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A project containing a subdirectory containing a copy of the top-level project fails to build. The message given to the user (with --verbose) is: "no package found in source".
I encountered this issue "in the wild" while working on delivery-cli: https://github.com/chef/delivery-cli
While this may seem super obscure, it is something I hit and I wasn't intentionally trying to created a bogus project structure. What happens is that a build tool (omnibus) creates the nested copy while producing OS packages and leaves it behind.
I think the behavior is somewhat new and that such directories were ignored in previous versions of cargo.