Yarn 3.1, Vite 2.9, Cannot Find Package Vite

When trying to build the app with Vite I'm seeing an error. If I understand it correctly there seems to be an issue with Yarn PnP resolving dependencies (no more node_modules), and Vite does not seem to pick up on this? How can I make Vite understand that node_modules no longer exist?

Update: Reproduced test case here: - Error seems to go away if removing "type": "module" from package.json, but that makes no sense to me yet, and creates other problems for my Node backend.

$ yarn run vite --config vite.config.js
Error [ERR_MODULE_NOT_FOUND]: Cannot find package 'vite' imported from /Users/me/project/vite.config.js
Did you mean to import vite-virtual-ec56a6c02a/0/cache/
    at new NodeError (node:internal/errors:377:5)
    at packageResolve (node:internal/modules/esm/resolve:910:9)
    ...

// vite.config.js excerpt
import { defineConfig } from 'vite';

export default defineConfig(({ command, mode }) => {
  ...
});