In the directory of the local package (packages/pb-editor-wrapper), run npm run build, since yalc installs the built version of the package.
Alternatively use npm run build-watch to keep rebuilding the code upon saving.
Run npm run build-watch or use npm run local-publish to publish the latest version of your built package locally.
In the directory you wish to install the package (i.e. fusion/engine), run yalc add @arc-fusion/pb-editor-wrapper to create the .yalc folder and point to it from the package.json.
In the docker file of the package consumer, add a temporary COPY ./.yalc ./.yalc line before the RUN npm ci or RUN npm install line, so npm can find the locally published package inside that .yalc directory.
If you make any changes to the original package, you need to run yalc update in the consumer repo (i.e. fusion/engine).