pnpm config set auto-install-peers true not working with workspaces

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I have this configuration below in .npmrc

The below settings absolutely work fine within the single repo

    auto-install-peers=true
    legacy-peer-deps=true
    save-exact=true
    node-linker=hoisted
    link-workspace-packages=deep

Where as the same configuration with mono-repo not installing peer dependencies within the workspace project.

Which settings will enable all the peer-dependencies within the sub project to be installed and referred from the same node_modules to avoid missing modules?

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