angular-cli: ng test --code-coverage does not create coverage folder

Bug Report or Feature Request

ng test --code-coverage does not create coverage folder after updating package.json

Versions.

@angular/cli: 1.4.4
node: 6.11.2
os: win32 x64

Repro steps.

package.json

"devDependencies": {
    "@angular/cli": "^1.4.3",
    "@types/jasmine": "2.5.38",
    "@types/node": "~6.0.60",
    "codelyzer": "~2.0.0",
    "jasmine-core": "~2.5.2",
    "jasmine-spec-reporter": "~3.2.0",
    "karma": "^1.4.1",
    "karma-chrome-launcher": "^2.0.0",
    "karma-cli": "~1.0.1",
    "karma-coverage-istanbul-reporter": "^0.2.3",
    "karma-jasmine": "^1.1.0",
    "karma-jasmine-html-reporter": "^0.2.2",
    "protractor": "~5.1.0",
    "ts-node": "~2.0.0",
    "tslint": "~4.5.0",
    "typescript": "~2.2.0"
  }

Karma.config.js

module.exports = function (config) {
  config.set({
    basePath: '',
    frameworks: ['jasmine', '@angular/cli'],
    plugins: [
      require('karma-jasmine'),
      require('karma-chrome-launcher'),
      require('karma-jasmine-html-reporter'),
      require('karma-coverage-istanbul-reporter'),
      require('@angular/cli/plugins/karma')
    ],
    client:{
      clearContext: false // leave Jasmine Spec Runner output visible in browser
    },
    files: [
      { pattern: './src/test.ts', watched: false },
      {pattern: './src/assets/i18n/*.json', included: false}
      
    ],
    preprocessors: {
      './src/test.ts': ['@angular/cli']
    },
    mime: {
      'text/x-typescript': ['ts','tsx']
    },
    coverageIstanbulReporter: {
      reports: [ 'html', 'lcovonly' ],
      fixWebpackSourcePaths: true
    },
    angularCli: {
      environment: 'dev'
    },
    reporters: config.angularCli && config.angularCli.codeCoverage
              ? ['progress', 'coverage-istanbul']
              : ['progress', 'kjhtml'],
    port: 9876,
    colors: true,
    logLevel: config.LOG_INFO,
    autoWatch: true,
    browsers: ['Chrome'],
    singleRun: false
  });
};