Cypress can't parse vue files when using rollup after updating to cypress 9.x.x

[danielvdigifit]

Hey there, I need some direction.
For context, my team is using rollup for an in-house component library. We set up cypress component testing experimental for cypress 6 a while ago and we're looking to update now to cypress 9.

I did the steps defined on this page https://docs.cypress.io/guides/references/migration-guide#Component-Testing with the only exception of replacing @cypress/webpack-dev-server for @cypress/rollup-dev-server. I also had to install nollup as it seemed to be missing the dependency.

After pointing cypress to our projects rollup.config.js running cypress open-ct gives the following error:

ParseError: /src/lib-components/OurComponent.vue
SyntaxError: Unexpected token (8:10)
              <template>
              ^
    at compileModule (project/node_modules/nollup/lib/impl/NollupCompiler.js:211:19)
    at processTicksAndRejections (internal/process/task_queues.js:95:5)
    at compileInputTarget (project/node_modules/nollup/lib/impl/NollupCompiler.js:243:5)
    at Object.compile (project/node_modules/nollup/lib/impl/NollupCompiler.js:345:31)
    at generateImpl (project/node_modules/nollup/lib/index.js:14:21)

My build configuration still works just fine, it's just cypress that seems to be unable to correctly read and/or apply the rollup configuration to use the vue parser. Am I missing something here? Any help is appreciated