Updated the files.

my-app/node_modules/@schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.spec.ts.template

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+import { TestBed } from '@angular/core/testing';
+
+import { <%= classify(name) %>Service } from './<%= dasherize(name) %>.service';
+
+describe('<%= classify(name) %>Service', () => {
+  let service: <%= classify(name) %>Service;
+
+  beforeEach(() => {
+    TestBed.configureTestingModule({});
+    service = TestBed.inject(<%= classify(name) %>Service);
+  });
+
+  it('should be created', () => {
+    expect(service).toBeTruthy();
+  });
+});

my-app/node_modules/@schematics/angular/service/files/__name@dasherize@if-flat__/__name@dasherize__.service.ts.template

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+import { Injectable } from '@angular/core';
+
+@Injectable({
+  providedIn: 'root'
+})
+export class <%= classify(name) %>Service {
+
+  constructor() { }
+}

my-app/node_modules/@schematics/angular/service/index.d.ts

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+/**
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+import { Rule } from '@angular-devkit/schematics';
+import { Schema as ServiceOptions } from './schema';
+export default function (options: ServiceOptions): Rule;

my-app/node_modules/@schematics/angular/service/index.js

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+"use strict";
+/**
+ * @license
+ * Copyright Google LLC All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+Object.defineProperty(exports, "__esModule", { value: true });
+const generate_from_files_1 = require("../utility/generate-from-files");
+function default_1(options) {
+    // This schematic uses an older method to implement the flat option
+    const flat = options.flat;
+    options.flat = true;
+    return (0, generate_from_files_1.generateFromFiles)(options, {
+        'if-flat': (s) => (flat ? '' : s),
+    });
+}
+exports.default = default_1;

my-app/node_modules/@schematics/angular/service/schema.d.ts

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+/**
+ * Creates a new, generic service definition in the given project.
+ */
+export interface Schema {
+    /**
+     * When true (the default), creates files at the top level of the project.
+     */
+    flat?: boolean;
+    /**
+     * The name of the service.
+     */
+    name: string;
+    /**
+     * The path at which to create the service, relative to the workspace root.
+     */
+    path?: string;
+    /**
+     * The name of the project.
+     */
+    project: string;
+    /**
+     * Do not create "spec.ts" test files for the new service.
+     */
+    skipTests?: boolean;
+}

my-app/node_modules/@schematics/angular/service/schema.js

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+"use strict";
+// THIS FILE IS AUTOMATICALLY GENERATED. TO UPDATE THIS FILE YOU NEED TO CHANGE THE
+// CORRESPONDING JSON SCHEMA FILE, THEN RUN devkit-admin build (or bazel build ...).
+Object.defineProperty(exports, "__esModule", { value: true });

my-app/node_modules/@schematics/angular/service/schema.json

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+{
+  "$schema": "http://json-schema.org/draft-07/schema",
+  "$id": "SchematicsAngularService",
+  "title": "Angular Service Options Schema",
+  "type": "object",
+  "additionalProperties": false,
+  "description": "Creates a new, generic service definition in the given project.",
+  "properties": {
+    "name": {
+      "type": "string",
+      "description": "The name of the service.",
+      "$default": {
+        "$source": "argv",
+        "index": 0
+      },
+      "x-prompt": "What name would you like to use for the service?"
+    },
+    "path": {
+      "type": "string",
+      "$default": {
+        "$source": "workingDirectory"
+      },
+      "description": "The path at which to create the service, relative to the workspace root.",
+      "visible": false
+    },
+    "project": {
+      "type": "string",
+      "description": "The name of the project.",
+      "$default": {
+        "$source": "projectName"
+      }
+    },
+    "flat": {
+      "type": "boolean",
+      "default": true,
+      "description": "When true (the default), creates files at the top level of the project."
+    },
+    "skipTests": {
+      "type": "boolean",
+      "description": "Do not create \"spec.ts\" test files for the new service.",
+      "default": false
+    }
+  },
+  "required": ["name", "project"]
+}