IPX images not found when setting nitro.static to true in development

When using the default IPX provider and setting nitro.static to true in nuxt.config.ts, images will not be found in development.
However, images are correctly generated when running nuxt build and there are no issues in production.

Reproduction: https://stackblitz.com/edit/github-f66jbi?file=nuxt.config.ts

nuxt.config.ts

// https://nuxt.com/docs/api/configuration/nuxt-config
export default defineNuxtConfig({
  srcDir: 'src',
  devtools: { enabled: false },

  app: {
    head: {
      title: 'Nuxt Image Example',
    },
  },

  modules: ['@nuxtjs/tailwindcss', '@nuxt/image'],
  compatibilityDate: '2024-07-03',

  nitro: {
    // BUG: when setting to true, ipx image path will not be found during dev
    static: true,
  },
});

Console error

[Vue Router warn]: No match found for location with path "/_ipx/f_jpeg&s_2048x1366/images/mountains_2.jpg"

Workaround

The current solution is to dynamically set nitro.static to false during development

nitro: {
  static: process.env.NODE_ENV !== 'development',
},

Expectation

Using nitro.static setting should not be causing issue during development

Start with the linked StackBlitz reproduction and its nuxt.config.ts, then run development mode with nitro.static set to true and inspect the failing /_ipx image path. Done means IPX images resolve in development with that setting, while the existing production behavior remains working.