Nuxt + Tailwind: My tailwind.config.js file has no effect and default config is used instead

I have followed the official Tailwind + Nuxt documentation to add Tailwind to Nuxt. I have done so for 2 new Projects and 1 existing Nuxt project. And it works fine for the first 2 projects, but...

The existing Nuxt project is giving me a hard time now as it seems to ignore the tailwind.config.js file.

Tailwind works but it is using the default config, no matter what changes I make to the config file. Nuxt also does not hot-reload when changes are made to the config.

My IDE on the other hand detects the changes and offers them as IntelliSense auto-complete option.

I am pretty lost and not sure where to start troubleshooting. Happy to share the repo if that helps.

Any help greatly appreciated. Thanks!

-- Miss J