Spurious Internal server error: Unexpected token in vite dev only on vue 3.2.35+

[jbg]

If we update to vue 3.2.35 or later, vite (dev server) fails with errors like this. The component is different every time, and the unexpected token is usually pointing to the middle of a word or a space. I think the position (1:89) is pointing to a position in generated code, rather than the file indicated.

[vite] Internal server error: Unexpected token (1:89)
  Plugin: vite:vue
  File: [...]
  1  |  <script setup lang="ts">
  2  |  import { computed, ref } from "vue";
  3  |  import { useApiFetch } from "@/api";
     |                             ^
      at instantiate (.../node_modules/@babel/parser/lib/index.js:72:32)
      at constructor (.../node_modules/@babel/parser/lib/index.js:358:12)
      at Object.raise (.../node_modules/@babel/parser/lib/index.js:3341:19)
      at Object.unexpected (.../node_modules/@babel/parser/lib/index.js:3379:16)
      at Object.getExpression (.../node_modules/@babel/parser/lib/index.js:12234:12)
      at Object.getExpression (.../node_modules/@babel/parser/lib/index.js:11164:18)
      at Object.parseExpression (.../node_modules/@babel/parser/lib/index.js:16575:17)
      at processExp (.../node_modules/@vue/compiler-sfc/dist/compiler-sfc.cjs.js:4979:30)
      at Array.CompilerDOM.transform.nodeTransforms (.../node_modules/@vue/compiler-sfc/dist/compiler-sfc.cjs.js:4949:45)
      at traverseNode (.../node_modules/@vue/compiler-core/dist/compiler-core.cjs.js:2162:41)

vite build works without any problem. Downgrading back to vue 3.2.34 resolves the issue too.

I want to file a bug report, but it insists on a minimal reproduction and despite spending some time on this, I haven't been able to find one.