Cannot configure expo app properly `Failed to read config at: /app.config.js`

I am trying to develop an application and I am having trouble getting it to build once I added dotenv.

In my app.config.js I have

import "dotenv/config";const API_URL = process.env["API_URL"] || "";const API_VERSION = process.env["API_VERSION"] || "";const MIRAGE_ENABLED = process.env["MIRAGE_ENABLED"] === "true" ? true : false;const NODE_ENV = process.env["NODE_ENV"];export default {  name: "My Application",  version: "0.0.0",  extra: {    API_URL,    API_VERSION,    MIRAGE_ENABLED,    NODE_ENV,  },};

in my app.json I have:

{"expo": {"name": "my-application","slug": "my-application","owner": "my-expo","privacy": "unlisted","version": "0.0.0","orientation": "landscape","icon": "./assets/images/icon.png","sdkVersion": "37.0.0","platforms": ["ios"],"splash": {"image": "./assets/images/splash.png","resizeMode": "contain","backgroundColor": "#ffffff"    },"updates": {"fallbackToCacheTimeout": 0    },"assetBundlePatterns": ["**/*"],"ios": {"supportsTablet": true,"bundleIdentifier": "io.company.my-application","buildNumber": "0.0.0"    }  }}

After reading the documentation I am more confused than before. The output of expo build is:

Failed to read config at: .../app.config.jsConfigError: Failed to read config at: .../app.config.js    at Object.getDynamicConfig (/Users/me/.npm-global/lib/node_modules/expo-cli/node_modules/@expo/config/src/getConfig.ts:37:9)    at getConfig (/Users/me/.npm-global/lib/node_modules/expo-cli/node_modules/@expo/config/src/Config.ts:121:62)    at validateAsync (/@expo/xdl@58.0.12/src/project/Doctor.ts:438:24)    at Object.validateWithoutNetworkAsync (/@expo/xdl@58.0.12/src/project/Doctor.ts:419:10)    at /Users/me/.npm-global/lib/node_modules/expo-cli/src/exp.ts:644:35    at Command.<anonymous> (/Users/me/.npm-global/lib/node_modules/expo-cli/src/exp.ts:331:7

which is no help at all. Searching for Failed to read config at: .../app.config.js yielded no results whatsoever.

What am I doing wrong? What is the best practice for configuration using expo in this manner? Any help would be greatly appreciated.