CRACO build failes because of React Refresh Babel

[rkesters]

What's happening
Running craco build fails with

Error: [BABEL] /xxx/repo/ccpaas_frontend/src/index.tsx: React Refresh Babel transform should only be enabled in development environment. Instead, the environment is: "production". If you want to override this check, pass {skipEnvCheck: true} as plugin options. (While processing: "/xxxe/repo/ccpaas_frontend/node_modules/react-refresh/babel.js")

What should happen
should not fail

To reproduce
execute the build command

CRACO version
7.0.1

CRACO config

module.exports = {
  plugins: [{ plugin: require("@semantic-ui-react/craco-less") }],
};

package.json

"dependencies": {
    "@aws-amplify/api": "^5.3.3",
    "@aws-amplify/auth": "^5.5.3",
    "@aws-amplify/cache": "^5.1.3",
    "@aws-amplify/core": "^5.5.2",
    "@aws-amplify/datastore": "^4.6.3",
    "@aws-amplify/ui-react": "^5.0.4",
    "@aws-sdk/util-utf8-browser": "^3.259.0",
    "@craco/craco": "^7.1.0",
    "@monaco-editor/react": "^4.3.1",
    "@semantic-ui-react/craco-less": "^3.0.0",
    "@testing-library/jest-dom": "^5.15.0",
    "@testing-library/react": "^12.1.2",
    "@testing-library/user-event": "^13.5.0",
    "@types/guacamole-client": "^1.0.5",
    "@types/isomorphic-fetch": "^0.0.35",
    "@types/jest": "^27.0.2",
    "@types/node": "^16.11.7",
    "@types/react": "^17.0.35",
    "@types/react-dom": "^17.0.11",
    "@types/react-router": "^5.1.17",
    "@types/react-router-dom": "^5.3.2",
    "@types/react-syntax-highlighter": "^13.5.2",
    "@types/uuid": "^8.3.1",
    "@typescript-eslint/eslint-plugin": "^4.28.4",
    "@typescript-eslint/parser": "^4.28.4",
    "@uiw/react-md-editor": "^3.20.0",
    "aws-amplify": "^5.3.3",
    "aws-sdk": "^2.1414.0",
    "axios": "^0.24.0",
    "babel-eslint": "^10.1.0",
    "cp-react-tree-table": "^1.1.1",
    "cypress": "^11.2.0",
    "cypress-dotenv": "^2.0.0",
    "dotenv": "^10.0.0",
    "eslint": "^7.31.0",
    "eslint-config-react-app": "^6.0.0",
    "eslint-plugin-react": "^7.27.0",
    "eslint-plugin-react-hooks": "^4.3.0",
    "flexlayout-react": "^0.5.5",
    "guacamole-client": "^1.4.0-rc",
    "isomorphic-fetch": "^3.0.0",
    "mustache": "^4.2.0",
    "prettier": "^2.4.1",
    "rc-tree": "^4.2.2",
    "react": "^17.0.1",
    "react-contexify": "^5.0.0",
    "react-dom": "^17.0.1",
    "react-dropzone": "^11.3.4",
    "react-hook-form": "^6.15.4",
    "react-icons": "^4.3.1",
    "react-markdown": "^8.0.3",
    "react-query": "^3.33.1",
    "react-router-dom": "^5.2.0",
    "react-scripts": "^5.0.1",
    "react-semantic-toasts": "^0.6.5",
    "react-syntax-highlighter": "^15.4.5",
    "react-timeago": "^5.3.0",
    "semantic-ui-less": "^2.4.1",
    "semantic-ui-react": "^2.0.4",
    "ssm-session": "^1.0.4",
    "typescript": "^4.5.2",
    "usehooks-ts": "^2.9.1",
    "uuid": "^8.3.2",
    "web-vitals": "^3.1.0",
    "xterm": "^4.15.0",
    "xterm-addon-fit": "^0.5.0"
  }

Additional information

[sarah-cleveland]

I ran into this issue as well and had to set REACT_APP_FAST_REFRESH AND FAST_REFRESH to false.

[augusto-joecoffee]

same for me

[eric-nguyen-cs]

You can also set the NODE_ENV to production to solve this build error.
If you are coming from create-react-app, the NODE_ENV is hard-coded for the react-scripts build command whereas the craco build command uses the user-defined NODE_ENV if possible.
Is that intended @dilanx ?