Do not include forwarded --target option in build arguments

eng/Versions.props

@@ -131,6 +131,7 @@
     <AwesomeAssertionsJsonVersion>8.0.0</AwesomeAssertionsJsonVersion>
     <MoqPackageVersion>4.18.4</MoqPackageVersion>
     <XunitCombinatorialVersion>1.3.2</XunitCombinatorialVersion>
+    <XUnitRunnerVisualStudioPackageVersion>3.1.4</XUnitRunnerVisualStudioPackageVersion>
     <MicrosoftDotNetInstallerWindowsSecurityTestDataPackageVersion>8.0.0-beta.23607.1</MicrosoftDotNetInstallerWindowsSecurityTestDataPackageVersion>
     <BenchmarkDotNetPackageVersion>0.14.0</BenchmarkDotNetPackageVersion>
   </PropertyGroup>

src/Dotnet.Watch/dotnet-watch/CommandLine/CommandLineOptions.cs

@@ -10,6 +10,7 @@
 using Microsoft.DotNet.Cli.CommandLine;
 using Microsoft.DotNet.Cli.Commands;
 using Microsoft.DotNet.Cli.Commands.Build;
+using Microsoft.DotNet.Cli.Commands.MSBuild;
 using Microsoft.DotNet.Cli.Commands.Test;
 using Microsoft.Extensions.Logging;
 
@@ -116,10 +117,14 @@ internal sealed class CommandLineOptions
             out var binLogToken,
             out var binLogPath);
 
-        // We assume that forwarded options, if any, are intended for dotnet build.
+        // We assume that forwarded options, if any, are intended for `dotnet build`.
+        // Exclude --target option since we need to control the targets being built.
+        var msbuildCommandDefinition = new MSBuildCommandDefinition();
+
         var buildArguments = buildOptions
             .Select(option => option.ForwardingFunction!(parseResult))
             .SelectMany(args => args)
+            .Where(arg => !msbuildCommandDefinition.Parse(arg).HasOption(msbuildCommandDefinition.TargetOption))
             .ToList();
 
         if (binLogToken != null)

test/Microsoft.NET.TestFramework/Microsoft.NET.TestFramework.csproj

@@ -41,6 +41,18 @@
       <_Parameter1>MicrosoftExtensionsServiceDiscoveryPackageVersion</_Parameter1>
       <_Parameter2>$(MicrosoftExtensionsServiceDiscoveryPackageVersion)</_Parameter2>
     </AssemblyAttribute>
+    <AssemblyAttribute Include="System.Reflection.AssemblyMetadataAttribute">
+      <_Parameter1>MicrosoftNETTestSdkPackageVersion</_Parameter1>
+      <_Parameter2>$(MicrosoftNETTestSdkPackageVersion)</_Parameter2>
+    </AssemblyAttribute>
+    <AssemblyAttribute Include="System.Reflection.AssemblyMetadataAttribute">
+      <_Parameter1>XUnitPackageVersion</_Parameter1>
+      <_Parameter2>$(XUnitVersion)</_Parameter2>
+    </AssemblyAttribute>
+    <AssemblyAttribute Include="System.Reflection.AssemblyMetadataAttribute">
+      <_Parameter1>XUnitRunnerVisualStudioPackageVersion</_Parameter1>
+      <_Parameter2>$(XUnitRunnerVisualStudioPackageVersion)</_Parameter2>
+    </AssemblyAttribute>
   </ItemGroup>
 
   <ItemGroup>

test/TestAssets/TestProjects/WatchXUnit/UnitTest1.cs

@@ -0,0 +1,14 @@
+using System;
+using Xunit;
+
+namespace XUnitTestProject1
+{
+    public class UnitTest1
+    {
+        [Fact]
+        public void Test1()
+        {
+
+        }
+    }
+}

test/TestAssets/TestProjects/WatchXUnit/WatchXUnit.csproj

@@ -0,0 +1,13 @@
+<Project Sdk="Microsoft.NET.Sdk">
+
+  <PropertyGroup>
+    <TargetFramework>$(CurrentTargetFramework)</TargetFramework>
+  </PropertyGroup>
+
+  <ItemGroup>
+    <PackageReference Include="Microsoft.NET.Test.Sdk" Version="$(MicrosoftNETTestSdkPackageVersion)" />
+    <PackageReference Include="xunit" Version="$(XUnitPackageVersion)" />
+    <PackageReference Include="xunit.runner.visualstudio" Version="$(XUnitRunnerVisualStudioPackageVersion)" />
+  </ItemGroup>
+
+</Project>

test/dotnet-watch.Tests/CommandLine/CommandLineOptionsTests.cs

@@ -514,9 +514,10 @@ public void ForwardedOptionsAndArguments_Test(string[] args, string[] buildArgs,
         var runOptions = VerifyOptions(["test", .. args]);
 
         var isShortProperty = args[0].Contains("-p") || args[0].Contains("/p");
-        string[] expectedBuildArgs = isShortProperty
-            ? ["--property:VSTestNoLogo=true", "--property:NuGetInteractive=false", .. buildArgs, "--target:VSTest"]
-            : ["--property:VSTestNoLogo=true", "--property:NuGetInteractive=false", "--target:VSTest", .. buildArgs];
+
+        // `test` subcommand forwards "--target:VSTest" to build, but BuildArguments are used to invoke
+        // `dotnet build` and design-time build and should not specify build targets:
+        string[] expectedBuildArgs = ["--property:VSTestNoLogo=true", "--property:NuGetInteractive=false", .. buildArgs];
         AssertEx.SequenceEqual(expectedBuildArgs, runOptions.BuildArguments);
 
         AssertEx.SequenceEqual(commandArgs ?? [], runOptions.CommandArguments);

test/dotnet-watch.Tests/Watch/FileUpdateTests.cs

@@ -48,4 +48,49 @@ public async Task RestartProcessThatTerminatesAfterFileChange()
         Assert.NotEqual(processIdentifier, processIdentifier2);
         await App.WaitUntilOutputContains("Exiting"); // process should exit after run
     }
+
+    /// <summary>
+    /// Validates `dotnet watch test` scenario: https://github.com/dotnet/sdk/issues/52528
+    /// </summary>
+    [Fact] 
+    public async Task TestCommand()
+    {
+        var testAsset = TestAssets.CopyTestAsset("WatchXUnit")
+            .WithSource();
+
+        var testFile = Path.Combine(testAsset.Path, "UnitTest1.cs");
+        File.WriteAllText(testFile, """
+            using Xunit;
+
+            public class UnitTest1
+            {
+                [Fact]
+                public void Test1()
+                {
+                    Assert.True(false);
+                }
+            }
+            """);
+
+        App.Start(testAsset, ["test"]);
+
+        await App.WaitUntilOutputContains(MessageDescriptor.WaitingForChanges);
+        await App.WaitUntilOutputContains("Failed!");
+        App.Process.ClearOutput();
+
+        UpdateSourceFile(testFile, """
+            using Xunit;
+
+            public class UnitTest1
+            {
+                [Fact]
+                public void Test1()
+                {
+                    Assert.True(true);
+                }
+            }
+            """);
+
+        await App.WaitUntilOutputContains("Passed!");
+    }
 }