[BUG] npm update not respecting overrides in a workspace

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

Unlike npm install, npm update is not respecting overrides in a workspace.

Expected Behavior

Expecting npm update to respect overrides the same way npm install does.

Steps To Reproduce

package.json

{
	"workspaces": [
		"alpha"
	],
	"overrides": {
		"react-strict-dom": {
			"react": "^19.1.0",
			"react-dom": "^19.1.0"
		}
	}
}

alpha/package.json

{
	"name": "alpha",
	"version": "0.0.0",
	"peerDependencies": {
		"react": "^19.1.0",
		"react-dom": "^19.1.0",
		"react-native": "^0.79.1",
		"react-strict-dom": "^0.0.34"
	}
}

$ npm install
npm warn deprecated inflight@1.0.6: This module is not supported, and leaks memory. Do not use it. Check out lru-cache if you want a good and tested way to coalesce async requests by a key value, which is much more comprehensive and powerful.
npm warn deprecated rimraf@3.0.2: Rimraf versions prior to v4 are no longer supported
npm warn deprecated glob@7.2.3: Glob versions prior to v9 are no longer supported

added 323 packages, and audited 325 packages in 10s

20 packages are looking for funding
  run `npm fund` for details

found 0 vulnerabilities

$ npm update
npm error code ERESOLVE
npm error ERESOLVE unable to resolve dependency tree
npm error
npm error While resolving: alpha@0.0.0
npm error Found: react@19.1.0
npm error node_modules/react
npm error   peer react@"^19.1.0" from alpha@0.0.0
npm error   alpha
npm error     alpha@0.0.0
npm error     node_modules/alpha
npm error       workspace alpha from the root project
npm error   peer react@"^19.1.0" from react-dom@19.1.0
npm error   node_modules/react-dom
npm error     peer react-dom@"^19.1.0" from alpha@0.0.0
npm error     alpha
npm error       alpha@0.0.0
npm error       node_modules/alpha
npm error         workspace alpha from the root project
npm error   1 more (react-native)
npm error
npm error Could not resolve dependency:
npm error peer react@"^18.2.0" from react-strict-dom@0.0.34
npm error node_modules/react-strict-dom
npm error   peer react-strict-dom@"^0.0.34" from alpha@0.0.0
npm error   alpha
npm error     alpha@0.0.0
npm error     node_modules/alpha
npm error       workspace alpha from the root project
npm error
npm error Fix the upstream dependency conflict, or retry
npm error this command with --force or --legacy-peer-deps
npm error to accept an incorrect (and potentially broken) dependency resolution.
npm error
npm error
npm error For a full report see:
npm error /Users/user/.npm/_logs/2025-04-25T22_13_08_681Z-eresolve-report.txt
npm error A complete log of this run can be found in: /Users/user/.npm/_logs/2025-04-25T22_13_08_681Z-debug-0.log

2025-04-25T22_13_08_681Z-debug-0.log
2025-04-25T22_13_08_681Z-eresolve-report.txt

Compared to when not using a workspace, overrides works fine:

{
	"name": "alpha",
	"version": "0.0.0",
	"peerDependencies": {
		"react": "^19.1.0",
		"react-dom": "^19.1.0",
		"react-native": "^0.79.1",
		"react-strict-dom": "^0.0.34"
	},
	"overrides": {
		"react-strict-dom": {
			"react": "^19.1.0",
			"react-dom": "^19.1.0"
		}
	}
}

$ npm install
npm warn deprecated inflight@1.0.6: This module is not supported, and leaks memory. Do not use it. Check out lru-cache if you want a good and tested way to coalesce async requests by a key value, which is much more comprehensive and powerful.
npm warn deprecated rimraf@3.0.2: Rimraf versions prior to v4 are no longer supported
npm warn deprecated glob@7.2.3: Glob versions prior to v9 are no longer supported

added 322 packages, and audited 323 packages in 3s

20 packages are looking for funding
  run `npm fund` for details

found 0 vulnerabilities

$ npm update

up to date, audited 323 packages in 1s

20 packages are looking for funding
  run `npm fund` for details

found 0 vulnerabilities

Environment

• npm: 11.3.0
• Node.js: v23.11.0
• OS Name: macOS
• System Model Name: MBP M1
• npm config:

; "user" config from /Users/user/.npmrc

update-notifier = false

; node bin location = /Users/user/Library/Application Support/fnm/node-versions/v23.11.0/installation/bin/node
; node version = v23.11.0
; npm local prefix = /Users/user
; npm version = 11.3.0
; cwd = /Users/user
; HOME = /Users/user
; Run `npm config ls -l` to show all defaults.

Start by reproducing the issue with the two package.json examples and compare npm install with npm update in the workspace and non-workspace cases. Trace how npm 11.3.0 resolves workspace overrides, then verify that npm update respects the root overrides without producing the reported ERESOLVE conflict.