Revisit `--legacy-peer-deps` in our package.json aka Remove `--legacy-peer-deps` from npm install

### Why this change?

* **Avoids bypassing peer dependency validation**
The `--legacy-peer-deps` flag ignores peer dependency conflicts, which can hide real compatibility issues between packages.

* **Improves dependency correctness**
By allowing npm to enforce peer dependency rules (as intended in npm v7+), we ensure that all installed packages are compatible with each other.

* **Prevents hidden runtime issues**
Ignoring peer dependencies can lead to subtle bugs at runtime that are harder to debug later.

* **Aligns with modern npm best practices**
The flag is meant as a temporary workaround and not recommended for long-term use.

## 📌 Work Item: Remove legacy peer deps workaround

Remove `--legacy-peer-deps` and fix dependency tree properly

### Description

Currently, the project uses `--legacy-peer-deps` during `npm install`, which bypasses peer dependency validation.

This creates a risk of:

* Installing incompatible package versions
* Masking underlying dependency issues
* Introducing runtime instability

### Goals

* Remove reliance on `--legacy-peer-deps`
* Ensure a clean and valid dependency tree
* Align all peer dependencies correctly