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Webpacker 4 is incompatible with the "newly" released webpack-dev-server@4, which may be breaking new projects created with potassium.
Updating Rails to 6.1 gives us access to Webpacker 5 which fixes the problem by fixing the version of the package to 3.
Mostly a placeholder until Webpacker 6 gets released, with compatibility with wds@4.
For existing projects: Upgrading to Rails 6.1 and Webpacker 5 seems to be seamless with our current setup, none of the changes should affect us but of course it depends on the project. Tested with mok and it worked as-is after running the update helper.