Using yarn workspaces in project - workspace unable to resolve dependencies hoisted to project

I have a monorepo with the following file structure:

package.json
node_modules
yarn.lock
modules
  - moduleA
    - package.json
    - node_modules
  - moduleB
    - package.json
    - node_modules

In my top-level package.json I have:

"workspaces": ["modules/*"]

moduleB has no dependencies, at least not yet. When I ran yarn install in the root directory:

• Almost all of moduleA's dependencies were installed in the root-level node_modules
• VSCode is unable to resolve these dependencies inside of moduleA's source code
• When I cd into moduleA and run a script, I get MODULE_NOT_FOUND errors for the hoisted dependencies.

Is there a way I can configure my project so that I can access hoisted dependencies from inside moduleA? I was unable to find anything about this in the Yarn dependencies. I have used nohoist as a workaround, but this is not optimal - I want to run my modules inside of their own directories and still be able to access shared dependencies.

Yarn version: 1.22.4