--install-strategy=nested still hoists workspace packages

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

Currently, running npm install at the root of a monorepo using npm workspaces with the '--install-strategy=nested' flag almost does what I would expect it to do - it puts all the dependencies in separate node_modules folders for each package, but it still puts the symlinks to the local monorepo packages at the root.

Expected Behavior

I would expect the symlinks to the monorepo packages to be inserted into the nested node_modules folders rather than the root (and only for the packages that depend on them).

I also noticed that the --omit=dev flag seems to not work in this use case - note in the linked repro repo running 'npm install --install-strategy=nested --omit=dev' still results in eslint being added to workspace2's node_modules folder, even though it's only a devDependency. (I can make a separate issue for this if that would be better?)

Note for context: My use case here is a monorepo with multiple node apps in it, each of which needs to be separately bundled into a docker image with only it's dependencies, I don't want to unnecessarily include the dependencies of other packages in the monorepo. The '--install-strategy=nested' flag seems like what I need for my use case, but the current behaviour doesn't quite work.

Steps To Reproduce

• make sure you have npm 9.7.1
• clone this repo: https://github.com/pcone/npmissuerepro
• run 'npm install --install-strategy=nested --omit=dev' at the root
• note that a node_modules folder is still created at the root
• note that the nested node_modules folder for workspace1 does not contain a symlink to workspace2, despite it being a dependency
• note that eslint is still installed, despite being a dev dependency

Environment

• npm: 9.7.1
• Node.js: 16.16.0
• OS Name: Windows 10 22H2
• npm config:

; "user" config from C:\Users\<redacted>\.npmrc

<redacted internal repo>:_password = (protected)
<redacted internal repo>:email = "not-used@example.com"
<redacted internal repo>:username = <redacted>

; node bin location = C:\Program Files\nodejs\node.exe
; node version = v16.16.0
; npm local prefix = C:\S
; npm version = 9.7.1
; cwd = C:\S\npmrepro
; HOME = C:\Users\<redacted>
; Run `npm config ls -l` to show all defaults.

Clone the linked npmissuerepro repository and run npm install --install-strategy=nested --omit=dev from its root with npm 9.7.1. Inspect the resulting root and workspace node_modules folders; done means workspace links appear only for dependent packages in their nested folders and devDependencies such as eslint are omitted.