npm install should install peerDependencies of a local module

[KrisSodroski]

Current Behavior

Given I have the following module:

{
  "name": "app",
  "version": "1.0.0",
  "dependencies": {
    "a": "^1.0.0",
    "b": "^1.0.0"
  }
}

{
  "name": "b",
  "version": "1.0.0",
  "peerDependencies": {
    "c": "^2.0.0"
  },
 "devDependencies": {
    "c": "^2.0.0"
  }
}

When installed through the registry, "app" correctly installed dependency c.

When installed through file path (localModule), dependency c is not installed.

{
  "name": "app",
  "version": "1.0.0",
  "dependencies": {
    "a": "^1.0.0",
    "b": "file:../some/path/b/dist/b"
  }
}

Expected Behavior

When developing modular systems, its imperative to be able to locally map modules for easy development.

To work around the above issue, application a must include all peerDependencies of b in its package.json file before application a will build correctly.

This is very cumbersome, and detracts from the advantages of transient peerDependencies in npm 7/8, and the work around lends itself to having applications like above continue to display pre-version 7 levels of package.json bloat simply due to carelessness or indifference.

I would expect that npm would install peerDependencies regardless of location of the package (registry/local/git).

Environment

npm: 8.3.1
Node.js: 14.16.0
OS Name: Windows