Broken since vite 2.3, but seems to be working with vite 2.2

ERROR The request url "/home/user/Code/nuxtsite/node_modules/.vite/vue.js" is outside of vite dev server root "/home/user/Code/nuxtsite/.nuxt".
For security concerns, accessing files outside of workspace root is restricted since Vite v2.3.x.
Refer to docs https://vitejs.dev/config/#server-fsserveroot for configurations and more details.

Versions

nuxt-vite: 0.0.37
nuxt: 2.15.5
vite: 2.3

Reproduction

Basic Nuxt app with versions above, should throw errors on nuxt dev

Description

Adding "vite": "~2.2.0" in package.json will temporarily fix it