<h3 dir="auto">Current Behavior:</h3>
<p dir="auto">I have</p>
<div class="snippet-clipboard-content notranslate position-relative overflow-auto" data-snippet-clipboard-copy-content="
    +- main_project  
    |  +-package.json
    +- packages
       +- package1
          +-package.json"><pre class="notranslate"><code class="notranslate">
    +- main_project  
    |  +-package.json
    +- packages
       +- package1
          +-package.json
</code></pre></div>
<p dir="auto">In <code class="notranslate">package1</code> as cwd I do <code class="notranslate">npm install express</code> and then <code class="notranslate">rm -rf node_modules</code> and <code class="notranslate">rm package-lock.json</code>. Then, in main_project as cwd I do <code class="notranslate">npm install</code>. The <code class="notranslate">express</code> module does not get installed in <code class="notranslate">package1</code> with npm 7.10. If I use npm 6.14.12 everything is fine and npm installs recursively and express and its dependencies show up in the <code class="notranslate">node_modules</code> subdirectory of <code class="notranslate">package1</code>.</p>
<h3 dir="auto">Expected Behavior:</h3>
<p dir="auto">I expect npm 7.10 to behave the same way as npm 6.14.12</p>
<h3 dir="auto">Steps To Reproduce:</h3>
<p dir="auto">See steps above and zip attached - pretty simple.</p>
<h3 dir="auto">Environment:</h3>
<ul dir="auto">
<li>OS: Ubuntu 20.04</li>
<li>Node:  v14.16.1 with npm 7.10 and v12.22.1 with npm 6.14.12</li>
<li>npm: 7.10 / 6.14.12</li>
</ul>
<p dir="auto"><a href="https://github.com/npm/cli/files/6334677/npm_7.0-test.zip">npm_7.0-test.zip</a></p>
<h3 dir="auto">Current Behavior:</h3>
<p dir="auto">npm v7 does not install linked local packages dependencies.</p>
<h3 dir="auto">Expected Behavior:</h3>
<p dir="auto">In npm v6 the dependencies of a local linked package are installed. This means that if <code class="notranslate">app</code> has <code class="notranslate">my-local-pkg</code> as a dependency, running <code class="notranslate">npm install</code> generates <code class="notranslate">app/node_modules</code> folder and also <code class="notranslate">my-local-pkg/node_modules</code> (with its dependencies).<br>
In npm v7, however, only <code class="notranslate">app/node_modules</code> is generated.</p>
<h3 dir="auto">Steps To Reproduce:</h3>
<p dir="auto">I created the <a href="https://github.com/garciaalvaro/npm-deps-issue">following repository</a> to illustrate it. The <code class="notranslate">README.md</code> has the instructions on how to reproduce it.<br>
Simplified, the steps are:</p>
<ol dir="auto">
<li>Add the following folder structure: <code class="notranslate">./app</code> and <code class="notranslate">./my-local-pkg</code>, each with their own <code class="notranslate">package.json</code></li>
<li>Include this in the <code class="notranslate">./app/package.json</code>:</li>
</ol>
<div class="snippet-clipboard-content notranslate position-relative overflow-auto" data-snippet-clipboard-copy-content="{
  &quot;name&quot;: &quot;app&quot;,
  &quot;dependencies&quot;: {
    &quot;my-local-pkg&quot;: &quot;file:../my-local-pkg&quot;,
    &quot;prettier&quot;: &quot;^2.2.1&quot;
  }
}"><pre class="notranslate"><code class="notranslate">{
  "name": "app",
  "dependencies": {
    "my-local-pkg": "file:../my-local-pkg",
    "prettier": "^2.2.1"
  }
}
</code></pre></div>
<ol start="3" dir="auto">
<li>Include this in the <code class="notranslate">./my-local-pkg/package.json</code>:</li>
</ol>
<div class="snippet-clipboard-content notranslate position-relative overflow-auto" data-snippet-clipboard-copy-content="{
  &quot;name&quot;: &quot;my-local-pkg&quot;,
  &quot;dependencies&quot;: {
    &quot;typescript&quot;: &quot;^4.1.3&quot;
  }
}"><pre class="notranslate"><code class="notranslate">{
  "name": "my-local-pkg",
  "dependencies": {
    "typescript": "^4.1.3"
  }
}
</code></pre></div>
<ol start="4" dir="auto">
<li>Go to <code class="notranslate">./app</code> and run <code class="notranslate">npm install</code>.<br>
npm version 6 produces:</li>
</ol>
<div class="snippet-clipboard-content notranslate position-relative overflow-auto" data-snippet-clipboard-copy-content="node_modules
	.bin
	my-local-pkg
		node_modules
			typescript
	prettier"><pre class="notranslate"><code class="notranslate">node_modules
	.bin
	my-local-pkg
		node_modules
			typescript
	prettier
</code></pre></div>
<p dir="auto">while npm version 7 produces:</p>
<div class="snippet-clipboard-content notranslate position-relative overflow-auto" data-snippet-clipboard-copy-content="node_modules
	.bin
	my-local-pkg
	prettier"><pre class="notranslate"><code class="notranslate">node_modules
	.bin
	my-local-pkg
	prettier
</code></pre></div>
<p dir="auto">Compare the two outputs, npm v7 does not install <code class="notranslate">my-local-pkg</code> dependencies, there is no <code class="notranslate">./my-local-pkg/node_modules</code> folder generated.</p>
<h3 dir="auto">Environment:</h3>
<p dir="auto">npm v7.1.2</p>