Fly launch is not detecting a nuxt app

Tried fly.io tonight and it looks like it’s not detecting my nuxt app.

{
  "name": "nuxt-app",
  "private": true,
  "type": "module",
  "scripts": {
    "build": "nuxt build",
    "dev": "nuxt dev",
    "generate": "nuxt generate",
    "preview": "nuxt preview",
    "postinstall": "nuxt prepare"
  },
  "devDependencies": {
    "@flydotio/dockerfile": "^0.4.10",
    "@nuxt/devtools": "latest",
    "vue": "^3.3.8",
    "vue-router": "^4.2.5"
  },
  "dependencies": {
    "@nuxtjs/i18n": "^8.0.0-rc.5",
    "nuxt": "^3.8.1",
    "@nuxtjs/google-fonts": "^3.0.2",
    "@nuxtjs/tailwindcss": "^6.9.5",
    "nuxt-icon": "^0.6.6"
  }
}
$ fly launch
Scanning source code
Detected a NodeJS app
Creating app in /home/lilja/code/gantt-experiment/nuxt-app
We're about to launch your NodeJS app on Fly.io. Here's what you're getting:

Organization: Lilja                 (fly launch defaults to the personal org)
Name:         nuxt-app-wispy-sunset-1916 (derived from your directory name)
Region:       Amsterdam, Netherlands     (this is the fastest region for you)
App Machines: shared-cpu-1x, 1GB RAM     (most apps need about 1GB of RAM)
Postgres:     <none>                     (not requested)
Redis:        <none>                     (not requested)

Moreover, I tried to deploy it as is and then stumbled upon this issue, moved my nuxt dependencies into the dependencies section and deployed it.
Then I started seeing these logs on the machines:

 $ fly logs -a nuxt-app

Waiting for logs...

2023-11-16T21:47:43.899 app[90806994b229e8] arn [info] [ 0.043514] PCI: Fatal: No config space access function found

2023-11-16T21:47:44.134 app[90806994b229e8] arn [info] INFO Starting init (commit: 15238e9)...

2023-11-16T21:47:44.155 app[90806994b229e8] arn [info] INFO Preparing to run: `docker-entrypoint.sh node index.js` as root

2023-11-16T21:47:44.165 app[90806994b229e8] arn [info] INFO [fly api proxy] listening at /.fly/api

2023-11-16T21:47:44.173 app[90806994b229e8] arn [info] 2023/11/16 21:47:44 listening on [fdaa:3:9826:a7b:1e9:812b:6e03:2]:22 (DNS: [fdaa::3]:53)

2023-11-16T21:47:44.179 proxy[90806994b229e8] arn [info] machine started in 463.608139ms

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] node:internal/modules/cjs/loader:998

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] throw err;

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] ^

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] Error: Cannot find module '/app/index.js'

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] at Module._resolveFilename (node:internal/modules/cjs/loader:995:15)

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] at Module._load (node:internal/modules/cjs/loader:841:27)

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] at Function.executeUserEntryPoint [as runMain] (node:internal/modules/run_main:81:12)

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] at node:internal/main/run_main_module:23:47 {

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] code: 'MODULE_NOT_FOUND',

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] requireStack: []

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] }

2023-11-16T21:47:44.343 app[90806994b229e8] arn [info] Node.js v18.12.1 
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