Related issue: nuxt/framework#8199
nuxt/framework#7726 includes workspaceDir in tsconfig include. In the context of a monorepo that isn't solely Nuxt oriented, vue-tsc expands to the entire repo subsequently reporting issues from unrelated project paths. In larger monorepos, this can be a significant performance hit particularly where pipelines are run in parallel.
pnpm install && pnpm startObserve typecheck fails in app/nuxt1 but passes in app/nuxt2.