vueuse: Installing the nuxt3 version based on documentation fails due to 'Conflicting peer dependency'

Describe the bug

When Installing the Nuxt3 version based on documentation it fails due to a ‘Conflicting peer dependency’. This happens on a clean npx nuxi init

logs

0 verbose cli [
0 verbose cli   '/Users/***/.nvm/versions/node/v16.13.0/bin/node',
0 verbose cli   '/Users/***/.nvm/versions/node/v16.13.0/bin/npm',
0 verbose cli   'i',
0 verbose cli   '-D',
0 verbose cli   '@vueuse/nuxt',
0 verbose cli   '@vueuse/core'
0 verbose cli ]
1 info using npm@8.5.2
2 info using node@v16.13.0
....
npm ERR! code ERESOLVE
npm ERR! ERESOLVE could not resolve
npm ERR!
npm ERR! While resolving: undefined@undefined
npm ERR! Found: vue@3.2.31
npm ERR! node_modules/vue
npm ERR!   peer vue@"3.2.31" from @nuxt/vite-builder@3.0.0-27494471.1091d45
npm ERR!   node_modules/@nuxt/vite-builder
npm ERR!     @nuxt/vite-builder@"npm:@nuxt/vite-builder-edge@3.0.0-27494471.1091d45" from nuxt3@3.0.0-27494471.1091d45
npm ERR!     node_modules/nuxt3
npm ERR!       dev nuxt3@"latest" from the root project
npm ERR!   peer vue@"^3.2.25" from @vitejs/plugin-vue@2.3.1
npm ERR!   node_modules/@vitejs/plugin-vue
npm ERR!     @vitejs/plugin-vue@"^2.3.1" from @nuxt/vite-builder@3.0.0-27494471.1091d45
npm ERR!     node_modules/@nuxt/vite-builder
npm ERR!       @nuxt/vite-builder@"npm:@nuxt/vite-builder-edge@3.0.0-27494471.1091d45" from nuxt3@3.0.0-27494471.1091d45
npm ERR!       node_modules/nuxt3
npm ERR!         dev nuxt3@"latest" from the root project
npm ERR!   4 more (@vue/server-renderer, @vueuse/head, nuxt3, vue-router)
npm ERR!
npm ERR! Could not resolve dependency:
npm ERR! dev @vueuse/core@"*" from the root project
npm ERR!
npm ERR! Conflicting peer dependency: vue@2.6.14
npm ERR! node_modules/vue
npm ERR!   peer vue@">= 2.5 < 3" from @vue/composition-api@1.4.9
npm ERR!   node_modules/@vue/composition-api
npm ERR!     peerOptional @vue/composition-api@"^1.1.0" from @vueuse/core@8.2.5
npm ERR!     node_modules/@vueuse/core
npm ERR!       dev @vueuse/core@"*" from the root project
npm ERR!
npm ERR! Fix the upstream dependency conflict, or retry
npm ERR! this command with --force, or --legacy-peer-deps
npm ERR! to accept an incorrect (and potentially broken) dependency resolution.

Extra notes and info

• Installing with yarn works fine
• upgrading to npm: v8.6.0, still the same issue
• I have this issue for a long time already and I’ve seen someone else report sort of the same issue https://github.com/vueuse/vueuse/issues/945 and he resolved it with npm install @vueuse/core --legacy-peer-deps which is ok and worked for now i guess… but i am curious what the real problem is and what the fix would be. So i dont have to install this with legacy-peer-deps everytime

Will add more info while debugging node/npm versions

Reproduction

EDIT: The reproduction does not show the actual issue Via stackblitz, I managed to install the packages just fine, therefor i have a feeling its related to npm 8 or my m1 system? https://stackblitz.com/edit/github-xt3wrx-nkwn61?file=package.json

System Info

System:
    OS: macOS 12.2.1
    CPU: (8) arm64 Apple M1 Pro
    Memory: 142.92 MB / 16.00 GB
    Shell: 5.8 - /bin/zsh
  Binaries:
    Node: 16.13.0 - ~/.nvm/versions/node/v16.13.0/bin/node
    npm: 8.5.2 - ~/.nvm/versions/node/v16.13.0/bin/npm
  Browsers:
    Edge: 99.0.1150.55
    Safari: 15.3

"devDependencies": {
    "nuxt3": "^3.0.0-27494471.1091d45"
  }

### Used Package Manager

npm

### Validations

- [X] Follow our [Code of Conduct](https://github.com/vueuse/vueuse/blob/main/CODE_OF_CONDUCT.md)
- [X] Read the [Contributing Guidelines](https://github.com/vueuse/vueuse/blob/main/CONTRIBUTING.md).
- [X] Read the [docs](https://vueuse.org/guide).
- [X] Check that there isn't [already an issue](https://github.com/vueuse/vueuse/issues) that reports the same bug to avoid creating a duplicate.
- [X] Make sure this is a VueUse issue and not a framework-specific issue. For example, if it's a Vue SFC related bug, it should likely be reported to https://github.com/vuejs/core instead.
- [X] Check that this is a concrete bug. For Q&A open a [GitHub Discussion](https://github.com/vueuse/vueuse/discussions).
- [X] The provided reproduction is a [minimal reproducible example](https://stackoverflow.com/help/minimal-reproducible-example) of the bug.