pip install -e wheel installation breaks when changing directory

So something weird happen to me today and I am not sure if it is an issue or an actual bug in setuptools, but when I tried to install my wheel from local sources in development mode using following command python -m pip install --default-timeout=240 -e ., my wheel installs successfully, but the moment I change directories my wheel disappears.
I can verify this by doing this

C:\depot\bitbucket\pti>venv37\Scripts\activate

(venv37) C:\depot\bitbucket\pti>pip list pti | grep pti
pti                 2.0.dev1054007520810 c:\depot\bitbucket\pti

(venv37) C:\depot\bitbucket\pti>cd tests

(venv37) C:\depot\bitbucket\pti\tests>pip list pti | grep pti

(venv37) C:\depot\bitbucket\pti\tests>

It took me a while to figure out this one since I needed to run some files that I am used to run in a different directory, but thankfully I had an old virtual environment that allowed me to figure out that by changing the directory my local wheel disappears.

C:\depot\bitbucket\pti>venv3.6\Scripts\activate

(venv3.6) C:\depot\bitbucket\pti>pip list pti | grep pti
pti                 2.0.dev1054007520810 c:\depot\bitbucket\pti

(venv3.6) C:\depot\bitbucket\pti>cd tests

(venv3.6) C:\depot\bitbucket\pti\tests>pip list pti | grep pti
pti                 2.0.dev1054007520810 c:\depot\bitbucket\pti

(venv3.6) C:\depot\bitbucket\pti\tests>

Any ideas?

Reproduce the behavior with python -m pip install --default-timeout=240 -e . in a virtual environment, then repeat pip list after changing into the tests directory. The payload names no source file or test; done means identifying why the editable installation disappears outside the project directory and adding a regression check for the reported Windows workflow.