[BUG] Could not resolve dependency when using carrat ranges

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

Given a monorepo with using npm workspaces and the following layout

application/
	- name: "my-application"
	- version: "1.4.5"
	- dependencies:
		- @foo/A: "^1.3.2"
		- @foo/B: "^6.10.2"
packages/
	a/
		- name: "@foo/A"
		- version: "1.3.2"
		 - peerDependencies:
			 - @foo/B: ^6.7.0
	b/
		- name: "@foo/B"
		- version: "6.10.2"

And if I run npm i due to needing to resolve conflicts in my package-lock.json or when I need to create my package-lock.json from scratch then I get the following error:

npm ERR! code ERESOLVE
npm ERR! ERESOLVE could not resolve
npm ERR!
npm ERR! While resolving: @foo/A@1.3.2
npm ERR! Found: peer @foo/b@"^6.7.0" from @foo/A@1.3.2
npm ERR! packages/a
npm ERR!   @foo/A@1.3.2
npm ERR!   node_modules/@foo/A
npm ERR!     workspace packages/a from the root project
npm ERR!     1 more (lens-desktop)
npm ERR!
npm ERR! Could not resolve dependency:
npm ERR! peer @foo/b@"^6.7.0" from @foo/A@1.3.2
npm ERR! packages/a
npm ERR!   @foo/A@1.3.2
npm ERR!   node_modules/@foo/A
npm ERR!     workspace packages/a from the root project
npm ERR!     1 more (lens-desktop)
npm ERR!
npm ERR! Conflicting peer dependency: @foo/b@6.10.2
npm ERR! node_modules/@foo/b
npm ERR!   peer @foo/b@"^6.7.0" from @foo/A@1.3.2
npm ERR!   packages/a
npm ERR!     @foo/A@1.3.2
npm ERR!     node_modules/@foo/A
npm ERR!       workspace packages/a from the root project
npm ERR!       1 more (lens-desktop)
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.

Expected Behavior

Given that 6.10.2 is compatible with ^6.7.0 this should install without any errors.

Environment

• npm: 9.8.0
• Node.js: v16.20.0

Start by reproducing npm i with the described npm workspaces layout using npm 9.8.0 and Node.js 16.20.0. Verify that the workspace dependency at 6.10.2 is accepted for the peer range ^6.7.0 without requiring --force or --legacy-peer-deps.