dotnet tool install --local takes .config/nuget.config instead of nuget.config in current working directory

Describe the bug

When you try to install a dotnet tool from current working directory and there is a ~/my-dotnet-project/.config/nuget.config file present, it will not take ~/my-dotnet-project/nuget.config in priority even if the documentation says that it should take it. https://docs.microsoft.com/en-us/dotnet/core/tools/dotnet-tool-install#options

To Reproduce

1. Create a simple empty project in ~/my-dotnet-project
2. Create a tool manifest with dotnet new tool-manifest
3. Create a valid nuget.config in ~/my-dotnet-project/.config/ folder
4. Modify the packageSource URL of that .config/nuget.config file to something that will not work (to easily see that it will be that file that is taken in priority)
5. Create a valid nuget.config in the ~/my-dotnet-project/
6. Install a tool available on nuget.org like CycloneDX dotnet tool install --local CycloneDX from ~/my-dotnet-project/ current working directory

Observe an error like this:

:~/workspace/test-dotnet-webapi-nuget$ dotnet tool install --local CycloneDX
/usr/share/dotnet/sdk/5.0.404/NuGet.targets(131,5): error : Unable to load the service index for source https://api.nuget.org/v3-bug/index.json. [/tmp/xdqilbl3.x2b/restore.csproj]
/usr/share/dotnet/sdk/5.0.404/NuGet.targets(131,5): error :   Response status code does not indicate success: 404 (Not Found). [/tmp/xdqilbl3.x2b/restore.csproj]
The tool package could not be restored.
Tool 'cyclonedx' failed to install. This failure may have been caused by:

* You are attempting to install a preview release and did not use the --version option to specify the version.
* A package by this name was found, but it was not a .NET tool.
* The required NuGet feed cannot be accessed, perhaps because of an Internet connection problem.
* You mistyped the name of the tool.

For more reasons, including package naming enforcement, visit https://aka.ms/failure-installing-tool

Further technical details

.NET SDK (reflecting any global.json):
 Version:   5.0.404
 Commit:    72c68b830a

Runtime Environment:
 OS Name:     ubuntu
 OS Version:  20.04
 OS Platform: Linux
 RID:         ubuntu.20.04-x64
 Base Path:   /usr/share/dotnet/sdk/5.0.404/

Host (useful for support):
  Version: 5.0.13
  Commit:  b3afe99225

.NET SDKs installed:
  3.1.416 [/usr/share/dotnet/sdk]
  5.0.404 [/usr/share/dotnet/sdk]

.NET runtimes installed:
  Microsoft.AspNetCore.App 3.1.22 [/usr/share/dotnet/shared/Microsoft.AspNetCore.App]
  Microsoft.AspNetCore.App 5.0.13 [/usr/share/dotnet/shared/Microsoft.AspNetCore.App]
  Microsoft.NETCore.App 3.1.22 [/usr/share/dotnet/shared/Microsoft.NETCore.App]
  Microsoft.NETCore.App 5.0.13 [/usr/share/dotnet/shared/Microsoft.NETCore.App]

To install additional .NET runtimes or SDKs:
  https://aka.ms/dotnet-download

[dsplaisted]

The related PR has been merged, so I think we can close this. Feel free to comment / re-open if that’s not the case.

[baronfel]

Wow, I’m sorry I missed that. I’ll try to respond to it with locations/patterns for making a test.