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@Janpot I'm testing #41596 (comment). Initially the issue doesn't seem to be fixed by removing the internal package.json files.

I'm doing the same test we did a few months back:

• Clone https://github.com/mui/material-ui/blob/master/examples/material-ui-nextjs-pages-router-ts/README.md
• Modify dependencies to point to this PR's builds

Interestingly, back then, esmExternals: false fixed the issue, but now it doesn't, so progress I guess 😂

I'll do a debugging session, but I'm letting you know in case you want to test it on your side in the meantime.

@DiegoAndai I'v been working on this over the past week in

• core: [code-infra] Update package layout for better ESM support #43264
• X: [code-infra] Update package layout for better ESM support mui-x#14386

I've extracted some of the issues that popped up as they can be released separately:

• [code-infra] Add missing @babel/runtime dependency to @mui/material-pigment-css #43473
• [code-infra] Build size snapshots from installed packages #43452
• [code-infra] Fix typing issues with @mui-internal/api-docs-builder #43498
• [core] Upgrade babel runtime #43243
• [code-infra] Babel plugin to fully resolve imported paths #43294
• [code-infra] Remove unnecessary alias #43320
• [core] Remove 'use client' from index files and useAutocomplete reexport #41956
• [ButtonBase] Export types used in ButtonBase props #43530
• [examples] Add missing clsx dependency #43526 (just noticed this)

I followed your steps to reproduce with the following dependencies:

"@mui/icons-material": "https://pkg.csb.dev/mui/material-ui/commit/d4953d45/@mui/icons-material",
"@mui/material": "https://pkg.csb.dev/mui/material-ui/commit/d4953d45/@mui/material",
"@mui/material-nextjs": "https://pkg.csb.dev/mui/material-ui/commit/d4953d45/@mui/material-nextjs",

And both pnpm dev and pnpm build work, regardless of the value of esmExternals. Am I missing something? We should probably check what's the difference between both our PRs, e.g. I think I have a different method of dealing with next/document.

I'm still in the process of testing how X works but that looks promising so far. I'm also going to verify the vite issues Yep, that works now.

The one unknown I have left is whether I can remove esmExternals from our docs. Initial tests suggest no, but have to dig deeper into it.

Great work @Janpot 🙌🏼

When I read #43264, I thought we needed this PR to test it, but let's keep #43264 as the ongoing initiative.

I tested with #43264 and it works, so I'm closing this PR.