Currently in the time of this post, nuxt is showing an error when running nuxt specially on most new projects:

(node:31328) [DEP0040] DeprecationWarning: The `punycode` module is deprecated. Please use a userland alternative instead.
(Use `node --trace-deprecation ...` to show where the warning was created)

What is punycode

Punycode is an encoding system that converts Unicode characters into ASCII characters, making it possible to use internationalized domain names (IDNs) in the Domain Name System (DNS). Since DNS only supports ASCII, Punycode allows domain names containing special characters, such as those in Chinese, Arabic, or Cyrillic scripts, to be properly recognized. It does this by prefixing the encoded domain with xn-- followed by the transformed ASCII representation. For example, the German domain "münchen.de" is converted into "xn--mnchen-3ya.de" to ensure compatibility. Punycode plays a crucial role in enabling multilingual web addresses while preventing security risks like homograph attacks, where visually similar characters are used to create deceptive domains.

How to Fix the error Deprecations

for pnpm users. If you're using eslint, you can add the following to your package.json. This will force eslint to use the newer version of "ajv".

{
  "pnpm": {
    "overrides": {
      "ajv": "8.17.1"
    }
  }
}

for yarn users

{
  "resolutions": {
    "ajv": "8.17.1"
  }
}

For More information

Check this links bellow:

Nuxt: Deprecated Punycode Fix

What is punycode

How to Fix the error Deprecations

For More information