Node file changes not detected running in docker container in vs code

• VSCode Version: 1.71.2
• Local OS Version: Windows 10 21H2 (19044.2251)
• Remote OS Version: mcr.microsoft.com/devcontainers/base:jammy
• Remote Extension/Connection Type: WSL / Docker container
• Logs: blah.txt

Steps to Reproduce:

1. Clone https://github.com/NotoriousPyro/containers-windows-watch-no-worky
2. Try to run in container (CTRL + SHIFT + P) -> Dev Containers: Rebuild container
3. Try to run the project in terminal with npm i then npm run dev and make a change in apps/transactionwatcher/src/index.ts
4. Notice how no changes are detected.
5. Reopen the folder in cmd prompt/VS Code locally, run step 3 again above... notice how changes are detected...

Does this issue occur when you try this locally?: No
Does this issue occur when you try this locally and all extensions are disabled?: No

I'm not sure where the fault lies, I have tried running the process with ts-node-dev, concurrently nodemon and tsc/tsup combination and none of them detect the file changes while running in container.