I fire up SQLCMD at the cmd prompt on Windows 7:
C:\>sqlcmd -S (localdb)\MSSQLLocalDB
1> :!! dir
2> go
1> quit
But I see no output on the console. Figure its a rookie mistake. What am I doing wrong?
Near as I can tell the utility just has a bug. Watching it with process explorer shows that when attempting to run a command it creates an invalid path to cmd.exe by appending "C:\WINDOWS\system32\cmd.exe" to whatever the working directory is.
So if you execute sqlcmd from C:\
it will try and run C:\"C:\WINDOWS\system32\cmd.exe"
which fails due to being a invalid path.