[BUG] peerDependency not installed (workspaces)

Is there an existing issue for this?

• I have searched the existing issues

This issue exists in the latest npm version

• I am using the latest npm

Current Behavior

Refs https://github.com/npm/cli/issues/2600

I am using NPM workspaces.
I moved all my dev dependencies to the root package.json (because I was running into https://github.com/npm/cli/issues/4056)

devDependencies: {
   ...
   "mssql": "^7.1.0",
   "knex": "^0.21.21",
   ....
}

knex@0.21 has a peerDependency to mssql@6 (see)

I am getting an error when running npm install

npm ERR! code ERESOLVE
npm ERR! ERESOLVE could not resolve
npm ERR!
npm ERR! While resolving: @projectname/root@undefined
npm ERR! Found: mssql@7.1.0
npm ERR! node_modules/mssql
npm ERR!   dev mssql@"^7.1.0" from the root project
npm ERR!   peerOptional mssql@"*" from typeorm@0.2.41
npm ERR!   node_modules/typeorm
npm ERR!     dev typeorm@"^0.2.37" from the root project
npm ERR!
npm ERR! Could not resolve dependency:
npm ERR! dev knex@"^0.21.21" from the root project
npm ERR!
npm ERR! Conflicting peer dependency: mssql@7.3.0
npm ERR! node_modules/mssql
npm ERR!   peerOptional mssql@"^6.2.1" from knex@0.21.21
npm ERR!   node_modules/knex
npm ERR!     dev knex@"^0.21.21" from the root project

I tried --legacy--peer-deps, but this is not what I want. This flag will just ignore the peer dependency. Knex will then use mssql@7!

Expected Behavior

I expected that npm provides a way to install both versions.

node_modules
    mssql@7
    knex
        node_modules
            mssql@6

Steps To Reproduce

See above.

Environment

• npm: 8.1.4
• Node: v16.13.0
• OS: Monterey
• platform: OSX

Start by reproducing the workspace installation scenario described with npm 8.1.4, Node v16.13.0, knex@0.21.21, and mssql@7.1.0. Investigate npm's peer-dependency resolution for workspaces and verify completion by checking whether compatible dependency versions are installed without requiring --legacy-peer-deps.