Why does my local package have access to all of my workspace's dependencies?

I have a local package that I created and add to my workspace, and it seems to be able to have access to all the dependencies added to my workspace, for example, ModuleA. Even though I did not declare Module A as a dependency in my package manifest file, the package can still find it and the package can use its apis and compile and build just fine with the project.

I find this strange because I thought the manifest file determined what dependencies a package can have access to.