If I supply number of processes to tests.py every KnownFailure become an error (with --processes=0 all is ok)
Here is the log tests.txt
>python -c "import platform; print(platform.platform())"
Windows-7-6.1.7601-SP2
>python -c "import sys; print(sys.version)"
2.7.12 |Continuum Analytics, Inc.| (default, Jun 29 2016, 11:07:13) [MSC v.1500 64 bit (AMD64)]
>pip freeze | grep nose
nose==1.3.7