next build throws error related to webpack

When i run next build i get following error:

./node_modules/leaflet/dist/images/layers-2x.png
Module parse failed: Unexpected character '�' (1:0)
You may need an appropriate loader to handle this file type, currently no loaders are configured to process this file. See https://webpack.js.org/concepts#loaders
(Source code omitted for this binary file)


> Build error occurred
Error: > Build failed because of webpack errors
    at /app/node_modules/next/dist/build/index.js:397:19
    at async Span.traceAsyncFn (/app/node_modules/next/dist/telemetry/trace/trace.js:60:20)
    at async Object.build [as default] (/app/node_modules/next/dist/build/index.js:77:25)
# 

my next.config.js seems to be configured to process .png files. Project uses leaflet and react-leaflet libraries. Error says nothing about images that I put in /public/images

const { i18n } = require('./next-i18next.config');
const theme = require('./app/styles/antdoverrides');

module.exports = {
    webpackDevMiddleware: (config) => {
        config.watchOptions = {
            poll: 800,
            aggregateTimeout: 300,
        };
        return config;
    },
    module: {
        loaders: [
            {
                test: /.(png|jpg|gif)$/,
                use: [
                    {
                        loader: 'file-loader',
                        options: {},
                    },
                ],
            },
        ],
    }
};