Module dependencies across two different packages in dev vs build -- Module not found error

[sb2nov]

Summary

I've a monorepo with the following structure

packages/a/package.json

  "name": "ui",
  "type": "module",
  "exports": {
    ".": {
      "require": "./dist/index.cjs",
      "import": "./dist/index.mjs"
    },
    "./theme": "./dist/ui.css"
  },
  "main": "dist/index.cjs",
  "module": "dist/index.mjs",
  "scripts": {
    "build": "tsc && vite build",
    "dev": "vite build --watch",
  }

packages/web/package.json

  "name": "web",
  "scripts": {
    "build": "next build",
    "dev": "node server.ts" --- note this is a custom nextjs server 
  },
 "dependencies": {
... 
"ui": "*",
...
}

turbo run build basically builds the ui package before web and works just fine.
turbo run dev would give me Module not found: Can't resolve 'ui'

Any advice on how to make this work ?

Additional information

Here is the turbo.json

{
    "$schema": "https://turbo.build/schema.json",
    "pipeline": {
        "build": {
          "dependsOn": ["^build"],
          "outputs": [".next/**", "!.next/cache/**"]
        },
        "dev": {
          "cache": false,
          "persistent": true
        }
      }
}

and the root package.json

{
...
  "workspaces": [
    "packages/*"
  ],
}