Failed to compile - node_modules\expo\AppEntry.js: Unknown option: .web

I am running SDK 35 with expo managed workflow and typescript.
I used the guide from the documentation to setup the web target.
If I try to compile for web it shows

ReferenceError: [BABEL] node_modules\expo\AppEntry.js: Unknown option: .web. Check out https://babeljs.io/docs/en/babel-core/#options for more 

Here is my babel.config.js:

module.exports = function(api) {
    api.cache(true);
    return {
        presets: ['babel-preset-expo',
        {
            web: { disableImportExportTransform: true }
        }],
    };
};