Nuxt vitest does not run any tests at all

I have a new nuxt 3 project and when I tried to add to test modes to my package.json

Vitest errors out when using mountSuspended with a component that also uses useNuxtApp

I have a simple Nuxt 3 layout component that I want to test in Vitest:

Vitest errors out when using mountSuspended with a component that also uses useNuxtApp

I have a simple Nuxt 3 layout component that I want to test in Vitest: