I am developing tiny ui react library. I am using Rollup as a bundler. and i faced some strange issue:

react.development.js:1476 Uncaught Error: Invalid hook call. Hooks can only be called 
inside of the body of a function component. This could happen for one of the 
following reasons:
1. You might have mismatching versions of React and the renderer (such as React DOM)
2. You might be breaking the Rules of Hooks
3. You might have more than one copy of React in the same app

Here is my Rollup config:

import babel from "rollup-plugin-babel";
import resolve from "@rollup/plugin-node-resolve";
import external from "rollup-plugin-peer-deps-external";
import { terser } from "rollup-plugin-terser";
import postcss from "rollup-plugin-postcss";
import typescript from "rollup-plugin-typescript2";
import peerDepsExternal from "rollup-plugin-peer-deps-external";

const packageJson = require("./package.json");

export default [
  {
    input: ["./src/index.ts"],
    output: [
      {
        file: packageJson.main,
        format: "cjs",
        sourcemap: true,
      },
      {
        file: packageJson.module,
        format: "esm",
        sourcemap: true,
      },
    ],
    globals: {
      react: "React",
      "react-dom": "ReactDOM",
    },
    external: ["react", "react-dom"],
    plugins: [
      peerDepsExternal({ includeDependencies: false }),
      postcss({
        plugins: [],
        minimize: true,
      }),
      babel({
        exclude: "node_modules/**",
        presets: ["@babel/preset-react"],
      }),
      external(),
      resolve(),
      typescript({ useTsconfigDeclarationDir: true }),
      terser(),
    ],
  },
];

Component itself if very simple. Nothing special so i am skipping its code. When i am publishing my lib to NPM - everything is working exactly as expected.

But when i am doing local instal with

npm i ../my-local-lib

I have this error in console:

react.development.js:1476 Uncaught Error: Invalid hook call. Hooks can only be called inside of the body of a function component. This could happen for one of the following reasons:

1. You might have mismatching versions of React and the renderer (such as React DOM)
2. You might be breaking the Rules of Hooks
3. You might have more than one copy of React in the same app

My expectation was that peerDepsExternal plugin will handle this case, but obviously i have messed up somewhere.