Typescript compiler can t find node with yarn - Cannot find type definition file for node

Question

I have @types/node installed. I'm using Yarn 2 (PnP). Seems like Typescript can't find the @types/node package?

Running yarn build with the build script being webpack shows errors about cannot resolving modules (path, buffer etc)

Running tsc shows TS2688: Cannot find type definition file for 'node'.

Running 'ts-node' however does work properly.

My tsconfig.json is below:

{
  "compilerOptions": {
    "outDir": "./dist",
    "rootDir": "./src",
    "module": "commonjs",
    "target": "es6",
    "jsx": "react",
    "allowJs": true,
    "moduleResolution": "node",
    "esModuleInterop": true,
    "lib": [
      "ES2020",
      "DOM"
    ],
    "types": ["node"]
  },
  "include": [
    "src/**/*"
  ]
}

My webpack.config.js

module.exports = {
  mode: "development",
  devtool: "inline-source-map",
  entry: "./src/server.ts",
  output: {
    filename: "bundle.js"
  },
  resolve: {
    extensions: [".tsx", ".ts", ".js"]
  },
  module: {
    rules: [
      {
        test: /\.tsx?$/,
        use: [{
          loader: 'ts-loader',
          options: {
            transpileOnly: true,
            experimentalWatchApi: true,
            onlyCompileBundledFiles: true,
          },
        }],
        exclude: /node_modules/,
      }
    ]
  }
};