I’ve figured out what was happening and how to fix it: ESBuild not allowing import of Phoenix and LiveView suite in the app.js file · Issue #5491 · phoenixframework/phoenix · GitHub
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This saved me ton of time today!
I removed ~/.pnp.cjs
and it works!!
Sorry for the late reply.
It was actually linked to Yarn as you suspected from the beginning.
Thanks for your feedback. I have added a comment on Github and closed the ticket.