor.java:269)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.lambda$testInstancesProvider$2(ClassBasedTestDescriptor.java:259)
    at java.util.Optional.orElseGet(Optional.java:267)
    at org.junit.jupiter.engine.descriptor.ClassBasedTestDescriptor.lambda$testInstancesProvider$3(ClassBasedTestDescriptor.java:258)
    at org.junit.jupiter.engine.execution.TestInstancesProvider.getTestInstances(TestInstancesProvider.java:31)
    at org.junit.jupiter.engine.descriptor.TestMethodTestDescriptor.lambda$prepare$0(TestMethodTestDescriptor.java:101)
    at org.junit.platform.engine.support.hierarchical.ThrowableCollector.execute(ThrowableCollector.java:73)
    at org.junit.jupiter.engine.descriptor.TestMethodTestDescriptor.prepare(TestMethodTestDescriptor.java:100)
    at org.junit.jupiter.engine.descriptor.TestMethodTestDescriptor.prepare(TestMethodTestDescriptor.java:65)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.lambda$prepare$1(NodeTestTask.java:111)
    at org.junit.platform.engine.support.hierarchical.ThrowableCollector.execute(ThrowableCollector.java:73)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.prepare(NodeTestTask.java:111)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.execute(NodeTestTask.java:79)
    at java.util.ArrayList.forEach(ArrayList.java:1259)
    at org.junit.platform.engine.support.hierarchical.SameThreadHierarchicalTestExecutorService.invokeAll(SameThreadHierarchicalTestExecutorService.java:38)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.lambda$executeRecursively$5(NodeTestTask.java:143)
    at org.junit.platform.engine.support.hierarchical.ThrowableCollector.execute(ThrowableCollector.java:73)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.lambda$executeRecursively$7(NodeTestTask.java:129)
    at org.junit.platform.engine.support.hierarchical.Node.around(Node.java:137)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.lambda$executeRecursively$8(NodeTestTask.java:127)
    at org.junit.platform.engine.support.hierarchical.ThrowableCollector.execute(ThrowableCollector.java:73)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.executeRecursively(NodeTestTask.java:126)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.execute(NodeTestTask.java:84)
    at java.util.ArrayList.forEach(ArrayList.java:1259)
    at org.junit.platform.engine.support.hierarchical.SameThreadHierarchicalTestExecutorService.invokeAll(SameThreadHierarchicalTestExecutorService.java:38)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.lambda$executeRecursively$5(NodeTestTask.java:143)
    at org.junit.platform.engine.support.hierarchical.ThrowableCollector.execute(ThrowableCollector.java:73)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.lambda$executeRecursively$7(NodeTestTask.java:129)
    at org.junit.platform.engine.support.hierarchical.Node.around(Node.java:137)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.lambda$executeRecursively$8(NodeTestTask.java:127)
    at org.junit.platform.engine.support.hierarchical.ThrowableCollector.execute(ThrowableCollector.java:73)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.executeRecursively(NodeTestTask.java:126)
    at org.junit.platform.engine.support.hierarchical.NodeTestTask.execute(NodeTestTask.java:84)
    at org.junit.platform.engine.support.hierarchical.SameThreadHierarchicalTestExecutorService.submit(SameThreadHierarchicalTestExecutorService.java:32)
    at org.junit.platform.engine.support.hierarchical.HierarchicalTestExecutor.execute(HierarchicalTestExecutor.java:57)
    at org.junit.platform.engine.support.hierarchical.HierarchicalTestEngine.execute(HierarchicalTestEngine.java:51)
    at org.junit.platform.launcher.core.DefaultLauncher.execute(DefaultLauncher.java:220)
    at org.junit.platform.launcher.core.DefaultLauncher.lambda$execute$6(DefaultLauncher.java:188)
    at org.junit.platform.launcher.core.DefaultLauncher.withInterceptedStreams(DefaultLauncher.java:202)
    at org.junit.platform.launcher.core.DefaultLauncher.execute(DefaultLauncher.java:181)
    at org.junit.platform.launcher.core.DefaultLauncher.execute(DefaultLauncher.java:128)
    at org.apache.maven.surefire.junitplatform.JUnitPlatformProvider.invokeAllTests(JUnitPlatformProvider.java:150)
    at org.apache.maven.surefire.junitplatform.JUnitPlatformProvider.invoke(JUnitPlatformProvider.java:124)
    at org.apache.maven.surefire.booter.ForkedBooter.invokeProviderInSameClassLoader(ForkedBooter.java:384)
    at org.apache.maven.surefire.booter.ForkedBooter.runSuitesInProcess(ForkedBooter.java:345)
    at org.apache.maven.surefire.booter.ForkedBooter.execute(ForkedBooter.java:126)
    at org.apache.maven.surefire.booter.ForkedBooter.main(ForkedBooter.java:418)
