Partially revert #32588

[rickhanlonii]

#32588 changed the babel config impacting local tests, and I'm not able to run test:

This PR reverts those changes until we can re-land with a fix.

[react-sizebot]

Comparing: 17d274dc127400b31379a1b26c5be53599c36aa5...a434966a7a159a3aed37c35cc00035df0cd870f9

Critical size changes

Includes critical production bundles, as well as any change greater than 2%:

Name	+/-	Base	Current	+/- gzip	Base gzip	Current gzip
oss-stable/react-dom/cjs/react-dom.production.js	=	6.68 kB	6.68 kB	=	1.83 kB	1.83 kB
oss-stable/react-dom/cjs/react-dom-client.production.js	=	516.17 kB	516.17 kB	=	92.15 kB	92.15 kB
oss-experimental/react-dom/cjs/react-dom.production.js	=	6.69 kB	6.69 kB	=	1.83 kB	1.83 kB
oss-experimental/react-dom/cjs/react-dom-client.production.js	=	604.42 kB	604.42 kB	=	107.31 kB	107.31 kB
facebook-www/ReactDOM-prod.classic.js	=	649.90 kB	649.90 kB	=	114.56 kB	114.56 kB
facebook-www/ReactDOM-prod.modern.js	=	640.22 kB	640.22 kB	=	113.00 kB	113.00 kB

Significant size changes

Includes any change greater than 0.2%:

(No significant changes)

Generated by 🚫 dangerJS against d33f117