React application sudden break and causes Appropriate loader Error

I know this issue has been asked before , the solution was to create babel config file & webpack file but it still doesnt solve the issue

I was using a create react app and all this while it was working fine until I ran npm install. I am not too sure what caused it to break but now all it has is the appropriate loader error. I am NOT familiar with babel and webpack. So hopefully someone can shed some light here.

I have install the babel presets in package.json. Following is my package.json

{
  "name": "frontend",
  "version": "0.1.0",
  "private": true,
  "dependencies": {
    "@ant-design/icons": "^4.7.0",
    "@fortawesome/fontawesome-svg-core": "^6.1.1",
    "@fortawesome/free-solid-svg-icons": "^6.1.1",
    "@fortawesome/react-fontawesome": "^0.1.18",
    "@hookform/resolvers": "^2.8.8",
    "@reduxjs/toolkit": "^1.8.0",
    "@testing-library/jest-dom": "^4.2.4",
    "@testing-library/react": "^9.5.0",
    "@testing-library/user-event": "^7.2.1",
    "antd": "^4.19.1",
    "axios": "^0.26.1",
    "babel-preset-es2015": "^6.24.1",
    "firebase": "^9.6.7",
    "lodash.debounce": "^4.0.8",
    "mdb-react-ui-kit": "^2.4.0",
    "moment": "^2.29.3",
    "otp-input-react": "^0.3.0",
    "qs": "^6.10.5",
    "react": "^17.0.2",
    "react-dom": "^17.0.2",
    "react-dropdown-tree-select": "^2.7.1",
    "react-hook-form": "^7.27.1",
    "react-moment": "^1.1.2",
    "react-nestable": "^1.3.0",
    "react-redux": "^7.2.6",
    "react-router-dom": "^5.2.0",
    "react-scripts": "^2.1.3",
    "react-toastify": "^8.2.0",
    "socket.io-client": "^4.4.1",
    "yup": "^0.32.11"
  },
  "devDependencies": {
    "@babel/core": "^7.0.0",
    "@babel/plugin-proposal-class-properties": "^7.0.0",
    "@babel/plugin-syntax-dynamic-import": "^7.0.0",
    "@babel/preset-env": "^7.0.0",
    "@babel/preset-react": "^7.0.0", 
    "babel-loader": "^8.0.1",
    "css-loader": "^0.28.10",
    "html-webpack-plugin": "^3.0.4",
    "style-loader": "^0.19.1",
    "webpack": "^4.0.0",
    "webpack-cli": "^2.0.14",
    "webpack-dev-server": "^3.0.0"
  },
  "scripts": {
    "start": "PORT=4007 react-scripts start",
    "build": "react-scripts build",
    "test": "react-scripts test",
    "eject": "react-scripts eject"
  },
  "eslintConfig": {
    "extends": "react-app"
  },
  "browserslist": {
    "production": [
      ">0.2%",
      "not dead",
      "not op_mini all"
    ],
    "development": [
      "last 1 chrome version",
      "last 1 firefox version",
      "last 1 safari version"
    ]
  }

Following is my file structure

This is my .babelrc file

{
  "presets": ["@babel/preset-env", "@babel/preset-react"],
  "plugins": [
    "@babel/plugin-syntax-dynamic-import",
    "@babel/plugin-proposal-class-properties"
  ]
}

This is webpack.config.js file

const webpack = require("webpack");
const HtmlWebpackPlugin = require("html-webpack-plugin");

const port = process.env.PORT || 3000;

module.exports = {
  mode: "development",
  entry: "./src/index.js",
  output: {
    filename: "bundle.[hash].js",
  },
  devtool: "inline-source-map",
  module: {
    rules: [
      {
        test: /\.jsx?$/,
        loader: "babel-loader",
        exclude: /node_modules/,
        query: {
          presets: ["es2015"],
        },
      },
      {
        test: /\.css$/,
        use: [
          {
            loader: "style-loader",
          },
          {
            loader: "css-loader",
            options: {
              modules: true,
              localsConvention: "camelCase",
              sourceMap: true,
            },
          },
        ],
      },
    ],
  },
  plugins: [
    new HtmlWebpackPlugin({
      template: "public/index.html",
      favicon: "public/favicon.ico",
    }),
  ],
  devServer: {
    host: "localhost",
    port: port,
    historyApiFallback: true,
    open: true,
  },
};

Thank you.

FOUND THE ANSWER Had to update react-scripts to ^5.0.0 and i removed babel.rc file and webpack config file