Failing to compile - unexpected character '#'

[Yorkshireman]

When I compile my app with webpack on the command line it compiles fine. My test-unit script works fine but my test-functional script fails with:

     WEBPACK  Failed to compile with 2 error(s)
    
    Error in ./node_modules/union/lib/core.js
    
      Module not found: 'spdy' in '/Users/ast70/projects/noteapp/node_modules/union/lib'
    
    Error in ./node_modules/ecstatic/lib/ecstatic.js
    
      Module parse failed: Unexpected character '#' (1:0)
      You may need an appropriate loader to handle this file type.
      | #! /usr/bin/env node
      |
      | var path = require('path'),

package.json:

    {
      "name": "noteapp",
      "version": "1.0.0",
      "description": "<obfuscated>",
      "main": "index.js",
      "scripts": {
        "lint": "./node_modules/.bin/eslint src test --cache",
        "start": "./node_modules/.bin/http-server",
        "test": "npm run test-unit; npm run test-functional",
        "test-unit": "./node_modules/.bin/mocha-webpack --interactive false $(find ./test/unit -name \"*.js\") -r chai/register-expect",
        "test-functional": "./node_modules/.bin/mocha-webpack --interactive false --webpack-config webpack.config.test-functional.js $(find ./test/functional -name \"*.js\") -r chai/register-expect --timeout 10000 || true"
      },
      "author": "<obfuscated>",
      "license": "ISC",
      "devDependencies": {
        "chai": "^4.1.2",
        "eslint": "^4.10.0",
        "eslint-config-airbnb": "^16.1.0",
        "eslint-plugin-import": "^2.8.0",
        "eslint-plugin-jsx-a11y": "^6.0.2",
        "eslint-plugin-react": "^7.4.0",
        "http-server": "^0.10.0",
        "mocha": "^4.0.1",
        "mocha-webpack": "^2.0.0-alpha.0",
        "puppeteer": "^1.0.0",
        "sinon": "^4.1.3",
        "webpack-cli": "^2.1.3"
      },
      "dependencies": {
        "webpack": "^4.8.3"
      }
    }

webpack.config:

    module.exports = {
      entry: './src/word-list-controller.js',
      output: {
        filename: 'bundle.js'
      },
      mode: 'development'
    };

webpack.config.test-functional.js:

    const config = require('./webpack.config');
    
    config.target = 'node';
    module.exports = config;

The reason I want to use mocha-webpack is so I don't have to manually compile with webpack before I run my tests. Allegedly, mocha-webpack does the compiling without saving a bundle.js, too, which is handy.