fix compilation

packages/next/src/build/webpack-config.ts

@@ -110,8 +110,16 @@ const babelIncludeRegexes: RegExp[] = [
   /[\\/](strip-ansi|ansi-regex|styled-jsx)[\\/]/,
 ]
 
-const preCompileReactRegex =
-  /next[\\/]dist[\\/]compiled[\\/](react|react-dom|react-server-dom-webpack)(-experimental)?($|[\\/])/
+const browserNonTranspileModules = [
+  // Transpiling `process/browser` will trigger babel compilation error due to value replacement.
+  // TypeError: Property left of AssignmentExpression expected node to be of a type ["LVal"] but instead got "BooleanLiteral"
+  // e.g. `process.browser = true` will become `true = true`.
+  /[\\/]node_modules[\\/]process[\\/]browser/,
+  // Exclude precompiled react packages from browser compilation due to SWC helper insertion (#61791),
+  // We fixed the issue but it's safer to exclude them from compilation since they don't need to be re-compiled.
+  /[\\/]next[\\/]dist[\\/]compiled[\\/](react|react-dom|react-server-dom-webpack)(-experimental)?($|[\\/])/,
+]
+const precompileRegex = /[\\/]next[\\/]dist[\\/]compiled[\\/]/
 
 const asyncStoragesRegex =
   /next[\\/]dist[\\/](esm[\\/])?client[\\/]components[\\/](static-generation-async-storage|action-async-storage|request-async-storage)/
@@ -1423,7 +1431,12 @@ export default async function getBaseWebpackConfig(
           ? [
               {
                 test: codeCondition.test,
-                exclude: [codeCondition.exclude, transpilePackagesRegex],
+                exclude: [
+                  // exclude unchanged modules from react-refresh
+                  codeCondition.exclude,
+                  transpilePackagesRegex,
+                  precompileRegex,
+                ],
                 issuerLayer: WEBPACK_LAYERS.appPagesBrowser,
                 use: reactRefreshLoaders,
                 resolve: {
@@ -1471,7 +1484,8 @@ export default async function getBaseWebpackConfig(
                   {
                     test: codeCondition.test,
                     issuerLayer: WEBPACK_LAYERS.appPagesBrowser,
-                    exclude: preCompileReactRegex,
+                    // Exclude the transpilation of the app layer due to compilation issues
+                    exclude: browserNonTranspileModules,
                     use: appBrowserLayerLoaders,
                     resolve: {
                       mainFields: getMainField(compilerType, true),

test/integration/babel-next-image/.babelrc

@@ -1,4 +1,4 @@
 {
   "presets": ["next/babel"],
   "plugins": []
-}
+}