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Failing build on fresh install: "package.json doesn't seem to have been installed"

See original GitHub issue

Bug Description Yarn throws the following error on fresh install:

The project in /Users/furkan/src/create-eth-app/package.json doesn't seem to have been installed - running an install there might help

What I’ve tried so far:

npm cache clean
rm -rf node_modules
yarn install (exits 0)
Deleting the yarn cache and running yarn install

Steps to Reproduce

yarn create eth-app my-eth-app
Expect error

$ yarn create eth-app my-eth-app

➤ YN0000: ┌ Resolution step
➤ YN0000: └ Completed
➤ YN0000: ┌ Fetch step
➤ YN0000: └ Completed
➤ YN0000: ┌ Link step
➤ YN0000: └ Completed
➤ YN0000: Done in 0s 84ms


Creating a new Ethereum-powered React app in /Users/furkan/src/create-eth-app/my-eth-app.

Downloading template files. This might take a moment.

Installing packages. This might take a couple of minutes.

Usage Error: The project in /Users/furkan/src/create-eth-app/package.json doesn't seem to have been installed - running an install there might help

$ yarn install [--json] [--immutable] [--immutable-cache] [--check-cache] [--inline-builds] [--mode #0]

Aborting installation.
  yarnpkg install --cwd /Users/furkan/src/create-eth-app/my-eth-app has failed.

Expected Behavior It should build?

Additional Context Add any other context about the problem here (screenshots, whether the bug only occurs only in certain mobile/desktop/browser environments, etc.)

OS: macOS 12.1 (Intel) yarn: 3.1.0 node: 17.3.1 npm: 8.3.0 commit: 89a9f219f210dde636e076fd2daa5882671e012b terminal: iTerm2 3.4.14 user: no permission issues