Is there an existing issue for this?

• I have searched the existing issues

This issue exists in the latest npm version

• I am using the latest npm

Current Behavior

Using the npm_config_prefix results in a no such file or directory error when attempting to run a command via npx globally on npm@8.16.0. The same command used to work on npm@8.15.1.

Expected Behavior

Global npx command works in conjunction with npm_config_prefix outside of a project/workspace.

Steps To Reproduce

$ mkdir repro
$ cd repro
$ npm i -g npm@8.15.1
$ npm_config_prefix=/tmp/.foo npx serve@latest --help
# observe `serve` CLI is executed successfully and the help message is printed

Now, upgrade npm and repeat:

$ npm i -g npm@8.16.0
$ npm_config_prefix=/tmp/.foo npx serve@latest --help
npm ERR! code ENOENT
npm ERR! syscall lstat
npm ERR! path /private/tmp/.foo/lib
npm ERR! errno -2
npm ERR! enoent ENOENT: no such file or directory, lstat '/private/tmp/.foo/lib'
npm ERR! enoent This is related to npm not being able to find a file.
npm ERR! enoent 

npm ERR! A complete log of this run can be found in:
npm ERR!     /…/.npm/_logs/2022-08-05T21_22_57_389Z-debug-0.log

💥 Observe npx errors and complains This is related to npm not being able to find a file..

Environment

• npm:
  • GOOD: 8.15.1
  • BAD: 8.16.0
• Node.js: v16.14.0
• OS Name: macOS, Ubuntu 22
• System Model Name: M1 Macbook Pro, GitHub Action Runner
• npm config:

$ npm config ls
; node bin location = /Users/…/.nvm/versions/node/v16.14.0/bin/node
; node version = v16.14.0
; npm local prefix = /Users/…/Desktop/repro
; npm version = 8.16.0
; cwd = /Users/…/Desktop/repro
; HOME = /Users/…
; Run `npm config ls -l` to show all defaults.

Additionally, npm_config_prefix is set when running npx command.