From the error message, it looks like it's an incompatibility with the monaco-editor package.

From the webpage directed by the error message:

One of your dependencies (node_modules) imports a CSS file.

[…]

Compiled dependencies do not have references to CSS files, or any other files that require bundler-specific integrations.

The dependency should also provide instructions about what CSS needs to be imported by you, in your application.

Looking at the README from monaco-editor, it has several types of bundles one can use:

You will get:

• inside esm: ESM version of the editor (compatible with e.g. webpack)
• inside dev: AMD bundled, not minified
• inside min: AMD bundled, and minified
  […]
  It is recommended to develop against the dev version, and in production to use the min version.

It seems like you are importing the ESM version, but as stated above, this is for webpack compatibility and this sounds like it falls within the "bundler-specific integrations" and thus would not be compatible.

Try following the monaco editor's recommendation and use dev instead for development and min in production.