I have reproduced the issue on the latest CLI version.
Yes, I am on the latest version
I have searched existing posts and this report is not a duplicate.
Yes, this isn’t a duplicate
In which of these areas are you experiencing a problem?
Extension
Expected behavior
When running shopify app dev, hot reload should update the files in a theme extension’s asset folder.
Actual behavior
Changes in the asset folder trigger hot reload and it then logs that the files has been updated, but it actually doesn’t update it.
Reproduction steps
Run shopify app dev
In a theme extension change the contents of a file in the assets folder
Check the browser console for hot-reload’s logs
Check file for the updated change
Verbose output
[HotReload] Updated extension CSS: assets/price-history.css
Operating system
Mac OS Tahoe v26.2
CLI version
v3.93.1
Shell
iTerm2
Nodejs version
v25.6.1