vstest: `dotnet test` fails to find .NET Core 3.0 SDK when installed from script to custom location

Description

dotnet test fails to find .NET Core SDK 3.0 when installed from https://dot.net/v1/dotnet-install.ps1 into a custom install location with -NoPath in Azure DevOps on Windows.

This does not appear to be an issue with AppVeyor, Travis CI or Azure DevOps on Linux and macOS.

This worked with various versions of the .NET Core SDK up to and including 3.0.0 RC1, but appears to have been broken in 3.0.0 with 16.3.0.

Looking at the diff between 16.3.0 and 16.3.0-preview-20190828-03, this might be a regression caused by the changes in https://github.com/microsoft/vstest/pull/2161.

Steps to reproduce

Issue can be observed in this Pull Request from commit 612e825179e4b3435613926b513a7b9a07132753: https://github.com/justeat/httpclient-interception/pull/127

Expected behavior

Tests run.

Actual behavior

dotnet test fails with:

Test run for d:\a\1\a\JustEat.HttpClientInterception.Tests.dll(.NETCoreApp,Version=v3.0)
Microsoft (R) Test Execution Command Line Tool Version 16.3.0
Copyright (c) Microsoft Corporation.  All rights reserved.

Starting test execution, please wait...

A total of 1 test files matched the specified pattern.
Testhost process exited with error: It was not possible to find any compatible framework version
The specified framework 'Microsoft.NETCore.App', version '3.0.0' was not found.
  - Check application dependencies and target a framework version installed at:
      C:\Program Files\dotnet
  - Installing .NET Core prerequisites might help resolve this problem:
      https://go.microsoft.com/fwlink/?LinkID=798306&clcid=0x409
  - The .NET Core framework and SDK can be installed from:
      https://aka.ms/dotnet-download
  - The following versions are installed:
      1.0.4 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.5 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.7 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.8 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.9 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.10 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.11 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.12 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.13 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.14 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.15 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.0.16 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.1 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.2 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.4 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.5 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.6 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.7 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.8 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.9 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.10 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.11 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.12 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      1.1.13 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.0.0 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.0.3 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.0.5 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.0.6 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.0.7 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.0.9 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.0 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.1 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.2 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.3 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.4 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.5 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.6 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.7 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.8 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.9 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.1.12 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.2.0 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.2.1 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.2.2 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
      2.2.3 at [C:\Program Files\dotnet\shared\Microsoft.NETCore.App]
. Please check the diagnostic logs for more information.
Results File: D:\a\1\s\tests\HttpClientInterception.Tests\TestResults\VssAdministrator_fv-az635_2019-09-21_15_13_42.trx
Test Run Aborted.

Diagnostic logs

See here.

Environment

Azure DevOps Visual Studio 2019 image.