Moving from https://github.com/dotnet/cli/issues/4744 on behalf of @chausner [and others].

Steps to reproduce

Create a new, empty xUnit project and attempt to run it:

dotnet new -t Xunittest
dotnet restore
dotnet test

Expected behavior

Test should complete with zero passing and zero failing tests.

Actual behavior

dotnet test outputs:

Test run for c:\Users\chris\Desktop\test\bin\Debug\netcoreapp1.0\test.dll(.NETCoreApp,Version=v1.0)
dotnet exec needs a managed .dll or .exe extension. The application specified was 'C:\Program'

Process Monitor shows that dotnet test fails to quote the path to vstest.console.dll when running dotnet exec internally:

"dotnet" exec C:\Program Files\dotnet\sdk\1.0.0-preview3-004056\vstest.console.dll --framework:".NETCoreApp,Version=v1.0" "c:\Users\chris\Desktop\test\bin\Debug\netcoreapp1.0\test.dll"

Running the command by hand with the path correctly quoted, runs the tests successfully.

Environment data

dotnet --info output:

.NET Command Line Tools (1.0.0-preview3-004056)

Product Information:
Version: 1.0.0-preview3-004056
Commit SHA-1 hash: ccc4968bc3

Runtime Environment:
OS Name: Windows
OS Version: 10.0.14393
OS Platform: Windows
RID: win10-x64