Add option to install file: protocol dependencies using symlink about pnpm HOT 3 CLOSED

This won't work. Node.js resolves symlinks to their real locations, so peer dependencies will resolved from the same place. It doesn't matter what packages will be in the node_modules near the symlinks, node.js will ignore that node_modules during resolution.

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That makes sense, glad I didn't start working on that before your reply! So the hard linking is required for peer dependnecies to be resolved properly.
I think the description on the pnpm website is a tad misleading:

you can modify the source code of the linked package, and the changes will be reflected in your project

Might be helpful to mention that transpiled code / newly added files will not be updated until re-running pnpm install

For others reading this in the future, an alternative solution I considered was some kind of watcher in the consuming service that listens for file changes directly in the linked package directory, and re-applies the hard link each time a change is detected.

It sounds like running install each time we make a change is our best bet, so happy to close this.

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A bit more paper trail, I've been trying bun with workspaces, and it's worked pretty well so far. I can compile my code in a workspace-linked package and the changes are immediately visible in consuming packages.
I wasn't able to get the same behaviour in pnpm because the .pnpm store seemed to be installing a singleton package in two different locations (the hash at the end was different), even though all of the packages in the peerDependency descriptor inside node_modules were exactly the same.

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