'Unexpected token' on JSX for Django React Tutorial

I'm following this tutorial and cant for the life of me figure out why webpack isn't recognizing JSX? Would love someone to point out the silly thing that i'm missing :)

my full code here https://github.com/dukarc/django-react-app

Error:

\django-react-app\leadmanager\frontend\src\components\App.js: Unexpected token (6:11)

  4 | class App extends Component {
  5 |   render() {
> 6 |     return <h1>React App</h1>;
    |            ^
  7 |   }
  8 | }

• Things I have Tried

  1. rm -rf node_modules && rm -f package-lock.json && npm install
  2. refered back to the tutorial github and double checked that i'm in sync

• Versions (will output more if requested ... this was just off top of my head):

  • node: 10.15.1
  • npm: 6.8.0

package.json

{
  "name": "lead_manager_react_django",
  "version": "1.0.0",
  "description": "",
  "main": "index.js",
  "scripts": {
    "dev": "webpack --mode development  ./leadmanager/frontend/src/index.js --output ./leadmanager/frontend/static/frontend/main.js",
    "build": "webpack --mode production ./leadmanager/frontend/src/index.js --output ./leadmanager/frontend/static/frontend/main.js"
  },
  "keywords": [],
  "author": "",
  "license": "ISC",
  "devDependencies": {
    "@babel/core": "^7.2.2",
    "@babel/preset-env": "^7.3.1",
    "@babel/preset-react": "^7.0.0",
    "babel-loader": "^8.0.5",
    "babel-plugin-transform-class-properties": "^6.24.1",
    "webpack": "^4.29.0",
    "webpack-cli": "^3.2.1"
  },
  "dependencies": {
    "prop-types": "^15.6.2",
    "react": "^16.7.0",
    "react-dom": "^16.7.0"
  }
}

webpack.config.js

module.exports = {
  module: {
    rules: [
      {
        test: /\.(js|jsx)$/,
        exclude: /node_modules/,
        use: {
          loader: "babel-loader"
        }
      }
    ]
  }
};

.babelrc

{
  "presets": ["@babel/preset-env", "@babel/preset-react"],
  "plugins": ["transform-class-properties"]
}