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The issue is that when using NPM link, the symbolic link created for the module does not include the CSS files. Therefore, when importing the CSS file in the React app, it cannot be found and the error is thrown. This is because the symbolic link only includes the JavaScript files and not the static assets such as CSS files. To fix this issue, you can either copy the CSS files into the React app's src folder, or use a bundler like Webpack to handle the CSS imports.