Pass a req that's installed locally and sync it properly.

runhouse/resources/packages/package.py

@@ -1,5 +1,6 @@
 import copy
 import importlib.metadata as metadata
+import json
 import re
 import sys
 from pathlib import Path
@@ -92,6 +93,14 @@ def _find_locally_installed_version(package_name: str):
         except metadata.PackageNotFoundError:
             return None
 
+    @staticmethod
+    def _get_local_install_path(package_name: str):
+        distribution = metadata.distribution(package_name)
+        direct_url_json = distribution.read_text("direct_url.json")
+        if direct_url_json:
+            # File URL starts with file://
+            return json.loads(direct_url_json)["url"][len("file://") :]
+
     @staticmethod
     def _prepend_python_executable(
         install_cmd: str, env: Union[str, "Env"] = None, cluster: "Cluster" = None
@@ -495,7 +504,15 @@ def from_string(specifier: str, dryrun=False):
         if install_method == "pip" and Package.is_python_package_string(target):
             locally_installed_version = Package._find_locally_installed_version(target)
             if locally_installed_version:
-                target = f"{target}=={locally_installed_version}"
+                # Check if this is a package that was installed from local
+                local_install_path = Package._get_local_install_path(target)
+                if local_install_path and Path(local_install_path).exists():
+                    target = Folder(path=local_install_path, dryrun=True)
+                    install_method = "reqs"
+
+                # Otherwise, this is a package that was installed from pip, probably
+                else:
+                    target = f"{target}=={locally_installed_version}"
 
         # "Local" install method is a special case where we just copy a local folder and add to path
         if install_method == "local":