Bug: Compiler can't resolve relative .js paths in a workspace package

[ankhzet]

With a pnpm workspace structure:

packages/
    a/
        index.ts: `import { c } from 'b'`
    b/
        index.ts: `export * from './c.js'`
        c.ts: `export const c = 1;`

it seems compiler struggles with resolving relative .js:
cannot embed npm package code: package 'b' cannot resolve './c.js' from xyz/packages/b/index.ts (dependency chain: b)

export * from './c' also fails, but export * from './c.ts' works. Local imports of .ts sources via '.js' extension also work fine.

I guess. the problem is that compiler treats all external packages as compiled npm dists, even if it's a symlinked local workspace package.