Pipeline build fails - webpack/css-loader?

Hello there I am having issue with my pipeline which i just created . it’s quite basic:

image: node:16

pipelines:
  default:
    - parallel:
        - step:
            name: Banking Front end
            caches:
              - node
            script:
              - npm install
              - npm run build
              - npm test

But i am getting this error:

> webpack --config webpack/webpack.config.js --env env=prod
ERROR in ./src/common/styles/injectors.css (./node_modules/css-loader/dist/cjs.js!./src/common/styles/injectors.css) 5:36-107
Module not found: Error: Can't resolve './Fonts/Rauschen/Rauschen-ARegular-Web.woff' in '/opt/atlassian/pipelines/agent/build/src/common/styles'
 @ ./node_modules/css-loader/dist/cjs.js!./node_modules/sass-loader/dist/cjs.js!./src/common/styles/authPage.scss 4:0-111 6:26-59
 @ ./src/common/styles/authPage.scss 8:6-155 22:17-24 26:0-125 26:0-125 27:22-29 27:33-47 27:50-64
 @ ./src/views/logOutPage.tsx 7:0-40
 @ ./src/common/router/routerContainer.tsx 29:9-41
 @ ./src/index.tsx 5:0-62 39:32-47

When i run

npm run build

in local it works as it should.

Is the issue somewhere in webpack?.

module.exports = {
	entry: path.resolve(__dirname, '..', '/src/index.tsx'),
	resolve: {
		extensions: ['.tsx', '.ts', '.js'],
	},
	module: {
		rules: [
			{
				test: /\.(ts|js)x?$/,
				exclude: /node_modules/,
				use: [
					{
						loader: 'babel-loader',
					},
				],
			},
			{
				test: /\.css$/,
				use: ['style-loader', 'css-loader'],
			},
			{
				test: /\.s[ac]ss$/i,
				use: [
					// Creates `style` nodes from JS strings
					"style-loader",
					// Translates CSS into CommonJS
					"css-loader",
					// Compiles Sass to CSS
					"sass-loader"
				]
			},
			{
				test: /\.(woff(2)?|eot|ttf|otf|)$/,
				type: 'asset/inline',
			},
			{
				test: /\.(png|jpe?g|gif|jp2|webp|ico|svg)$/,
				loader: 'file-loader',
				options: {
					name: '[name].[ext]',
				},
			},
		],
	},
	plugins: [
	],
	stats: 'errors-only',


module.exports = (envVars) => {
	const { env } = envVars
	const envConfig = require(`./webpack.${env}.js`)
	const config = merge(commonConfig, envConfig)
	return config
}