Tests are not found for nose.

[ttSpace]

Environment data

Version: 1.60.0-insider (user setup)
Commit: 699084fdb48460c68086b85b5c08f3d39055e772
Date: 2021-08-12T19:13:28.730Z
Electron: 13.1.8
Chrome: 91.0.4472.164
Node.js: 14.16.0
V8: 9.1.269.39-electron.0
OS: Windows_NT x64 10.0.17134

Build of python-insider: 2021.9.1125171759-dev
Build of jupyter-insider: 2021.8.2025984474

Expected behaviour

Tests are discovered.

Actual behaviour

Tests are not found.

Steps to reproduce:

1. Input below code:

def test_passing():
    assert 42 == 42
def test_failure():
    assert 42 == -13

2. Run tests with nose framework

"python.testing.nosetestsEnabled":true

3. Install Nose in current environment.
4. Run command: "Run All Tests"

Logs

Output for Python in the Output panel (View→Output, change the drop-down the upper-right of the Output panel to Python)

User belongs to experiment group 'pythonaa'
User belongs to experiment group 'pythonJediLSP'
User belongs to experiment group 'pythonDiscoveryModuleWithoutWatcher'
User belongs to experiment group 'pythonTensorboardExperiment'
User belongs to experiment group 'PythonPyTorchProfiler'
User belongs to experiment group 'pythonDeprecatePythonPath'
User belongs to experiment group 'pythonSortEnvs'
Python interpreter path: C:\Python39-64\python.exe
Error 2021-08-13 07:31:49: Failed to check if file needs to be fixed [EntryNotFound (FileSystemError): Unable to read file 'c:\Users\vting\AppData\Roaming\Code - Insiders\User\settings.json' (Error: Unable to resolve non-existing file 'c:\Users\vting\AppData\Roaming\Code - Insiders\User\settings.json')
	at _handleError (c:\Users\vting\AppData\Local\Programs\Microsoft VS Code Insiders\resources\app\out\vs\workbench\services\extensions\node\extensionHostProcess.js:85:159261)
	at processTicksAndRejections (internal/process/task_queues.js:93:5)
	at async y.readText (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:9:338733)
	at async p.doesFileNeedToBeFixed (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:559685)
	at async c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:558812
	at async Promise.all (index 0)
	at async p.getFilesToBeFixed (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:558758)
	at async p.updateTestSettings (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:558385)] {
  code: 'FileNotFound'
}
Error 2021-08-13 07:31:49: Failed to check if file needs to be fixed [EntryNotFound (FileSystemError): Unable to read file 'c:\Users\vting\Downloads\Test5\.vscode\settings.json' (Error: Unable to resolve non-existing file 'c:\Users\vting\Downloads\Test5\.vscode\settings.json')
	at _handleError (c:\Users\vting\AppData\Local\Programs\Microsoft VS Code Insiders\resources\app\out\vs\workbench\services\extensions\node\extensionHostProcess.js:85:159261)
	at processTicksAndRejections (internal/process/task_queues.js:93:5)
	at async y.readText (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:9:338733)
	at async p.doesFileNeedToBeFixed (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:559685)
	at async c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:558812
	at async Promise.all (index 1)
	at async p.getFilesToBeFixed (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:558758)
	at async p.updateTestSettings (c:\Users\vting\.vscode-insiders\extensions\ms-python.python-2021.9.1125171759-dev\out\client\extension.js:59:558385)] {
  code: 'FileNotFound'
}
Starting Pylance language server.

[karthiknadig]

Nose is not supported from the next version of python extension. #16371