Caused by: java.lang.IllegalStateException: No subdirectories found for mandatory directory location 'file:./config/*/'.
    at org.springframework.util.Assert.state(Assert.java:76)
    at org.springframework.boot.context.config.StandardConfigDataLocationResolver.resolvePatternEmptyDirectories(StandardConfigDataLocationResolver.java:269)
    at org.springframework.boot.context.config.StandardConfigDataLocationResolver.resolveEmptyDirectories(StandardConfigDataLocationResolver.java:258)
    at org.springframework.boot.context.config.StandardConfigDataLocationResolver.resolveEmptyDirectories(StandardConfigDataLocationResolver.java:249)
    at org.springframework.boot.context.config.StandardConfigDataLocationResolver.resolve(StandardConfigDataLocationResolver.java:240)
    at org.springframework.boot.context.config.StandardConfigDataLocationResolver.resolve(StandardConfigDataLocationResolver.java:118)
    at org.springframework.boot.context.config.ConfigDataLocationResolvers.lambda$resolve$1(ConfigDataLocationResolvers.java:115)
    at org.springframework.boot.context.config.ConfigDataLocationResolvers.resolve(ConfigDataLocationResolvers.java:126)
    at org.springframework.boot.context.config.ConfigDataLocationResolvers.resolve(ConfigDataLocationResolvers.java:115)
    at org.springframework.boot.context.config.ConfigDataLocationResolvers.resolve(ConfigDataLocationResolvers.java:107)
    at org.springframework.boot.context.config.ConfigDataImporter.resolve(ConfigDataImporter.java:105)
    at org.springframework.boot.context.config.ConfigDataImporter.resolve(ConfigDataImporter.java:97)
    at org.springframework.boot.context.config.ConfigDataImporter.resolveAndLoad(ConfigDataImporter.java:85)
    at org.springframework.boot.context.config.ConfigDataEnvironmentContributors.withProcessedImports(ConfigDataEnvironmentContributors.java:121)
    at org.springframework.boot.context.config.ConfigDataEnvironment.processInitial(ConfigDataEnvironment.java:243)
    at org.springframework.boot.context.config.ConfigDataEnvironment.processAndApply(ConfigDataEnvironment.java:230)
    at org.springframework.boot.context.config.ConfigDataEnvironmentPostProcessor.postProcessEnvironment(ConfigDataEnvironmentPostProcessor.java:102)
    at org.springframework.boot.context.config.ConfigDataEnvironmentPostProcessor.postProcessEnvironment(ConfigDataEnvironmentPostProcessor.java:94)
    at org.springframework.boot.env.EnvironmentPostProcessorApplicationListener.onApplicationEnvironmentPreparedEvent(EnvironmentPostProcessorApplicationListener.java:100)
    at org.springframework.boot.env.EnvironmentPostProcessorApplicationListener.onApplicationEvent(EnvironmentPostProcessorApplicationListener.java:86)
    at org.springframework.context.event.SimpleApplicationEventMulticaster.doInvokeListener(SimpleApplicationEventMulticaster.java:176)
    at org.springframework.context.event.SimpleApplicationEventMulticaster.invokeListener(SimpleApplicationEventMulticaster.java:169)
    at org.springframework.context.event.SimpleApplicationEventMulticaster.multicastEvent(SimpleApplicationEventMulticaster.java:143)
    at org.springframework.context.event.SimpleApplicationEventMulticaster.multicastEvent(SimpleApplicationEventMulticaster.java:131)
    at org.springframework.boot.context.event.EventPublishingRunListener.environmentPrepared(EventPublishingRunListener.java:82)
    at org.springframework.boot.SpringApplicationRunListeners.lambda$environmentPrepared$2(SpringApplicationRunListeners.java:63)
    at java.util.ArrayList.forEach(ArrayList.java:1259)
    at org.springframework.boot.SpringApplicationRunListeners.doWithListeners(SpringApplicationRunListeners.java:117)
    at org.springframework.boot.SpringApplicationRunListeners.doWithListeners(SpringApplicationRunListeners.java:111)
    at org.springframework.boot.SpringApplicationRunListeners.environmentPrepared(SpringApplicationRunListeners.java:62)
    at org.springframework.boot.SpringApplication.prepareEnvironment(SpringApplication.java:373)
    at org.springframework.boot.SpringApplication.run(SpringApplication.java:331)
    at org.springframework.boot.test.context.SpringBootContextLoader.loadContext(SpringBootContextLoader.java:123)
    at org.springframework.test.context.cache.DefaultCacheAwareContextLoaderDelegate.loadContextInternal(DefaultCacheAwareContextLoaderDelegate.java:99)
    at org.springframework.test.context.cache.DefaultCacheAwareContextLoaderDelegate.loadContext(DefaultCacheAwareContextLoaderDelegate.java:124)
    ... 67 common frames omitted

Comment From: mbhave

Isn't this a duplicate of #26627?

Comment From: philwebb

Yup, sorry. I missed that one.