graphql-codegen will not start the local development server if placed inside the "src" directory

Describe the bug

I am in the process of setting up [graphql-codegen](https://github.com/dotansimha/graphql-code-generator) and I've come to a realization that when trying to generate my types, queries, and mutations in my src directory, when I start my local development server (react-scripts start), I get this output from my console:

Starting the development server...

However, this hangs for a long time. I'm not even sure if it will compile or do anything. As of writing, I've let it sit for more than 10 minutes with no movement. There are no errors. The code generated is about 8000 lines long, so I'm wondering if it could be that.

I've tried deleting that and moving my code outside of the src directory and I was actually able to start my server in a few seconds. I thought this would help, but when I try to import something outside of the src directory, I am met with this error:

Module not found: Error: You attempted to import ../../../generated/graphql which falls outside of the project src/ directory. Relative imports outside of src/ are not supported.
You can either move it inside src/, or add a symlink to it from project's node_modules/.

To the last point of using symlink, I tried going about this route, but I would need to set up babel since the generated code uses things like import and export, and I feel like that's overkill, though it seems like the only realistic option for now.

Did you try recovering your dependencies?

I am using yarn -- I have tried deleting node_modules, yarn.lock, etc. Nothing worked. yarn version: 1.22.19

Environment

npx create-react-app --info
Need to install the following packages:
  create-react-app
Ok to proceed? (y) y
npm WARN deprecated tar@2.2.2: This version of tar is no longer supported, and will not receive security updates. Please upgrade asap.

Environment Info:

  current version of create-react-app: 5.0.1
  running from /Users/david/.npm/_npx/c67e74de0542c87c/node_modules/create-react-app

  System:
    OS: macOS 13.2
    CPU: (10) arm64 Apple M1 Pro
  Binaries:
    Node: 16.15.1 - /usr/local/bin/node
    Yarn: 1.22.19 - /usr/local/bin/yarn
    npm: 8.11.0 - /usr/local/bin/npm
  Browsers:
    Chrome: 110.0.5481.177
    Edge: Not Found
    Firefox: 107.0.1
    Safari: 16.3
  npmPackages:
    react: ^18.1.0 => 18.2.0 
    react-dom: ^18.1.0 => 18.2.0 
    react-scripts: 5.0.1 => 5.0.1 
  npmGlobalPackages:
    create-react-app: Not Found

Steps to reproduce

(Write your steps here:)

If you have graphql and graphql-codegen set up, create a few queries and run codegen. Have it output into the src directory.
Run the local server
Observe it might freeze.
generate the queries outside of the src directory
run the local development server.
import it. It will complain that I can't import from outside the src directory.

Expected behavior

The expected behavior is to have the local development server start normally despite having a large file generated in src

Actual behavior

Local development server hangs indefinitely.