Unable to install on node 16

Can't install ts-loader with node 16.

Expected Behaviour

Install should be successful in ts-loader repository with node 16.

Actual Behaviour

node 16 install fails in ts-loader repository with the following output

npm ERR! code ERESOLVE
npm ERR! ERESOLVE unable to resolve dependency tree
npm ERR! 
npm ERR! While resolving: ts-loader@9.3.0
npm ERR! Found: webpack@5.37.1
npm ERR! node_modules/webpack
npm ERR!   dev webpack@"^5.20.0" from the root project
npm ERR! 
npm ERR! Could not resolve dependency:
npm ERR! peer webpack@"2 || 3" from babel-loader@7.1.2
npm ERR! node_modules/babel-loader
npm ERR!   dev babel-loader@"^7.0.0" from the root project
npm ERR! 
npm ERR! Fix the upstream dependency conflict, or retry
npm ERR! this command with --force, or --legacy-peer-deps
npm ERR! to accept an incorrect (and potentially broken) dependency resolution.

Steps to Reproduce the Problem

I used v16.15.0 (npm v8.5.5) but you can use any version of node 16.

1. Go into ts-loader repository
2. Run npm i
3. You'll quickly see the above error output

Location of a Minimal Repository that Demonstrates the Issue.

This repository.

Start by reproducing the failure with Node 16 and npm i in the ts-loader repository. Inspect the dependency declarations for the babel-loader and webpack peer-dependency conflict; done means installation succeeds without requiring --force or --legacy-peer-deps.