Vite is NOT watching local linked dependency included in rollup external

[torquelab]

I have a vue application which is having dependency on two local dependencies - lib-a and lib-c. lib-a is also having dependency on lib-c. So the dependency graph look as follows -

vue application 
  lib-a
    lib-c
  lib-c

We are using vite lib mode for building both lib-a and lib-c but none of these are having any vue components. We are also using local linking for both the libs in package.json files of both vue and lib-a projects. All three projects have their dedicated git repos.

As lib-c will always be included in vue application, I have specified lib-c under rollupOptions.external of lib-a to exclude it from the build of lib-a.

Now the problem which I am facing is that no matter what settings I use for build.watch and rollupOptions.watch options in the vite.config.js file of lib-a, vite is simply not watching local linked dependency lib-c when some code is changed in it and when yarn build --watch command is running on lib-a. Is this a limitation of vite/rollup or am I missing something? If it is a limitation, is it possible to achieve this using some vite plugin? Also if this is a limitation then what is the reason behind this behavior because, IMO, a local linked dependency should always be watched irrespective of it being marked as external or not?