Vite renderToReadableStream error after upgrading cli-hydrogen from 7 to 8.0.4

[belazaras]

What is the location of your example repository?

No response

Which package or tool is having this issue?

CLI

What version of that package or tool are you using?

8.0.4

What version of Remix are you using?

2

Steps to Reproduce

just launch shopify hydrogen dev and navigate to localhost.

Expected Behavior

it should just work.

Actual Behavior

tried many things and didn't work, included what's suggested in the image. also compared to a new install but can't figure what old code might be breaking it, or which packages might be incompatible.