npm run build is broken

The webpack build build fails at:

ERROR in ./node_modules/@openedx/paragon/dist/Card/fallback-default.png
Module build failed (from ./node_modules/image-webpack-loader/index.js):
Error
    at ChildProcess._handle.onexit (node:internal/child_process:285:19)
    at onErrorNT (node:internal/child_process:483:16)
    at process.processTicksAndRejections (node:internal/process/task_queues:82:21)
 @ ./node_modules/@openedx/paragon/dist/Card/CardImageCap.js 55:0-56 102:28-46 171:15-33
 @ ./node_modules/@openedx/paragon/dist/Card/index.js
 @ ./node_modules/@openedx/paragon/dist/index.js
 @ ./openassessment/xblock/static/js/src/lms/containers/WaitingStepDetailsContainer.jsx
 @ ./openassessment/xblock/static/js/src/lms/oa_staff_waiting_step.jsx
 @ ./openassessment/xblock/static/js/src/lms/oa_base.js
 @ ./openassessment/xblock/static/js/src/lms_index.js

I can fix the issue with:

diff --git a/webpack.prod.config.js b/webpack.prod.config.js
index 1ac5c9e95..f235c3310 100644
--- a/webpack.prod.config.js
+++ b/webpack.prod.config.js
@@ -18,6 +18,10 @@ let config = createConfig('webpack-prod');
 const modifiedCssRule = {
   module: {
     rules: [
+      {
+        test: /\.png$/,
+        loader: 'file-loader',
+      },
       // This babel-loader config is pulled from frontend-build@13.0.4
       // When we update frontend-build to above that version, this section
       // can be removed and we can fallback to the implementation upstream.

But unsure if the issue needs to be fixed here, in paragon, or in the common base config from openedx/frontend-build.

Start by reproducing npm run build and inspect webpack.prod.config.js around modifiedCssRule; trace the failing PNG through @openedx/paragon and the openedx/frontend-build common config. Done means the repository build completes without the image-webpack-loader error, with the fix placed in the appropriate configuration.