Cypress throwing SyntaxError: 'import' and 'export' may appear only with 'sourceType: module' (17:0)

I am trying to use cypress select tests but facing the following exception. Did anyone face this issue before?

cypress/plugins/index.ts

const TC_GROUPING = require('cypress-select-tests/grep')

module.exports = (on, config) => {
    
    require('cypress-terminal-report/src/installLogsPrinter')(on, {
            printLogsToConsole: 'always'
        }
    )
    
    on('file:preprocessor', TC_GROUPING(config))

    on('task', {
        // Returns the customer Object of type: Customer
        createCustomer: () => {
            console.log("This is Sample Function")
        }
    })

    return config
}

Error Message:

SyntaxError: 'import' and 'export' may appear only with 'sourceType: module' (17:0)
    at Parser.pp$4.raise (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/acorn/dist/acorn.js:2927:15)
    at Parser.pp$1.parseStatement (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/acorn/dist/acorn.js:870:18)
    at Parser.pp$1.parseTopLevel (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/acorn/dist/acorn.js:755:23)
    at Parser.parse (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/acorn/dist/acorn.js:555:17)
    at Function.parse (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/acorn/dist/acorn.js:578:37)
    at Object.parse (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/acorn/dist/acorn.js:5143:19)
    at module.exports (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/falafel/index.js:23:22)
    at Object.findTests (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/cypress-select-tests/src/spec-parser.js:95:3)
    at process (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/cypress-select-tests/src/itify.js:18:33)
    at Stream.onend (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/cypress-select-tests/src/itify.js:52:18)
    at _end (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/through/index.js:65:9)
    at Stream.stream.end (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/through/index.js:74:5)
    at DestroyableTransform.onend (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/through2/node_modules/readable-stream/lib/_stream_readable.js:577:10)
    at Object.onceWrapper (events.js:416:28)
    at DestroyableTransform.emit (events.js:322:22)
    at endReadableNT (/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/node_modules/through2/node_modules/readable-stream/lib/_stream_readable.js:1010:12)
    at processTicksAndRejections (internal/process/task_queues.js:84:21)

Error: The following error was thrown by a plugin. We stopped running your tests because a plugin crashed. Please check your plugins file (`/Users/saahithg/workspace/ElmoCypressFinal/src/ElmoCypress/cypress/plugins/index.ts`)
    at Object.get (/private/tmp/cypress_cache/5.4.0/Cypress.app/Contents/Resources/app/packages/server/lib/errors.js:968:15)
    at EventEmitter.handleError (/private/tmp/cypress_cache/5.4.0/Cypress.app/Contents/Resources/app/packages/server/lib/plugins/index.js:159:20)
    at EventEmitter.emit (events.js:310:20)
    at ChildProcess.<anonymous> (/private/tmp/cypress_cache/5.4.0/Cypress.app/Contents/Resources/app/packages/server/lib/plugins/util.js:19:22)
    at ChildProcess.emit (events.js:310:20)
    at emit (internal/child_process.js:876:12)
    at processTicksAndRejections (internal/process/task_queues.js:85:21)

Added the following lines in plugins/index.ts as mentioned in blog: https://en.it1352.com/article/1963119.html but no luck. Did anyone encounter this issue?

    const options = {
        // send in the options from your webpack.config.js, so it works the same
        // as your app's code
        webpackOptions: require('../../webpack.config'),
        watchOptions: {}
    }

    on('file:preprocessor', web_pack(options))

webpack.config.js

const path = require('path');

module.exports = {
    entry: './src/index.ts',
    module: {
        rules: [
            {
                test: /\.tsx?$/,
                use: 'ts-loader',
                exclude: /node_modules/,
            },
        ],
    },
    resolve: {
        extensions: ['.tsx', '.ts', '.js'],
    },
    output: {
        filename: 'bundle.js',
        path: path.resolve(__dirname, 'dist'),
    },
};