Turbopack does not resolve "local" linked/file dependencies.

[YeetmanLord]

Link to the code that reproduces this issue

https://github.com/YeetmanLord/NextJsError/tree/main

To Reproduce

1. Install dependencies for the mock ui-library. Then run npm run build to build the code.
2. Install dependencies for the server
3. Run the server using npm run dev which executes next dev --turbo.
4. Go to the web server's root. (In my case localhost:3000).

Error should be outputted at this point.

Current vs. Expected behavior

Turbopack is not resolving locally included dependencies. By "locally included dependency", I mean libraries that are added to a project either through a direct file inclusion (through package.json and "file:<path_to_dependency>") or through npm link <package-name>. Both methods include a link/shortcut to the relevant package.

I would assume that it is the directory link that is causing the issue.

This is the page output without tacking on --turbo to next dev (so packaged using Webpack):

Turbopack should resolve linked packages just as it would resolve packages installed into node_modules.

Provide environment information

Operating System:
  Platform: win32
  Arch: x64
  Version: Windows 10 Home
  Available memory (MB): 32666
  Available CPU cores: 16
Binaries:
  Node: 20.9.0
  npm: N/A
  Yarn: N/A
  pnpm: N/A
Relevant Packages:
  next: 14.2.3 // Latest available version is detected (14.2.3).
  eslint-config-next: N/A
  react: 18.3.1
  react-dom: 18.3.1
  typescript: 5.1.3
Next.js Config:
  output: N/A

Which area(s) are affected? (Select all that apply)

Runtime, Turbopack

Which stage(s) are affected? (Select all that apply)

next dev (local)

Additional context

As far as I can tell, this error has always been around. I tested with next versions 13.0.0, 13.5.6, 14.0.0, 14.1.0, 14.2.0, 14.2.3, and 14.3.0-canary.29.

With 14.2.3, the stacktrace outputted into console is such:

Module not found: Can't resolve 'ui-library'

> 1 | import {TestComponent} from "ui-library";
    | ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
  2 |
  3 | export default function Home() {
  4 |     return (

    at processIssues (node_modules\next\dist\server\dev\turbopack-utils.js:229:15)
    at handleRouteType (node_modules\next\dist\server\dev\turbopack-utils.js:386:17)
    at async Object.ensurePage (node_modules\next\dist\server\dev\hot-reloader-turbopack.js:644:17)
    at async DevBundlerService.ensurePage (node_modules\next\dist\server\lib\dev-bundler-service.js:18:20)
    at async DevServer.ensurePage (node_modules\next\dist\server\dev\next-dev-server.js:551:9)
    at async Object.ensure (node_modules\next\dist\server\dev\next-dev-server.js:169:17)
    at async DevRouteMatcherManager.matchAll (node_modules\next\dist\server\future\route-matcher-managers\dev-route-matcher-manager.js:96:13)
    at async DevRouteMatcherManager.match (node_modules\next\dist\server\future\route-matcher-managers\default-route-matcher-manager.js:155:26)
    at async NextNodeServer.handleCatchallRenderRequest (node_modules\next\dist\server\next-server.js:228:31)
    at async DevServer.handleRequestImpl (node_modules\next\dist\server\base-server.js:816:17)
    at async node_modules\next\dist\server\dev\next-dev-server.js:339:20
    at async Span.traceAsyncFn (node_modules\next\dist\trace\trace.js:154:20)
    at async DevServer.handleRequest (node_modules\next\dist\server\dev\next-dev-server.js:336:24)
    at async invokeRender (node_modules\next\dist\server\lib\router-server.js:174:21)
    at async handleRequest (node_modules\next\dist\server\lib\router-server.js:353:24)
    at async requestHandlerImpl (node_modules\next\dist\server\lib\router-server.js:377:13)
    at async Server.requestListener (node_modules\next\dist\server\lib\start-server.js:141:13)

 ✓ Compiled /_error in 460ms
 GET / 500 in 1508ms

_PACK-3026