Changes to the project.json file in an Nx monorepo doesn't reflect on Nx CLI behaviour

I have set up an Nx monorepo for a Nest.js Standalone.

I noticed that when I changed my project.json configurations to change Nx Commands and add modes (Dev, Prod) so I toggle optimization in webpack config, Nx didn't apply those changes.

Here is my new project.json configuration:

{
  "name": "name",
  "$schema": "node_modules/nx/schemas/project-schema.json",
  "sourceRoot": "src",
  "projectType": "application",
  "targets": {
    "build": {
      "executor": "@nx/webpack:webpack",
      "outputs": [
        "{options.outputPath}"
      ],
      "defaultConfiguration": "development",
      "options": {
        "target": "node",
        "outputPath": "dist/name",
        "main": "src/main.ts",
        "tsConfig": "tsconfig.app.json",
        "assets": [
          "src/assets"
        ],
        "generatePackageJson": true,
        "webpackConfig": "./webpack.config.js"
      },
      "configurations": {
        "development": {
          "inspection": true,
          "env": {
            "NODE_ENV": "development"
          }
        },
        "production": {
          "inspection": false,
          "env": {
            "NODE_ENV": "production"
          },
          "fileReplacements": [
            {
              "replace": "src/environments/environment.ts",
              "with": "src/environments/environment.prod.ts"
            }
          ]
        }
      }
    },
    "serve": {
      // not necessary for this
    },
  },
  "tags": []
}

for more context, here is my webpack.config.js:

const { NxAppWebpackPlugin } = require('@nx/webpack/app-plugin');
const { join } = require('path');
const nodeExternals = require('webpack-node-externals');

const isProd = process.env.NODE_ENV === 'production';
console.log(isProd);

module.exports = {
  target: 'node',
  mode: isProd ? 'production' : 'development',
  devtool: isProd ? 'source-map' : 'eval-source-map',

  output: {
    path: join(__dirname, './dist/el-marchi-api'),
    filename: 'main.js',
    clean: true,
  },

  optimization: {
    minimize: isProd,
    moduleIds: 'deterministic',
    splitChunks: isProd ? {
      chunks: 'all',
      minSize: 20000,
      minChunks: 1,
    } : false,
  },

  externals: [nodeExternals()],

  plugins: [
    new NxAppWebpackPlugin({
      target: 'node',
      compiler: 'swc',
      main: './src/main.ts',
      tsConfig: './tsconfig.app.json',
      assets: ['./src/assets'],
      optimization: false,
      outputHashing:  'none',
      generatePackageJson: true,
      sourceMap: true,
    }),
  ],

  experiments: {
    topLevelAwait: true,
  },
};

when running the command nx build here is the output:

nx build

> nx run name:build:development

true
...

as you can see it shows true which means isProd was evaluated to true.

Note:

Here are the fixes that I tried:

1. Update Everything
2. Run the command nx clean
3. delete node_modules and reclean the cache and reinstalled everything
4. I tried deleting the commands altogether, yet still even after that it still runs the old version.
5. I tried using npx instead

The problem still persists.

Any idea how to solve this problem or what's the source of it?