Upgrading expo can not start because of the issue with AsyncStorage and firebase auth – React native

Most questions that I read on the topic said they receive Warning while, I receive Error and I can not run my project.

Today I upgraded expo-sdk from v.45 to v.48. Since then the whole day I am fighting the following error :
Android Bundling complete 118ms ERROR Invariant Violation: AsyncStorage has been removed from react-native core. It can now be installed and imported from '@react-native-async-storage/async-storage' instead of 'react-native'

In my project, I do use AsyncStorage, however, I have imported it from the correct package. As I researched the issue comes from the fact that firebase-auth uses AsyncStorage from the wrong package. Everything I tried and read on the internet did not work for me. Mainly people suggest using const auth = initializeAuth(app, { persistence: getReactNativePersistence(AsyncStorage)}); I had troubles with that as well (everybody suggest it be imported from firebase/auth/react-native'; however I can’t import it from there)

My main question is why I can not start my expo. Everybody says this issue is a warning however I do receive it as an error and I can not start my project.

My package.json:

{
  "main": "node_modules/expo/AppEntry.js",
  "scripts": {
    "start": "expo start",
    "android": "expo start --android",
    "ios": "expo start --ios",
    "web": "expo start --web",
    "eject": "expo eject",
    "debug": "firebase emulators:start --inspect-functions"
  },
  "dependencies": {
    "@expo/config-plugins": "~6.0.0",
    "@react-native-async-storage/async-storage": "1.17.11",
    "@react-native-camera-roll/camera-roll": "^5.2.4",
    "@react-native-community/datetimepicker": "6.7.3",
    "@react-native-community/netinfo": "9.3.7",
    "@react-native-community/slider": "4.4.2",
    "@react-native-firebase/app": "^17.3.1",
    "@react-native-firebase/auth": "^17.3.1",
    "@react-navigation/bottom-tabs": "^6.3.2",
    "@react-navigation/elements": "^1.3.3",
    "@react-navigation/material-top-tabs": "^6.2.2",
    "@react-navigation/native": "^6.0.10",
    "@react-navigation/stack": "^6.2.2",
    "@react-navigation/web": "^1.0.0-alpha.9",
    "axios": "^0.21.1",
    "expo": "^48.0.4",
    "expo-av": "~13.2.1",
    "expo-blur": "~12.2.2",
    "expo-camera": "~13.2.1",
    "expo-device": "~5.2.1",
    "expo-env-info": "^1.0.5",
    "expo-file-system": "~15.2.2",
    "expo-image-manipulator": "~11.1.1",
    "expo-image-picker": "~14.1.1",
    "expo-image-picker-multiple": "^1.4.1",
    "expo-linking": "~4.0.1",
    "expo-location": "~15.1.1",
    "expo-media-library": "~15.2.2",
    "expo-modules-autolinking": "~1.1.0",
    "expo-notifications": "~0.18.1",
    "expo-permissions": "~14.1.1",
    "expo-server-sdk": "^3.6.0",
    "expo-status-bar": "~1.4.4",
    "expo-video-player": "^1.6.1",
    "expo-video-thumbnails": "~7.2.1",
    "firebase": "^8.2.3",
    "firebase-admin": "^10.3.0",
    "firebase-functions": "^3.21.2",
    "formik": "^2.2.9",
    "moment": "^2.29.1",
    "react": "^18.2.0",
    "react-dom": "18.2.0",
    "react-infinite-scroll-component": "^6.1.0",
    "react-native": "0.71.3",
    "react-native-bottomsheet-reanimated": "0.0.39",
    "react-native-dropdown-picker": "^4.0.9",
    "react-native-expo-cached-image": "^1.3.1",
    "react-native-form-validator": "^0.3.5",
    "react-native-geocoding": "^0.5.0",
    "react-native-gesture-handler": "~2.9.0",
    "react-native-gifted-chat": "^0.16.3",
    "react-native-google-places-autocomplete": "^2.1.2",
    "react-native-image-modal": "^2.0.3",
    "react-native-image-zoom-viewer": "^3.0.1",
    "react-native-interactable-reanimated": "0.0.15",
    "react-native-loading-spinner-overlay": "^2.0.0",
    "react-native-map-clustering": "^3.4.2",
    "react-native-maps": "1.3.2",
    "react-native-material-menu": "^2.0.0",
    "react-native-mentions": "^1.1.4",
    "react-native-modalbox": "^2.0.2",
    "react-native-optimized-flatlist": "^1.0.4",
    "react-native-orientation": "^3.1.3",
    "react-native-pager-view": "6.1.2",
    "react-native-paper": "^4.9.2",
    "react-native-parsed-text": "0.0.22",
    "react-native-popup-dialog": "^0.18.3",
    "react-native-progress": "^5.0.0",
    "react-native-ratings": "^8.1.0",
    "react-native-reanimated": "~2.14.4",
    "react-native-safe-area-context": "4.5.0",
    "react-native-screens": "~3.20.0",
    "react-native-svg": "13.4.0",
    "react-native-tab-view": "^3.1.1",
    "react-native-unimodules": "~0.14.5",
    "react-native-vector-icons": "^8.1.0",
    "react-native-video": "^2.3.1",
    "react-native-video-player": "^0.12.0",
    "react-native-walkthrough-tooltip": "^1.3.1",
    "react-native-web": "~0.18.11",
    "react-navigation": "^4.4.4",
    "react-redux": "^7.2.2",
    "redux": "^4.0.5",
    "redux-devtools-extension": "^2.13.9",
    "redux-thunk": "^2.4.2",
    "rn-tooltip": "^3.0.1",
    "rne-modal-tooltip": "gist:b28c003d87c619674def0878473338a0",
    "unimodules-permissions-interface": "^6.1.0",
    "yup": "^0.32.9"
  },
  "devDependencies": {
    "@babel/core": "^7.20.0",
    "eslint": "^8.17.0",
    "eslint-plugin-react": "^7.30.0"
  },
  "private": true
}