reactjs – npm run build fails to compile transpiled App.js file. Suspected ES6 and commonJS mismatch

While compiling the transpiled ES6 JS files from TS (React), I ran into this error:

Cannot get final name for export ‘__esModule’ of ./src/App.js while
generating the root export ‘__esModule’ (used name: ‘__esModule’)

This is my tsconfig.json

"compilerOptions": {
    "jsx": "react",
    "target": "es6", 
    "lib": ["dom", "esnext"], 
    "module": "commonjs", 
    "moduleResolution": "node", 
    "allowSyntheticDefaultImports": true,
    "esModuleInterop": true, 
    "forceConsistentCasingInFileNames": true,
    "strict": true, 
    "skipLibCheck": true

I was not able to find a relevant explanation online after hours of scouring. Any help is appreciated.

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