Local inter-dependent packages development workflow

When I have local package A that uses local package B, it appears that any code changes to B is not seen by A until the the code from B is committed to git.

Is this proper and expected behavior? Is there a way that I can simultaneously develop A & B without committing changes in B?

If you develop both packages simultaneously you should $ pkg develop them both. If you have $ pkg add ed one of them, then it will only be updated once you commit.