Error package vscode extension with vsce: invalid relative path

• npm: 8.1.0
• vsce: 2.5.3

I have a npm package (colibri) in a local folder and a VSCode extension (vscode-teroshdl) in other folder. colibri is a dependency of vscode-teroshdl:

    "dependencies": {
        "colibri": "file:../colibri"
    },

When I try to package the VSCode extension:

cd colibri
npm install
cd ../vscode-terosHDL
npm install
vsce package

It fails with the error:

 ERROR  invalid relative path: extension/../colibri/node_modules/cli-progress/CHANGES.md