When running as non-root, puppet should create its directories under ~/.puppetlabs instead of ~/.puppet.
Previously, puppet's confdir was ~/.puppet, and since it's a setting, puppet would create it when first run. In the move to AIO, the confdir will be ~/.puppetlabs/puppet and it will need to create the intermediate directories.
severity: medium (confusing to user, possible bugs)
probability: medium (only non-root users)
test layer: acceptance