Issue upgrading ember 2.8 to 2.11 - cannot find module 'ember'

I believe this is somehow related to how Ember is now setup through npm instead of bower.

After upgrading my application (working fine previously on lts 2.8) to 2.11 using this process:

http://ift.tt/2jrsRfl

I was relatively meticulous incorporating the diffs while going through ember init and have checked my app against the current ember-cli blueprint for 2.11:

http://ift.tt/2jD0Oh9

And yet upon load I get in the console:

Uncaught Error: Could not find module 'ember' imported from '(require)'

I noticed bower.json still had "ember": "lts-2-8" in it, but removing it seemed to have no effect.

Is there some other step now that ember is installed through npm?

From package.json: "ember-cli": "2.11.0" "ember-source": "^2.11.0"