diff --git a/patches/@nuxt__test-utils.patch b/patches/@nuxt__test-utils.patch
new file mode 100644
index 0000000..5ec2894
--- /dev/null
+++ b/patches/@nuxt__test-utils.patch
@@ -0,0 +1,13 @@
+diff --git a/dist/config.mjs b/dist/config.mjs
+index 41a73e237a7ecd0c63985421737f3cf0782391ee..ddc205b22b6912a8770bb9a93dff7abc0f503d29 100644
+--- a/dist/config.mjs
++++ b/dist/config.mjs
+@@ -33,7 +33,7 @@ async function startNuxtAndGetViteConfig(rootDir = process.cwd(), options = {})
+   const { buildNuxt, loadNuxt } = await loadKit(rootDir);
+   const nuxt = await loadNuxt({
+     cwd: rootDir,
+-    dev: false,
++    dev: options.overrides?.dev ?? false,
+     dotenv: defu(options.dotenv, {
+       cwd: rootDir,
+       fileName: ".env.test"
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 228beb8..2d32965 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -4,6 +4,11 @@ settings:
   autoInstallPeers: true
   excludeLinksFromLockfile: false
 
+patchedDependencies:
+  '@nuxt/test-utils':
+    hash: abfabc04cc9721302d89e9685cecb5ec99642e39ba5020af5f572e1cd2ec579c
+    path: patches/@nuxt__test-utils.patch
+
 importers:
 
   .:
@@ -74,7 +79,7 @@ importers:
         version: 4.3.1
       '@nuxt/test-utils':
         specifier: ^4.0.0
-        version: 4.0.0(@vue/test-utils@2.4.6)(happy-dom@20.7.0)(magicast@0.5.2)(typescript@5.9.3)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))(vitest@4.0.18(@types/node@24.10.13)(happy-dom@20.7.0)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))
+        version: 4.0.0(patch_hash=abfabc04cc9721302d89e9685cecb5ec99642e39ba5020af5f572e1cd2ec579c)(@vue/test-utils@2.4.6)(happy-dom@20.7.0)(magicast@0.5.2)(typescript@5.9.3)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))(vitest@4.0.18(@types/node@24.10.13)(happy-dom@20.7.0)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))
       '@shikijs/transformers':
         specifier: ^3.22.0
         version: 3.23.0
@@ -6635,7 +6640,7 @@ snapshots:
       rc9: 3.0.0
       std-env: 3.10.0
 
-  '@nuxt/test-utils@4.0.0(@vue/test-utils@2.4.6)(happy-dom@20.7.0)(magicast@0.5.2)(typescript@5.9.3)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))(vitest@4.0.18(@types/node@24.10.13)(happy-dom@20.7.0)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))':
+  '@nuxt/test-utils@4.0.0(patch_hash=abfabc04cc9721302d89e9685cecb5ec99642e39ba5020af5f572e1cd2ec579c)(@vue/test-utils@2.4.6)(happy-dom@20.7.0)(magicast@0.5.2)(typescript@5.9.3)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))(vitest@4.0.18(@types/node@24.10.13)(happy-dom@20.7.0)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))':
     dependencies:
       '@clack/prompts': 1.0.0
       '@nuxt/devtools-kit': 2.7.0(magicast@0.5.2)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))
@@ -11280,7 +11285,7 @@ snapshots:
 
   vitest-environment-nuxt@1.0.1(@vue/test-utils@2.4.6)(happy-dom@20.7.0)(magicast@0.5.2)(typescript@5.9.3)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))(vitest@4.0.18(@types/node@24.10.13)(happy-dom@20.7.0)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2)):
     dependencies:
-      '@nuxt/test-utils': 4.0.0(@vue/test-utils@2.4.6)(happy-dom@20.7.0)(magicast@0.5.2)(typescript@5.9.3)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))(vitest@4.0.18(@types/node@24.10.13)(happy-dom@20.7.0)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))
+      '@nuxt/test-utils': 4.0.0(patch_hash=abfabc04cc9721302d89e9685cecb5ec99642e39ba5020af5f572e1cd2ec579c)(@vue/test-utils@2.4.6)(happy-dom@20.7.0)(magicast@0.5.2)(typescript@5.9.3)(vite@7.3.1(@types/node@24.10.13)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))(vitest@4.0.18(@types/node@24.10.13)(happy-dom@20.7.0)(jiti@2.6.1)(sass-embedded@1.97.3)(sass@1.97.3)(terser@5.46.0)(yaml@2.8.2))
     transitivePeerDependencies:
       - '@cucumber/cucumber'
       - '@jest/globals'
diff --git a/pnpm-workspace.yaml b/pnpm-workspace.yaml
index 0f80470..69b5458 100644
--- a/pnpm-workspace.yaml
+++ b/pnpm-workspace.yaml
@@ -2,3 +2,6 @@ ignoredBuiltDependencies:
   - '@parcel/watcher'
   - esbuild
   - unrs-resolver
+
+patchedDependencies:
+  '@nuxt/test-utils': patches/@nuxt__test-utils.patch
diff --git a/src/plugins/hydration.ts b/src/plugins/hydration.ts
index 07332e7..203f31b 100644
--- a/src/plugins/hydration.ts
+++ b/src/plugins/hydration.ts
@@ -6,7 +6,7 @@ import { createUnplugin } from 'unplugin'
 import { distDir } from '../dirs'
 
 const INCLUDE_VUE_RE = /\.vue$/
-const EXCLUDE_NODE_MODULES = /node_modules/
+const EXCLUDE_NODE_MODULES = /node_modules|dist/
 const DEFINE_COMPONENT_RE = /defineComponent/
 const DEFINE_NUXT_COMPONENT_RE = /defineNuxtComponent/
 const skipPath = normalizePath(resolve(distDir, 'runtime/hydration/component.ts'))
diff --git a/test/fixtures/basic/nuxt.config.ts b/test/fixtures/basic/nuxt.config.ts
index ed0c53f..1f3a65b 100644
--- a/test/fixtures/basic/nuxt.config.ts
+++ b/test/fixtures/basic/nuxt.config.ts
@@ -4,4 +4,7 @@ export default defineNuxtConfig({
   modules: [
     MyModule,
   ],
+  experimental: {
+    appManifest: false,
+  },
 })
diff --git a/vitest.runtime.config.ts b/vitest.runtime.config.ts
index dc66713..b82dfaa 100644
--- a/vitest.runtime.config.ts
+++ b/vitest.runtime.config.ts
@@ -11,6 +11,9 @@ export default defineVitestProject({
     environmentOptions: {
       nuxt: {
         rootDir: fileURLToPath(new URL('./test/fixtures/basic', import.meta.url)),
+        overrides: {
+          dev: true,
+        },
       },
     },
   },