Upgrade vite to 8.x

[nnoce14]

We are currently using vite@7.3.1 in the repo. We are looking to upgrade to Vite 8 which is generally available now. Vite 8 replaces rollup with rolldown as the bundler which will speed up frontend application builds.

Upgrading to Vite 8 will require us to upgrade vitest to 4.1.0 to match it. The exisiting issue for upgrading to vitest 4.x will be attached as a sub-issue as is expected to be completed alongside this effort.