Composer unable to resolve a package from subdirectory

I have a laravel project which is supposed to use a package from /packages directory. I keep getting error when I run composer update or composer install (I even tried clearing composer’s cache):

Your requirements could not be resolved to an installable set of
packages.

Problem 1
– Root composer.json requires gata/gata-webhooks, it could not be found in any version, there may be a typo in the package name.

Potential causes:

• A typo in the package name
• The package is not available in a stable-enough version according to your minimum-stability setting see
  https://getcomposer.org/doc/04-schema.md#minimum-stability for more
  details.
• It’s a private package and you forgot to add a custom repository to find it

Following is the directory structure of my main project and the sub package. The main project is on the “main” git branch.

I added the following code in my main project’s composer file:

 "require": {
    "php": "^8.2",
    "laravel/framework": "^11.9",
    "laravel/sanctum": "^4.0",
    "laravel/tinker": "^2.9",
    "gata/gata-webhooks": "*"
},
...
"autoload": {
    "psr-4": {
        "App\": "app/",
        "Database\Factories\": "database/factories/",
        "Database\Seeders\": "database/seeders/",
        "Gata\GataWebhooks\": "packages/gata-webhooks/src/"

    }
}
...
 "extra": {
    "laravel": {
        "dont-discover": [],
        "providers": [
            "Gata\GataWebhooks\GataWebhooksServiceProvider"
        ]
    },
    "repositories": [
        {
            "type": "path",
            "url": "./packages/*",
            "options": {
                "symlink": true
            }
        }
    ]
},
...
},
"minimum-stability": "dev",
"prefer-stable": true

And my package has the following in it’s composer.json

{
"name": "gata/gata-webhooks",
"description": "Webhooks to receive payloads from e-commerce systems",
"version": "1.0.0",
"type": "library",
"license": "MIT",
"autoload": {
    "psr-4": {
        "Gata\GataWebhooks\": "src/"
    }
},
"require": {
},
"minimum-stability": "dev",
"prefer-stable": true

}

Can someone please tell me what I am doing wrong?