Confused about how build and publish works

[xsh005]

When I run rye build or rye publish, it just gives me

error: Not a directory (os error 20)

I tried to understand which directory it wants by running:

strace -e trace=stat rye build

stat("/home/foo/.rye/config.toml", {st_mode=S_IFREG|0644, st_size=46, ...}) = 0
stat("/home/foo/.rye/self", {st_mode=S_IFDIR|0755, st_size=144, ...}) = 0
stat("/home/foo/Playground/github/wrench/pyproject.toml", {st_mode=S_IFREG|0644, st_size=564, ...}) = 0
stat("/home/foo/Playground/github/wrench/pyproject.toml", {st_mode=S_IFREG|0644, st_size=564, ...}) = 0
stat("/home/foo/Playground/github/pyproject.toml", 0x7ffc53c10c20) = -1 ENOENT (No such file or directory)
stat("/home/foo/Playground/pyproject.toml", 0x7ffc53c10c20) = -1 ENOENT (No such file or directory)
stat("/home/foo/pyproject.toml", 0x7ffc53c10c20) = -1 ENOENT (No such file or directory)
stat("/home/pyproject.toml", 0x7ffc53c10c20) = -1 ENOENT (No such file or directory)
stat("/pyproject.toml", 0x7ffc53c10c20) = -1 ENOENT (No such file or directory)
stat("/home/foo/Playground/github/wrench/dist", 0x7ffc53c11360) = -1 ENOENT (No such file or directory)
building wrench
stat("/home/foo/.rye/uv/0.1.44", {st_mode=S_IFDIR|0755, st_size=4, ...}) = 0
stat("/home/foo/.rye/uv/0.1.44/uv", {st_mode=S_IFREG|0755, st_size=32584320, ...}) = 0
error: Not a directory (os error 20)
+++ exited with 1 +++

I can't seem to see which directory rye wants, here's my pyproject.toml

[project]
name = "wrench"
version = "0.1.0"
description = "Add description here"
authors = [
    { name = "xsh", email = "[email protected]" }
]
dependencies = [
    "parsy>=2.1",
]
dev-dependencies = [
    "parsy-stubs>=2.1.2",
]
readme = "README.md"
requires-python = ">= 3.8"

[build-system]
requires = ["hatchling"]
build-backend = "hatchling.build"

[tool.rye]
managed = true
dev-dependencies = []

[tool.hatch.metadata]
allow-direct-references = true

[tool.hatch.build.targets.wheel]
packages = ["src"]

Here's my project file structure if it helps:

.
├── LICENSE
├── pyproject.toml
├── pyrightconfig.json
├── README.md
├── src
│  ├── wr.py
│  └── wrb.py
└── test

I am really new to python and rye, any help is appreciated!
Edit: running hatch build seems to work fine, but I want to let rye take care of it