stylesheet_pack_tag not finding app/javascript/src/application.css in rails 5.1 with webpacker gem : <p>I am receiving this error when I try to load a page in my new rails 5.1 app using webpacker. I would like webpacker to handle CSS as well. </p>

<pre><code>Started GET "/" for ::1 at 2017-09-01 12:20:23 -0400
Processing by HomeController#welcome as HTML
  Rendering home/welcome.html.erb within layouts/application
  Rendered home/welcome.html.erb within layouts/application (0.4ms)
Completed 500 Internal Server Error in 28ms



ActionView::Template::Error (Webpacker can't find application.css in /Users/myusername/Documents/testing-ground/myapp/public/packs/manifest.json. Possible causes:
1. You want to set wepbacker.yml value of compile to true for your environment
   unless you are using the `webpack -w` or the webpack-dev-server.
2. Webpack has not yet re-run to reflect updates.
3. You have misconfigured Webpacker's config/webpacker.yml file.
4. Your Webpack configuration is not creating a manifest.
Your manifest contains:
{
  "application.js": "/packs/application-1ba6db9cf5c0fb48c785.js",
  "hello_react.js": "/packs/hello_react-812cbb4d606734bec7a9.js"
}
):
     7:     &lt;%= stylesheet_link_tag    'application', media: 'all', 'data-turbolinks-track': 'reload' %&gt;
     8:     &lt;%= javascript_include_tag 'application', 'data-turbolinks-track': 'reload' %&gt;
     9:     &lt;%= javascript_pack_tag 'application' %&gt;
    10: &lt;%= stylesheet_pack_tag 'application' %&gt;
    11:   &lt;/head&gt;
    12:
    13:   &lt;body&gt;

app/views/layouts/application.html.erb:10:in `_app_views_layouts_application_html_erb__1178607493020013329_70339213085820'
</code></pre>

<p>I am running the <code>./bin/webpack-dev-server</code> alongside the <code>rails server</code>. I created the app using: </p>

<p><code>rails new myapp --webpack</code> 
<code>bundle</code>
<code>bundle exec rails webpacker:install:react</code></p>

<p>I have a single CSS file <code>app/javascript/src/application.css</code>. (Writing that makes me feel something is wrong. Putting css inside of a javascript directory seems improper.)</p>

<p>I just have single root route defined <code>root to: 'home#welcome'</code>.</p>

<p>Here is <code>app/views/layouts/application.html.erb</code></p>

<pre><code>&lt;!DOCTYPE html&gt;
&lt;html&gt;
  &lt;head&gt;
    &lt;title&gt;Myapp&lt;/title&gt;
    &lt;%= csrf_meta_tags %&gt;

    &lt;%= javascript_pack_tag 'application' %&gt;
    &lt;%= stylesheet_pack_tag 'application' %&gt;
  &lt;/head&gt;

  &lt;body&gt;
    &lt;%= yield %&gt;
  &lt;/body&gt;
&lt;/html&gt;
</code></pre>

<p>Here is my <code>config/webpacker.yml</code> (I have tried also setting compile to <code>false</code> in development.</p>

<pre><code># Note: You must restart bin/webpack-dev-server for changes to take effect

default: &amp;default
  source_path: app/javascript
  source_entry_path: packs
  public_output_path: packs
  cache_path: tmp/cache/webpacker

  # Additional paths webpack should lookup modules
  # ['app/assets', 'engine/foo/app/assets']
  resolved_paths: []

  # Reload manifest.json on all requests so we reload latest compiled packs
  cache_manifest: false

  extensions:
    - .coffee
    - .erb
    - .js
    - .jsx
    - .ts
    - .vue
    - .sass
    - .scss
    - .css
    - .png
    - .svg
    - .gif
    - .jpeg
    - .jpg

development:
  &lt;&lt;: *default
  compile: true

  dev_server:
    host: localhost
    port: 3035
    hmr: false
    https: false

test:
  &lt;&lt;: *default
  compile: true

  # Compile test packs to a separate directory
  public_output_path: packs-test

production:
  &lt;&lt;: *default

  # Production demands on precompilation of packs prior to booting for performance.
  compile: false

  # Cache manifest.json for performance
  cache_manifest: true
</code></pre>

<p>I don't want to add too many details up-front incase they are more distracting then helpful. Please ask for anything else and I'll add to my question. Thanks!</p>
