What's the best approach to compiling nested packages that both use VE in a consuming app?

[zhued]

Importing a single package that uses VE (like a design system) into a consuming application seems straightforward, either pre-compiling at package level, or compiling at build time in the consuming application.

However would would be the best approach for a nested package situation?
Example:

• VE package 1 (Design system that has a button component)
• VE package 2 that is a generic form component and consumes VE package 1 to use the button UI.
• Consuming app that consumes VE package 2 to display the generic form.

If we just tweaked the application's build configs with plugins like vanillaExtractPlugin(), and it would able to build the button component from VE package 1? If we were building more features into VE package 2, what configs would we need in that VE package 2 to properly set up any other packages it it consumes?