Cannot load stylesheet. Get "Bundle Error: Unexpected token"

[brandonfake69]

I am working of a brand new install of the Hello World Extension. I've modified it as follows:

 import { initializeBlock } from "@airtable/blocks/ui";
 import React from "react";
 import "./styles.css";
 
 function HelloWorldApp() {
   // YOUR CODE GOES HERE
   return <div className="red">Hello world 🚀</div>;
 }
 
 initializeBlock(() => <HelloWorldApp />);

Where styles.css is:

 .red {                     
   color: red;              
 } 

When I run block run I get the following error:
Bundle Error: Unexpected token

According to this comment It should work but it doesn't. It worked as early as a few weeks ago but then I started another project and now it doesn't?