"No wrangler.toml file found" error in mono repo setup

We have a mono repo and have configured a pages project with a root directory pointing to the application. The build command works and the dist folder is read from that root. However, in the build log we see No wrangler.toml file found , but the file is definitely there (and it works fine i dev).

Could it be a bug that the root directory is not honoured when looking for the
wrangler.toml
file?
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