TypeScript cannot find declaration file

[dhruvkb]

When @nuxt/[email protected] is used with [email protected], the follow error is raised.

node_modules/iles/dist/client/app/utils.ts:2:38 - error TS7016: Could not find a declaration file for module '@nuxt/devalue'. '<path_to_project>/node_modules/@nuxt/devalue/dist/devalue.mjs' implicitly has an 'any' type.
  There are types at '<path_to_project>/node_modules/@nuxt/devalue/dist/index.d.ts', but this result could not be resolved when respecting package.json "exports". The '@nuxt/devalue' library may need to update its package.json or typings.

The problem and potential solutions to it are discussed in this issue https://github.com/microsoft/TypeScript/issues/52363.