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Thanks for the patch Meador, I hadn’t realized we had no tests for py_compile (it is however used in test_import and test_compileall). I think it would be nice to commit the tests first (except for the one that’s the object of this bug report) in order to have a baseline, and then see about fixing this bug. I’ll do that in a few days if nobody objects.
I’m not sure there would be no negative side-effects to using os.path.abspath; we don’t know what people do with symlinks and relative paths out there, so I’d prefer adding a safe special case* rather than always calling abspath. What do you think?
* Instead of using len, something like this would be clear IMO:
 if parent: # empty string means current directory, skip creating the dir
 os.makedirs(parent)