ERROR Cannot start nuxt: Cannot read properties of undefined (reading 'nuxt')

This error shows after installing the package from npm,

Nuxt version : 3.7.3 Node version : v18.17.1

ERROR  (node:6688) Warning: To load an ES module, set "type": "module" in the package.json or use the .mjs extension.                  3:05:45 PM  
(Use node --trace-warnings ... to show where the warning was created)


 ERROR  Cannot start nuxt:  Cannot read properties of undefined (reading 'nuxt')                                                        3:05:45 PM  

  at dynamicModule (C:/~~/node_modules/@blokwise/dynamic/src/module.js:8:8)
  at installModule (/C:/~~/node_modules/@nuxt/kit/dist/index.mjs:2426:101)
  at async initNuxt (/C:/~~/node_modules/nuxt/dist/index.mjs:3563:7)
  at async NuxtDevServer._load (/C:/~~/node_modules/nuxi/dist/chunks/dev2.mjs:255:5)
  at async NuxtDevServer.load (/C:/~~/node_modules/nuxi/dist/chunks/dev2.mjs:187:7)
  at async NuxtDevServer.init (/C:/~~/node_modules/nuxi/dist/chunks/dev2.mjs:182:5)
  at async Object.run (/C:/~~/node_modules/nuxi/dist/chunks/dev-child.mjs:103:5)
  at async runCommand$1 (/C:/~~/node_modules/nuxi/dist/shared/nuxi.9d864d83.mjs:1647:7)
  at async runCommand$1 (/C:/~~/node_modules/nuxi/dist/shared/nuxi.9d864d83.mjs:1638:11)        
  at async runMain$1 (/C:/~~/node_modules/nuxi/dist/shared/nuxi.9d864d83.mjs:1770:7)