Laravel mix is not building Vue 3 TS assets - laravel

Question

I have a fresh Laravel 9 app with Vue 3 SPA built with TS (using Metronic 8.1 template) and I'm using webpack. Whenever I try to build the assets, it stays stuck at 12% and then does absolutely nothing.
Running Laravel using Sail on WSL2. After doing some research I found out that it could be a memory issue, so I tried to change this like so:
.wslconfig
[wsl2]
memory=10GB
localhostForwarding=true
And then running Restart-Service LxssManager as administrator.
However, nothing I've tried so far seems to work. I have another Laravel 9 app in a different container, which does not use any framework and uses vanillaJS and that compiles no problem. Any help here?
webpack.mix.js
const mix = require("laravel-mix");
const path = require("path");
mix.ts("resources/ts/app.ts", "public/js")
.vue({ version: 3 })
.webpackConfig({
module: {
rules: [
{
test: /.mjs$/i,
resolve: {
byDependency: { esm: { fullySpecified: false } },
},
},
],
},
resolve: {
alias: {
"#": path.resolve(__dirname, "resources/ts/src/"),
},
},
});
.tsconfig.json:
{
"compilerOptions": {
"experimentalDecorators": true,
"emitDecoratorMetadata": true,
"noImplicitAny": false,
"target": "es5",
"module": "esnext",
"strict": true,
"jsx": "preserve",
"importHelpers": true,
"moduleResolution": "node",
"skipLibCheck": true,
"esModuleInterop": true,
"allowSyntheticDefaultImports": true,
"sourceMap": true,
"baseUrl": ".",
"paths": {
"#/*": [
"resources/ts/src/*"
]
},
"lib": [
"esnext",
"dom",
"dom.iterable",
"scripthost"
]
},
"include": [
"resources/ts/src/**/*.ts",
"resources/ts/src/**/*.tsx",
"resources/ts/src/**/*.vue"
],
"exclude": [
"node_modules"
]
}