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NextJS projects should work out-of-the-box when Storybook is initialized. 1. Scenario: .babelrc or project babel.config.(m)js(x) file doesn't exist In this case Next.js >= 12 uses swc to transpile the code. In Storybook we will still use babel to transpile the code. We use the preset `next/babel` and configure it to make the Next.js project work with Storybook. Any SWC/Next compiler related options are ignored 2. Scenario: .babelrc or project babel.config.(m)js(x) file exist Storybook will use the project's babel configuration for transpiling. All options, which are passed to the `next/babel` prest are respected.