ts-node cannot find dependent module

Assume to have simple typescript program having two files:

src/hello.js

export default function hello() {
  return 'Hello world'
}

src/say.js

import hello from './hello.js'
console.log(hello())

with the following tsconfig.json

{
  "compilerOptions": {
    "lib": ["es2023"],
    "module": "node16",
    "target": "es2022",

    "strict": true,
    "esModuleInterop": true,
    "skipLibCheck": true,
    "forceConsistentCasingInFileNames": true,
    "moduleResolution": "node16",

    "allowSyntheticDefaultImports": true,

    "outDir": "dist",
  },
  "include": ["src/**/*"]
}

and CommonJS type set in package.json

{
  "type": "commonjs"
}

The problem is with ts-node failing with the following error:

$ npx ts-node src/say.ts
Error: Cannot find module './hello.js'
Require stack:
- /Users/pawel/wrk/github/ts-sandbox/src/say.ts
    at Function.Module._resolveFilename (node:internal/modules/cjs/loader:1144:15)
    at Function.Module._resolveFilename.sharedData.moduleResolveFilenameHook.installedValue [as _resolveFilename] (/Users/pawel/wrk/github/ts-sandbox/node_modules/@cspotcode/source-map-support/source-map-support.js:811:30)
    at Function.Module._load (node:internal/modules/cjs/loader:985:27)
    at Module.require (node:internal/modules/cjs/loader:1235:19)
    at require (node:internal/modules/helpers:176:18)
    at Object.<anonymous> (/Users/pawel/wrk/github/ts-sandbox/src/say.ts:1:1)
    at Module._compile (node:internal/modules/cjs/loader:1376:14)
    at Module.m._compile (/Users/pawel/wrk/github/ts-sandbox/node_modules/ts-node/src/index.ts:1618:23)
    at Module._extensions..js (node:internal/modules/cjs/loader:1435:10)
    at Object.require.extensions.<computed> [as .ts] (/Users/pawel/wrk/github/ts-sandbox/node_modules/ts-node/src/index.ts:1621:12) {
  code: 'MODULE_NOT_FOUND',
  requireStack: [ '/Users/pawel/wrk/github/ts-sandbox/src/say.ts' ]
}

This project works well when transpiled with tsc and simply run node dist/say.js. Also ts-node alternatives (tsx src/say.ts, tsimp src/say.ts) work without issues.

Please find complete source code here.

What I'm missing with ts-node please?

Just try removing the .js extension from the import line:

src/say.js

import hello from './hello.js' // <<< HERE
console.log(hello())