I've created a custom Input component for the form according to how it is explained in the Vue documentation when using v-model 💟🔗

Input.vue component

<template>
    <div class="mb-6">
        <label class="block mb-2 uppercase font-bold text-xs text-gray-700" :for="name">
            <slot />
        </label>

        <input
        	:value="value"
        	@input="$emit('update:value', $event.target.value)"
        	:id="name"
        	:name="name"
        	:type="type"
        	class="border border-gray-700 rounded-lg p-2 w-full md:w-1/2"
        	required
        >
    </div>
</template>

<script setup>
defineProps({
    value: String,
    type: String,
    name: String,
});

defineEmits(['update:value']);
</script>

Import and use component in Users/Create.vue

<template>
    <Head title="Create User" />

    <h1 class="text-3xl">Create New User</h1>

    <form @submit.prevent="submit" class="mt-8">
        <Input v-model:value="form.name" name="name" type="text">
            Name
        </Input>

        <Input v-model:value="form.email" name="email" type="email">
            Email
        </Input>

        <Input v-model:value="form.password" name="password" type="password">
            Password
        </Input>

        <div class="mb-6">
            <button class="bg-black text-white rounded-lg py-2 px-4" type="submit">
                Submit
            </button>
        </div>
    </form>
</template>

<script setup>
import { reactive } from 'vue';
import { router } from '@inertiajs/vue3';
import Input from '../../Shared/Input.vue';

let form = reactive({
    name: '',
    email: '',
    password: ''
});

let submit = () => {
    router.post('/users', form);
};
</script>

Inertia Forms 101