Vue-Test-Utils (Vitest) doesn't recognize Nuxt useRouter as a function

I am using Nuxt 3 on the current project at work. We just started writing tests (this is my first time doing that). I'm trying to test a component which has Nuxt useRouter and my basic test fails because useRouter is not recognized as a function. At first I was having trouble with the import being resolved. I changed nuxt/app import location to #imports as well as adding an alias to target the location of imports and that fixed the initial issue. My code looks something like this:

They way I'm importing the router:

import { useRouter } from '#imports'

vitest.config.js

import { fileURLToPath, URL } from 'node:url'
import { defineConfig } from 'vitest/config'
import vue from '@vitejs/plugin-vue'

export default defineConfig({
  plugins: [vue()],
  resolve: {
    alias: {
      '@': fileURLToPath(new URL('./', import.meta.url)),
      '#imports': './node_modules/nuxt/dist/pages/runtime/composables.mjs'
    }
  },
  test: {
    globals: true,
    environment: 'jsdom',
    coverage: {
      provider: 'c8',
      reporter: ['text', 'json', 'html']
    }
  }
})

The test itself:

import { describe, it, expect } from 'vitest'
import { mount } from '@vue/test-utils'

import AppNavbar from './AppNavbar.vue'

describe('AppNavbar', () => {
  const wrapper = mount(AppNavbar)

  it('renders', () => {
    expect(wrapper.vm).toBeTruthy()
  })
})

Fail message:

TypeError: useRouter is not a function

Am I doing something wrong? Is vue-test-utils even able to see Nuxt composables?

Thanks in advance!