Can not get vercel dev working on localhost with pnpm v10+

I'm using vercel cli v42.1.1 on a windows 11 OS.
// package.json
{
  "name": "hono-open-api-starter",
  "type": "module",
  "version": "1.0.0",
  "packageManager": "pnpm@10.5.2+sha512.da9dc28cd3ff40d0592188235ab25d3202add8a207afbedc682220e4a0029ffbff4562102b9e6e46b4e3f9e8bd53e6d05de48544b0c57d4b0179e22c76d1199b",
  "scripts": {
    "dev": "tsx watch src/index.ts",
    "vercel:dev": "pnpm run build && vercel dev",
    "start": "node ./dist/src/index.js",
    "typecheck": "tsc --noEmit",
    "lint": "eslint .",
    "lint:fix": "pnpm run lint --fix",
    "test": "cross-env NODE_ENV=test vitest",
    "build": "tsc && tsc-alias"
  },
  "dependencies": {
    "@hono/node-server": "^1.13.1",
    "@hono/zod-openapi": "^0.19.6",
    "@libsql/client": "^0.15.7",
    "@scalar/hono-api-reference": "^0.9.1",
    "dotenv": "^16.4.5",
    "dotenv-expand": "^12.0.2",
    "drizzle-orm": "^0.43.1",
    "drizzle-zod": "^0.8.2",
    "hono": "^4.6.3",
    "hono-pino": "^0.8.0",
    "pino": "^9.4.0",
    "pino-pretty": "^13.0.0",
    "postgres": "^3.4.7",
    "stoker": "^1.0.9",
    "zod": "^3.23.8"
  },
  "devDependencies": {
    "@antfu/eslint-config": "^4.13.2",
    "@types/node": "^22.7.4",
    "cross-env": "^7.0.3",
    "drizzle-kit": "^0.31.1",
    "eslint": "^9.12.0",
    "eslint-plugin-format": "^1.0.1",
    "tsc-alias": "^1.8.10",
    "tsx": "^4.19.1",
    "typescript": "^5.6.2",
    "vercel": "^42.1.1",
    "vitest": "^3.1.4"
  },
  "pnpm": {
    "onlyBuiltDependencies": [
      "esbuild",
      "unrs-resolver"
    ]
  }
}

error link: https://github.com/vercel/vercel/blob/main/errors/now-static-build-failed-to-detect-a-server.md
I was following this guide https://www.youtube.com/watch?v=QDgdUtd6ZRs&t=881s

The deployed code runs live here: https://vedge-rust.vercel.app/
I've tried AI, googling and guessing stuffs too for 2 days. Any help would be much appreciated.
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GitHub
Develop. Preview. Ship. Contribute to vercel/vercel development by creating an account on GitHub.
YouTubeSyntax
In this video CJ shows how to deploy a hono API to several platforms including render.com, fly.io, vercel and cloudflare workers. He shows things you should consider for the typescript build settings and also shows how to connect to a sqlite db deployed to turso.

View the hono starter template here: https://github.com/w3cj/hono-open-api-starter...
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