If you ever chance upon this error, fret not. Pop over to babel.config.js, simply add 'react-native-reanimated/plugin' under “plugins” in'module.exports'
Solution
In babel.config.js,
module.exports = {
presets: ["module:metro-react-native-babel-preset"],
plugins: ["react-native-reanimated/plugin"],
};
(The above is a basic example to recreate the error and solution. Your babel.config.js might be different. As long as the 'react-native-reanimated/plugin' is added correctly, the error should be resolved after restarting the development server and running npx react-native start --reset-cache .