Instrumented tests stuck on "Instantiating tests..." after androidx.test library update

I noticed that after I updated my test libraries from:

androidx.test:runner:1.2.0
androidx.test:rules:1.2.0

to

androidx.test:runner:1.3.0
androidx.test:rules:1.3.0

my instrumented tests got stuck on "Instantiating tests..." and eventually fail. Everything works fine when I use 1.2.0.

So, is this a bug in a library version or am I missing something with this update?