Nuxt 4 nightly failing on nuxt prepare command

I have followed the guide for opting in to the Nuxt nightly and using future.compatibilityVersion: 4, did this on a brand new clean project just installed with npx nuxi@latest init nuxt-app, however, after running yarn to install new packages, the nuxt prepare command fails with Cannot read properties of undefined (reading 'bind') at loadNuxt

This seems to stem from the @nuxt/kit package, specifically this line: nuxt.removeHook || (nuxt.removeHook = nuxt.clearHook.bind(nuxt));

Both nuxt.removeHook and nuxt.clearHook are undefined.

I've tried using the @nuxt/kit nightly version as well but to no avail.

Does anyone know if this is a known issue, or how to work around it? I am just getting started with Nuxt, and really wanted to start with 4 for a new project instead of 3.

(Sorry, there is no nuxt4 tag)
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