Nitro useStorage: delivering Brotli encoded JSON data fails in local development

GET http://localhost:3000/api/character-parts-female net::ERR_CONTENT_DECODING_FAILED 200 (OK)

export default defineEventHandler(async (event) => {
  const metadata = await useStorage<{ hash: string }>('assets:server').getItem(
    `character-parts-female-metadata.json`,
  )
  if (!metadata)
    return new Response('Failed to get metadata', { status: 500 })

  const ifNoneMatch = getRequestHeader(event, 'if-none-match')

  if (ifNoneMatch === metadata.hash) {
    setResponseStatus(event, 304)
    return null
  }

  const characterParts = await useStorage<string>('assets:server').getItemRaw(
    `character-parts-female.json.br`,
  )
  if (!characterParts)
    return new Response('Failed to get character parts', { status: 500 })

  setHeaders(event, {
    'Content-Type': 'application/json',
    'Content-Encoding': 'br',
    'ETag': metadata.hash,
    'Cache-Control': 'no-cache',
  })

  return characterParts
})