I raised issue with missing documentation and modified code accordingly.
import { Experiment_DrupalClient as DrupalClient } from "next-drupal"
export const drupal = new DrupalClient(
  process.env.NEXT_PUBLIC_DRUPAL_BASE_URL,
  {
    previewSecret: process.env.DRUPAL_PREVIEW_SECRET,
    auth: () =>
      "Basic " +
      Buffer.from(
        `${process.env.BASIC_AUTH_USERNAME}:${process.env.BASIC_AUTH_PASSWORD}`
      ).toString("base64"),
  }
)
For a node with a title of "node-title" this results in an error on the node preview iframe:
Server Error
Error: The path attribute is missing for entity with slug /blog/node-title
This error happened while generating the page. Any console logs will be displayed in the terminal window.
Source
(api)/pages/api/preview.tsx (9:9) @ async handler
   7 |   response: NextApiResponse
   8 | ) {
>  9 |   return await drupal.preview(request, response)
     |         ^
  10 | }
  11 | 
where preview.ts is unchanged from the default installed code:
import { NextApiRequest, NextApiResponse } from "next"
import { drupal } from "lib/drupal"
export default async function handler(
  request: NextApiRequest,
  response: NextApiResponse
) {
  return await drupal.preview(request, response)
}
