Error: Unable to use specified module loaders for ".ts".

Describe the bug

Hey there, just updated to wp-cli 4.1 an webpack 5.3 and getting the following error

What is the current behavior?

> webpack --mode development

[webpack-cli] Error: Unable to use specified module loaders for ".ts".
    at Object.exports.prepare (/home/stan/projects/work/vscode-core/node_modules/rechoir/index.js:58:11)
    at requireConfig (/home/stan/projects/work/vscode-core/node_modules/webpack-cli/lib/groups/ConfigGroup.js:70:17)
    at Array.map (<anonymous>)
    at resolveConfigFiles (/home/stan/projects/work/vscode-core/node_modules/webpack-cli/lib/groups/ConfigGroup.js:124:40)
    at module.exports (/home/stan/projects/work/vscode-core/node_modules/webpack-cli/lib/groups/ConfigGroup.js:233:11)
    at WebpackCLI._baseResolver (/home/stan/projects/work/vscode-core/node_modules/webpack-cli/lib/webpack-cli.js:68:38)
    at /home/stan/projects/work/vscode-core/node_modules/webpack-cli/lib/webpack-cli.js:198:30
    at async WebpackCLI.runOptionGroups (/home/stan/projects/work/vscode-core/node_modules/webpack-cli/lib/webpack-cli.js:197:9) {
  failures: [
    { moduleName: 'ts-node/register', module: null, error: [Error] },
    {
      moduleName: 'typescript-node/register',
      module: null,
      error: [Error]
    },
    { moduleName: 'typescript-register', module: null, error: [Error] },
    { moduleName: 'typescript-require', module: null, error: [Error] },
    { moduleName: 'sucrase/register/ts', module: null, error: [Error] },
    { moduleName: '@babel/register', module: null, error: [Error] }
  ]
}

To Reproduce

My config:

// eslint-disable-next-line @typescript-eslint/no-var-requires
const path = require('path');

const config = {
    target: 'node',

    entry: './src/extension.ts',
    output: {
        filename: 'extension.js',
        libraryTarget: "commonjs2",
        devtoolModuleFilenameTemplate: "../[resource-path]",
    },
    devtool: 'source-map',
    externals: {
        vscode: "commonjs vscode"
    },
    resolve: {
        extensions: ['.ts', '.js']
    },
    module: {
        rules: [{
            test: /\.ts$/,
            exclude: /node_modules/,
            use: [{
                loader: 'ts-loader',
                options: {
                    compilerOptions: {
                        "module": "es6"
                    }
                }
            }]
        }]
    },
};

module.exports = config;

Steps to reproduce the behavior:

1. webpack --mode development

Expected behavior

functioning build

Screenshots

Please paste the results of webpack-cli info here, and mention other relevant information

Additional context