Babel and React: Object destructuring not working in props

I am running into an issue with object destructuring not working in a react component property. I am getting Unexpected token (172:13)

at:

  170 |         }),
  171 |       }}
> 172 |       items={...sideNavigationSectionItems}
      |              ^
  173 |     />
  174 |   );
  175 | }

But my babel config should be covering this scenario?

presets: [
      [
        '@babel/preset-env',
        {
          useBuiltIns: 'usage',
          corejs: '3.25',
          bugfixes: false,
        },
      ],
      '@babel/preset-react',
      '@babel/preset-typescript',
    ],
    plugins: [
      [
        '@babel/plugin-transform-runtime',
        {
          regenerator: true,
        },
      ],
      '@babel/plugin-proposal-object-rest-spread',
      '@babel/plugin-transform-destructuring',
      '@babel/plugin-transform-spread',
      '@babel/plugin-proposal-class-properties',
      '@babel/plugin-transform-classes',
    ],

I am stuck so any help would be greatly appreciated.

Marcus