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React-scripts v5 manages the lasting caching created through webpack by using a feature called persistent caching. This feature allows webpack to cache the files it generates and updates only the files that have been modified, resulting in faster and more efficient builds. The cache is stored in a directory called .cache in the project's root directory. The cache can be cleared by deleting the .cache directory, for example, by running the command rm -rf .cache. This will force webpack to rebuild all the files from scratch, which can take longer, but can also help resolve issues related to caching.