react-app-rewired config-overrides.js for referencing folders in adjacent folder https://github.com/facebook/create-react-app/issues/9127

config-overrides.js

const { override, addWebpackAlias } = require('customize-cra');
const path = require('path');

const overridePath = (webpackConfig) => {
  const oneOfRule = webpackConfig.module.rules.find((rule) => rule.oneOf);
  if (oneOfRule) {
    const tsxRule = oneOfRule.oneOf.find(
      (rule) => rule.test && rule.test.toString().includes('tsx')
    );

    const newIncludePaths = [
      // relative path to my yarn workspace library
      path.resolve(__dirname, '../common'),
    ];
    if (tsxRule) {
      if (Array.isArray(tsxRule.include)) {
        tsxRule.include = [...tsxRule.include, ...newIncludePaths];
      } else {
        tsxRule.include = [tsxRule.include, ...newIncludePaths];
      }
    }
  }
  return webpackConfig;
};

module.exports = override(
  // this is for path alais
  addWebpackAlias({
    api: path.resolve(__dirname, 'src/api'),
    utils: path.resolve(__dirname, 'src/utils'),
  }),
  overridePath
);