diff --git a/packages/cli/src/lib/bundler/backend.ts b/packages/cli/src/lib/bundler/backend.ts
index e6d2ff3428..6a15c8e35f 100644
--- a/packages/cli/src/lib/bundler/backend.ts
+++ b/packages/cli/src/lib/bundler/backend.ts
@@ -34,10 +34,9 @@ export async function serveBackend(options: ServeOptions) {
       poll: true,
     },
     (err: Error) => {
-      console.log('Build succeeded');
       if (err) {
         console.error(err);
-      }
+      } else console.log('Build succeeded');
     },
   );
 
diff --git a/packages/cli/src/lib/bundler/bundle.ts b/packages/cli/src/lib/bundler/bundle.ts
index ad1a63ebaf..a088202fa8 100644
--- a/packages/cli/src/lib/bundler/bundle.ts
+++ b/packages/cli/src/lib/bundler/bundle.ts
@@ -40,6 +40,7 @@ export async function buildBundle(options: BuildOptions) {
     ...options,
     checksEnabled: false,
     isDev: false,
+    isBackend: false,
   });
   const compiler = webpack(config);
 
diff --git a/packages/cli/src/lib/bundler/config.ts b/packages/cli/src/lib/bundler/config.ts
index 608f2d7b91..241ef6a9af 100644
--- a/packages/cli/src/lib/bundler/config.ts
+++ b/packages/cli/src/lib/bundler/config.ts
@@ -79,39 +79,40 @@ export function createConfig(
     }),
   );
 
+  const backendRelatedConfig = {
+    watch: true,
+    watchOptions: {
+      ignored: [/node_modules\/(?!\@backstage)/],
+    },
+    externals: [
+      nodeExternals({
+        modulesDir: paths.rootNodeModules,
+        whitelist: [
+          'webpack/hot/poll?100',
+          /\@backstage\/.*\/(?!node_modules)/,
+        ],
+      }),
+      nodeExternals({
+        modulesDir: paths.targetNodeModules,
+        whitelist: [
+          'webpack/hot/poll?100',
+          /\@backstage\/.*\/(?!node_modules)/,
+        ],
+      }),
+    ],
+    target: 'node' as const,
+    node: {
+      __dirname: true,
+      __filename: true,
+      global: true,
+    },
+  };
+
   return {
     mode: isDev ? 'development' : 'production',
     profile: false,
     ...(isBackend
-      ? {
-          watch: true,
-          watchOptions: {
-            ignored: [/node_modules\/(?!\@backstage)/],
-            // poll: 1000
-          },
-          externals: [
-            nodeExternals({
-              modulesDir: paths.rootNodeModules,
-              whitelist: [
-                'webpack/hot/poll?100',
-                /\@backstage\/.*\/(?!node_modules)/,
-              ],
-            }),
-            nodeExternals({
-              modulesDir: paths.targetNodeModules,
-              whitelist: [
-                'webpack/hot/poll?100',
-                /\@backstage\/.*\/(?!node_modules)/,
-              ],
-            }),
-          ],
-          target: 'node',
-          node: {
-            __dirname: true,
-            __filename: true,
-            global: true,
-          },
-        }
+      ? backendRelatedConfig
       : {
           node: {
             module: 'empty',
@@ -140,7 +141,6 @@ export function createConfig(
     resolve: {
       extensions: ['.ts', '.tsx', '.mjs', '.js', '.jsx'],
       mainFields: ['main:src', 'browser', 'module', 'main'],
-      modules: [paths.targetNodeModules, paths.rootNodeModules],
       plugins: [
         new ModuleScopePlugin(
           [paths.targetSrc, paths.targetDev],
diff --git a/packages/cli/src/lib/bundler/server.ts b/packages/cli/src/lib/bundler/server.ts
index bf78c9b9fb..a004bee1a9 100644
--- a/packages/cli/src/lib/bundler/server.ts
+++ b/packages/cli/src/lib/bundler/server.ts
@@ -38,7 +38,11 @@ export async function serveBundle(options: ServeOptions) {
   const paths = resolveBundlingPaths(options);
   const pkgPath = paths.targetPackageJson;
   const pkg = await fs.readJson(pkgPath);
-  const config = createConfig(paths, { ...options, isDev: true });
+  const config = createConfig(paths, {
+    ...options,
+    isDev: true,
+    isBackend: false,
+  });
   const compiler = webpack(config);
 
   const server = new WebpackDevServer(compiler, {
diff --git a/packages/cli/src/lib/bundler/types.ts b/packages/cli/src/lib/bundler/types.ts
index b375897fc9..62737374bd 100644
--- a/packages/cli/src/lib/bundler/types.ts
+++ b/packages/cli/src/lib/bundler/types.ts
@@ -22,7 +22,7 @@ export type BundlingOptions = {
   isDev: boolean;
   config: Config;
   appConfigs: AppConfig[];
-  isBackend?: boolean;
+  isBackend: boolean;
 };
 
 export type ServeOptions = BundlingPathsOptions & {