TypeError: callback is not a function

I am trying to upgrade to webpack 4 from 2. Getting the following of webpack-middleware error while running the server.

Versions:
Webpack: 4.34.0
webpack-middleware: 1.5.1
node: 10.0.0

TypeError: callback is not a function
at invalidAsyncPlugin (/Users/nilofer/workplace/node_modules/webpack-middleware/middleware.js:104:3)
at AsyncSeriesHook.eval [as callAsync] (eval at create (/Users/nilofer/workplace/node_modules/tapable/lib/HookCodeFactory.js:33:10), :18:1)
at AsyncSeriesHook.lazyCompileHook (/Users/nilofer/workplace/node_modules/tapable/lib/Hook.js:154:20)
at Watching._go (/Users/nilofer/workplace/node_modules/webpack/lib/Watching.js:40:32)
at Watching.compiler.readRecords.err (/Users/nilofer/workplace/node_modules/webpack/lib/Watching.js:32:9)
at Compiler.readRecords (/Users/nilofer/workplace/node_modules/webpack/lib/Compiler.js:479:11)
at new Watching (/Users/nilofer/workplace/node_modules/webpack/lib/Watching.js:29:17)
at Compiler.watch (/Users/nilofer/workplace/node_modules/webpack/lib/Compiler.js:207:10)
at runWithDependencies (/Users/nilofer/workplace/node_modules/webpack/lib/MultiCompiler.js:203:30)
at asyncLib.map (/Users/nilofer/workplace/node_modules/webpack/lib/MultiCompiler.js:178:6)
at arrayEachIndex (/Users/nilofer/workplace/node_modules/neo-async/async.js:2548:9)
at Object.map (/Users/nilofer/workplace/node_modules/neo-async/async.js:2900:9)
at runCompilers (/Users/nilofer/workplace/node_modules/webpack/lib/MultiCompiler.js:175:13)
at MultiCompiler.runWithDependencies (/Users/nilofer/workplace/node_modules/webpack/lib/MultiCompiler.js:187:3)
at MultiCompiler.watch (/Users/nilofer/workplace/node_modules/webpack/lib/MultiCompiler.js:198:9)
at module.exports (/Users/nilofer/workplace/node_modules/webpack-middleware/middleware.js:129:27)
at /Users/nilofer/workplace/frontend-utilities/tools/start.js:92:26
at new Promise (/Users/nilofer/workplace/node_modules/babel-cli/node_modules/core-js/modules/es6.promise.js:177:7)
at /Users/nilofer/workplace/tools/start.js:23:9
at Generator.next ()
at step (/Users/nilofer/workplace/tools/start.js:175:191)
at /Users/nilofer/workplace/tools/start.js:175:361

Commenting it, the code works. But unable to resolve this.

Start at node_modules/webpack-middleware/middleware.js:104 and trace the call from tools/start.js:92 under Webpack 4.34.0, webpack-middleware 1.5.1, and Node 10. Compare the middleware's async callback expectations with the reported stack trace. Done means the server runs with the relevant code enabled and no TypeError.

Written by the indexing model from the issue text.