build.watch issues

[rinu]

Versions

• nuxt: 2.15.3
• node: 14.16.0

Steps to reproduce

Clone https://github.com/rinu/codesandbox-nuxt
Run yarn
Run yarn dev
Edit ~/assets/README.md

What is Expected?

The file is watched for changes.

What is actually happening?

Nothing.

Description

Watching a file does work if and only if the full path is provided. Using the feature as documented (with ~) does not work.
When providing a full path and updating the watched file, the console output will display a message similar to ↻ Updated .nuxt/client.js. This filename is incorrect, I actually watch and updated ~/assets/README.md.

In my actual application I'm trying to watch a scss file and use a custom compiler on it in a compiled build hook.