Environment

System: macOS 12.1
nuxt3: 3.0.0-27365509.a2e2e04
yarn: 3.1.1
node: 16.13.0

Reproduction

https://codesandbox.io/embed/github/nuxt/starter/tree/v3-codesandbox/?fontsize=14&hidenavigation=1&theme=dark

Describe the bug

getting error as shown below:

Additional context

No response

Logs

No response