__mocks__ folder beside hook being ingored

Describe the bug

I want to get my useAppUrls hook to be mocked. I placed my mock in a __mocks__ folder beside the actual hook. In my test I call vi.mock(@urls/appUrls/useAppUrls). But it is not picking up the mock at all, it is just auto-mocking the return object (i.e., not seeing my file in the mocks folder).

Reproduction

If the mock is working properly, then the unit test renders link correctly (in MyComponent.test.ts) will pass.
StackBlitz Example

NOTE: I am using vite-tsconfig-paths and I believe my aliases are working properly. But the issue persists event if not using aliases, see the MyComponentNoAlias.test.ts file.

System Info

System:
    OS: Windows 11 10.0.26100
    CPU: (32) x64 AMD Ryzen 9 7950X 16-Core Processor
    Memory: 31.97 GB / 63.14 GB
  Binaries:
    Node: 22.14.0 - C:\Program Files\nodejs\node.EXE
    Yarn: 1.22.19 - ~\AppData\Roaming\npm\yarn.CMD
    npm: 11.2.0 - C:\Program Files\nodejs\npm.CMD
  Browsers:
    Edge: Chromium (134.0.3124.85)
    Internet Explorer: 11.0.26100.1882

But the issue exists on Stack Blitz, as well as my Linux laptop.

Used Package Manager

npm

Validations

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• The provided reproduction is a minimal reproducible example of the bug.

Start with the linked StackBlitz reproduction and inspect src/urls/appUrls/mocks/useAppUrls.ts, MyComponent.test.ts, and MyComponentNoAlias.test.ts. Run the unit test named "renders link correctly" with and without the alias; done means the test passes using the beside-the-hook mock rather than only an auto-mocked return object.