You May need an appropriate loader to handle this file type error when using React UseState

Rightbar.jsx code snippet:

import "./rightbar.css"
import {Users} from "../../dummyData"
import Online from "../online/Online";
import { useEffect, useState, useContext } from 'react';
import axios from 'axios';
import { AuthContext } from "../../context/AuthContext";
import { Link } from "react-router-dom";
import { Add, Remove } from "@material-ui/icons";

export default function Rightbar({ user }) {
  const PF = process.env.REACT_APP_PUBLIC_FOLDER;
  const [subscriptions, setSubscriptions] = useState([]);
  const { user: currentUser, dispatch } = useContext(AuthContext);
  const [followed, setFollowed] = useState(
    currentUser.followings.includes(user?.id)
  ); 

Error:
error

I’ve seen similar issues on here and have tried various solutions with installing file-loader and creating a webpack.config.js file. Although none of the solutions have seemed to work. I’m using npm instead of yarn. Any help would be appreciated!