Package built with tsup/esBuild can't find `react` in react-scripts app

Question

I have an npm package that I built using esBuild that I am using in a react-scripts application. I'm running a build on the package and manually copying and pasting the build folder to /node_modules in the react-scripts app due to an issue with volta and npm-link.

When I run my application I get an error in my npm package code Context.js:4 Uncaught TypeError: undefined is not a function it's not finding createContext that's imported from react.

import { createContext } from 'react';

const EventContext = createContext();

Here is my tsup.config.js file for the npm package:

import { sassPlugin } from '@es-pack/esbuild-sass-plugin';
import { defineConfig } from 'tsup';

export default defineConfig({
  entry: ['src/index.js'],
  splitting: true,
  sourcemap: true,
  clean: true,
  dts: true,
  format: ['esm'],
  target: 'es2020',
  bundle: true,
  esbuildPlugins: [sassPlugin()],
});

And these are my dependencies and peerDependencies in the npm package

"peerDependencies": {
    "classnames": ">=2.0.0 <3.0.0",
    "prop-types": ">=15.0.0 <16.0.0",
    "react": ">=17.0 <18.0.0",
    "react-dom": ">=17.0 <18.0.0"
  },
  "dependencies": {
    "@xstate/react": "^2.0.1",
    "focus-trap": "^6.6.1",
    "react-share": "^4.4.0",
    "xstate": "^4.30.6"
  },

Is there an issue between the react-scripts build setup and the esBuild package output? My application has [email protected] installed and works fine without my npm package installed. Why can't my npm package code import react?