Storybook with Tailwind throwing unknown word error

I'm trying to use Tailwind, React (CRA), and Storybook but my current setup is throwing this error. I'm using TypeScript on top of Create React App.

src/index.css Unknown word

> 1 | var api = require("!../node_modules/@storybook/addon-postcss/node_modules/style-loader/dist/runtime/injectStylesIntoStyleTag.js");
    | ^
  2 |             var content = require("!!../node_modules/@storybook/addon-postcss/node_modules/css-loader/dist/cjs.js??ruleSet[1].rules[6].use[1]!../node_modules/@storybook/addon-postcss/node_modules/postcss-loader/dist/cjs.js??ruleSet[1].rules[6].use[2]!./index.css");

.storybook/main.js

module.exports = {
  "stories": [
    "../src/**/*.stories.mdx",
    "../src/**/*.stories.@(js|jsx|ts|tsx)"
  ],
  "addons": [
    "@storybook/addon-links",
    "@storybook/addon-essentials",
    "@storybook/addon-interactions",
    "@storybook/preset-create-react-app",
    {
      name: '@storybook/addon-postcss',
      options: {
        cssLoaderOptions: {
          // When you have splitted your css over multiple files
          // and use @import('./other-styles.css')
          importLoaders: 1,
        },
        postcssLoaderOptions: {
          // When using postCSS 8
          implementation: require('postcss'),
        },
      },
    },
  ],
  "framework": "@storybook/react",
  "core": {
    "builder": "webpack5"
  }
}

.storybook/preview.js

import "../src/index.css"

export const parameters = {
  actions: { argTypesRegex: "^on[A-Z].*" },
  controls: {
    matchers: {
      color: /(background|color)$/i,
      date: /Date$/,
    },
  },
}

relative devDependencies, I am also using ESLint but I don't think that'd cause any issues? If so I will edit to add the ESLint dependencies I have.

"devDependencies": {
    "@storybook/addon-actions": "^6.5.9",
    "@storybook/addon-essentials": "^6.5.9",
    "@storybook/addon-interactions": "^6.5.9",
    "@storybook/addon-links": "^6.5.9",
    "@storybook/addon-postcss": "^2.0.0",
    "@storybook/builder-webpack5": "^6.5.9",
    "@storybook/manager-webpack5": "^6.5.9",
    "@storybook/node-logger": "^6.5.9",
    "@storybook/preset-create-react-app": "^4.1.2",
    "@storybook/react": "^6.5.9",
    "@storybook/testing-library": "0.0.13",
    "tailwindcss": "^3.0.23",
    "webpack": "^5.70.0"
  }