I am dealing with this error when trying to run a spec in Cypress but I am not able to find the root cause.

Error: Webpack Compilation Error
Module parse failed: Unexpected character '�' (1:0)
You may need an appropriate loader to handle this file type, currently no loaders are 
configured to process this file. See https://webpack.js.org/concepts#loaders
(Source code omitted for this binary file)

According to this error there is a binary file breaking everything but I have no idea where it is.

Some relevant information that I can provide, I am using the latest versions if cypress and webpack to ensure that I am not running into old bugs. Actually I am just installing webpack latest version to see if that solves the issue but it did not work.

cypress: 13.13.1
webpack: 5.93.0

There are several issues on the internet talking about editing the configuration file but I did not need to create so far and if I try to copy those configuration file I create even more issues so I would like to start from the scrat in that front if I need to create it.