You are getting it. Use less and smaller tools if possible. And if you're on Node 18, node comes with a watch mode built in that you can leverage.
You can alternatively use esbuild to handle the TypeScript compilation since it is faster than tsc for that, and just keep tsc around for the typechecker.
As of November 2023, what is the canonical way to set up a Node project with Typescript and hot reload?
Minimal setup with least amount of configs and tooling. I am not after any other tools like Bun.