Using nuxt-img with local images and they dont seem to work when the pages are prerendered. They throw a 404 error.

The images are displayed locally in dev environment.

Reproduction - https://github.com/fayazara/nuxt-image-issue-reproduction

Deployed on Vercel - https://nuxt-image-issue-reproduction.vercel.app/
Deployed on Netlify - https://wondrous-medovik-574c06.netlify.app/

A remote image URL work btw. Happens only with local static images.

Build command was set to yarn generate