ModuleBuildError: Module build failed: UnhandledSchemeError

[pedroresende]

Describe the bug
When using the package on storybook 7, on windows with legacyMdx1 enabled it will through the error

ModuleBuildError: Module build failed: UnhandledSchemeError: Reading from "C:ProjectsCodeemergnids-corecore      
ode_modules@storybookmdx1-csf
eact" is not handled by plugins (Unhandled scheme).
Webpack supports "data:" and "file:" URIs by default.

To Reproduce
Steps to reproduce the behavior:

Install storybook 7, add the package to support mdx1

Expected behavior
Simply work

[tehshin]

Currently in the process of migrating and I have the same issue on Windows.

[koga73]

Same issue here with Storybook 7 on Windows

[timomeister]

Same issue with latest Storybook version on Windows. Fix would be very helpful!