`vercel dev` not working with Gatsby project

[leerob]

1. Clone the Gatsby example locally

2. Run yarn develop to correctly see the Gatsby index route. However, the date is wrong because we're not running the function.

3. Kill the dev server and instead run vercel dev

4. With 23.1.2 (latest stable), we see NO_RESPONSE_FROM_FUNCTION displayed

Accessing the API route directly shows a 404

5. With 23.1.3-canary.72 (latest canary), it shows Cannot find module '/Users/leerob/Developer/vercel/node_modules/vercel-plugin-middleware/dist/index'. Please verify that the package.json has a valid "main" entry in the browser.

I realized this was only for Node 17 when looking at the stack trace:

Error: Cannot find module '/Users/leerob/Developer/vercel/node_modules/vercel-plugin-middleware/dist/index'. Please verify that the package.json has a valid "main" entry
    at tryPackage (node:internal/modules/cjs/loader:353:19)
    at Function.Module._findPath (node:internal/modules/cjs/loader:566:18)
    at Function.Module._resolveFilename (node:internal/modules/cjs/loader:919:27)
    at Function.resolve (node:internal/modules/cjs/helpers:108:19)
    at Object.loadCliPlugins (/Users/leerob/.nvm/versions/node/v17.1.0/lib/node_modules/vercel/dist/index.js:269839:34)
    at DevServer.runDevMiddleware (/Users/leerob/.nvm/versions/node/v17.1.0/lib/node_modules/vercel/dist/index.js:261137:46)
    at DevServer.serveProjectAsNowV2 (/Users/leerob/.nvm/versions/node/v17.1.0/lib/node_modules/vercel/dist/index.js:261205:38)
    at Server.DevServer.devServerHandler (/Users/leerob/.nvm/versions/node/v17.1.0/lib/node_modules/vercel/dist/index.js:261107:17) {
  code: 'MODULE_NOT_FOUND',
  path: '/Users/leerob/Developer/vercel/node_modules/vercel-plugin-middleware/package.json',
  requestPath: 'vercel-plugin-middleware'
}

Latest canary works with Node 16 ✅ But then latest stable throws this error...

Error: socket hang up
    at connResetException (internal/errors.js:639:14)
    at Socket.socketOnEnd (_http_client.js:499:23)
    at Socket.emit (events.js:412:35)
    at Socket.emit (domain.js:475:12)
    at endReadableNT (internal/streams/readable.js:1334:12)
    at processTicksAndRejections (internal/process/task_queues.js:82:21)

It's also important to mention this example works correctly when deployed.

[leerob]

I think this is related https://github.com/vercel/vercel/issues/7306

[gadicc]

Hey, @leerob. I think the easiest way to check if the issues are related is if you (temporarily) remove ::1 localhost from your hosts file and see if vc dev works correctly without it.