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I am trying to make a react component library and Im using storybook for visualising the components.

They load fine until when I use module.scss files to scope the styling to their projects. This is my main.ts

import type { StorybookConfig } from "@storybook/react-webpack5";
const path = require('path')

const config: StorybookConfig = {
  stories: ["../src/**/*.mdx", "../src/**/*.stories.@(js|jsx|mjs|ts|tsx)"],
  addons: [
    "@storybook/addon-webpack5-compiler-swc",
    "@storybook/addon-onboarding",
    "@storybook/addon-links",
    "@storybook/addon-essentials",
    "@chromatic-com/storybook",
    "@storybook/addon-interactions",
    "@storybook/addon-styling-webpack",
    "@storybook/preset-scss"
  ],
  framework: {
    name: "@storybook/react-webpack5",
    options: {},
  },
  webpackFinal: async (config: any) => {
    // Find and remove the existing css rule that conflicts with css module handling
    config.module.rules = config.module.rules.filter(
      (rule) => !rule.test || !rule.test.test('.css')
    );

    config.module.rules.push({
      test: /\.scss$/,
      use: [
        'style-loader',
        {
          loader: 'css-loader',
          options: {
            modules: true,
            importLoaders: 1,
          },
        },
        'sass-loader',
      ],
      include: path.resolve(__dirname, '../src'),
    });

    return config;
  },
};
export default config;

And this is my package.json,

{
  "name": "ultimatix-ui",
  "version": "1.0.6",
  "description": "",
  "scripts": {
    "rollup": "rollup -c",
    "storybook": "storybook dev -p 6006",
    "build-storybook": "storybook build",
    "dev": "rollup -c --watch",
    "test": "jest"
  },
  "author": "",
  "license": "ISC",
  "devDependencies": {
    "@babel/core": "^7.24.5",
    "@babel/preset-env": "^7.24.5",
    "@babel/preset-react": "^7.24.1",
    "@babel/preset-typescript": "^7.24.1",
    "@chromatic-com/storybook": "^1.4.0",
    "@rollup/plugin-commonjs": "^25.0.7",
    "@rollup/plugin-json": "^6.1.0",
    "@rollup/plugin-node-resolve": "^15.2.3",
    "@rollup/plugin-terser": "^0.4.4",
    "@rollup/plugin-typescript": "^11.1.6",
    "@storybook/addon-essentials": "^8.1.2",
    "@storybook/addon-interactions": "^8.1.2",
    "@storybook/addon-links": "^8.1.2",
    "@storybook/addon-onboarding": "^8.1.2",
    "@storybook/addon-styling-webpack": "^1.0.0",
    "@storybook/addon-webpack5-compiler-swc": "^1.0.2",
    "@storybook/blocks": "^8.1.2",
    "@storybook/preset-scss": "^1.0.3",
    "@storybook/react": "^8.1.2",
    "@storybook/react-webpack5": "^8.1.2",
    "@storybook/test": "^8.1.2",
    "@testing-library/react": "^15.0.7",
    "@types/jest": "^29.5.12",
    "@types/react": "^18.3.2",
    "autoprefixer": "^10.4.19",
    "babel-jest": "^29.7.0",
    "css-loader": "^5.2.7",
    "identity-obj-proxy": "^3.0.0",
    "jest": "^29.7.0",
    "jest-environment-jsdom": "^29.7.0",
    "node-sass": "^9.0.0",
    "postcss": "^8.4.38",
    "react-dom": "^18.3.1",
    "rollup": "^4.18.0",
    "rollup-plugin-dts": "^6.1.1",
    "rollup-plugin-peer-deps-external": "^2.2.4",
    "rollup-plugin-postcss": "^4.0.2",
    "rollup-plugin-sass": "^1.12.22",
    "rollup-plugin-scss": "^4.0.0",
    "sass": "^1.77.2",
    "sass-loader": "^10.5.2",
    "storybook": "^8.1.2",
    "style-loader": "^2.0.0",
    "tailwind": "^4.0.0",
    "tslib": "^2.6.2",
    "typescript": "^5.4.5"
  },
  "main": "dist/cjs/index.js",
  "module": "dist/esm/index.js",
  "files": [
    "dist"
  ],
  "types": "dist/index.d.ts",
  "peerDependencies": {
    "react": "^18.3.1"
  }
}

Can someone help me out in using scss modules in this fashion?

This is the error that storybook throws me:

enter image description here

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