nosetests discovery broken after upgrading to python3.8

[Jim Carroll]

Upgraded to python 3.8 today, and nosetests cannot discover test modules.  I can still run individual tests by hand, but any execution of nosetest -v just reports Ran 0 tests in 0.026s

Project layout

C:\proj

C:\proj\src\first.py

C:\proj\tests\testfirst.py

From C:\proj  , execute:  nosetest -v tests.testfirst

Ran 1 test in 0.002s

From C:\proj , execute nosetests -v

Ran 0 tests in 0.017s

Platform, Windows 10 Pro, 64-bit

Python 3.8.0 (tags/v3.8.0:fa919fd, Oct 14 2019, 19:37:50) [MSC v.1916 64 bit (AMD64)] on win32