Project breaks after updating ts version (using .cjs config files)

[shaniqwa]

Describe the bug
When I try to update TypeScript version > 4.1.5, (specifically I tried 4.9.5) I see this error:

gordon_server_1        |
gordon_server_1        | Error [ERR_UNSUPPORTED_DIR_IMPORT]: Directory import '/user/src/app/dist/config' is not supported resolving ES modules imported from /user/src/app/dist/src/server.js
gordon_server_1        |     at new NodeError (node:internal/errors:405:5)
gordon_server_1        |     at finalizeResolution (node:internal/modules/esm/resolve:218:17)
gordon_server_1        |     at moduleResolve (node:internal/modules/esm/resolve:838:10)
gordon_server_1        |     at defaultResolve (node:internal/modules/esm/resolve:1036:11)
gordon_server_1        |     at DefaultModuleLoader.resolve (node:internal/modules/esm/loader:251:12)
gordon_server_1        |     at DefaultModuleLoader.getModuleJob (node:internal/modules/esm/loader:140:32)
gordon_server_1        |     at ModuleWrap.<anonymous> (node:internal/modules/esm/module_job:76:33)
gordon_server_1        |     at link (node:internal/modules/esm/module_job:75:36) {
gordon_server_1        |   code: 'ERR_UNSUPPORTED_DIR_IMPORT',
gordon_server_1        |   url: 'file:///user/src/app/dist/config'
gordon_server_1        | }
gordon_server_1        |
gordon_server_1        | Node.js v20.5.1

My project used "type": "module" in package.json and I use .cjs files for the configurations.
This issue is holding me back from major updates to other dependencies, any help to figure this out would be much appreciated.

Expected behavior
I expect everything to continue to work after the TS version update.

Please tell us about your environment:

• node-config version: 3.3.9
• node-version: 20.5.1

Other information

When I run in dev mode using ts-node, it works. But after TS transpile to js, it doesn't work.

"start": "NODE_ENV=prod node --experimental-specifier-resolution=node dist/src/server.js",
"dev": "NODE_ENV=dev  node --experimental-specifier-resolution=node --loader ts-node/esm src/server.ts",
      ```