diff --git a/e2e/web/src/web.test.ts b/e2e/web/src/web.test.ts
index e9bc5aaf15..5313ee636a 100644
--- a/e2e/web/src/web.test.ts
+++ b/e2e/web/src/web.test.ts
@@ -289,14 +289,17 @@ describe('CLI - Environment Variables', () => {
 
     updateFile(main2, `${newCode2}\n${content2}`);
 
-    runCLI(`run-many --target build --all --outputHashing=none`, {
-      env: {
-        ...process.env,
-        NODE_ENV: 'test',
-        NX_BUILD: '52',
-        NX_API: 'QA',
-      },
-    });
+    runCLI(
+      `run-many --target build --all --outputHashing=none --optimization=false`,
+      {
+        env: {
+          ...process.env,
+          NODE_ENV: 'test',
+          NX_BUILD: '52',
+          NX_API: 'QA',
+        },
+      }
+    );
     expect(readFile(`dist/apps/${appName}/main.js`)).toContain(
       'const envVars = ["test", "52", "QA", "ws-base", "ws-env-local", "ws-local-env", "app-base", "app-env-local", "app-local-env", "shared-in-app-env-local"];'
     );
diff --git a/packages/react/plugins/with-react.ts b/packages/react/plugins/with-react.ts
index 26c6265046..c5092768f8 100644
--- a/packages/react/plugins/with-react.ts
+++ b/packages/react/plugins/with-react.ts
@@ -1,18 +1,63 @@
 import type { Configuration } from 'webpack';
 import type { WithWebOptions } from '@nrwl/webpack';
+import type { NxWebpackExecutionContext } from '@nrwl/webpack';
 
 const processed = new Set();
 
 interface WithReactOptions extends WithWebOptions {}
 
+function addHotReload(config: Configuration) {
+  if (config.mode === 'development' && config['devServer']?.hot) {
+    // add `react-refresh/babel` to babel loader plugin
+    const babelLoader = config.module.rules.find(
+      (rule) =>
+        typeof rule !== 'string' &&
+        rule.loader?.toString().includes('babel-loader')
+    );
+
+    if (babelLoader && typeof babelLoader !== 'string') {
+      babelLoader.options['plugins'] = [
+        ...(babelLoader.options['plugins'] || []),
+        [
+          require.resolve('react-refresh/babel'),
+          {
+            skipEnvCheck: true,
+          },
+        ],
+      ];
+    }
+
+    const ReactRefreshPlugin = require('@pmmmwh/react-refresh-webpack-plugin');
+    config.plugins.push(new ReactRefreshPlugin());
+  }
+}
+
+// We remove potentially conflicting rules that target SVGs because we use @svgr/webpack loader
+// See https://github.com/nrwl/nx/issues/14383
+function removeSvgLoaderIfPresent(config: Configuration) {
+  const svgLoaderIdx = config.module.rules.findIndex(
+    (rule) => typeof rule === 'object' && rule.test.toString().includes('svg')
+  );
+
+  if (svgLoaderIdx === -1) return;
+
+  config.module.rules.splice(svgLoaderIdx, 1);
+}
+
 export function withReact(pluginOptions: WithReactOptions = {}) {
-  return function configure(config: Configuration, _ctx?: any): Configuration {
+  return function configure(
+    config: Configuration,
+    context: NxWebpackExecutionContext
+  ): Configuration {
     const { withWeb } = require('@nrwl/webpack');
 
     if (processed.has(config)) return config;
 
     // Apply web config for CSS, JSX, index.html handling, etc.
-    config = withWeb(pluginOptions)(config, _ctx);
+    config = withWeb(pluginOptions)(config, context);
+
+    addHotReload(config);
+    removeSvgLoaderIfPresent(config);
 
     config.module.rules.push({
       test: /\.svg$/,
@@ -35,28 +80,6 @@ export function withReact(pluginOptions: WithReactOptions = {}) {
       ],
     });
 
-    if (config.mode === 'development' && config['devServer']?.hot) {
-      // add `react-refresh/babel` to babel loader plugin
-      const babelLoader = config.module.rules.find(
-        (rule) =>
-          typeof rule !== 'string' &&
-          rule.loader?.toString().includes('babel-loader')
-      );
-      if (babelLoader && typeof babelLoader !== 'string') {
-        babelLoader.options['plugins'] = [
-          ...(babelLoader.options['plugins'] || []),
-          [
-            require.resolve('react-refresh/babel'),
-            {
-              skipEnvCheck: true,
-            },
-          ],
-        ];
-      }
-      const ReactRefreshPlugin = require('@pmmmwh/react-refresh-webpack-plugin');
-      config.plugins.push(new ReactRefreshPlugin());
-    }
-
     // enable webpack node api
     config.node = {
       __dirname: true,
diff --git a/packages/webpack/src/utils/with-web.ts b/packages/webpack/src/utils/with-web.ts
index a7845f0da2..4116e998f6 100644
--- a/packages/webpack/src/utils/with-web.ts
+++ b/packages/webpack/src/utils/with-web.ts
@@ -25,6 +25,7 @@ import CssMinimizerPlugin = require('css-minimizer-webpack-plugin');
 import MiniCssExtractPlugin = require('mini-css-extract-plugin');
 import autoprefixer = require('autoprefixer');
 import postcssImports = require('postcss-import');
+import { NxWebpackExecutionContext } from '@nrwl/webpack/src/utils/config';
 
 interface PostcssOptions {
   (loader: any): any;
@@ -58,10 +59,7 @@ export type MergedOptions = Omit<
 export function withWeb(pluginOptions: WithWebOptions = {}) {
   return function configure(
     config: Configuration,
-    {
-      options: executorOptions,
-      context,
-    }: { options: NormalizedWebpackExecutorOptions; context: ExecutorContext }
+    { options: executorOptions, context }: NxWebpackExecutionContext
   ): Configuration {
     if (processed.has(config)) return config;
 
@@ -367,7 +365,7 @@ export function withWeb(pluginOptions: WithWebOptions = {}) {
 
     config.optimization = {
       ...config.optimization,
-      minimizer,
+      minimizer: [...config.optimization.minimizer, ...minimizer],
       emitOnErrors: false,
       moduleIds: 'deterministic' as const,
       runtimeChunk: mergedOptions.runtimeChunk ? ('single' as const) : false,