Where I did wrong

Webpack is a module bundler. It takes all of your code and assets, such as Javascript, CSS, images, etc., and bundles them together into a format that can be efficiently served to the browser.

const HtmlWebpackPlugin = require('html-webpack-plugin');

module.exports = {
  module: {
    rules: [
      {
        test: /\\.(js|jsx)$/,
        exclude: /node_modules/,
        use: {
          loader: 'babel-loader',
        },
      },
      // use css modules
      {
        test: /\\.css$/,
        exclude: /node_modules/,
        use: [
          'style-loader',
          {
            loader: 'css-loader',
            options: {
							// importLoaders: 1 allows css to resolve @import 
              importLoaders: 1,
							// allow module css to work 
              modules: true,
            },
          },
        ],
        include: /\\.module\\.css$/,
      },
      // use css only
      {
        test: /\\.css$/,
        use: ['style-loader', 'css-loader'],
        exclude: [/\\.module\\.css$/, /node_modules/],
      },
    ],
  },
  plugins: [
    new HtmlWebpackPlugin({
      template: './public/index.html',
      filename: './index.html',
    }),
  ],
	// Attempt to resolve these extensions in order.
	// Original: import MyComponent from '../my-componenet.jsx'
	// After passed in .jsx: import MyComponent from '../my-component'
  resolve: {
    extensions: ['.js', '.jsx'],
  },
};