RE: Reason for dev dependency on webpack 5
rsudworth We always had dev dependency on webpack. The dependency would come via bootloader package. What you see in the package.json was added as a resolution because at some stage a newer version of webpack5 was brining in a dependency that was causing build issues.
Taking a step back, we cut over from webpack 4 to webpack 5 some time ago, making webpack5 as default. What was the version you are upgrading from? Depending on that it could be related to webpack 5 upgrade or some other issue.
learn.microsoft.com/.../sdk-faq