i18n/nuxtjs with `differentDomains = true;` shows default locale no matter what subdomain I'm on.

[Mustlane]

Minimal reproducible example

nuxt.config.ts:

import { localeDomains } from './locale-domains.config'

  modules: ['@nuxtjs/i18n'],
  i18n: {
    locales: [
      { code: 'en', name: 'English', file: 'en.json', domain: localeDomains.en},
      { code: 'ee', name: 'Eesti', file: 'ee.json', domain: localeDomains.ee},
    ],
    defaultLocale: 'en',
    differentDomains: true,
    detectBrowserLanguage: false,
  },

locale-domains.config.ts:

export const localeDomains = {
  en: process.env.DOMAIN_EN,
  ee: process.env.DOMAIN_EE,
}

.env:

DOMAIN_EN=http://localhost:3000/
DOMAIN_EE=http://ee.localhost:3000/

index.vue:

<script setup lang="ts">
    const { locale, locales } = useI18n()
    const switchLocalePath = useSwitchLocalePath()

    const availableLocales = computed(() => {
  return locales.value.filter(i => i.code !== locale.value)
})
</script>

<template>
    <div style="display: flex; flex-direction: column; gap: 1;">
    <a v-for="locale in availableLocales" :href="switchLocalePath(locale.code)" :key="locale.domain">
            {{ locale.code }}
    </a>
    </div>
    <h1 class="bg-red-7100">{{ $t('welcome') }}</h1>
</template>

Example: currently the href:switchLocalePath(locale.code) located in ./app/pages/index.vue creates a path that has locale code in both subdomain and url path (i.e. http://ee.localhost:3000/ee/).

If I remove the locale code from url path using strategy: "no_prefix" , then $t('welcome') starts to display only the default language no matter what subdomain I'm on.

So:

without "no_prefix"
ee.localhost:3000/ee/ => Estonian
localhost:3000/ => English
localhost:3000/ee/ => Estonian

with "no_prefix"
ee.localhost:3000/ => English
localhost:3000/ => English
localhost:3000/ee/ => Doesn't exist

Expected behaviour using "no_prefix" IIUC:
ee.localhost:3000/ => Estonian
localhost:3000/ => English
localhost:3000/ee/ => Doesn't exist

P.S. Since I'm a beginner in web-dev and programming, I might have just messed up something. If so, then sorry for bothering you.
Thanks for help in advance!