NPM test issue in VSTS - node.js

Question

I have one private build agent in VSTS which I configured back in March this year, now I wanted to deploy a second one, but I'm having issue with NPM test task on the new build agent. It's using the same Agents package published by Microsoft, so I don't believe the issue should be there. I have install the same version of Node.js (6.10.1) and the same NPM version (5.10.10) on both agents, but the new one has issue where the task npm test executes in the build definition, but does not produce any result and neither is anything shown in the VSTS log files/console, it just hangs until timeout period is reached (80 minutes), or until I cancel it manually. When I run it locally on the agent it works perfectly fine, I also tried running it in the pipeline via the CMD task, not the NPM and it also works, so I know there is no issue with the server/connectivity/etc.
If someone experienced a similar issue, I would really welcome some insights into this problem, because as I've mentioned, same pipeline works on the first agent, so the configuration of the tasks, pipeline, code/folder structure cannot be the issue here.
Log file from the VSTS agent follows, manual cancel at the end after 7 minutes,
because normally it takes around 20 seconds (XXXXX is the path to project):
[2017-11-27 14:24:29Z INFO StepsRunner] Processing step: DisplayName='Execute React Unit Tests', ContinueOnError=False, Enabled=True
[2017-11-27 14:24:29Z INFO ExpressionManager] Evaluating: succeeded()
[2017-11-27 14:24:29Z INFO ExpressionManager] Expanded: True
[2017-11-27 14:24:29Z INFO ExpressionManager] Result: True
[2017-11-27 14:24:29Z INFO StepsRunner] Starting the step.
[2017-11-27 14:24:29Z INFO TaskManager] Loading task definition 'C:\VSTSAgent\_work\_tasks\Npm_fe47e961-9fa8-4106-8639-368c022d43ad\1.0.8\task.json'.
[2017-11-27 14:24:29Z INFO ExtensionManager] Getting extensions for interface: 'Microsoft.VisualStudio.Services.Agent.Worker.IJobExtension'
[2017-11-27 14:24:29Z INFO BuildJobExtension] Build JobExtension resolving path use source provide: XXXXX
[2017-11-27 14:24:29Z INFO BuildJobExtension] The Default Path Root of Build JobExtension is build.sourcesDirectory: C:\VSTSAgent\_work\7\s
[2017-11-27 14:24:29Z INFO BuildJobExtension] After prefix Default Path Root provide by JobExtension: C:\VSTSAgent\_work\7\s\XXXXX
[2017-11-27 14:24:29Z INFO BuildJobExtension] Return absolute path after prefix DefaultPathRoot: C:\VSTSAgent\_work\7\s\XXXXX
[2017-11-27 14:24:29Z INFO TaskRunner] Build JobExtension resolved a rooted path:: C:\VSTSAgent\_work\7\s\XXXXX
[2017-11-27 14:24:29Z INFO ExtensionManager] Getting extensions for interface: 'Microsoft.VisualStudio.Services.Agent.Worker.IJobExtension'
[2017-11-27 14:24:29Z INFO BuildJobExtension] Build JobExtension resolving path use source provide:
[2017-11-27 14:24:29Z INFO BuildJobExtension] The Default Path Root of Build JobExtension is build.sourcesDirectory: C:\VSTSAgent\_work\7\s
[2017-11-27 14:24:29Z INFO BuildJobExtension] After prefix Default Path Root provide by JobExtension: C:\VSTSAgent\_work\7\s
[2017-11-27 14:24:29Z INFO BuildJobExtension] Return absolute path after prefix DefaultPathRoot: C:\VSTSAgent\_work\7\s
[2017-11-27 14:24:29Z INFO TaskRunner] Build JobExtension resolved a rooted path:: C:\VSTSAgent\_work\7\s
[2017-11-27 14:24:29Z INFO NodeHandler] Inspect node_modules folder, make sure vsts-task-lib doesn't overwrite String.startsWith/endsWith.
[2017-11-27 14:24:29Z INFO NodeHandler] This task has already been scanned and corrected, no more operation needed.
[2017-11-27 14:24:29Z INFO HostContext] Well known directory 'Bin': 'C:\VSTSAgent\bin'
[2017-11-27 14:24:29Z INFO HostContext] Well known directory 'Root': 'C:\VSTSAgent'
[2017-11-27 14:24:29Z INFO HostContext] Well known directory 'Externals': 'C:\VSTSAgent\externals'
[2017-11-27 14:24:29Z INFO ProcessInvoker] Starting process:
[2017-11-27 14:24:29Z INFO ProcessInvoker] File name: 'C:\VSTSAgent\externals\node\bin\node.exe'
[2017-11-27 14:24:29Z INFO ProcessInvoker] Arguments: '"C:\VSTSAgent\_work\_tasks\Npm_fe47e961-9fa8-4106-8639-368c022d43ad\1.0.8\npm.js"'
[2017-11-27 14:24:29Z INFO ProcessInvoker] Working directory: 'C:\VSTSAgent\_work\7\s'
[2017-11-27 14:24:29Z INFO ProcessInvoker] Require exit code zero: 'True'
[2017-11-27 14:24:29Z INFO ProcessInvoker] Encoding web name: utf-8 ; code page: '65001'
[2017-11-27 14:24:29Z INFO ProcessInvoker] Force kill process on cancellation: 'False'
[2017-11-27 14:24:29Z INFO ProcessInvoker] Process started with process id 4124, waiting for process exit.
[2017-11-27 14:24:29Z INFO JobServerQueue] Try to append 1 batches web console lines, success rate: 1/1.
[2017-11-27 14:24:30Z INFO JobServerQueue] Try to upload 1 log files or attachments, success rate: 1/1.
[2017-11-27 14:24:32Z INFO JobServerQueue] Try to append 1 batches web console lines, success rate: 1/1.
[2017-11-27 14:24:33Z INFO JobServerQueue] Try to append 1 batches web console lines, success rate: 1/1.
[2017-11-27 14:24:34Z INFO JobServerQueue] Try to append 1 batches web console lines, success rate: 1/1.
[2017-11-27 14:24:34Z INFO JobServerQueue] Try to append 1 batches web console lines, success rate: 1/1.
[2017-11-27 14:31:34Z INFO Worker] Cancellation/Shutdown message received.