Setting PYTHONDONTWRITEBYTECODE doesn't seem to have an effect in Python 3.7.0a2:

    $ python -V
    Python 3.7.0a2
    $ env PYTHONDONTWRITEBYTECODE=1 python -c 'import sys; print(sys.dont_write_bytecode)'
    False

Looks like PYTHONOPTIMIZE has no effect either:

    $ python -V
    Python 3.7.0a2
    $ env PYTHONOPTIMIZE=1 python -c 'import sys; print(sys.flags.optimize)'
    0

It seems 1abcf67[1] is the first bad commit.

[1]https://github.com/python/cpython/commit/1abcf6700b4da6207fe859de40c6c1bada6b4fec

Huh, it appears the tests for these features are relying solely on the command line options, and not checking that the environment variables are also setting the flags properly. We should be able to account for that omission with a single new test in `test_cmd_line` that sets every relevant environment variable and checks for the expected `sys.flags` contents.

As far as what's actually going wrong goes, it's this sequence of events in Py_Main:

    _Py_InitializeCore(&core_config);
    ... other code ...
    apply_command_line_and_environment(&cmdline);

_Py_InitializeCore is setting the internal flags appropriately based on the runtime environment, but then Py_Main is stomping over those environmental settings with the settings from the command line.

Historically, these operations happened the other way around, so it was solely up to the code reading the environment variables to ensure they played nice with each other. Now the command line processing logic needs to be updated to also ensure that it only ever increases these values and never reduces them.

New changeset d7ac06126db86f76ba92cbca4cb702852a321f78 by Nick Coghlan in branch 'master':
bpo-31845: Fix reading flags from environment (GH-4105)
https://github.com/python/cpython/commit/d7ac06126db86f76ba92cbca4cb702852a321f78

We could still use some more comprehensive test cases for the env var handling and the way that interacts with the command line settings, but the merged PR includes at least a rudimentary check for the four that directly affect sys.flags without any tricky side effects (PYTHONDEBUG, PYTHONVERBOSE, PYTHONOPTIMIZE, PYTHONDONTWRITEBYTECODE).

Cross-linking to the work-in-progress RFE that introduced the error: https://bugs.python.org/issue22257

New changeset 1b46131ae423f43d45947bb48844cf82f6fd82b8 by Nick Coghlan in branch 'master':
bpo-22257: Mention startup refactoring in What's New (GH-4286)
https://github.com/python/cpython/commit/1b46131ae423f43d45947bb48844cf82f6fd82b8