With vite's update to v2.9.7, the plugin's default settings no longer work when used in conjunction with @storybook/builder-vite.
A minimal reproducible example can be found here: https://github.com/troyvassalotti/storybook-vite-plugin-mre with steps on how to reproduce and the error that is happening.
It seems that Vite may have changed how CSS imports work and it is creating an issue when trying to run a Storybook dev server. This issue is related to #49. In order for the plugin to work with Storybook so we can import SASS into our Lit components, we need to specifically include only SASS files. We lose the option to include standard CSS files after the Vite update.