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error - The code generator has deoptimised the styling exceeds the max of 100kb

After using babel-loader in my webpack config, I began to see the following error


The code generator has deoptimised the styling of FILENAME as it exceeds the max of 100KB
Apparently that was because I wasnt excluding my node_modules directory when using babel-loader Now, my webpack config has the following line

loaders: [ { jsx: /.js$/, exclude: /node_modules/, loader: 'babel-loader' } ]