Cannot import external CSS files after upgrading to react-scripts 1.0.8

Created by: deepakjois

Is this a bug report?

Yes

Can you also reproduce the problem with npm 4.x?

Yes

Which terms did you search for in User Guide?

postcss

Environment

1. node -v:

v8.1.2

2. npm -v:

4.6.1

4. yarn --version (if you use Yarn):

0.24.6

3. npm ls react-scripts (if you haven’t ejected):

postcssbug@0.1.0 /Users/deepak/code/personal/postcssbug
└── react-scripts@1.0.8

Then, specify:

1. Operating system: OS X Sierra

2. Browser and version (if relevant): Not Relevant

Steps to Reproduce

create-react-app postcssbug

cd postcssbug

yarn add normalize.css

echo "@import '~normalize.css/normalize.css';" >> src/index.css

yarn start

Expected Behavior

yarn start should complete and launch a page in browser.

Actual Behavior

./~/normalize.css/normalize.css
Module build failed: Error: No PostCSS Config found in: /Users/deepak/code/personal/postcssbug/node_modules/normalize.css
    at <anonymous>

Reproducible Demo

Problem occured here: https://github.com/deepakjois/deepakjois.com/commit/f02c486dac3b03e3118b68205310eb09cce9e186

I was able to make it go away after downgrading react-scripts to 1.0.7. So far I am able to reproduce this reliably in three independent projects, including the one I created using steps above under “Steps to Reproduce”