Reproduction of `tsc --watch` not working

package.json

{
  "name": "tsc-test",
  "version": "1.0.0",
  "description": "tsc watch problem repro",
  "license": "ISC",
  "scripts": {
    "start": "tsc test.ts --watch"
  },
  "dependencies": {
    "typescript": "^5.4.2"
  }
}

test.ts

// First run "npm run start", then uncomment the next line to see that
// TypeScript versions >= 5.4.2 will not see the error until you restart
// the TypeScript server.

// uncomment me and save!