--watch mode forgets original output target with nodenext #46333

{
    "compilerOptions": {
        "strict": true,
        "target": "es2020",
        "module": "nodenext",
        "moduleResolution": "nodenext",
        "outDir": "../dist"
    }
}

{
  "name": "some-proj",
  "version": "1.0.0",
  "description": "",
  "type": "module",
  "main": "index.js",
}

import * as Thing from "thing";
Thing.fn();

"use strict";
var __createBinding = (this && this.__createBinding) || (Object.create ? (function(o, m, k, k2) {
    if (k2 === undefined) k2 = k;
    Object.defineProperty(o, k2, { enumerable: true, get: function() { return m[k]; } });
}) : (function(o, m, k, k2) {
    if (k2 === undefined) k2 = k;
    o[k2] = m[k];
}));
var __setModuleDefault = (this && this.__setModuleDefault) || (Object.create ? (function(o, v) {
    Object.defineProperty(o, "default", { enumerable: true, value: v });
}) : function(o, v) {
    o["default"] = v;
});
var __importStar = (this && this.__importStar) || function (mod) {
    if (mod && mod.__esModule) return mod;
    var result = {};
    if (mod != null) for (var k in mod) if (k !== "default" && Object.prototype.hasOwnProperty.call(mod, k)) __createBinding(result, mod, k);
    __setModuleDefault(result, mod);
    return result;
};
Object.defineProperty(exports, "__esModule", { value: true });
const Thing = __importStar(require("thing"));
Thing.fn();