Running nextest on nightly errors with unknown package ID

[YaronWittenstein]

nightly version: v1.77.0-nightly

How to reproduce the bug?

cargo +nightly nextest run --no-fail-fast --workspace --release

Errors with

Error: 
   0: error querying package graph
   1: unknown package ID: PRIVATE_PACKAGE_NAME

However, running the same command on Stable Rust works perfectly well:
cargo +stable nextest run --no-fail-fast --workspace --release

It seems that the error has nothing to do with the test running themselves.
I get the same error message when doing: cargo +nightly nextest list (while cargo +stable nextest list works)

[sunshowers]

You may have to update your nightly -- please see #1232.

[sunshowers]

Going to close this -- please reopen if you still run into this afterwards. Thanks.