Vite + Valet + Tailwind not working with HMR

When running yarn dev the app.css is not processed and Tailwind classes are not being recognised, even though it's a completely new project.

yarn build on the other hand build the stylesheet file properly

• Vite Plugin Version: 0.8.1
• Laravel Version: 10.25.1
• Node Version: 17.9.1
• NPM Version: 8.11.0
• OS: macOS 13.3.1 (22E261)

Steps To Reproduce

1. Create a new laravel project laravel new project
2. Link project with Valet valet link project
3. Install Tailwind according to https://tailwindcss.com/docs/guides/laravel
4. Remove default <style></style> from welcome.blade.php
5. Run yarn dev
6. Visit project.test