Merge pull request #26538 from StateFarmIns/fix-webpack-for-pnp-fun

Add watchOptions to frontend webpack config

.changeset/quick-dog-jump.md

@@ -0,0 +1,5 @@
+---
+'@backstage/cli': patch
+---
+
+Added `watchOptions` to frontend webpack config for compatibility with Yarn PnP

packages/cli/src/lib/bundler/config.ts

@@ -347,6 +347,13 @@ export async function createConfig(
   return {
     mode,
     profile: false,
+    ...(isDev
+      ? {
+          watchOptions: {
+            ignored: /node_modules/,
+          },
+        }
+      : {}),
     optimization,
     bail: false,
     performance: {