Testhost.exe does not find '7.0.0-preview.6.22324.4' runtime when running tests

Describe the bug

When running xunit tests using dotnet test the building of the product code and test code completes with the correct SDK version - 7.0.0-preview.6.22324.4.

/cc @marcpopMSFT @mmitche

But when test execution begins, an error is reported:

Testhost processId: 27132 exited with exitcode: -2147450730 error: 'It was not possible to find any compatible framework version The framework ‘Microsoft.NETCore.App’, version ‘7.0.0-preview.6.22324.4’ (x64) was not found.

• The following frameworks were found: 3.1.20 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 3.1.24 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 3.1.26 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 5.0.11 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 5.0.16 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 5.0.17 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 6.0.5 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 6.0.6 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] You can resolve the problem by installing the specified framework and/or SDK. The specified framework can be found at:
• https://aka.ms/dotnet-core-applaunch?framework=Microsoft.NETCore.App&framework_version=7.0.0-preview.6.22324.4&arch=x64&rid=win10-x64

I have attached the debug log from the run: diag2.txt

Workaround: Setting DOTNET_ROOT to point to 'C:\Users\adity\AppData\Local\Microsoft\dotnet' fixes the issue.

This has started happening with .NET 7 Preview 6.

To Reproduce

1. Clone this branch: https://github.com/PowerShell/PowerShell/tree/dotnet_update
2. From PowerShell -> Import-Module build.psm1 Start-PSBootstrap cd test\xUnit dotnet test

Exceptions (if any)

esthost process exited with error: It was not possible to find any compatible framework version The framework ‘Microsoft.NETCore.App’, version ‘7.0.0-preview.6.22324.4’ (x64) was not found.

• The following frameworks were found: 3.1.20 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 3.1.24 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 3.1.26 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 5.0.11 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 5.0.16 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 5.0.17 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 6.0.5 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] 6.0.6 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App] You can resolve the problem by installing the specified framework and/or SDK. The specified framework can be found at:
• https://aka.ms/dotnet-core-applaunch?framework=Microsoft.NETCore.App&framework_version=7.0.0-preview.6.22324.4&arch=x64&rid=win10-x64 . Please check the diagnostic logs for more information.

Test Run Aborted.

Further technical details

• Include the output of dotnet --info .NET SDK: Version: 7.0.100-preview.6.22352.1 Commit: 492644e08e

Runtime Environment: OS Name: Windows OS Version: 10.0.22000 OS Platform: Windows RID: win10-x64 Base Path: C:\Users\adity\AppData\Local\Microsoft\dotnet\sdk\7.0.100-preview.6.22352.1\

Host: Version: 7.0.0-preview.6.22324.4 Architecture: x64 Commit: d3fa592f6d

.NET SDKs installed: 7.0.100-preview.6.22352.1 [C:\Users\adity\AppData\Local\Microsoft\dotnet\sdk]

.NET runtimes installed: Microsoft.AspNetCore.App 7.0.0-preview.6.22330.3 [C:\Users\adity\AppData\Local\Microsoft\dotnet\shared\Microsoft.AspNetCore.App] Microsoft.NETCore.App 7.0.0-preview.6.22324.4 [C:\Users\adity\AppData\Local\Microsoft\dotnet\shared\Microsoft.NETCore.App] Microsoft.WindowsDesktop.App 7.0.0-preview.6.22351.3 [C:\Users\adity\AppData\Local\Microsoft\dotnet\shared\Microsoft.WindowsDesktop.App]

Other architectures found: x86 [C:\Program Files (x86)\dotnet] registered at [HKLM\SOFTWARE\dotnet\Setup\InstalledVersions\x86\InstallLocation]

Environment variables: Not set

global.json file: D:\PSGit\PowerShell\global.json

Learn more: https://aka.ms/dotnet/info

Download .NET: https://aka.ms/dotnet/download

• The IDE (VS / VS Code/ VS4Mac) you’re running on, and its version

[vitek-karas]

@iSazonov that is because 7.0 disabled multi-level lookup. So if you run dotnet.exe from C:\privatepath\dotnet then it will not try to look into program files or anywhere else. See this design doc for reasoning and exact behavior: https://github.com/dotnet/designs/blob/main/accepted/2022/disable-multi-level-lookup-by-default.md

[pavelhorak]

@MarcoRossignoli can you look at this?