diff --git a/packages/wxt/package.json b/packages/wxt/package.json
index 74f44b5b7..5e3dfc402 100644
--- a/packages/wxt/package.json
+++ b/packages/wxt/package.json
@@ -83,7 +83,7 @@
     "@webext-core/isolated-element": "^1.1.2",
     "@webext-core/match-patterns": "^1.0.3",
     "async-mutex": "^0.5.0",
-    "c12": "^1.11.2",
+    "c12": "^2.0.1",
     "cac": "^6.7.14",
     "chokidar": "^3.6.0",
     "ci-info": "^4.0.0",
diff --git a/packages/wxt/src/cli/index.ts b/packages/wxt/src/cli/index.ts
index 29002fd46..d9b7ddfa9 100644
--- a/packages/wxt/src/cli/index.ts
+++ b/packages/wxt/src/cli/index.ts
@@ -2,9 +2,6 @@ import cli from './commands';
 import { version } from '../version';
 import { isAliasedCommand } from './cli-utils';
 
-// TODO: Remove. See https://github.com/wxt-dev/wxt/issues/277
-process.env.VITE_CJS_IGNORE_WARNING = 'true';
-
 // Grab the command that we're trying to run
 cli.parse(process.argv, { run: false });
 
diff --git a/packages/wxt/src/core/resolve-config.ts b/packages/wxt/src/core/resolve-config.ts
index 6fcbd012b..18a26542c 100644
--- a/packages/wxt/src/core/resolve-config.ts
+++ b/packages/wxt/src/core/resolve-config.ts
@@ -49,9 +49,6 @@ export async function resolveConfig(
       name: 'wxt',
       cwd: inlineConfig.root ?? process.cwd(),
       rcFile: false,
-      jitiOptions: {
-        esmResolve: true,
-      },
     });
     userConfig = loadedConfig ?? {};
     userConfigMetadata = metadata;
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 17914d1e4..cb2db2427 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -270,8 +270,8 @@ importers:
         specifier: ^0.5.0
         version: 0.5.0
       c12:
-        specifier: ^1.11.2
-        version: 1.11.2(magicast@0.3.5)
+        specifier: ^2.0.1
+        version: 2.0.1(magicast@0.3.5)
       cac:
         specifier: ^6.7.14
         version: 6.7.14
@@ -2063,6 +2063,14 @@ packages:
       magicast:
         optional: true
 
+  c12@2.0.1:
+    resolution: {integrity: sha512-Z4JgsKXHG37C6PYUtIxCfLJZvo6FyhHJoClwwb9ftUkLpPSkuYqn6Tr+vnaN8hymm0kIbcg6Ey3kv/Q71k5w/A==}
+    peerDependencies:
+      magicast: ^0.3.5
+    peerDependenciesMeta:
+      magicast:
+        optional: true
+
   cac@6.7.14:
     resolution: {integrity: sha512-b6Ilus+c3RrdDk+JhLKUAQfzzgLEPy6wcXqS7f/xe1EETvsDP6GORG7SFuOs6cID5YkqchW/LXZbX5bc8j7ZcQ==}
     engines: {node: '>=8'}
@@ -3005,6 +3013,10 @@ packages:
     resolution: {integrity: sha512-2yTgeWTWzMWkHu6Jp9NKgePDaYHbntiwvYuuJLbbN9vl7DC9DvXKOB2BC3ZZ92D3cvV/aflH0osDfwpHepQ53w==}
     hasBin: true
 
+  jiti@2.4.0:
+    resolution: {integrity: sha512-H5UpaUI+aHOqZXlYOaFP/8AzKsg+guWu+Pr3Y8i7+Y3zr1aXAvCvTAQ1RxSc6oVD8R8c7brgNtTVP91E7upH/g==}
+    hasBin: true
+
   js-tokens@4.0.0:
     resolution: {integrity: sha512-RdJUflcE3cUzKiMqQgsCu06FPu9UdIJO0beYbPhHN4k6apgJtifcoCtT9bcxOpYBtpD2kCM6Sbzg4CausW/PKQ==}
 
@@ -6165,6 +6177,23 @@ snapshots:
     optionalDependencies:
       magicast: 0.3.5
 
+  c12@2.0.1(magicast@0.3.5):
+    dependencies:
+      chokidar: 4.0.1
+      confbox: 0.1.7
+      defu: 6.1.4
+      dotenv: 16.4.5
+      giget: 1.2.3
+      jiti: 2.4.0
+      mlly: 1.7.1
+      ohash: 1.1.4
+      pathe: 1.1.2
+      perfect-debounce: 1.0.0
+      pkg-types: 1.2.0
+      rc9: 2.1.2
+    optionalDependencies:
+      magicast: 0.3.5
+
   cac@6.7.14: {}
 
   cacheable-lookup@7.0.0: {}
@@ -7176,6 +7205,8 @@ snapshots:
 
   jiti@1.21.6: {}
 
+  jiti@2.4.0: {}
+
   js-tokens@4.0.0: {}
 
   js-tokens@9.0.0: {}