The entry point "vue" cannot be marked as external

I am using "nuxt": "^3.12.3" and "storybook": "^8.2.2", I have followed the instructions here: https://storybook.nuxtjs.org/getting-started/setup with a fresh nuxt project and when I run pnpm run storybook I get ✘ [ERROR] The entry point "vue" cannot be marked as external Does anyone know how to get storybook up and running with nuxt?