Error while running storybook with create react app

I have installed storybook into my existing repo. When I try to run storybook. I get the following error.

Your project's baseUrl can only be set to src or node_modules. Create React App does not support other values at this time.

My current folder structure has app at root level. Hence my baseURL at tsconfig.json is ./app. I have tried things listed here Github but this dint work for me. This is my current folder structure.