Do you want to request a feature or report a bug?
I want to report a bug.

What is the current behavior?
When using yarn install with C:\Users\Username\Desktop\yarn\bin added to path variable, where C:\Users\Username\Desktop\yarn is checked out with git clone github.com/yarnpkg/yarn.git --branch yarn-pnp and "installConfig": {"pnp": true} is appended to project's package.json or yarn install --pnp is executed in project's folder it creates node_modules folder and doesnt create .pnp.js file.

These methods were tested on pnp-sample-app as well. And all required packages were present in yarn cache and checked with yarn cache list.

If the current behavior is a bug, please provide the steps to reproduce.
yarn install --pnp
or
Add "installConfig": {"pnp": true} in package.json and run yarn or yarn install in project's root directory.

What is the expected behavior?
No node_modules folder should be created and .pnp.js shold be created inside the root of the project.

Please mention your node.js, yarn and operating system version.
Node v8.11.3
Yarn 1.11.0-0
Windows 10 1803