vueuse: Almost no composition APIs work, undefined imports

When trying this in a project based off of vitesse, I found that I was unable to use almost any composition APIs available. Most of them had an error like watch is not defined, or ref is not defined. After doing some digging, the offending line was found here

<script setup lang="ts">
import { useMouse } from '@vueuse/core'

const {xMouse, yMouse} = useMouse()
</script>
<template>
  <div />
</template>