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current working flow:

downgrade react-scripts@4.0.3

initiate highlighter

const monacoJSXHighlighter = new MonacoJSXHighlighter(
   monaco, babel, traverse, aMonacoEditor()
);
// Activate highlighting (debounceTime default: 100ms)
monacoJSXHighlighter.highlightOnDidChangeModelContent(100);
// Activate JSX commenting
monacoJSXHighlighter.addJSXCommentCommand();



function aMonacoEditor() {
   return monaco.editor.create(
      document.getElementById("editor"), {
         value: 'const AB=<A x={d}\><B\>{"hello"}</B\></A\>;',
         language: 'javascript'
      });
}

References​