angular-cli: [ng serve]: webpack-dev-middleware Error: ENOENT: no such file or directory

Command

serve

Is this a regression?

Yes, this behavior used to work in the previous version

The previous version in which this bug was not present was

14.1.3

Description

After upgrading to angular 14.2.0 and serving the APP locally, I get the following error:

[webpack-dev-middleware] Error: ENOENT: no such file or directory, readdir '<project-directory>/test-app/dist/test-app/'
    at createError (<project-directory>/test-app/node_modules/memfs/lib/volume.js:128:17)
    at Volume.readdirBase (<project-directory>/test-app/node_modules/memfs/lib/volume.js:1415:19)
    at Immediate.<anonymous> (<project-directory>/test-app/node_modules/memfs/lib/volume.js:695:33)
    at processImmediate (node:internal/timers:466:21) {
  code: 'ENOENT'
}

Minimal Reproduction

I created a minimal reproduction in the following repository:

https://github.com/ramoncarreras/angular-test-app

I have tried to minimize the issue as I could, sorry in advance (also see each commit).

In the README.md of the above repository there is a small description of the steps to follow.

The issue appears when I add the localize and the PWA official angular packages.

Exception or Error

[webpack-dev-middleware] Error: ENOENT: no such file or directory, readdir '<project-directory>/test-app/dist/test-app/'
    at createError (<project-directory>/test-app/node_modules/memfs/lib/volume.js:128:17)
    at Volume.readdirBase (<project-directory>/test-app/node_modules/memfs/lib/volume.js:1415:19)
    at Immediate.<anonymous> (<project-directory>/test-app/node_modules/memfs/lib/volume.js:695:33)
    at processImmediate (node:internal/timers:466:21) {
  code: 'ENOENT'
}

Your Environment

     _                      _                 ____ _     ___
    / \   _ __   __ _ _   _| | __ _ _ __     / ___| |   |_ _|
   / △ \ | '_ \ / _` | | | | |/ _` | '__|   | |   | |    | |
  / ___ \| | | | (_| | |_| | | (_| | |      | |___| |___ | |
 /_/   \_\_| |_|\__, |\__,_|_|\__,_|_|       \____|_____|___|
                |___/
    

Angular CLI: 14.2.1
Node: 16.14.0
Package Manager: npm 8.5.3 
OS: darwin x64

Angular: 14.2.0
... animations, common, compiler, compiler-cli, core, forms
... localize, platform-browser, platform-browser-dynamic, router
... service-worker

Package                         Version
---------------------------------------------------------
@angular-devkit/architect       0.1402.1
@angular-devkit/build-angular   14.2.1
@angular-devkit/core            14.2.1
@angular-devkit/schematics      14.2.1
@angular/cli                    14.2.1
@schematics/angular             14.2.1
rxjs                            7.5.6
typescript                      4.7.4