In Prisma 6.6.0+ they require an output path and no longer generate the Prisma client in node_modules.

Details here.

This is going to cause problems with our official prisma extension which was built to deal with the old way.

It seems like the way to fix this would be to do this from their docs:

pass the the --schema option to your Prisma CLI command (e.g. prisma migrate dev --schema ./prisma/schema)

We don't pass the --schema for folders right now I don't think

_TRI-5172