Run npm exec nuxi typecheck here: https://stackblitz.com/edit/github-dnls7g?file=server%2Futils%2Futil.ts

You'll see an error because a nuxt util has the same name as a server util but a different signature. I'd expect no error to be thrown as no error is shown to me in both files which make use of their respective utils.

I see that .nuxt/tsconfig.json does not exclude the server directory and that .nuxt/tsconfig.server.json does include ../**/* by default. Is that meant to be this way? I'd expect tsconfig.json to exclude server and tsconfig.server.json to only include server and not the rest.

Alternatively, there should be an error shown in vscode matching the one given by the typecheck, in case the typecheck error is correct.