Imported modules from monorepo does not trigger hot reload

[smtrd3]

I have the following following webpack config

const path = require('path');
const ReactRefreshPlugin = require('@pmmmwh/react-refresh-webpack-plugin');
const HtmlWebpackPlugin = require('html-webpack-plugin');
const webpack = require('webpack');

// Current working directory
const BASE_PATH = process.cwd();

// Get path relative to current working directory
const getPath = _path => path.join(BASE_PATH, _path);

const isDevelopment = process.env.NODE_ENV !== 'production';

module.exports = {
  mode: isDevelopment ? 'development' : 'production',
  entry: {
    main: [
      `${require.resolve('webpack-hot-middleware/client')}?path=http://localhost:3000/__webpack_hmr`,
      './src/index.js'
    ],
  },
  target: 'web',
  output: {
    filename: 'bundle.js',
    path: path.resolve(__dirname, 'dist'),
    publicPath: '/',
  },
  devtool: 'cheap-module-source-map',
  module: {
    rules: [
      {
        test: /\.(j|t)sx?$/,
        include: modulePath => {
          return modulePath.includes(getPath('..')) || modulePath.includes(getPath('./src'))
        },
        use: {
          loader: require.resolve('babel-loader'),
          options: {
            presets: [
              require.resolve('@babel/preset-react'),
              [
                require.resolve('@babel/preset-env'), { targets: "defaults" },
              ],
              require.resolve('@babel/preset-typescript'),
            ],
            plugins: [
              require.resolve('react-refresh/babel'),
            ],
          }
        }
      }
    ]
  },
  plugins: [
    new webpack.HotModuleReplacementPlugin(),
    new ReactRefreshPlugin({
        overlay: false,
    }),
    new HtmlWebpackPlugin({
      template: './index.html',
    }),
  ],
  resolve: {
    alias: {
      '@project': getPath('..')
    },
    modules: ['node_modules', getPath('../../node_modules')],
    extensions: ['.js', '.jsx', '.ts', '.tsx'],
  },
};

I am using the above config from a cli script hence the use of cwd. The issue I am facing is whenever I make changes to module other than the currently compiled module, fast refreshing does not work. Following is the log from browser

client.js:95 [HMR] connected
client.js:250 [HMR] bundle rebuilt in 114ms
client.js:241 [HMR] bundle rebuilding
client.js:250 [HMR] bundle rebuilt in 208ms
process-update.js:51 [HMR] Checking for updates on the server...
process-update.js:125 [HMR] Updated modules:
process-update.js:127 [HMR]  - ../library/lib.ts
process-update.js:132 [HMR] App is up to date.
client.js:250 [HMR] bundle rebuilt in 208ms

As can be seen above, the changes are detected but the components remain unchanged. The modules loaded from current working directory works as expected.

[pmmmwh]

Can you provide me a reproducible example? If you output the development Webpack bundle to disk, do you see the injected runtime code from this plugin in your monorepo imports? (It would be some react-refresh variables, etc.)

[pmmmwh]

Using the latest RC this is no-longer an issue.